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Thursday, June 20, 2024
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Delay in LNG import causes $2 billion loss


Islamabad: Energy crisis can only be overcome due to gas imports, according to sources.

The country is facing an annual loss of $2 billion because of the delay of import of LNG.
“No one is ready to take a decision on LNG import projects due to courts and media,” Petroleum Minister Shahid Khaqan Abbasi said.
In a seminar held by All Pakistan CNG Association, he further added that government is planning to import two billion cubic feet of gas per day (bcfd) in the next three years to minimize the energy issues.

An initiative for CNG businesses is taken, that is government will offer them incentives so as to promote the fuel.
“We are focusing on LNG imports, Iran-Pakistan (IP) and Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects to overcome the energy crisis,” he said and declared Iranian gas was cheaper than LNG.

Gas import from Turkmenistan under the TAPI pipeline would be cheaper worth $1 billion than the Iranian gas, he said. However, “Pakistan is committed to the IP gas pipeline.”

CNG crisis is again an issue for this country, although half of the country’s vehicles are getting advantage due to this kind of fuel.

“The only solution to the woes of CNG industry is to import gas,” he declared.
All Pakistan CNG Association Chairman Ghiyas Abdullah Paracha announced that they were ready to import LNG to resolve the CNG crisis. According to him “CNG is an alternative to 3.5 billion litres of petrol and high speed diesel.”

According to Paracha, the CNG price had gone up Rs4 per kg following a hike in power tariff. However, the Oil and Gas Regulatory Authority (Ogra) refused to allow recovery of the price increase from the CNG consumers.

He pointed out that the CNG industry had invested Rs450 billion so far, but it was facing financial crisis due to “wrong policies of the past government”.

“CNG stations may receive gas for the entire week with the help of 400 million cubic feet of LNG per day,” Paracha said. Only if LNG import is exempted from taxes which is a plus point for the consumers.

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Will the PML-N led govt be able to steer Pakistan out of economic crisis?

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