CNG station in Punjab zone will reopen from Wednesday morning after remaining closed for 12 days and will stay open for indefinite period as there will be no interval this time.

According to sources shipment of Liquefied Natural Gas (LNG) is likely to arrive at Karachi port on Tuesday and CNG stations across Punjab and Islamabad are likely to reopen from the morning of 8th July. CNG stations across Punjab were closed down on June 26 and it will reopen after 12 days of break because of the payment issue. According the CNG association statement issued last month stated that after twenty days, CNG stations would be closed for 3-4 days and then it will be reopened again so that masses could get affordable fuel for 20 to 22 days a month. However the sources said that due to the nonpayment by the Independent Power Producers (IPPs), to Sui Northern Gas Pipelines Limited (SNGPL), the arrival of LNG from Qatar was delayed and now its arriving today (Tuesday). The issue of Sui Northern Gas Pipelines Limited (SNGPL) dues of Rs 14 billion with IPPs is partially resolved. When asked by the scribe why the reopening was delayed too much, against the promised 3 to 4 days time, the president of CNG association Ghayas Paracha said that there was some payment issue between the SNGPL and some of its consumers adding that CNG owners have made payment on time.

Meanwhile a press release issued by the All Pakistan CNG Association (APCNGA) said hundreds of CNG stations will reopen from July 08.

Decision to this effect was reached in a meeting between Petroleum Minister Shahid Khaqan Abbasi and CNG association central leader Ghiyas Paracha.

The formula for revival of CNG sector in Punjab was also agreed and it was decided to revive CNG stations of Punjab which are not using RLNG.

Out the total 3,495 CNG stations in Pakistan 2,400 were located in Punjab zone but after intensification of gas crisis, gas supply to CNG stations of Punjab was suspended in November 2014 but the supply was partially restored in early June this year under new rules. The restoration of gas supply to CNG station in Punjab is made possible through the imported Re-gasified LNG (RLNG). According to new policy RLNG will be provided to those CNG stations that furnish additional deposits of Rs 1.2 million. So far only 800 stations out of the total 2400 stations located in Punjab region were reopened. The RLNG price to CNG stations is $12.8 per Million British Thermal Units (MMBTU), which CNG stations are selling to the end consumers at 59.8 per liter. The local gas was being provided to CNG industry at $10 per MMBTU, which CNG stations were selling to the consumers at Rs 76.7 per kg. Now after the introduction of the new policy, in Punjab the commodity is being provided in liters at same price which means per kg gas is costing around Rs 88. Under the new price formula, a medium CNG cylinder which used to cost Rs 600 earlier now costs Rs 750, showing an increase of 25 percent in the price.