According to the economic survey 2004-05, some 700 Compressed Natural Gas (CNG) stations are operating in the country, while 200 are under construction.
By March 2005, about 700,000 vehicles were converted to CNG as compared to 450,000 vehicles during the same period last year, showing an increase of 56 percent. Consequently, production of natural gas has been increased, which stood at 1,003,198 million cubic feet (mmcf) during July-March 2004-05, as compared to 882,684 mmcf with an increase of 13.6 percent.
During July-March 2004-05, 3681 mmcfd of natural gas was supplied, as against 3,210 mmcfd during the same period last year.
The government has also planned to offer incentives to investors to introduce CNG buses in the major cities of country. On the contrary, the President of CNG stations owners association of Pakistan stated, in a recent interview, that to date, 900,000 vehicles have been converted into CNG and 720 stations all over the country are in operation.
Director General HDIP, Hilal, A. Raza in a recent briefing told the media that Pakistan had become the leading CNG using country in Asia and the 3rd in the world with '835' CNG stations.
As many as 10,000 cars and other vehicles with CNG fitted kits are added to the roads every month. Leading small car maker, Pak Suzuki is now rolling out 7,000 vehicles a month in which 50 percent are CNG-fitted units.
Around 800-850 Cuore vehicles are being produced a month with a 50 percent share of CNG-fitted units.
The share of CNG-fitted Dewan's Hyundai Santro vehicles sale is also over 50 percent out of its total monthly sale. Punjab had the highest number of over 383 CNG stations followed by over 133 in Sindh, over 130 in NWFP and only one station in Balochistan.
Pakistan's proven natural gas reservoirs stood at 26.8 trillion cubic feet (tcf) and due to a massive and unplanned use of natural gas, its being depleted at a rapid pace.
Pakistan's gas demand also exceeds its current supply. The first ever output of 1 tcf per annum (2005) of natural gas meets only 45 percent (approx.) of the country's energy need. According to SSGC calculations, Pakistan would face a shortfall of 350 mmcfd from the year 2010 and going upto 1,691 mmcfd in 2015 and 3,156 mmcfd in 2020.
The piped-gas projects from Iran and Central Asia are still in their preliminary stages and even if work on any one of the projects is started, it would take two years for the financial closing of the project and another three to four years in construction. Development of a 700-acres textile city has been announced by the Government at Port Qasim and a few other cement, edible oil and fertilisers projects which requires a bulk amount of natural gas.
In addition to that, Saudi Arabia's Al-Tuwairi Group of Companies (ATG) has signed a memorandum of understanding (MOU) to set up a steel billet plant in Port Qasim for which Sui Southern Gas Company (SSGC) will supply 45 million cubic feet of gas (mmcf) per day of piped natural gas to Tuwairqi Steel Mills Limited for 10 years with the option to extend the arrangement for another 10 years.
The minister for Petroleum and Natural Resources told National Assembly on December 4, 2005 that the gas reserves of Sui field are now only at 3,983 trillion tcf.
Moreover, the KESC has converted all the six Bin Qasim units to natural gas with a demand of 176 mmcfd but is still unable to run them on gas, due to the short supply of natural gas.
A convention on Better Air Quality in the Asia and Pacific Rim Cities was held in Hong Kong on December 2002 in which Dr Noman from Pakistan presented a paper in which he quoted that the estimated daily CNG consumption is 17 mmcfd in 2001 which was being consumed by 235,000 CNG converted vehicles.
Keeping in view the number of 900,000 (increasing drastically) CNG fitted vehicles today, one can easily calculate the increase of a drastic rate, there is about 75 mmcfd of natural gas is being consumed on a daily basis in Pakistan.
This results in long lines at CNG stations owning to low compressor capacity, with much need time taken by the dispenser unit to fill CNG in cars especially in peak hours. Karachi will soon have '8000' CNG fitted buses for which the city government has been given the task.
Since the piped gas project future seems volatile, the only option with the Government is to enhance oil and gas exploration. However there is a very low success rate in drilling of exploration wells. It is a fact that the average success in Pakistan is 1:4 as compared to a global average of 1:10.
Contrary to popular opinion, owing to the use of CNG, I believe that our energy planners have opted for the wrong approach. The switch over of power plants from furnace oil to natural gas has resulted in the fast depletion of natural gas, Some experts say "we are burning dollars (currency) for firing boilers of manufacturing units and industries.
I wonder why our president stressed the need of establishing more oil refineries in Pakistan, On one hand, the Government is promoting the use of CNG on account of less pollution and simultaneously it Is promoting new refineries, products of which are facing marketing problems.
Ironically, pollution causing diesel oil has been overlooked for decades. Recently in January 2006, the Federal Government instructed the provinces to phase out diesel-powered buses, mini-buses and wagons from the country's major cities by the end of 2007.
The meeting suggested that no permit be issued to diesel vehicles in Karachi, Lahore, Peshawar, Faisalabad, Quetta and Islamabad/Rawalpindi from 2007. Again the question arises that do we need more refineries in the country?
Consumers are now making a beeline at the CNG filling stations for gas.
Tailpipe emissions from CNG-powered vehicles may be relatively clean and you may live longer surrounded by vehicles that run on it. But if CNG doesn't kill you, waiting in those endless queues to get this new clean fuel, probably would.
It is suggested to contain the car manufactures immediately from further production of CNG fitted cars till the time of commencement of work on at least one of the three pipeline projects or LNG project execution. SSGC and SNGPL should calculate the demand and supply of natural gas being consumed as CNG to avoid massive depletion.