SNGPL halts gas supply to CNG stations in Punjab, KPK

LAHORE: The gas crisis in the country has deepened as the state-owned Sui Northern Gas Pipelines Limited (SNGPL) on Monday announced complete closure of gas supply for indefinite period to compressed natural gas (CNG) stations in Punjab and Khyber Pakhtonkhaw provinces

Owing to increase in domestic sector gas consumption and reduction in re-gas rates, it has been decided that gas/Regasified Liquefied Natural Gas (RLNG) supply to CNG stations across SNGPL franchise area (both Punjab & KPK) may be suspended with immediate effect,” said SNGPL in a notification.

“It is further requested that suspension of gas supply to CNG stations may be ensured by 1600 hours on Monday.” Owners of filling stations have termed shutting down of CNG in Punjab and KP illegal.

The All Pakistan CNG Association (APCNGA) rejected closure of CNG stations as a result of a decision taken by federal Cabinet for an indefinite period. “It is illegal for SNGPL to cut off gas supply to CNG stations in Punjab and Khyber Pakhtunkhwa,” said Ghiyas Abdullah Paracha group leader of APCNGA.

“The decision has been taken on a 17-year-old load management policy devised in 2005 which has now no legal standing.” He said the ineffective policy was introduced in 2005 for two years and taking decisions on the basis of this policy is illegal while the cabinet has been misguided in this regard.

“The CNG stations in Punjab are using RLNG therefore these filling stations do not fall in the ambit of any such policy.” Paracha said the decision to disconnect CNG stations in Khyber Pakhtunkhwa is also illegal and contempt of court as the Peshawar High Court has issued a stay order in this regard.

“If the locally produced natural gas is scarce then load management should target consumers of national gas and not the sectors using imported gas, paying highest taxes and highest price for the gas.”

He said the CNG sector is not being allowed to import gas for their own consumption while the government is not ready to give it local gas which has left this sector in deep trouble and its survival is at stake.

“Once the CNG industry of Pakistan was among the leading industries and other countries used to seek help from Pakistan to introduce CNG in their countries but now it is at the brink due to a host of reasons including some elements that are bent upon destroying it.”

It may be noted that Sui Southern Gas Company Limited (SSGC) earlier from December 01, 2021 suspended gas supply to CNG stations across Sindh and Balochistan till February 15, 2022.

According to gas utility, the decision has been taken in line with ministry of Energy (Petroleum Division), government of Pakistan's gas load management plan, which places domestic and commercial customers on top of the gas sector priority list.

It said the decision had been taken to make gas available to the domestic and commercial sectors this winter that was seeing major demand-supply gap due to an extraordinary spike in demand for water and space heating needs in Sindh and especially in Balochistan that is already experiencing very low temperatures.