FPCCI expresses surprise over purchase of LNG at inflated rates

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) president Mian Nasser Hyatt Maggo has expressed astonishment at the purchase of liquefied natural gas (LNG) at the rate of $30.6/MMBTU and said that this rate will destroy the fuel supply safety and foreign exchange reserves of the country, a statement said.

Welcoming the visit of Oil and Gas Regulatory Authority (Ogra) chairman Masroor Khan to the Federation House, Karachi, to have a consultative session on the burning issue of ever-increasing gas shortages for industry and end-users, Maggo said that the gas supply shortages and disruptions has become an issue of survivability and sustainability for the industry of Pakistan, which is the backbone of precious foreign exchange earning sectors of the economy.

Both export-oriented and the rest are interlinked and intertwined in a way that production cycles in either affects the other, he said, adding that to ensure continuation of production and employment opportunities in the country, the government must devise a reliable and efficient mechanism to provide gas to the export and non-export industries 24/7.

The FPCCI chief also reiterated his proposal that the private LNG import licences must be issued to bridge the incrementally yawning demand-supply gap.

Hanif Lakhany, vice president of the 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 whatever industrial sector growth is left.

Lakhany also wondered at the inaction and the lack of planning by the government; coupled with no support, facilitative or compensatory package in sight.

He 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.

The government is risking the sustenance of millions of workers employed in the sector and serious threats to the timely completion of export orders, he said.

Masroor Khan explained that the government is fully aware of the issues being faced by the industrialists and the domestic consumers; and, these will be addressed through setting up two new LNG terminals and increased number of LNG cargoes in the years to come.

He said he is addressing all the 15 to 20 LNG associations and alliances of the country through the apex platform of the FPCCI; and, they can be rest assured that their voice is being heard.

Muhammad Arif, member gas, Ogra, discussed the issues of safety and irregularities at the end of smaller retailers in the LNG and 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 the domestic and small-scale commercial consumption, adding that Ogra is working towards a system where every gas cylinder in the country will have a National Serial Number for safety, standardisation, certification, recertification and tracking.

Muhammad Ali Haider, convener of the FPCCI’s Central Standing Committee on LNG, said that domestic consumers; who buy 1to 2kgs of LPG at a time; cannot afford that too at the rate of Rs202.57/kg. Additionally, only 28 per cent households in Pakistan get piped natural gas and that is also not available during the testing winters.

The meeting was attended by senior representatives of giants of the industry; including, Parco, Byco, PSO, Brushane Gas, Hascol, SSGC, plant operators of Port Qasim and several other private sector industry players.

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