ISLAMABAD: Though the government has not imposed any ban on the CNG sector to import its own LNG but due to technical reasons there is no possibility that CNG association would be able to import its own LNG before December 2016, thus making the regular supply of gas to the sector impossible before that time.
Sui Northern Gas Pipelines Ltd has told the CNG sector that at the moment company is not in a position to transport their imported gas through their pipelines. The reason is that the pipeline capacity is not enough to transport gas above a certain limit. CNG sector whereas is doubtful about the whole scenario and considers that the government is blackmailing them and wants to force them to close their stations.
TheNation has reliably learnt that the government has only agreed that it would be able to supply LNG base gas to CNG sector that would be left over by the power sector. The first priority for the government at the moment is that the power sector use LNG for power generation. LNG that will be imported through PSO will be provided to power sector at first stage but at certain times when the power sector will not be using that gas, CNG sector would be able to use it.
CNG sector on the other side is insisting that it should be allowed to import its own LNG or it should be provided gas from the domestic quota. The government whereas has declined both the demands of the sector but on the technical grounds as in legal terms CNG owners can import their own LNG and the government has amended rules for the purpose of facilitating them in that regard.
CNG sector would only be able to import its LNG when the capacity of the gas pipelines will be upgraded in the country and that will happen in December 2016, sais Petroleum Minister Shahid Khaqan Abbasi. Minister while talking to this scribe said that the government whereas has assured the CNG sector that they will be provided more gas than they got previous year.
“Last year, CNG stations were open only for 54 days and this year we are expecting that they would be able to supply CNG to commuters for around 100 days out of 365”, Abbasi said. The government in order to facilitate the sector has set sales tax for CNG at 5 per cent and also eliminated GSDC on LNG based CNG.
Minister further told this scribe that the gas reserves in Punjab are depleting and there is no possibility that the CNG sector could be provided gas from the local resources. “CNG sector comes at 5th number on the priority list of the government and we are even unable to cater the needs of the sector that is on the 2nd number on the priority list”, he said.
CNG sector whereas has the reservations that the government would have known all these facts from the very start. Now when the sector has established a private company and has collected several million dollars from the CNG station owners to import the product, the government suddenly has conveyed that the pipelines do not have capacity to transmit their gas and that is not fair and shows the inability of the government officials.
