Govt lifts ban on licences for new CNG stations

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) after a gap of 12 years has formally lifted the ban on the issuance of licences for new CNG stations but only for those running on re-gasified liquefied natural gas (RLNG).

The regulator has invited applications with a warning that the applicant has to give an undertaking that he will not seek natural gas supply. Since 2008, there was ban on the issuance of new licences. In October last year, the ECC had directed the OGRA to issue only RLNG-based new licenses to CNG stations. It asked the regulator that the new CNG stations would not seek indigenous gas.

Meanwhile, the SNGPL has announced that the CNG stations will be opened from 6am on Sunday (today). The CNG sector existing consumption is 188 mmcfd. In 2011, it was up to 400 mmcfd, the sharp decline was due to shortage of domestic gas.

Now, after the decision, the CNG sector would absorb the imported RLNG, as the government is in favour of granting licences for RLNG-based CNG stations, keeping in view its less environmental impacts compared to petrol.

All Pakistan CNG Association Central Chairman Ghiyas Abdullah Paracha said that apart from giving permission for licences of new CNG stations, the government has also lifted the ban on import of CNG kits.

The import duty and sales tax on CNG kits have been slashed and the new kits are 15 per cent fuel efficient against petrol at the EFI engine fitted vehicles, he said. “We are optimistic that by end-February, the large scale conversions, even in public transport, will start.”

The government lifted the ban on CNG conversions in new vehicles in 2019 and with the success of new EFI compatible kits, it is expected that the local auto assemblers would resume manufacturing CNG-fitted vehicles.