‘750 MMCFD gas likely to be added to system by June 2013’

ABDUL RASHEED AZAD

ISLAMABAD: Dr Asim Hussain, Advisor to the Prime Minister on Petroleum has said that as a result of efforts being made by his ministry to cope with energy crisis an estimated 750 million cubic feet (MMCFD) per day gas is likely to be added in the system by June 2013, showing an increase of 20 percent.

He said this while chairing a seminar titled “Pakistan’s Potential in Oil and Gas Sector” organised by Petroleum Institute of Pakistan (PIP) here on Monday.

At present total gas production stands at 4.2 billion cubic feet (BCF) per day; after the addition of 750 MMCFD it would touch 5 BCF mark and help reduce gas shortage significantly.

Asim stressed upon the Exploration and Production (E&P) companies operating in Pakistan to support the PIP and help develop it into a think-tank for policy initiatives in the oil and gas sector.

The Advisor informed that his Ministry prepared National Mineral Policy 2012 to deal with the challenges of large scale mining and enhance international competitiveness.

It was stated that the country imported oil to the tune of 15 billion dollars, which constituted 36 percent of the overall import bill. Besides, the value of the gas produced in the country is 4.3 billion dollars and oil produced in the country is 2.4 billion dollars. He further said Pakistan offered great potential in oil and gas sector, adding the government was effectively playing its role by introducing new policies to meet the rising energy demand. He assured full cooperation and facilitation to all investors who wished to invest in the country’s oil and gas sector.

He said the government was also working on Tight Gas, Low BTU Gas, Shale Gas, Marginal Gases, Flared Gas and Stranded Gas policies to tap the available resources for the benefit of the country.

Pakistan had huge reservoirs of tight gas. According to rough estimates, tight gas and low BTU gas reservoirs stand at 56 BCF per day, he added.

Outlining the achievements of the Petroleum Ministry, Asim informed that during the past four and a half years 1.6 million consumers were provided with gas connections at a cost of Rs 10.41 billion, while 879 kilometres of transmission lines and 39,707 kilometres of distribution and service lines were added to gas network, costing Rs 61.164 billion.

Topics of the PIP seminar, covered by senior industry officials and government officers, included Policy Reforms, Pakistan Business Relationships with Iran and Turkmenistan, Achievements of the E&P Sector, Synthetic Natural Gas (SNG) to Counter Natural Gas Crises and Future Outlook of LNG in Pakistan.

In his closing address, PIP Chairman Asim Murtaza Khan informed that PIP would conduct a series of seminars in the next couple of months on topics of “Shale gas potential in Pakistan”, “Fast tracking LNG imports” and “LPG outlook in Pakistan”.

The PIP, which represents all segments of the petroleum industry, was established in July 1963 for the purpose of promoting and coordinating the activities of oil and gas sector in Pakistan. Currently the institute consists of 25 industrial collective members and is administered by a board of directors.

Broadly the objectives of the institute are to engage in activities for promoting the long-term development of the oil and gas sector in Pakistan. This includes forecasting the energy demand and supply position of the country over a 15-year period through its “Pakistan Energy Outlook” document showcasing the energy scene and suggesting solutions for its energy issues. PIP is a country member of International Gas Union and World Petroleum Council.