CNG to be phased out in next three years, Senate told

ISLAMABAD: Advisor to the Prime Minister on Petroleum and Natural Resources Dr. Asim Hussain on Friday informed the Senate that the CNG would be gradually phased out in next three years due to shortage of gas in the country.

Replying to various supplementary questions during Question Hour, he said that efforts were being made to import gas and LNG etc to meet shortage.

He said that the government had imposed ban on setting up new CNG stations on February 6, 2008 across the country. However, he said that later the ban was lifted on issuance of new CNG licenses for establishment of CNG in Balochistan on August, 2008 which was again imposed by the government on October 4, 2011.

The minister said that no licenses were issued during ban period. However, there was no ban on issuance of new licenses for establishment of CNG stations in Balochistan and 38 news licenses were granted. In addition, one provisional license was also granted on the direction of Supreme Court of Pakistan.

To another question, he said that the Oil and Gas Development Company Limited (OGDCL) was not issuing any term finance certificate (TFC) to raise funds to tackle circular debt. Efforts to resolve the circular debt have been ongoing for quite some time.

In this regard, Water and Power ministry submitted a summery to Economic Coordination Committee (ECC) proposing partial resolution of power sector circular debt by issuance of TFC.

He said OGDCL would subscribe to the TFC to be floated by PEPCO or the Power Holding (Private) Limited for Rs.82 billion.

In response to another question, the Advisor said that SNGP and SSGCL collect an amount of Rs.220.17 billion under the head of gas charges from July 1, 2011 to February 29, 2012.
Asim said that Saindak and Reko Dia deposits have 1339.25 tons gold and 74,707 tons silver reserves.