The News reported that being the major stakeholder of natural gas, the compressed natural gas sector has demanded its due share in the imported liquefied natural gas.

Mr Ghayas Abdullah Paracha central chairman of All Pakistan CNG Association said that the situation is not as worse as being portrayed. The gas cess paid by the sector alone is good enough to import 75 million cubic feet per day liquefied natural gas needed to eliminate power outages in Karachi.

Mr Paracha said that according to the ministry’s plan the imported LNG would be given to power generation sector on weighted average basis. Currently, the power sector is getting gas at USD 6 per MMBTU while CNG sector is paying the highest tariff at USD 11 per MMBTU.

He said that the CNG sector should be given the benefit of imported gas as we are already paying the highest tariff close to the imported gas costing $18 per MMBTU. The CNG sector is the biggest stakeholder of natural gas and it must be given representation in the committee formed to finalize LNG import matters.

APCNGA said in a letter to the ministry of petroleum and natural resources that this is a fact that the CNG sector is paying highest tariff and that is why it is the major shareholder of natural gas. We are consuming only 6.9% gas while paying highest tariff cess which is almost 22.42% of total revenue. So we must be given benefit from imported LNG.

Source - The News.com

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