Pakistan has Highest Number of CNG Vehicles in the World: ATP

Owais Mughal

According to International Association of Natural Gas Vehicles, as of December 2008, Pakistan has the world’s highest number of vehicles running on compressed Natural Gas (CNG). The number is 2 million. Pakistan also has the World’s highest numer of CNG refuelling stations. i.e. 2600 . This growth has been phenomenal noting that CNG as a fuel was made available in Pakistan, only in 1992.

For many years, Argentina and Brazil used to be the world leaders in terms of number of vehicles using CNG. Pakistan overtook Brazil in 2006 and Argentina in 2008 to become the world’s largest consumer of CNG in vehicles.

Why Pakistan has got so many vehicles running on CNG? I believe, main reason is because gasoline (Petrol) prices in Pakistan are among the highest in the region as well as natural gas is found abundant and locally in Pakistan.

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Pakistan Ordnance Factories to manufacture CNG cylinders: Steel Guru

Daily Times reported that to save USD 100 million foreign exchange annually on import of CNG cylinders in the country, Pakistan Ordnance Factories has entered into a JV with foreign company for manufacturing CNG cylinders with a project outlay of USD 17 million.

It is expected that joint venture comprising POF and a foreign company would kick start production of CNG cylinders in the country to meet the growing demand in cities as well as in rural areas.

According to an official document, Compressed Natural Gas cylinders are importable at 0% duty in the country. About 600,000 CNG cylinders involving USD 100 million are annually imported into Pakistan.

POF had sought exemption from customs duty on import of inputs used for manufacturing of CNG cylinders. Steel tube falling under PCT heading 7304:5900 importable at 15% duty was a major input for manufacturing of CNG cylinders.

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Pakistan achieves autarky in producing CNG equipment: Pakwatan

ISLAMABAD, Pakistan has achieved self-sufficiency in manufacturing the equipment of international standard used in Compressed Natural Gas (CNG) sector. "Locally produced CNG equipment are now competing with international brands quality-wise as well as in performance in the market," official sources said.

In order to promote indigenous production of CNG equipment, the Oil and Gas Regulatory Authority (Ogra) had given permission to eight companies for manufacturing/assembling CNG compressors, dispensers and conversion kits for vehicles subject to conformity of the laid down international technical standards. After achieving the self-sufficiency, these companies have recently started to export the locally manufactured dispensers to Argentina and Bangladesh.

Presently, Tesla Industries - Islamabad, Advanced Electronic International - Karachi, Global Pakistan - Lahore, Comcept Pvt Ltd - Islamabad, Carbon Products - Islamabad, Green Technology - Peshawar, Siddiq Sons - Rawalpindi and Landi Renzo, Pakistan are operating in the country and producing compressors, dispensers, priority panels and conversion kits.

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Pakistan Energy Yearbook FY08: Dependence on imported energy products increasing: Daily Times

By Muhammad Yasir

KARACHI: The country’s dependence on imported energy products has risen by five percent in the last four fiscal years on its growing demand by power plants and transport sector.

The Pakistan Energy Year Book FY08, released by Hydro Carbon Development Institute, showed that the share of imported energy has risen to 35 percent in FY08 against 30 percent in FY04. This is mainly due to higher import of refined petroleum products, crude oil and Liquefied Petroleum Gas (LPG) for meeting the local demands of various sectors. During last four fiscal years (FY04-08), the energy consumption grew by 8 percent according to Compound Annual Growth Rate (CAGR), whereas energy supplies have risen by 5 percent with significant shift in energy supply mix from gas to oil.

According to the report, the energy consumption of the country stood at 39.4 million tonnes with gas and oil’s share in energy consumption at 40.3 percent and 29.3 percent, while that of, electricity, coal and LPG at 15.2 percent, 13.7 percent and 1.5 percent respectively.

The oil contribution doubled during the last 4 years with consumption reaching 44.7 percent. In FY04, gas share in thermal power generation was 77.5 percent , whereas oil had a share of 21.9 percent. Owing to rising gas shortage and availability of alternative fuel like furnace oil (FO), gas supply to power plants declined annually by 3 percent during the said period. Besides these factors, phenomenal increase in CNG consumption (43 percent CAGR) during this period also confined gas supplies to power sector. In terms of fuel mix, gas remains the primary contributor to thermal power generation with consumption of 8.5 million tonnes (54.9 percent share).

The report said the country’s primary energy supplies posted 23.8 percent growth in FY08 and stood at 62.9 millon tonnes (tons of oil equivalents) versus 50.8 million tonnes in FY04. In FY04-FY08, the average growth of supplies stood at 5 percent with 3.8 percent growth posted in FY07, 9.31 percent growth in FY05 and 8.06 percent in FY04.

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