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CNG NEWS >> Pakistan CNG Conference & Exhibition Highlights Industry Achievements & Future

Pakistan CNG Conference & Exhibition Highlights Industry Achievements & Future
Wednesday, 05 October 2005

More than 250 local and international stakeholders have concluded the 2nd annual two-day International CNG Conex-2005 Conference and Exhibition in Lahore, Pakistan. The event featured Pakistan’s first locally assembled CNG vehicles, a Hinopak bus and an Alif car (see NGV Global story) and included four technical & panel sessions covering “Environment, Safety & Standards”, “Local Manufacturing of CNG Equipment & Accessories”, “Gas Distribution Network”, & “International Prospects of NGV-CNG & Local Urban Transportation System.”

Opening the event, Additional Secretary, Ministry of Petroleum & Natural Resources Shoukat Hayat Durrani said stable CNG pricing would be maintained to protect the interest of consumers and growth in the fast growing CNG sector of the economy. He added that at present, CNG accounts for 6% of the total fuels used in road transport in the country.

766 CNG stations are currently operational in more than 50 cities with 200 more under development. When completed, these stations will represent a more than six fold increase on the 150 stations operating in 1998. With more than 800,000 natural gas vehicles on the Pakistan’s roads, the country is the CNG leader in Asia and third largest user of CNG in the world after Argentina and Brazil. Most CNG vehicles are currently light vehicles, but with interest growing in the heavy vehicle sector, CNG buses and trucks are expected to increase significantly in coming years.

The discovery of seven new natural gas reservoirs in the past three to four years, has added to Pakistan’s reserves, giving the country as least 25 to 30 years of gas supplies. The development of new gas fields has increased production by around one billion cubic feet daily, easing the pressure on gas supply due to fast increasing demand in power industry, household and transport sectors, he said.

President of the CNG Station Owner’s Association (CSOAP) Malik Khuda Buksh said association members have absorbed recent natural gas price rises and will only raise CNG prices if compelled to do so. He also called for the elimination of roadside workshops providing sub standard CNG conversions.

Kalim Siddiqui, Executive Director of Pakistan State Oil (PSO), the country’s largest supplier of gasoline and diesel, stressed the need to replace diesel use with CNG, as a means of combatting air pollution. Pakistan currently more than 4.2 million tonnes diesel oil annually at a cost of around $US2.17 billion. PSO is also the country’s largest operator of CNG dispensers and recently announced it would be establishing a mother/daughter network of stations in areas currently inaccessible by underground natural gas pipelines. According to Kaleem Siddiqui, 50% of Pakistan’s energy consumption is derived from natural gas, with petroleum accounting for 30%, out of which 34% came from local crude oil.

General Manager of the Hydrocarbon Development Institute of Pakistan (HDIP) Karachi, Naushab Sarwar said the HDIP played a very positive role in terms of guidance, keeping a check on safety aspects and testing of cylinders etc. to develop the CNG industry. He added that investments of Rs.18 billion ($US300 million) have been made in the CNG sector and Rs.2 billion ($US33 million) is in pipeline creating 20,000 new jobs.

Concluding the conference, State Minister for Petroleum & Natural Resources, Mr Naseer Mengal said the government was taking solid steps to reduce imports of petroleum, reduce air pollution, and to promote the CNG sector as providing a cost-effective fuel to people.

CNG Conex-2005 was organized by National Forum for Environment & Health (NFEH) in collaboration with CNG Stations Owners Association of Pakistan (CSOAP) and Happenings International. The event was patronized by Ministry of Petroleum & Natural Resources and Hydrocarbon Development Institute of Pakistan (HDIP).

Khalid Iqbal
Project Director
CNG-CONEX2005