LAHORE: The Lahore Chamber of Commerce & Industry (LCCI) called for implementation of PEPRA Rules in LNG deals.
In a statement issued here on Tuesday, the LCCI President Ijaz A Mumtaz said that the import would not only fulfill energy needs but it would also help boost economic activities in the country.
Referring to debate in the Senate of Pakistan, the LCCI President said that government should ensure transparency in price fixation.
Ijaz A. Mumtaz said that the LCCI believes that the decision to import LNG would pave way for economic activities in the country but in case the deals are not done transparently, the situation could be the other way round.
The LCCI President said that there were no two opinions that the country was paying a very heavy price of energy shortage but at the same time comparatively costly LNG purchases would play havoc with manufacturing sector.
The LCCI president said that Pakistani merchandise were facing hard competition in the international market due to cost of doing business and industrial sector was in a dire need of an affordable fuel.
He believes it is very unfortunate that the country has been suffering from power shortages for the last many years, thus badly affecting the GDP growth and lowering overall production.
Ijaz A. Mumtaz said that LNG would play an important role in mitigating the energy related issues therefore government should ensure transparency in LNG deals at any cost.
He said that the power generation cost through LNG will reduce by 40 per cent as compared to diesel.
He said that the LNG import price will be submitted before the Economic Coordination Committee (ECC) for approval.
He said that Pakistan heavily relies on its import of furnace oil and diesel to fuel power stations and both fuels are relatively expensive as compared to LNG, which is cheaper and a more efficient alternative. LNG is also cleaner and considered environment-friendly.
The LCCI President said that re-gasification of LNG will allow generation facilities to reach their maximum potential, using a cleaner and more efficient fuel, and will support the country’s push for greater energy security and diversification.
He said that the converted fuel will help the government make an estimated savings of about $1.0 billion per annum on its current fuel import bill of nearly $15 billion.
