Private sector could be allowed to import LNG – Journal

LAHORE: The private sector will likely be allowed to import liquefied natural gas (LNG) from next month, the All Pakistan CNG association (APCNGA) announced on Saturday.

“At a recent meeting, Energy Minister Hammad Azhar was persuaded to allow private parties, including the CNG industry, to import LNG themselves in order to meet demand. and overcome the shortage which occurs mainly in winter, ”said APCNGA President Ghyas Paracha. Dawn.

Public and private stakeholders were unanimous at the meeting in granting permission in this regard as most of the issues on the part of gas utilities and other entities have been resolved, the office manager said. ‘APCNGA.

“We are satisfied with the result of this meeting. If we place orders for LNG cargoes in the first week of November, we won’t have a shortage in the private sector in December and January, the most intense winter months, ”he explained. .

In September 2020, the government authorized the private sector to independently import LNG. Since the total sector demand is around 200 million cubic feet per day (mmcfd) which varies depending on the season. The CNG sector has a total of 3,400 gas stations / registered members, of which 700 have closed due to insufficient supply, its demand varies between 50 and 100 mmcfd.

However, the bottlenecks allegedly on the part of Sui Northern Gas Pipeline Ltd (SNGPL), Sui Southern Gas Company (SSGC) and Pakistan LNG Ltd (PLL) delayed the implementation of the government’s decision on the authorization. import LNG by the private sector.

“The problem exists on the part of SSGC, SNGPL and PLL and not the government. The cabinet committee has already cleared the private sector to import LNG. However, the public gas distribution companies and PLL created obstacles. The gas companies had even once asked for an unrealistic bank guarantee of 130 billion rupees for the import of LNG of 5 billion rupees ”, lamented Mr. Paracha.

“In the end, we were able to convince them to obtain the guarantee of US $ 300,000 which is justifiable under government policies. Finally, they removed this bottleneck, ”he added.

Posted in Dawn, le 24 October 2021

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