CNG to be kept cheaper than petrol: Khaqan Abbasi

KARACHI: Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Thursday said RLNG-based CNG would be kept well below the price of petrol or else the Rs450 billion industry would not survive.

He was talking at the inauguration ceremony of Universal Gas Distribution Company (UGDC) which is the first company in Pakistan to obtain the license to import and market natural gas.

“The production of electricity will exceed demand within two years while there will be no scarcity of gas which will usher in a new era of progress and prosperity,” he said.

The minister said that gas was an important part of the nation’s energy mix which could not be overlooked. “Gas has been discovered from 71 wells during the tenure of the incumbent government, but it hasn’t boosted production, as many gas fields depleted during the same time,” he said.

He said the government was serious to contain the energy crisis and that was why a private company had been awarded a licence to import and market gas which would benefit consumers and bring improvement in the working of gas utilities.

Last year, the government spent substantial amounts of foreign exchange to import a million tonnes of urea, whereas now 1.5 million tonnes urea was surplus due to the availability of LNG, he said.

He added that industry and CNG stations in Punjab were now up and running, and were providing jobs to millions and revenue to the government. He said the government now planned to establish more LNG terminals and gas pipelines from Karachi to Lahore.

Abbasi said power generation for Thar coal was a matter of time, while the fuel complying with the euro standard would be available soon in the market. This he said would have a positive impact on the engines and the environment.

Earlier, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Raul Alam, Chairman of UGDC Brigadier Iftikhar, UGDC CEO Ghiyas Paracha, Petroleum Dealers Association President Abdul Sami Khan, and others lauded the efforts of the petroleum minister to improve the energy situation in the country.

They said they were satisfied with the performance of the government and would extend all out cooperation to settle the energy crisis which threatened the economic revival.

The speakers demanded establishing LNG terminals and gas pipelines on fast track, and said the involvement of the private sector in the gas business would impact the overall situation positively.