CNG loadshedding to end this month

ISLAMABAD: Discontinuation of supply (loadshedding) to compressed natural gas (CNG) stations will be reduced to once a week from Feb 15 and discontinued by the end of this month, but a ban on new CNG stations will remain in effect till fresh supplies are available.

Speaking on the 28th anniversary of CNG business in the country on Thursday, Minister for Petroleum and Natural Resources Syed Naveed Qamar said there would be no need for CNG loadshedding after the current month because of reduced domestic gas consumption as a result of increase in temperatures.

Addressing owners of CNG stations from across the country, he said the government would not close their stations because the sector had emerged as one of the key pillars of economy.

Mr Qamar said there was need to consolidate the sector and the ban on new CNG stations would not be lifted until additional supplies were available.

He said the government had taken up all energy projects that had been lying in the cold storage for years, including import of natural gas from Iran and liquefied natural gas (LNG) from Qatar, to ensure that loadshedding was eliminated in a couple of years.

He said Pakistan and Iran would sign an accord before Feb 15 in Turkey and the project was likely to start delivering gas in four to five years.

He said the gas shortfall was affecting almost all sectors of national economy and the government was trying to bring LNG and Iranian gas into the system at the earliest.

The minister said the contract for setting up an LNG terminal near Karachi had been granted to the 4Gas Company of France and the process for approval of the price was under way.

He said gas from new sources would be allocated equitably to all sectors.

The director general of the Hydrocarbon Development Institute said the CNG sector had contributed positively to environment and economy through import substitution, but the supply side had been mismanaged. He said the situation had resulted in a 42 per cent annual growth in CNG stations which was not sustainable.

He said the government had to intervene to regulate the sector when the CNG Owners’ Association took over the role of price fixation instead of allowing fair competition.