By Dr Syed Fayyaz Hussain
The government has given special preference to China for constructing / developing major projects in Pakistan. In the last 5/6 years, FDIs have come in, in a reasonable volume and remittances from overseas Pakistani’s have made the economic situation much stronger.
Despite some political upheavals, Pakistan continues to grow stronger economically and heavy public sector development programmes are creating many employment opportunities which will certainly help towards alleviating poverty.
In this scenario, it is vital that ways are found to lessen the burden of import of fuel oil. Out of total oil import bill during July to February 2007; the petroleum products claimed $2.34 billion. The total crude oil import went up to $2.36 billion during the same period. The oil analysts estimate that total oil and petroleum import may increase up to $6 billion during the current financial year.
It is an appropriate time to develop cost-effective alternative sources of energy in order that the present increasing oil import could be curtailed. The government is anxious to find cheaper energy by employing indigenous resources.
An attempt is being made to make full use of compressed natural gas (CNG) in areas where possible especially in transport. This may help in the coming years to reduce the import of petroleum products. With this in mind, the use of CNG is being actively promoted across the country. The government is offering various incentives and concessions to those firms who are actively engaged in CNG business. The full development of CNG industry will help to develop a stronger energy base for Pakistan.
In 2000, Pak-Suzuki realised the enormous growth potential of CNG fitted cars in Pakistan and went into producing factory fitted CNG vehicles. It is estimated that presently, over 1.2 million vehicles are using natural gas as a vehicle fuel and being served by over 1145 refuelling stations in Pakistan.
It is good to know that now Pakistan ranks 3rd in the CNG industry of the world. The CNG industry of Pakistan is set to grow further in the years to come. At this juncture we would also like to define CNG and its main components for the benefits of our readers and the people in general. CNG is compressed natural gas and is considered the fuel of the future. It is gaseous fuel consisting of mixture of hydrocarbons mainly methane (85 to 90 per cent). Low pressure natural gas is compressed to 200-250 kg to enhance the storage capacity in a seamless steel cylinder. Use of CNG as an alternative automobile fuel is rapidly increasing worldwide due to its economic advantage and air-pollution free ingredients.
Cylinders are a very important component in CNG operation. CNG cylinders are available in different types and weight, and various types of metals and alloys. The most widely manufactured CNG cylinders are all steel cylinders.
There are about six million vehicles running on CNG all over the world. Pakistan alone has over one million natural gas vehicles (NGVs). Asian countries like China, Iran, India and Bangladesh are developing their CNG industry by creating infrastructure for new gas pipelines and CNG stations.
Pak-Shell is participating in the growth of CNG industry in Pakistan. Shell has opened a good number of ‘Shell CNG gas stations’ in Karachi and there are plans for many more stations to be made operative soon. This will include CNG stations in nearly all the provinces in Pakistan.
It is heartening to note that the Punjab Small Industries Corporation has started a new loan scheme for bus owners who intend to convert their diesel vehicles to CNG system. The loan is payable within three years. The corporation has created a revaluing fund of Rs20 million for this project.
The central development working party has approved the project for converting public transport to CNG in the next five years. The project covers all major cities of Pakistan. It is expected that this scheme will have a positive impact on air pollution.
Pakistan is looking forward to finalising arrangements with Iran for supply of gas through pipeline and this may be extended to India too. This is an ambitious project which is going to help the three partners in the deal.
It is also good news that the government of Ukraine has assured to boost energy cooperation with Pakistan. The concept of cost-effective economy, if properly introduced and implemented, would ultimately raise the potential for stronger ìnon-inflationary economy” in the country.
We may finally conclude that CNG is a revolutionary concept as an alternative source of energy in Pakistan. The government has to create awareness to further improve CNG industry in Pakistan.