Pakistan achieves self-sufficiency in manufacturing CNG equipment, begins export

[Naveed Yaseen]

ISLAMABAD (May 04 2009): 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.

The CNG sector has witnessed unprecedented growth during the corresponding fiscal year 2007-08 with setting up of 764 new CNG stations across the country. "Operational CNG stations across the country in the year were 2,214 as compared to the previous year's 1,450, which shows unprecedented growth of 53 percent," sources observed. Ogra has so far granted about 6,115 licences to construct CNG stations in different parts of the country. Almost 80 percent vehicles in the country have been converted into CNG since introduction of this cheaper fuel in 1992.

Now, the government is taking steps to replace diesel with CNG in public service transport, initially in major cities of the country, they added. They said the number of CNG run vehicles is growing at a fast pace due to investor friendly policies of the government and effective role of Ogra. Further promotion of this sector would greatly help cut down annual oil import bill as presently the country is importing more than 4.6 million tonnes of diesel oil annually at a cost of more than US $3.9 billion.

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