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Thursday October 28, 2021

APCNGA for uninterrupted gas supply to CNG stations

By APP
October 12, 2021
APCNGA for uninterrupted gas supply to CNG stations

Islamabad: Central leader of All Pakistan Compressed Natural Gas Association (APCNGA) Ghiyas Abdullah Paracha has requested the government to ensure provision of uninterrupted gas supply to LNG-based CNG stations.

There should be no supply curtailment to CNG sector if there is any shortage or delay in berthing of Liquefied Natural Gas (LNG) vessels, he said while talking to APP. Paracha, who is also CEO of Universal Gas Distribution Company (UGDC), was of the view that private sector players including the CNG entrepreneurs should be encouraged to import the LNG aimed at meeting needs of the industrial sector especially CNG.

He feared that the gas supply chain would affect in the upcoming coming winter season that could be avoided with effective engagement of private sector entities in the LNG import. He expressed confidence that the government would fulfil all commitments it made with APCNGA for complete revival of the CNG industry and requested to bring down the taxes ratio, as the CNG that was around 30 per cent inexpensive than petrol would greatly help in giving a boost to economic activities in the country. The APCNGA leader said there

were some bureaucratic snags for private import and utilization of the LNG, which would hopefully be removed at the earliest as the government believed in opening up the energy sector for private sector players. He believed the government would generate the billions of rupees annual revenue year after flow of private sector LNG in the transmission network of Sui Southern Gas Company and Sui Northern Gas Pipelines Limited.

He said a formula already existed to inject re-gasified LNG in the pipelines of the gas companies, supply to CNG stations and other industries and collect bills from consumers by paying rent to SSGC and SNGPL against utilisation of their transmission network.

The UGDC CEO said it would be a win-win situation for all stakeholders as the private sector would get business and consumers a smooth supply of gas throughout the year without any financial involvement of the government. Paracha said some 500,000 vehicles were running on CNG across the country; and the number would further increase with uninterrupted supply of LNG to the gas stations.