Senate panel recommends provision of 200MMCFD gas to CNG sector

ISLAMABAD: The Senate Standing Committee on Petroleum on Monday recommended providing at least 200 Million Cubic Feet per Day (MMCFD) to the Compressed Natural Gas (CNG) sector of the country.

In this regard, the committee met under the chair of Senator Abdul Qadir wherein Fida Muhammad, Sarfraz bugti, Engineer Rukhsana Zuberi, Afnan Ullah Khan, Prince Ahmed Umar Zai, Sadia Abbasi, Shamim Afridi, Taj Haider, managing directors of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), general manager Pakistan Petroleum Limited (PPL), Chairman Oil and Gas Regulatory Authority (OGRA), senior leadership of All Pakistan CNG Association (APCNGA), representatives of the Karachi Chamber of Commerce and senior leader of small industries Rehman Javed were in attendance.

The Senate Committee discussed in detail the issues pertain to non-issuance of license by Pakistan State Oil (PSO) for opening new petrol pumps despite Islamabad High Court’s (IHC) order, determination of gas supply mechanism to various sectors, import of Liquefied Natural Gas (LNG) and the issues by faced by the CNG industry.

While recommending that the sector be supplied with at least 200 MMCFD of gas, Senator Qadir advised MDs of SNGPL and SSGCL to take immediate steps in this direction, both of whom assured that they are ready to do so.

Ghiyas Abdullah Paracha while briefing the Senate Committee about the issues being faced by the CNG sector, said that the incumbent government is seriously faced with balance of payment issues and this issue can be resolved within no time with the promotion of CNG as an alternate fuel for the motor vehicles.

“Similarly, foreign remittance can be saved by approximately $2.1 billion dollar per annum on account of fuel import bill while 50pc cut in public transport fares is also possible and circular debt can be reduced by Rs1,500 billion besides, minimising environmental pollution by ensuring gigantic reduction in the carbon emissions with the use of eco-friendly CNG as a fuel for motor vehicles,” he claimed.

Paracha said that the sector’s revival will also generate thousands of employment opportunities.

He urged for the immediate restoration of gas supply to CNG stations of Punjab which are facing closure from the last seven months so that the public can be saved from the impact of rising oil prices in the international oil market.

Paracha also told the that the CNG is still cheaper than prevailing petrol price and the Compressed Natural Gas (CNG) industry can provide 43 percent and 55 percent cheaper eco-friendly fuel to the motor vehicles in comparison with the price of petrol and diesel respectively in order to provide immediate relief to the public only if the government facilitate CNG industry to purchase and bring gas to meet the needs of CNG industry.

Chairman Senate Committee said that approximately Rs1,100 billion worth subsidy was given to the power sector during then last fiscal and an estimated subsidy for the current year is Rs2,000 billion.

Senator Afnan Ullah Khan said that if in time action is not taken then the country can face a severe crisis so the CNG sector should be provided gas.