Policy structure for LNG, CNG and LPG lacking improvement.

• Author: Ahmed, Khalil
• Position: Interview

Byline: Khalil Ahmed

Interview with Mr Abbas Bilgrami - an energy sector expert

PAGE: Tell me something about yourself and your career, please:

Abbas Bilgrami: After my initial education in Pakistan, UK and then Canada I worked in the oil and gas sector as a financial analyst for a Middle Eastern investor group reporting on their North American upstream and downstream industry assets. Subsequently, I was involved in reporting on their projects in the maritime space in the UAE. I then worked with a consortium from Malaysia, Kuwait and the UK to develop an LPG import terminal and marketing company in Pakistan and we also developed a number of projects in the power sector.

At present, I am developing projects in South Africa and Malaysia in the energy and maritime space. I spend most of my year between these two countries.

PAGE: How would you comment on the import of LNG by Pakistan?

Abbas Bilgrami: The import of LNG for Pakistan is required. However this is not sustainable in the longer term unless pricing of natural gas in Pakistan is deregulated. The price of locally produced natural gas is artificially low. A huge subsidy is provided to our residential consumers. This leads to poor utilization and conservation of a depleting natural resource. Add to this, the huge overhang of unaccounted for gas theft and loss of natural gas due to a poorly maintained reticulation system. Local Natural Gas prices should be brought in line with international prices in order to ensure sensible consumption of this fuel.

LNG imports are necessary but in the winters the government is having to supplement the depleting local natural gas to the residential market with imported LNG and thereby creating a huge problem for industry and running up a huge unfunded subsidy. My view is to keep it simple and supply natural gas linked to imported LNG prices. Improve governance and for natural gas thieves they should be jailed whether they work for the utilities or they are consumers or politicians.

PAGE: Your views about the distribution of CNG in Pakistan:

Abbas Bilgrami: CNG is a fuel that should have been used for mass transit programs rather than allowing its use in private vehicles. The pricing of this fuel should be in line with all other liquid fuels. If this were to be done you will find consumers will very quickly move to the more efficient liquid fuels. CNG consumption in Pakistan is on the decline and in the future I believe imported LNG will replace CNG as a...