All Pakistan Compressed Natural Gas Association energy plan can reduce electricity loadshedding by 70per cent

Islamabad, May 28, 2013 (PPI-OT): The All Pakistan CNG Association (APCNGA) on Tuesday said former and caretaker governments ignored its recommendations which would have reduced electricity loadshedding by seventy per cent and cut gas bill of domestic users by fifty per cent.

Approval of the APCNGA’s Energy Relief Plan containing mid-term and short-term would have resulted in non-stop operations of all industrial and CNG stations, it said.

Speaking at a press conference, Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA said that the caretaker setup didn’t took any interest in resolving the problem, rather they have become part of the problem.

Unveiling the details of the Energy Relief Plan, he said that we had suggested uniform gas tariff for all sectors, ban on gas-powered generators and disconnecting gas supply to primitive captive power plants.

These steps could have saved 550 mmcfd natural gas while utilising half of the volume for power generation would have resulted in output of 1100 Mega Watt while rest of the gas could have been channelled to CNG filling stations and industry in Punjab, he informed.

Accepting the proposals would have sparked economy to contain unemployment and help government raise additional revenue of billions, he added.

Ghiyas Paracha said that we had also suggested short-term measures like improving efficiency of machines, free of cost replacement of heats and geysers to save 300 mmcfd gas to be supplied to efficient power plants.

The leader of the CNG sector said that APCNGA’s long-term plan included bring to an end the rampant theft, tapping new gas reserves, better utilisation and just distribution of existing hydrocarbon resources, and importing LNG through funds raised by rationalisation of gas tariff.

He said that top government authorities continued to misguide masses on the issue of CNG on the behest of influential lobbies which the fact remains that CNG sector has been consuming only 6.1 per cent of the total gas output.

CNG sector is using 256 mmcfd gas in which Punjab is using 129 mmcfd gas, Khyber Pakhtoonkhwa 63 mmcfd, while Sindh and Baluchistan are consuming 64 mmcfd, he said adding that suspending gas supply to CNG outlets in Punjab will save gas enough to generate 500 MW electricity while shortfall stands at 7000 MW.

Paracha said that closure of CNG will hut millions including domestic consumers as CNG sector has been providing subsidy to all other gas consuming sectors. Four hundred thousand people directly related to the Rs 400 billion CNG industry and 3.5 million owners of converted vehicles would also suffer while petrol consumption will jump by 230 million litres per month putting extra strain of 230 million dollars on forex reserves.

Such a decision will open floodgates of inflation, hike of 15 per cent in transportation costs for the man on the street, and health and environmental problems, said Paracha. He demanded of the authorities to take decisions while keeping interests of masses supreme.

For more information, contact:
All Pakistan CNG Association
1056-D, First Floor, Satellite Town, Hyderi Chowk,
Said Pur Road, Rawalpindi
Tel: 0092 51 4429441-4317174
Fax: 0092 51 4429461

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