CNG IN PAKISTAN

INTRODUCTION OF CNG:Compressed natural gas (CNG) is a fossil fuel substitute for gasoline (petrol), diesel fuel, or propane/LPG. It is consider to be environmentally clean alternative to those fuel.

It is made by compressing methane (CH4) extracted from natural gas. Worldwide situation: Worldwide, there were 14.8 million natural gas vehicles by 2011, led by iran with 2.86 million, pakistan (2.85 million), argentina (2.07 million),THE NUMBER OF VEHICLES INCREASE BY 30% annual rate.Worlds biggest CNG refueling station is in Singapore (46 pumps).

CNG IN PAKISTANCNG has been in use by Pakistan since 1992. In the beginning, Pakistani Government persuaded the public, time to time, through media to use CNG kits in their vehiclesPakistan is the largest user of CNG in Asia, and as of 2010, the largest in the world, according to the The International Association of Natural Gas Vehicles (IANGV). The Compressed Natural Gas (CNG) sector of Pakistan by end of 2007 has attracted over Rs 70 billion investments during the last few years as a result of liberal and encouraging policies of the government. Presently, around 3,105 CNG stations are operating in the country in 85 cities and towns, and 1000 more would be setup in the next three years. It has provided employment to above 30,000 people in Pakistan.

ISSUSES ON CNG shortage:

•Today the gas production is 1.3 TCF per annum (4 Billion Cft per day) as against a demand of 2.0 TCF per annum.•Create artificial shortage•To inflate prices•More household & INDUSTRIAL CONSUMPTION•INCREASE NUMBER OF CNG STATION•BAN ON THE IMPORT OF CNG KIT & CYLINDER•smuggling of low quality kits and spare parts

ADVANTAGES OF CNG:•Friendly environment•Low maintainance COST•Increase the life of lubricating oil•Less produce pollutant elements•No evaporation losses•Cng is cheaper than diesel, petrol, LPG

DISADVANTAGES OF CNG:•Prices associated with gasoline•High conversion cost•Greater amount of space for fuel storage. •CNG is dangerous than Diesel and Petrol for health.

GOVERNMENT ROLE IN CNG:CNG prices on the price of petrol illegal The SC had also ruled that the profit rate and operating costs being charged on Compressed Natural Gas (CNG) were illegal.50% profit charge on cng. that’s why prices decrease by RS.30 He said that CNG sector was paying Rs 1110 as tariff while other sectors including industry were paying Rs 510 tariff , therefore, being largest payer government should facilitate CNG sector imposition of tariff and taxation measures rather than a ban.INCOURAGE INVESTMENT ON CNG RECENT INVESTMENT RS.300 BILLION

Second immediate step could be to drop taxes temporarily from, Petrol and Diesel, to make it cheaper and competitive with CNGUNDER 18TH AMENDMENT

INCENTIVES OF GOVT.•LOAN FACILITY •AVAILABILITY OF LAND IN INDUSTRIAL AREA•DEREGULATING OF GAS PRICES•TAX &IMPORT DUTY EXEMPTION ON EQUIPMENT USED FOR CNG FUELING & CONVERSION PURPOSE•REDUCING THE COST & TIME REQUIRE TO GET THE LICENSE

SECTOR EFFCT DUE TO SHORTAGE:

AGRICULTURE SECTORINDUSTRIAL SECTORFERTILIZER SECTORfertiliser sector consumes around 15 per cent of the country’s natural gas and is currently facing shortage of around 25 per centTRANPORTATION SECTORDOMESTIC SECTORRENTAL POWER PLANTTEXTILE INDUSTRY

PROBLEMS DUE TO SHORTAGEUNEMPLOYMENTCLAHSE WITH POLICE BEACAUSE police used tear gas and sticks on a crowdPUBLIC FRUSTURATION(LONG QUEUES)Countrywide protestsANTI GOVERNMENT SLOGANS

SOLUTIONS:build a pipeline to import over a billion cubic feet of gas a day from IranPakistan's Sui Southern Gas Company (SSGC) is working on completing a project,TO IMPORT LNG FROM QATARprivate-public partnership approachUSE OF LPG & LNG AS ALTERVATIVE

CONCLUSION:

the shortages of electricity and gas need to be managed actively and fairly to minimize the impact on the consumers and the businesses to help the economy recover from the current slump AND restore investor confidence in long-term energy projects in the country.