As the Pakistan Tehreek-e-Insaf (PTI) government has allowed the private sector to import LNG, the cabinet has given the go-ahead to the Oil and Gas Regulatory Authority (Ogra) to issue new CNG licenses based on LNG after a span of 12 years.
A ban had been imposed, 12 years ago, on issuance of new CNG stations based on indigenous gas due to shortage of gas. However, the government has allowed private sector to import LNG.
Welcoming the decision, Universal Gas Distribution Company Limited Chief Executive Officer (CEO) Ghayas Paracha said that the government could save Rs97 billion during the next 12 years by handling 150 mmcfd additional LNG through the second LNG terminal.
He said that the LNG import by private sector would help reduce load-shedding during the winter season.
The Economic Coordination Committee (ECC) had accorded its approval in this regard. During discussion in the meeting, Special Assistant to the Prime Minister on Petroleum Nadeem Babar had informed the economic policy makers that the ban was imposed on licenses based on indigenous gas. Now, he said that RLNG is available and still cheaper than indigenous gas, and CNG sector may import LNG for their stations which will be sold on Ogra notified price.