APCNGA accuses govt of violating gas supply agreements

ABDUL RASHEED AZAD

ISLAMABAD: The government is deliberately violating the gas supply agreements with CNG, industrial, commercial and other sectors.

Addressing a press conference, Ghayas Abdullah Paracha, Chairman All Pakistan CNG Association (APCNGA), said that the government had reduced gas pressure in the big cities just to benefit a few people involved in the business of Liquefied Petroleum Gas (LPG).

He said that the Central Executive Council of APCNGA had appealed the government to improve gas supply to CNG sector and maintain the agreed price differential. "CNG industry will cooperate with the government, but if government doesn't take our issues seriously then we will be compelled to resort to protest," he added.

Dispelling the impression that use of CNG cylinders were main reason behind recent incidents of cylinders blasts countrywide wherein nearly 80 people have lost their lives, Paracha said in Pakistan over three millions vehicles were using CNG for 15 years but never CNG cylinder blast has occurred. He alleged that a group of few influential having access in the power corridors was trying to replace CNG stations with auto gas and therefore an impression was being created in the masses that use of CNG cylinders was major cause of recent blasts.

However, he added, that the government and regulatory authorities including Oil and gas Regulatory Authority, Provincial Transport Authorities and Hydro Development Institute of Pakistan (HDIP) have failed in performing their due role to monitor CNG cylinders/kits and establish laboratories for checking the quality of these equipments.

"Today Central Executive Committee of APCNGA held its meeting and decided to save masses from any untoward incident. The body will fully co-operate with the government, even we are ready to close our businesses if government is going to resolve low gas pressure to domestic sector. But, we know the government is supply gas to industrial sector against the agreements and is trying to create confusion among the masses that CNG sector was responsible for low gas pressure so that it could continue gas supply to industrial sector and bring expensive Liquefied Natural Gas (LNG) in the country," Paracha said.

He said that his body had requested the government to follow the gas agreement or gas load-management plan.

"The government has allowed supply of gas to industries in violation of the agreement between the SNGPL and industrial units under which the gas supply to industries was to remain shut during December, January and February," he added.

"We have also requested the government to keep difference between CNG and petrol prices at 45 percent. Fertilizer, domestic and CNG sector did not have alternate options while other sectors have alternative option to run their businesses so the government should provide gas to these sectors on priority basis," he maintained.

"Certain sectors of the industry are being supplied un-interrupted gas like ghee mills, sizing textile. They are not part of the gas load shedding scheme. If they also share gas load management then another 50mmcfd gas will be available.," he added

"LNG is being advocated, which would cost us $18 per mmbtu and precious foreign exchange, whereas our local gas costs us $4.5 per mmbtu. Pakistanis are not able to bear the cost of expensive LNG," he added.

Paracha told newsmen later in the press conference that the meeting seriously deliberated over the current gas crisis.

Sharing the reasons for current extreme gas shortage Paracha said: "Gas is being supplied to those sectors having nine months contracts for supply of gas. Supply to these sectors should be cutoff from December to February this will save almost 678 MMCFD gas, resultantly there will be no gas low pressure problem for domestic sector."

He said that Kunar Pashaki project, Smb Latif and others were being delayed due to unknown reasons. Minister had announced 200mmcfd gas from these fields to be available by the end of November, 2011.

He said that the government was willing to spend $18 per mmbtu on import of liquefied natural gas (LNG), but was not willing to provide incentives to companies that had explored local fields.