KARACHI: Mian Nasser Hyatt Maggo, President FPCCI, has welcomed the visit of Mr. Masroor Khan, Chairman, Oil & Gas Regulatory Authority of Pakistan (OGRA), to FPCCI Headquarters at Federation House to have a consultative session on the burning issue of ever-increasing gas shortages for industry and end-users.
He expressed his astonishment at the purchase of LNG at a rate of $30.6 per MMBTU; maintaining that this rate will destroy the fuel supply safety and foreign exchange reserves of Pakistan.
In a statement, Mian Nasser Hyatt Maggo said that gas supply shortages and disruptions have become an issue of survivability and sustainability for the industry of Pakistan – the backbone of precious foreign exchange earning sectors of the economy; as both export-oriented and the rest are interlinked and intertwined in a way that production cycles in either affects the other.
He added that, in order to ensure the continuation of production and employment opportunities in the country, the Government of Pakistan must devise a reliable and efficient mechanism to provide gas to export and non-export industries 24/7. FPCCI Chief also reiterated his proposal that private LNG import licenses must be issued to bridge the incrementally yawning demand-supply gap.
Mr. Hanif Lakhany, VP FPCCI, said that he is concerned at the lower imports of LNG this year and that too at a very inflated rate; which in turn, is bound to diminish the whatever industrial sector growth is left. Mr. Lakhany also wondered at the inaction and lack of planning of the government; coupled with no support, facilitative or compensatory package insight.
Lakhany explained the plight of the textile industry and the real-world impediments that the export-oriented sector is facing due to insufficient and expensive gas supplies. He added that the government is risking the sustenance of millions of workers employed in the sector and serious threats to the timely completion of export orders.
Mr. Masroor Khan, Chairman OGRA, explained that the government machinery is fully aware of the issues being faced by the industrialists and the domestic consumers; and, the issues will be addressed through setting up 2 new LNG Terminals and increased number of LNG cargoes in the years to come. He added that he is addressing all the 15 to 20 LNG associations and alliances of the country through the apex platform of FPCCI; and, they can rest assured that their voice is being heard.
Mr. Muhammad Arif, Member Gas, OGRA, discussed the grave issues of safety and irregularities at the end of smaller retailers in the LNG & LPG distribution and sales network across the length and breadth of Pakistan. He admitted that it will take some time to implement the standards at the small shops selling gas for domestic and small-scale commercial consumption. He added that OGRA is working towards a system where every gas cylinder in the country will have a National Serial Number for safety, standardization, certification, recertification, and tracking.
Mr. Muhammad Ali Haider, Convener of FPCCI’s Central Standing Committee on LNG, said that domestic consumers; who buy 1 – 2 KGs of LPG at a time; can not afford that too at a rate of Rs. 202.57/kg. Additionally, only 28 percent of households in Pakistan get piped natural gas and that is also not available during the testing winters.
Notably, the high-profile meeting was attended by the senior representatives of giants of the industry; including, Parco Refinery, Byco Refinery, PSO, Brushane Gas, Hascol, SSGC, Plant Operators of Port Qasim, and several other private-sector industry players.
