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News Headlines for the month of
FEBRUARY 2018

Gas companies increase transmission network by 1,044 km in last year

FEB 26TH, 2018 ISLAMABAD: The two state companies, SNGPL and SSGCL, have increased their transmission network by 1,044 kilometers and distribution network by 7,460 km during the last fiscal year. “The Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) have increased their transmission network by 337 km and 697 km and distribution network by 760 km and 6,700 km respectively for providing gas to distant localities and added more consumers to the gas network,” Oil and Gas Regulatory Authority (OGRA) said in its annual report for the year 2016-17. As of June 30, 2017, according to the report, the SSGCL and SNGPL’s cumulative transmission network stood at 3,973 km and 8,975 km and distribution network at 45,521 km and 110,217 km respectively. The two utilities provided new gas connections to 486,418 consumers, while the cumulative consumer base of both the companies stood at 8,575,760, it added. The report forecast that due to ever increasing demand for gas, the country would face an increasing deficit in gas supply. “The shortfall in gas is expected to reach 3,999 million cubic feet per day mmcfd) gas by FY 2019-20 and the gap will reach 6,611 mmcfd without imported gas by FY 2029-30.” The government, being cognizant of the situation, has initiated various measures to bridge the gap between demand and supply, which included incentivizing of local gas production, import of natural gas in the form of Liquefied Natural Gas (LNG) and cross country pipelines from Iran and Turkmenistan. The government had developed two LNG handling terminals (each having re-gasification capacity of 650 mmcfd gas) at Karachi Port, which is a major milestone achieved to mitigate gas shortages in the country. During the period under review, total supply of natural gas in the country, including imported RLNG, has reached 4,131 mmcfd.

Copyright APP (Associated Press of Pakistan), 2018

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Irfan LPGDA for withdrawal of advance tax, and regulatory duty on LPG import

ISLAMABAD: Chairman All Pakistan LPG Distributors Association (LPGDA) Irfan Khokhar Tuesday underlined the need for withdrawal of 5.5 percent advance tax and regulatory duty on import of Liquefied Petroleum Gas to ensure smooth supply of the commodity at affordable rates across the country. “I fear LPG crisis in the coming days, if concerns of LPG importers regarding advance tax, regulatory duty, signature and premium bonus are not addressed immediately,” he said while talking to APP. He claimed that not even a single LC (letter of credit), a bank commitment and important method of payment for international trade, had not been opened for last six days, which could affect the LPG reserves. Irfan said the present government made sincere efforts during last four years in ensuring smooth supply of LPG and bringing down its price, which is “historic,” but the present scenario could cause shortage and black-marketing of the commodity. Out of total 144 LPG marketing companies operating in the country, he said, only 30 had local quota while remaining 114 were totally depending on imported LPG, adding “Monthly 40 to 50 percent imported LPG is required to bridge the demand and supply gap.” Answering a question, the chairman said 3rd international LPG conference was being held on March11 in Lahore, in which a resolution would be passed to make the LPG import feasibility, seeking complete ban on production of sub-standard LPG cylinders.

Copyright APP (Associated Press of Pakistan), 2018

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LPG per kg price to reduce by Rs 15 next month

FEB 18TH, 2018 LAHORE: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Standing Committee on LPG, Chairman Irfan Khokhhar on Sunday hinted at reduction in per kilogram price of LPG by Rs 15 in the first week of March 2018, thus bringing this gas price to the lowest during last four years. He told APP here that 3rd International LPG Conference being organized by all the stakeholders including Liquefied Petroleum Gas Association of Pakistan (LPG-AP) in Lahore on March 11, 2018 and the Prime Minister had also confirmed his participation as chief guest in the conference. He added that a number of important announcements would be made to implement the new and pending decisions of the LPG conferences. Irfan Khokhhar continued that after substantial decrease in the per kg price, the LPG import and Local Producers price would be equal in Pakistan, and the LPG would be available at 50 percent cheaper than the price of petrol, 55 percent of diesel and 20 percent of CNG (Compressed Natural Gas) that would prove to be a greater relief to the consumers across the country. Regarding sub-standard gas cylinders, Irfan Khokhhar vowed to move a resolution in the upcoming LPG conference under which the manufacturing, sale and purchase of sub-standard gas cylinders would be declared a non-bail able offense so as to stop occurrence of unwanted and tragic incidents of cylinder blasts that would definitely protect the innocent lives effectively in future. FPCCI Standing Committee Chairman disclosed that at present, substandard gas cylinders were being manufactured in around 400 factories located in Gujranwala. “I will chair the committee meeting on 22nd of this month to discuss ways and means to stop manufacturing of sub-standard cylinders. Of course, we are ready to extend all kind of support to the relevant government departments in their efforts meant to protect public life and give relief to them”. He added that efforts were also being put in place to remove all reservations of the gas importers by raising their issues at appropriate forums. Out of the total 148 LPG marketing companies/importers, he said, only 30 companies had local allocation of gas. “We will also bring a resolution in the LPG Conference for giving an end to ‘Signature Bonus and Premium’ system that benefit only a few, while depriving the majority stakeholders.We want a mechanism that very much ensures merit and justified allocation of the local gas,” he concluded.

Copyright APP (Associated Press of Pakistan), 2018

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