The LPG Air Mix projects have been approved by the ECC after a period of due diligence and strict adherence to all Government including PPRA rules over a period of twelve months. These projects are necessary to be able to bring an additional 100 MMCFD of Natural Gas equivalent within the shortest possible time and from assets that already exist within the public sector. This project is part of a quick short term solution that has been developed by the Ministry with the help of the Natural Gas utilities and other energy experts.
How can the APCNGA support this loss figure of Rs 60 billion? It is patently incorrect and only being articulated to create a false impression and agitation in the mind of the readers.
Lack of Natural Gas had led to the unemployment of nearly 4 million people in the Sialkot/ Faisalabad and Lahore areas. The desire of the APCNGA to not increase Natural Gas and LPG Air Mix as a substitute fuel was paradoxical.
The cost of LPG Air Mix will be applied to industry only and will not affect the domestic consumer thereby not impacting the price of ‘roti’. Mr. Paracha was bordering on defamation and statements issued with a malafide agenda.
This additional fuel will be supplied by the NG utilities which were regulated by the OGRA and totally operate in the public interest and were owned by the public sector.
The LPG Air Mix projects have been operating in Pakistan since the early 1970’s when it was a global pioneer by setting up these alternative fuel projects in Quetta and Larkana. SSGC was providing a clean Natural Gas alternative to Gwadar, Nushki, Kot Ghulam Mohammed and Suhrab. The proposed large LPG Air Mix plants at Karachi bin Qasim can deliver an additional 100 mmscfd within six months. In addition to the mentioned LPG Air Mix projects, there were well over 3 dozen LPG Air Mix projects that have been operating in the private sector in Pakistan for the past eight years. This clearly refutes Mr. Peracha’s contention that LPG Air Mix projects will put people out of work. To the contrary, the injection of LPG Air Mix in the system will create more employment opportunities as the currently Natural Gas starved industry will have a constant supply of fuel available ensuring enhanced productivity, leading to greater exports, improved tax revenues and generation of foreign exchange.
These projects have been developed by people who understand the energy sector and have several decades of experience. Mr. Peracha was clearly misinformed and building an entire argument based on an incorrect understanding of the project and technology. The LPG Air Mix solution was an elegant means of delivering a fuel to increase supply of Natural Gas as it requires no transportation by road but provides a Natural Gas alternative in Karachi through the existing pipeline network. The LPG can be easily imported into Karachi as an alternative fuel for SSGC while Punjab can get the additional 100 MMCFD Natural Gas through SNGPL for its industry through swap arrangement.
Ministry rejects APCNGA’s claims about LPG Air Mix projects
