Looking forward: CNG stations to start receiving LNG from March

[Muhammad Omar]

Minister for Petroleum Shahid Khaqan Abbasi addressing a press conference in Islamabad. PHOTO: PID


ISLAMABAD:
In a bid to address the woes of the CNG industry, it has been announced that the sector in Punjab will receive the first shipment of liquefied natural gas (LNG) in March this year, which will be imported from Qatar.

“LNG import will provide a boost to the CNG industry and the first cargo may go to the sector,” Petroleum Minister Shahid Khaqan Abbasi said while addressing a press conference.

He said that the government would give LNG to the CNG industry from its share as an interim arrangement, which would provide relief to the consumers while easing the pressure on petrol.

Abbasi added that the CNG industry was closed for three months during the winter season and LNG would revive the business in addition to increasing employment.

He maintained that the CNG industry would also import LNG and the government would play the role of a facilitator. The government has also allowed CNG stations to relocate on main pipelines.

“Revival of CNG business would help establish an alternative fuel system, which will not be affected by petrol scarcity, hence providing relief to the masses.”

The minister praised the CNG sector for taking the initiative to import LNG to overcome the crisis and gave them assurances that the government is fully cooperating in this regard.

“After the arrival of LNG, annual demand of petrol in Punjab would come down by almost two billion litres,” he said. “We have offered fiscal incentives for the import of LNG so that the once-vibrant sector can again see the boom.”

He asked other industrial groups to follow in the footsteps of the CNG sector to address their energy problems.

“We will also provide pipeline capacity for 100 mmcfd of LNG to meet the need of the CNG industry,” he said and added that LNG would be cheaper by 30% compared to the price of petrol.

Abbasi denied that the government had any intention to link the base price of Brent crude at $80 per barrel to LNG import from Qatar. “We will start supplying 320 mmcfd of LNG within a week from March,” he added.

He said that the petroleum ministry was also in talks with the water and power ministry to allocate LNG for power plants.

He said the government was also working on laying an LNG pipeline from Karachi to Lahore to pump gas which would be enough to produce 9,000MW of electricity.

“A protocol has been signed with a Russian firm to lay this pipeline,” said Abbasi.

Addressing the Gwadar LNG terminal issue, he said that the government is in the process of finalising a deal to lay the pipeline with a Chinese firm to connect it with Iran.

Giving details, he said the Chinese firm, which had laid four pipelines from Turkmenistan to China, would complete this pipeline by 2016. He maintained that talks with Iran were under way to amend the agreement of Iran-Pakistan gas pipeline.

Responding to a question, Abbasi said that the country had stock of 112,000 tons of petrol for nine days and 400,000 tons of diesel for 18 days.

Published in The Express Tribune, January 29th, 2015.

 

[airmarshal]

And Sharif family and their cronies will start receiving money in their foreign accounts. In the country, they will claim - find out one rupee of corruption money and we will resign. This is embezzlement, not even corruption.

 

[volatile]

My biggest worry being all this ,Initial gas losses are some where 15% which was our`s With import LNG coming this applies to 15% considering current corrupt mafia and every thing.SInce this will be on LC so GOP have to pay for this loss from our pocket as well so any ways LNG will be 15% expensive to us other than price differential b/w NG (pak) and LNG .

 

[Bouncer]

Seems like the same mistake PPP Gov made in the 90s'. Oil was cheap at that time so we got IPPs. Now we are seeing reports in media about government's increasing bias towards LNG based power generation.

 

[RescueRanger]

Good businessmen these brothers. Whilst everywhere else Petrol prices are dirt cheap, they know it will be bad for business, so what do they do. "Petrol Shortage" now they are creating demand, so people want CNG, no petrol is available and 3/4hour queues are not fun, so they take that demand and then softly re-introduce "CNG" despite it's apparent scaling down.

Now that the demand is there, they are going to supply us with LPG, that's so sweet of them... How thoughtful, remember the sugar shortage back in 1999? These two rug rats were behind that too...

Supply & Demand, dekho aya Shere hain aya!

 

[Saifullah Sani]

Pakistan is holding talks with Qatar gas for import of LNG in order to improve gas availability in the country.
According to officials, the LNG import is likely to start by the end of next month. They said a committee has also been constituted for negotiation of LNG price with the Qatar gas.
The officials said that the gas network of Sui Southern Gas Company and Sui Northern Gas Pipelines Limited is being augmented to transport the imported LNG to the tune of 1.2 BCFD to mid country in two phases. The estimated total cost of the first phase is about 31.36 billion rupees, which has been arranged through loan from banks. About 102.43 billion rupees will be incurred on the second phase.

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[volatile]

Who will pay for the gas losses Currently Un accounted for Natural gas stood between 12 to 15% .If used same network there will be pilferage and leakages ,My question is who will bear them .Since early Gas was local but now all gas account for and sold.

 

[SBD-3]

Good businessmen these brothers. Whilst everywhere else Petrol prices are dirt cheap, they know it will be bad for business, so what do they do. "Petrol Shortage" now they are creating demand, so people want CNG, no petrol is available and 3/4hour queues are not fun, so they take that demand and then softly re-introduce "CNG" despite it's apparent scaling down.

Now that the demand is there, they are going to supply us with LPG, that's so sweet of them... How thoughtful, remember the sugar shortage back in 1999? These two rug rats were behind that too...

Supply & Demand, dekho aya Shere hain aya!

1-Power generation utilizes furnace oil, not petrol
2-CNG introduction was very short sighted idea. Pakistan expanded the cheap domestic resource which could have fueled our power generation, chemicals, fertilizers, steel mills and domestic users instead of private cars.
3-LNG priced as a fraction to the crude price so LNG's price behavior is pretty much similar to that of crude's. LNG will be provided to CNG sector, freeing domestic natural gas for industry and domestic users.

 

[RescueRanger]

1-Power generation utilizes furnace oil, not petrol
2-CNG introduction was very short sighted idea. Pakistan expanded the cheap domestic resource which could have fueled our power generation, chemicals, fertilizers, steel mills and domestic users instead of private cars.
3-LNG priced as a fraction to the crude price so LNG's price behavior is pretty much similar to that of crude's. LNG will be provided to CNG sector, freeing domestic natural gas for industry and domestic users.

And your point being?

 

[SBD-3]

And your point being?

The point being that often its better to see things from economic perspective than political.

 

[RescueRanger]

The point being that often its better to see things from economic perspective than political.

Economy in Pakistan? Come again?

 

[SBD-3]

Economy in Pakistan? Come again?

Economy exists in Pakistan in various forms. Heck even military runs a whole economic empire of her own. Multiple dimensions exist in this "Come again" economy.

 

[RescueRanger]

Economy exists in Pakistan in various forms. Heck even military runs a whole economic empire of her own. Multiple dimensions exist in this "Come again" economy.

Okay thank you for your time.

 

[SBD-3]

Okay thank you for your time.