Oil mafia, gas companies out to fail LNG project

KARACHI: Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt on Thursday said discouraging transport sector is hitting LNG policy which must be taken seriously by the policymakers.

Minor changes in the LNG policy could help country reduce energy shortage and save billions of dollars besides reducing pollution. Shahid Rasheed Butt said that LNG is suited for transport sector to replace the costly petrol which can help country save billions in the energy import bill which is not acceptable to oil mafia and gas companies.

He said that government should consider bringing sales tax on imported gas from 5 percent to zero to make it viable for the private sector. Mian Zahid Hussain said that gas utilities are charging 11 percent losses while demanding to jack up losses to 16 percent which is illegal as Ogra has determined loses to be 10.63 percent.

He asked the policymakers to pay more attention to LNG as its price will slide in the summer 2015 while there is no chance of notable price hike in the next decade as world’s regasification capacity is set to get a boost of 75 percent in the next 5-7 years.

Country can save 30 percent in fuel import bill if LNG gets a policy support, he said, adding that Pakistan’s energy requirement will be equal to 177 million tonnes of oil which call for meaningful actions.