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Why gas crisis if LNG is cheaper than local gas: Mian Zahid Hussain

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President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday lauded the decision of the government to bring an end to the monopoly of state-run companies in the gas sector.

He said that government should also consider breaking monopoly of certain companies in the power sector to provide relief to masses and trigger national development. 

Mian Zahid Hussain said that presently LNG is cheaper than local natural gas, therefore, there is no justification in shortage of gas and crisis. 

Talking to the business community, the veteran business leader said that the government has allowed the private sector to import and distribute gas which will have a positive impact on investments, production, exports, employment and environment. 

He said that state-run utilities have become famous for corruption, nepotism, mismanagement and favouritism resulting in a gas sector circular debt of Rs250 billion.

The utilities would never serve masses and would not allow others to serve the masses and business community through conspiracies. 

Now the government has allowed private sector to step into this field which will also compel gas companies to improve their working and reduce losses.

He said that if private sector was insulated from conspirators, it will reduce the gas shortfall during upcoming winter season and bridge it completely by next winter. 

Mian Zahid Hussain said that Karachi is the economic and commercial hub of the country and being a port city it should not face shortage of energy but unfortunately the gas and power companies seem more interested in blaming each other than resolving problems. 

He said that power generation and distribution should be separated in Karachi and import of gas should be expedited. 

The local gas production has less than half of the demand, the shortfall will jump to 2.7 billion cubic feet per day by 2023 and it will go up to almost five billion cubic feet per day.

A provincial government is blamed for hindering the LNG project which should be tackled in the council of common interests, he said, adding that presently imported gas is cheaper than the local gas, therefore, the shortfall can be bridged easily which need insulation of the private sector from plotters.

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