The restoration of gas supply to Compressed Natural Gas (CNG) outlets of Punjab through imported Liquefied Natural Gas (LNG) has delayed, as the Sui-Southern Gas Pipelines Limited (SNGPL) wants the ownership of the imported commodity, it is learnt.
In February 2015, the government planned to allocate 125 Million Cubic Feet per Day (MMCFD) of Liquefied Natural Gas (LNG) to Punjab based CNG stations, once the commodity import starts for which some 1,300 CNG stations of Punjab contributed Rs 1.35 million each to run the business on imported commodity, but now SNGPL wants ownership of the imported LNG and owners of the CNG stations have rejected this move.
According to sources to settle the issue a meeting between the Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and the CNG outlets' representatives was scheduled here on Monday but it was postponed because the minister remained unable to attend the meeting due to other official engagements. Sources said that now the meeting will be held within next few days, wherein matters related to restoration of gas supply to CNG outlets of the Punjab will be discussed and hopefully Punjab based CNG stations will be reopened within coming week.
According to Shahid Khaqan Abbasi, the government is not in a position to further continue gas supply to the CNG outlets in the Punjab, therefore, it has allowed the CNG sector to use imported LNG for operating their business and for this purpose the government will facilitate them.
The gas supply to the CNG stations of the Punjab was suspended from November 15, 2014 on intensification of the cold weather. The All Pakistan CNG Association (APCNGA) has established a new company ie Universal Gas Distribution Company (UGDC) for making arrangements of LNG import. According to sources, the UGDC has already paid millions of dollars to Pakistan State oil (PSO) to import the commodity for Punjab-based CNG stations.
The UGDC has expressed its willingness to open letter of credit for LNG shipments, requesting gas utilities to take care of tolling, billing, metering, connections and distribution on their behalf. The two utilities SNGPL and Sui-Southern Gas Company Limited (SSGC) have agreed with the Petroleum Ministry that they are ready to supply imported LNG to CNG sector, if CNG sector bears the burden of Unaccounted for Gas (UfG) losses.
The country has a total 3,495 CNG stations of which 2,400 are in Punjab and the rest in other provinces. Gas supply to CNG stations of Punjab is suspended since November 15, 2014, while in Khyber Pakhtunkhwa and Balochistan there is no gas load-shedding for the CNG sector and in Sindh in summer there is no gas load-shedding for CNG stations while in winter CNG stations remain open 4 days a week.
All Pakistan CNG Association Chairman Ghias Paracha said that CNG would continue to be 30 per cent more cost-effective than petrol in terms of mileage. Paracha said that CNG sector has the ability to import CNG in line with the LNG policy but some elements are hindering it. He said CNG sector initiated serious efforts on LNG for CNG project on the direction of the government and over eight hundred CNG stations in Punjab accepted LNG as cheap alternate for petrol.
CNG owners continue to pay rent, salaries and fixed bills of gas and electricity while the machinery is rusting due to suspended operations, he added. Ghiyas Paracha said the government is responsible for all losses if CNG stations were not reopened without any delay. He said the government failed to keep its promise of reopening CNG stations in Punjab by March 15th. He demanded action by Petroleum Minister against elements damaging CNG industry.