Demand of SNG (substitute natural gas) starts to increase

[Naveed Yaseen]

LAHORE: After the successful provision of SNG, the mixture of Natural Gas and Air to the consumers of Gwadar city for the last 4 years, the natural gas producing companies and industrial sector have expressed their interest in obtaining SNG technology.

Head of SNG providing company in Pakistan M/S: Dynamic Engineering and Automation, Owais Mir told that installation cost of SNG plant is 6 times lower than LNG plant whereas the cost of one MMBTU SNG is 25 to 30 percent lesser than LNG.

He added that in view of the limited existing reserves of natural gas in the country, the local gas requirements can be met in a very short period of time by promoting SNG technology. At present natural gas providers are facing a shortage of 500 to 700 MMCFD of gas, which, during the winter tolls to 1,000 MMCFD.

In Gwadar, through SNG Technology 60 MMBTU gas per hour is being produced and successfully transmitted to the consumers. Moreover textile and ceramic tile industry has already started having the benefit of SNG as alternative source of energy.

Mir further told that SNG technology may play an important role to overcome the energy crisis, prevailing for the last 2 years. He proposed that in order to further reduce the cost of the gas being obtained through SNG technology, the government, other than increasing the local production of LPG should find ways and means for competitive long-term import contracts from neighboring countries and lifting of 16 percent sales tax levied upon import of LPG.

Because of state of the art infrastructure available at Pakistani ports, import of LPG is further the positive for SNG project and huge level of import is possible.

http://www.dailytimes.com.pk/default.asp...2009_pg5_4