Private firm gets licence to import, sell LNG in Pakistan
Oil and Gas Regulatory Authority (Ogra) issued a licence to a private company to procure and sell LNG to the consumers including CNG stations throughout the country.
Earlier, only the government-owned entities, SSGC and SNGPL, were allowed to sell gas to the consumers, but this is for the first time that a private company, Universal Gas Distribution Company (UGDC), has been allowed to sell the commodity.
“The permission given to a private company to procure LNG from the international market will not only ensure the smooth supply of the commodity to the CNG stations, but will also reduce its price,” an expert told the scribe.
He opined that from November to January, gas was not available at the CNG stations, but now this would not happen, as the UGDC was allowed, under the law, to procure LNG and sell it anywhere in Pakistan
“Now UGDC don’t have to look to the government; they can procure it from all over the world,” the expert added.
A press release, issued by the All Pakistan CNG Association, stated that for the first time in the country’s history, the government had allowed the private sector to import gas for onward sale to consumers in any part of the country.
The press release further informed that the licence was issued after completing all the legal formalities that took 19 months.
Ogra held public hearings and also got an audit from a third party before giving approval.
UGDC Chairman Brig. (r) Iftikhar Ahmad and All Pakistan CNG Association Chairman GhayyasParacha, in a joint press statement, hoped that the government’s decision would promote investment, which will, ultimately, help tame the energy crisis.
They also predicted that this would become a case study for the business schools around the world.
They said thousands of closed CNG stations in Punjab would be preferred for an uninterrupted supply of gas, through the network of Sui companies, according to the existing rules and regulations.
They also informed that the gas would be 30 percent cheaper than petrol. Both expressed the optimism that the move would reduce the oil import bill, provide jobs, and bailout the sinking CNG industry in which people have invested over Rs 350 billion.
“Moreover, Pakistan will soon regain its lost reputation of being world’s number 1 CNG industry,” they hoped.
They added that on a complaint of low gas pressure, the CNG stations would get separate pipelines or the outlets would be moved to some other place.
Pakistan eyes coal purchase from Indonesia for power projects
NNI: Pakistan is looking into the possibility of procuring coal from Indonesia for its coal-fired power generation projects.
A pre-bid conference was arranged in Indonesia’s capital Jakarta to procure coal for 1320MW government-owned Jamshoro Power Plant, funded by the World Bank and Islamic Development Bank.
A delegation of Ministry of Water and Power, led by Secretary Muhammad YounusDagha, attended the conference, which was joined by the Indonesian coal suppliers and members of the Indonesian Coal Mining Association.
Dagha informed the Indonesian investors that Pakistan required 15-20 million tonnes of coal from their country, annually.
The secretary said that since Indonesia was the largest exporter of mid calorific value (CV) coal in the world, Pakistan wanted the Indonesian companies to not only supply the coal, but also invest in the Thar Coal project
He informed the Indonesian companies that Pakistan was building four coal-fired power plants of over 1000 MW each, which would be completed by the end of 2017.
He, particularly, expressed interest in the import of mid CV coal of 4600 to 6000 Kcal/Kg
The participants were informed that one power plant was government-owned, and three were owned by the private sector.
The CEO of Jamshoro Power Company Limited Engr.Iftikhar Aziz said that Pakistan required from Indonesia 3.5 million tonnes of 4750 to 6000 kcal/ kg coal, annually, for this plant alone; for which 10 suppliers would be short-listed and an agreement would also be signed with them.
https://nation.com.pk/business/25-Feb-2016/private-firm-gets-licence-to-import-sell-lng