**ISLAMABAD: Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Tuesday announced the suspension of gas supply to the CNG sector in the Punjab, including Islamabad, for three months starting from November.
Talking to media persons here, Abbasi said all CNG stations in the province will be closed from November to January due to the shortage of gas in winter.
Pakistan suffers from chronic gas shortages. Many Pakistanis have converted their cars to CNG, depending on it as a cheaper alternative to petrol and diesel.The switch to CNG by both private and commercial sectors as an alternative fuel for motor transport has hampered an already burdened gas supply.
“Our first priority is domestic consumers and the power producing companies during the winter, so there will be no gas for motor transport in the Punjab for three months starting November,” Abbasi said.
Talking about the Iran-Pakistan gas pipeline project, Abbasi said Pakistan had asked Iran for $2 billion in financing to build its side of the pipeline.The Iranian side of the $7.5-billion project is almost complete, but Pakistan has run into repeated problems paying for the 780 km section to be built on its side of the border.
“All these issues will be discussed in a meeting, which we have requested, but so far there is no reply from the Iranian side,” Abbasi said.“They were busy in cabinet formation and I hope that this meeting will take place within this month.”
It is the latest setback to the long-delayed section of the pipeline that would link the two neighbours and help ease Pakistan’s natural gas shortages.US has warned that the project would risk triggering sanctions aimed at Iran. But Abbasi denied coming under pressure from Washington since Prime Minister Nawaz Sharif came to power in the May general election.
“Americans have not so far talked about this pipeline with us at any level,” he said.Asked if Pakistan was hoping to complete the project before the December 2014 deadline, Abbasi replied, “Anything is possible, if we have the resources.” “It depends on the financing and availability of the machinery,” he added.
Iran has the second largest gas reserves in the world but has been strangled by a Western embargo that has seen its crude exports halved in the past year.
It currently produces around 600 million cubic metres of gas per day, almost all of which is consumed domestically due to lack of exports. Its only foreign client is Turkey, which buys about 30 million cubic metres of gas per day.Abbasi said the government had sought bids from Pakistani and Iranian companies for pricing of the construction cost of the pipeline.
**No CNG for Punjab, federal capital in Nov, Dec, Jan: minister - thenews.com.pk
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