ISLAMABAD: Pakistan suffers a mammoth $2 billion loss every year due to the failure to import Liquefied Natural Gas (LNG), said Federal Minister of Petroleum and Natural Resources, Shahid Khakan Abbasi, on Monday.
The loss to the national exchequer would probably be higher than $2 billion if the loss were calculated in terms of taxation and impact on businesses due to the non-availability of LNG, the minister added while addressing a seminar on the CNG sector here on Monday.
“LNG import is the immediate solution to the country’s gas deficit problem as proposed gas pipeline projects take time to materialise,” said Abbasi, adding that Pakistan would be able to import LNG by November 2014.
“We are working to ensure the availability of 2 billion cubic feet per day (BCFD) of LNG in next two to two and half years,” said Abbasi.Interestingly, the minister pegged part of the blame on the judiciary and the media for slowing down the decision-making process in the past.
“The biggest crime is the indecisiveness that plagues this country. Decisions should be taken when it comes to national interests … maybe they are wrong and maybe they are right. But indecisiveness inflicts irreparable loss to the country.”
Speaking about the price of Iranian gas through the Iran-Pakistan gas pipeline, Abbasi said that a recent report by a Pakistani think-tank terming the price of Iranian gas a death sentence for Pakistan’s economy is not qualitative. “The loyalty of such an NGO or institution is under question.”
Under the existing Gas Sales Purchase Agreement for the IP gas pipeline, there is still a room to renegotiate the price of imported gas. The minister, however, said that the existing price of IP gas is much cheaper than LNG, which currently hovers between $17-18 per mmbtu in the international market.
When it came to CNG, the minister said CNG is beneficial as it is a clean fuel. “It helps save foreign exchange reserves which are consumed in the import of fuel and has a positive impact on the environment too.”
The minister believed the CNG sector needs to be modified on market-based praising instead of relying on local gas. “CNG should now be built on imported LNG,” he said.This time, he said, the government is on a tight rope as to whether it should provide gas to domestic sector or any other sector. “We have no gas available to provide to the industrial, power and fertiliser sectors,” he said, adding that the only solution is the import of LNG as gas reserves are fast depleting and findings of the gas reserves are not enough to cater to the demands of the country.
Further, he clarified, that there is no room to provide gas to the CNG sector in the coming winter season starting from December, January and February under the prevailing situation. Meanwhile, the federal minister praised the CNG sector for being an important stakeholder in the country’s development on Saturday. “The government will leave no stone unturned to promote the Rs450 billion CNG sector, which is providing jobs to millions, helping reduce the oil import bill, keeping the environment clean and contributing billions in taxes,” he said while speaking at a conference organised by the All Pakistan CNG Association (APCNGA). Abbasi also lauded APCNGA’s move to help the government in realising LNG import plans.
Earlier, APCNGA Chairman Ghiyas Abdullah Paracha said that the CNG sector is the backbone of economy and must be promoted. “The import of LNG and enabling policies will attract an additional investment of Rs350 billion in the sector,” he added.
No comments:
Post a Comment