Imported LNG supply in Sindh: Ultimate Energy Services, Energas Marketing sign agreement

ISLAMABAD: The Ultimate Energy Services (Pvt) Ltd has signed an agreement with Energas Marketing (Pvt) Ltd for supply of imported LNG to the CNG stations in Sindh.

The CNG industry has been facing severe gas loadshedding since a decade, which has worsened in the last two years.

As a result, the CNG consumers have been deprived of their favourite and most-needed, economical and environmentally-friendly fuel.

Energas Marketing (Pvt) Ltd was granted a marketing licence to import and market LNG in Pakistan.

The company will also establish a LNG terminal.

A spokesman of Ultimate Energy Services, Syed Raza Abbas, said the company would support the government in overcoming the gas crisis.

The Ultimate Energy Services (Pvt) Ltd will be able to organise and liaison the demand and supply of all its CNG stations with Energas who will supply RLNG to the stations.

Syed Raza Abbas said Energas was already in the process of developing its LNG terminal, and was also planning to procure its first LNG cargo by utilising the unutilised terminal capacity of existing terminals in May and June of this year.

The Ultimate Energy (Pvt) Ltd is becoming part of the bigger portfolio of customers of Energas, which includes power, textile, automotive, cement, and chemical sectors.

This diversity of customers provides a natural hedge to risks associated with LNG procurement.

This move will help to save investments worth billions of rupees in the CNG stations by station owners as well as in cylinders and kits by motorists.

Billions of rupees will be saved in import of petroleum as 18 percent of Pakistan’s import bill is of expensive petroleum products.

Billions of rupees that the government stopped earning due to the CNG closures will start coming back in, he said.

As a result of CNG being economical, inflation will go down. The CNG will be available 25 percent to 30 percent cheaper than petrol and diesel.

Copyright Business Recorder, 2021