LNG terminals, pipelines: APCNGA seeks ‘capacity allocation’ on long-term

ISLAMABAD: All Pakistan Compressed Natural Gas Association (ACNGA) Monday urged the government to allocate capacity of Liquefied Natural Gas (LNG) terminals and Sui companies’ pipelines on long term basis aimed at ensuring sustainable import of the commodity at competitive rate by the private sector.

“The CNG sector in Punjab and Sindh is already using 150 MMCFD (Million Cubic Feet per Day) of RLNG, utilizing existing terminals and pipeline capacities. No additional capacities are sought. Only 2% to 3% new CNG stations may add on,” APCNGA central leader Ghiyas Abdullah Paracha said in a press statement.

Paracha, who is also CEO of Universal Gas Distribution Company (UGDC), said the CNG sector should achieve a Petrol-CNG parity of at least 30 percent for sustenance through its own import and passing on the benefit of cheaper gas to the people. “This will not only benefit the CNG sector but will also help reduce the country liquid fuels’ import bill.”

He was of the view that the CNG was a daily use fuel, which could not be produced in bulk in a short time for the whole year and stored for later use, unlike some other sectors. “Its business sustainability can only be achieved through regular supply.”

He said the UGDC was set up five years ago with the approval of the Economic Coordination Committee of the Cabinet to import LNG for the CNG sector, bearing financial risk.

He said the company had already signed agreements regarding utilization of excess capacity of LNG terminal and pipeline capacity that were not being implemented.

Paracha said the CNG was the only sector that paid full tax to the government and cost of imported gas.

He said the UGDC wanted to import LNG at competitive rate to maintain price difference between gas and petrol.

He said the CNG sector operated 365-day a year and its demand was consistent with minor variations during gazette holidays when travelling witnessed a substantial increase.

“Terminal capacity allocations on a short term basis cannot sustain this sector. It will be impossible for the private sector to attract customers and ensure viable LNG supplies on a short term basis,” Paracha said while sharing some content of a letter he wrote to the authorities concerned.