All Pakistan Compressed Natural Gas Association (APCNGA) on Wednesday said government was illegally supplying 678 million cubic feet of gas per day (mmcfd) to industrial units which was causing innumerable misery for domestic consumers. Addressing a press conference, Chairman APCNGA Ghiyas Abdullah Paracha said government was responsible for violation of gas supply agreement between Sui Northern Gas Pipelines Limited (SNGPL) with CNG, fertiliser, industrial, commercial and other sectors. He said government had deliberately reduced gas pressure in big cities just for the benefit of a few people involved in the business of Liquefied Petroleum Gas (LPG).
He appealed the government to improve gas supply to domestic and CNG sectors by stopping gas supply to industries, which under agreement were eligible for only nine months gas supply, otherwise the association would be compelled to launch a protest campaign. He said gas was being illegally supplied to industrial sector, which has no gas supply agreement for three months December, January and February. Giving an example he said ghee mills and sizing textile units were getting un-interrupted gas supply and were not part of gas load shedding scheme. If their supply was cut 50 mmcfd gas would be available. Similarly if gas supply of captive power plants were cut it would yield 250 mmcfd of gas. He said timely supply from Kunnar Pashaki and Latif gas fields would provide 200 mmcfd of gas. He said some unknown reasons were delaying linking of gas for the two projects even though petroleum minister had announced a number of times that 200 mmcfd gas would be available from the two fields by end of November this year. He said government’s callousness was resulting in destroying national economy.
Paracha said gas shortage was being engineered to help some influential businesses to make money from costly gas imports that would have devastating impact on the national economy and sovereignty. He said LNG imports were being advocated by government without considering that cost of importing LNG at $18 per mmBTU would play havoc with the weak foreign exchange reserves. Cost of local gas supply on average is $ 4.5 per mmBTU. No local business would remain competitive in case of expensive LNG and would be forced to close down. About import of LPG he said it would be too costly as compared to petrol and CNG. He alleged that a few influential persons were being helped to make huge gains through LPG imports. He said use of LPG in vehicles was more dangerous than CNG. He said local LPG producers were charging international prices, as the sector was unregulated despite the apparent protest of government. He said CNG sector was paying highest tariff to the government. He alleged that few influential were trying to replace CNG with LPG auto gas and they were instrumental in developing the impression that blast of CNG cylinders was the cause of accidents. He said government, Oil and Gas Regulatory Authority, Provincial Transport Authorities and Hydrocarbon Development Institute of Pakistan (HDIP) have failed in performing their due role to monitor CNG cylinders and kits by establishing labs for checking the quality of the equipment. He said CNG stations on their own would not be providing CNG to vehicles which have substandard cylinders of kits. However, he said labs were needed on a countrywide scale to certify CNG kits and cylinders.
Govt illegally supplying 678 mmcfd to industries
