Ministry of Petroleum will seek approval from the Economic Co-ordination Committee (ECC) of the Cabinet to continue the ban on setting up of new CNG stations, and on policy guidelines for relocation of existing CNG stations sites in the proposed CNG Policy 2010.
There is consensus among all stakeholders on the proposed draft of the CNG Policy 2010 available with Business Recorder. The document states that "the government of Pakistan is empowered to frame policy guidelines [and] the Oil and Gas Regulatory Authority (Ogra) shall be the main agency to ensure implementation of regulatory aspects of the policy."
According to the draft of the Policy, CNG stations owners/licensees, subject to the following conditions will be allowed to relocate their sites/locations if: (i) the location/site of CNG station has been declared hazardous/unsafe to the public safety; (ii) there has been mushroom growth of CNG stations on the either side of a road in the existing area of operation; (iii) a particular area which is not properly served or unavailability of any CNG station; (iv) to cover any unforeseen circumstances; and (v) inter-provincial relocation of CNG station is not allowed.
CNG Policy 2010 has been formulated in consultation with the stakeholders to address the issues faced by the industry in realm of safety and environmental aspects of CNG stations, growth of CNG stations and CNG town gasification initiative.
CNG as an alternative to liquid fuels was introduced in 1982 in Pakistan when Hydrocarbon Development Institute of Pakistan (HDIP) established its first CNG station in Karachi. The private investment in CNG sector, however, remained modest and could not achieve the desired results. In 1990 HDIP's second CNG Station in Islamabad proved to be a watershed for the effective application of CNG technology. Resultantly, the private investors showed keen interest in development of the CNG industry.
The objectives of this Policy are; (i) import substitution of the deficit liquid fuels in the transport sector; (ii) optimisation of primary energy mix, based on economic and strategic considerations; (iii) providing cheaper motor fuel to the public; (iv) improving air quality and reducing atmospheric pollutants; (v) encouraging planned and sustainable growth of CNG industry to avoid mushroom growth of the CNG outlets/stations; and (vi) enforcing better industry discipline and safety culture in the CNG sector.