ABDUL RASHEED AZAD

ISLAMABAD: Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi has said that the first shipment of Liquefied Natural Gas (LNG) will reach here on March 31, 2015 and the construction of Iran Pakistan (IP) Gas Pipeline Project is under way which will be completed by the end 2016 or start of 2017.

Addressing a press conference here on Wednesday the minister ruled out any petrol crisis in future. He said arrangements have been made keeping in view expected reduction in oil prices next month and rising demand of petrol. He said petrol consumption in the country since January 2014 has increased from 9,000 tons per day to 15,000 tons in January 2015 and for February the government has projected an estimated demand of petrol at 19,000 tons daily. He said during ongoing month petrol consumption was recorded at 450,000 tons and for next month it is estimated to touch 540,000 tons per month due to expected reduction in the prices. Diesel consumption during past one year has also increased by 12 percent and to meet the future requirements the government is taking all necessary steps.

Shahid Khaqan Abbasi said petrol crisis was overcome by taking effective measures and the first LNG shipment will reach here on March 31, which will be provided to power generation plants.

Abbasi said that Compressed Natural Gas (CNG) is an important part of the country's energy mix which will be promoted. We will not allow any crisis to damage the world's number one industry and efforts were underway to revive it, he said.

To a question, he said sufficient stock of diesel and furnace oil has also been ensured.

The Minister said CNG sector has been allowed to import LNG and the government will transport it to provide CNG and alternate fuel to consumers. He said pressure on petrol will be reduced with the availability of CNG and people will get relief. He said additional CNG will be available soon.

He said petrol consumption was increasing with each passing day due to reduction in prices and selling of 40,000 bikes per month adding that last year around 500,000 motorbikes were sold in the country.

It is natural that you should import gas from that country, gas is a cheap fuel, clean fuel, it can easily be transported, and Pakistan is a very old gas country, we have extensive gas network, even villages have gas, industries are on gas, fertilizers plants are on gas, so we need gas, what I am saying is, in future I see not just one pipeline but I see three or more pipelines from Iran," Abbasi said. "So we went through different ways to develop the project and what we did was that we have signed an understanding with the Chinese company and this is part of the Gwadar project also, we will build an LNG terminal at Gwadar and 700 KM pipeline would be built from Gwadar to Nawabshah, about 70 kilometres to be constructed to reach Iran border."

The minister said the government has taken provision of environment-friendly and economical fuel to masses as a challenge, adding that import of LNG will begin from March after which no CNG station would face closure.

Abbasi said the price of CNG would be deregulated. It would be linked to crude oil and its price would be 30 percent cheaper as compared to petrol.

The move will have a positive impact on the budget of masses, environment, oil import bill and job market, he added.

He said revival of CNG would help establish an alternative fuel system which will not be affected by petrol scarcity or vitality of market, hence providing relief to masses.

The minister lauded the CNG sector for taking initiative to import LNG to overcome crisis, ensuring that the government is fully cooperating in this regard.

"We have offered fiscal incentives for import of LNG so that once vibrant sector can again flourish," he stressed.

He asked other industrial groups to follow the footsteps of CNG sector to settle their energy problems offering all-out support.

Speaking on the occasion, Ghiyas Paracha lauded the government support for import of LNG for CNG sector terming it the beginning of the end of energy crisis in Pakistan.

He said the import of LNG will have a positive impact on all the people and every sector of the country.