Pakistan, Indonesia to cooperate in CNG sector


Indonesia and Pakistan have underlined a vast potential of bilateral cooperation by enhancing exchanges in the field Compressed Natural Gas (CNG) sector development. This transpired in a meeting between the Oil and Gas Regulatory Authority (OGRA) and a high-powered visiting Indonesian delegation headed by Dr AQ Tjandranegara, Commissioner of downstream oil and gas regulator (OGRA’s counterpart) in Indonesia. The comprehensive delegation including senior representatives of upstream Indonesian regulator, Petroleum Ministry, Indonesian state-owned as well as private gas companies was keen to learn from experience of fast-pace development of CNG sector in Pakistan which they described as success, nonetheless the supply constraints. At the onset of the meeting, OGRA Chairman Saeed Ahmed Khan introduced the delegation to the functionaries of the Authority besides its major functions and role as downstream regulator of the Oil and Gas sector in Pakistan. Executive Director CNG Moazzam Hussain Chaudhry made a presentation to make the delegation aware of legal and regulatory mechanisms of OGRA in addition to background of the CNG infrastructure development in Pakistan. Almost all the members of the delegation raised questions pertinent to the Indonesian quest for speedy development of CNG sector that were answered by the relevant officials of the OGRA including Vice Chairman Sabir Hussain. The delegation was informed that the CNG sector development started with CNG (Production and Marketing) Rules of 1992. The governance of these rules was entrusted to OGRA in 2003. The idea to promote CNG in the transport sector was to contain the ever growing import bill of fuel oil. The difference of price between the motor spirit and CNG rising with the international crude oil lured a majority of transporters to convert their vehicles to CNG. Incentives in terms of import duty exemptions during the initial period also worked well in fast-pace growth of the CNG sector in Pakistan. The OGRA also hosted a dinner in honor of the delegation wherein dignitaries also showed off.