End to miseries of CNG users on the cards

UGDCL to provide RLNG to Punjab CNG sector;
Ogra set to provide license to private company this month

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) is set to extend this month licence for sale of gas to the Universal Gas Distribution Company Limited (UGDCL) that will provide RLNG to CNG stations across the Punjab province.

To this effect, the UGDCL has entered into an agreement with Gunvor for LNG supply.In addition, the UGDCL has also signed an agreement with Engro for re-gasification of its imported product.

A senior official of the regulator told The News that it was the first ever company that will be given license for sale of gas.Under the license, the said company will be able to provide RLNG (re-gasified liquefied natural gas) to CNG stations in the Punjab province.“We are at an advanced stage of extending license for sale of gas to the UGDCL and hopefully it would be given to the company within a week.

Currently, the state-owned Sui Northern and Sui Southern monopolize sale of natural and RLNG gas to all categories of consumers. Once the UGDCL gets the license, it will be the first ever private company to sale gas to the CNG sector in Punjab,” the official said. Under the license, the UGDCL will be importing 75 million cubic feet gas per day that will cater to the CNG sector of the Punjab. This will help ensure provision of RLNG at the CNG outlets for 5-6 days a week. On top of that, the Ministry of Petroleum and Natural Resources has already permitted the UGDC to import 75 million cubic feet gas per day on its own for CNG sector and to this effect it has written a letter to the SNGPL to make an agreement with the said company for allocating capacity allocation in transmission and distribution network.

Chairman All Pakistan CNG Association Ghiyas Abdullah Paracha said positive vibes were coming from the Ogra about extending license to the UGDCL and once the legal framework gets completed, the next course of action will kick off.

Paracha offered no more comments about the development arguing that once the license is issued, then details would be shared.However, sources said apart from Gunvor, the UGDCL was also in the process to make agreements with two more companies for the LNG supply

The Sui Northern and Sui Southern have also shown positive attitude mainly because of the ministry’s letter seeking allocation of 75 mmcfd gas capacity to be imported by UGDCL and to this effect both the state-owned gas utilities have extended the draft agreement to UGDCL.

“The agreement between the state-owned gas companies and UGDCL will be finalised once the license for sale of gas is issued by Ogra.”Right now in the Punjab the CNG outlets stand at 2,300, out of which 911 are operational. About 600 CNG stations have been closed down in the wake of unavailability of gas and 450 stations have become defaulters of the SNGPL.

If the UDGCL manages to import LNG, the CNG sector in the Punjab will flourish, as a sizeable number of CNG stations will start using more LNG bringing huge relief to the CNG users.If vehicles using the CNG increased in number the environment of Punjab will not only improve, but also help reduce the oil import bill.