ISLAMABAD – The independent power producers (IPPs)’s inability or unwillingness to pick up the imported LNG would force them to funnel the expensive imported fuel quantities into their distribution system in order to make it available to CNG suppliers thereby causing at least 15 per cent line losses and run the risk of theft.
Thus, the IPPs’ unwillingness to buy the imports of LNG that are due to arrive on March 31 is liable to put Sui Northern and Sui Southern in a tough spot. The CNG sector has volunteered to buy the imported LNG to sell to vehicles through their outlets. Most CNG pumps in Punjab are currently closed due to a gas shortage, but there is no way of selling the LNG to the pumps alone because they receive their gas from the same distribution network that also caters to domestic consumers.
CNG would continue to be 30 per cent more cost-effective than petrol in terms of mileage, All Pakistan CNG Association Chairman Ghias Paracha said. His associates, however, say that the existing CNG rates, worked out at $11.90 per million British Thermal Unit (MMBTU) against an anticipated CNG rate of $13.50 per MMBTU. In the short term, petrol prices are falling while an already-approved gas rate increase is being “artificially blocked”.