ISLAMABAD - Reiterating his earlier stance to wipe out once robust CNG industry, Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain has now declared that CNG stations would be phased out owing to shortage of gas in the country.
Dr Asim stated this while talking to the media persons on Monday in the premises of the Ministry of Petroleum and Natural Resources (MP&NR). He, however, made it clear that complete closure of CNG business and loadshedding of CNG in winter is linked with the availability of gas in the country.
“We can provide CNG to public transport but cant make it sure for luxurious vehiles,” Asim said, adding that unfortunately rich class has been using CNG for their vehicles.
Over a question pertaining to gas outages in upcoming winter for domestic consumers, he said domestic consumers would have to bear low loadshedding in comparison with the previous year’s loadshedding in the country.
About the import of LNG to the country, Advisor to Prime Minister said that import of LNG has become necessary in a bid to control the gas crisis, adding, “Negotiations are underway with American gas companies for the import of 3 BCFD of LNG to the country”. Dr Asim also told that a summary pertaining to the import of 1BCFD of LNG would be sent to the Economic Coordination Committee (ECC) of the cabinet.
Pakistan is the largest user of CNG in the world, overtaking Iran, Argentina and Brazil in the number of vehicles using gas as fuel, replacing more polluting fuels, according to the economic survey 2010-11. A total 2.74 million vehicles are running on CNG fuel in Pakistan, which account for almost two-thirds of cars and small commercial vehicles, according to the International Association for Natural Gas Vehicles. The country also holds the record for most number of CNG stations.
Earlier, in first phase, recklessly pursuing money-minting motives at the cost of thousands of consumers, the MP&NR had put a cap on CNG business and refused to renew the license of nearly 300 CNG stations. Similarly, in second phase, the Petroleum Ministry directed the Oil and Gas Regulatory Authority (Ogra) to put a ban on around 900 CNG stations located in residential areas besides declining renewal to 15-year-old CNG stations, paving the way for the closure of all CNG outlets in three year’s time.
It is pertinent to mention here that CNG is a cheap fuel. Punjab is consuming 320 millions of cubic feet per day (mmcfd) of gas in the shape of CNG, whereas Sindh is consuming 140 mmcfd while Pakistan’s total gas requirement is 8 billion cubic feet (bcf), whereas it only produces 4 bcf, fulfilling the deficit through imports. The shortfall would be covered by importing liquefied natural gas (LNG) in coming years.
The CNG industry was set up in 1997 in Pakistan. It saw a massive boom due to high petroleum prices during the past decade and 3.5 million commercial and private vehicles were converted to CNG. But Pakistan started experiencing gas shortfall in 2007, which worsened in the following years, forcing the government to put an end to CNG industry, which is estimated to be valuing more than Rs15 trillion.