Huge gas reserves discovered in Sindh: Asim

Huge reserves of over 100tcf of shale gas have been discovered in various parts of Sindh and the government has initially started work on these reserves in Hala, district Matiari. Federal Minister for Petroleum and Natural Resources Dr Asim Hussain talking to media during his visit to Karachi Press Club on Saturday said the first core of shale gas explored near Hala, has been sent for necessary tests.
He pointed out that the country's gas reserves are expected to be increased by four times in next 5 to 10 years. He was of the view that the new discoveries of shale and tight gas in Sindh will help meet gas requirements in the province and of the country also. He pointed out that the facts about these shale gas reserves were kept secrete in the past.
The minister said in the past governments had failed to anticipate the rising issue of increasing oil prices and shortage of gas. The previous government did not pass on the increasing cost to consumers. On the other hand, the energy mix developed by the past government could not meet the country's energy requirements, he said.
Replying to a question, he said next year will be very difficult in terms of gas supply for the country. He said the government has planned to import 500 mmcf LNG to meet the situation. On the circular debt issue, the minister said the government would announce a clear roadmap on the permanent solution of circular debt issue in next 10 days. He pointed out that different options and formulas including issuance of convertible bonds, etc, are being discussed at the ministerial levels and the most suitable formulas would be finalised in a few days.
He said the circular debt issue is affecting overall energy sector efficiency in the country. He pointed out that line losses, theft, inefficiency of different departments and non-payment of dues are some of the major causes that have been ballooning the circular debt.
To another question, Dr Asim pointed out that people in CNG business are making huge profits as according to him they purchase gas for Rs 23 and sell it for Rs 56. On the royalty issue, the minister said the issue has been discussed on different levels and it has been decided that the provinces have to spend 50 percent of royalty on development works in the gas producing districts to generate employment and economic activities there.
On the issue of new provinces, he said the Constitution provides for a framework for creation of new provinces. The demand for creating new provinces is not against the national interests. To another question, Dr Asim said killings and violence in Karachi are the result of wrong policies of the past governments. He said many other countries had faced this situation. He said the government has focused on the real issues and the reconciliation policy of President Asif Ali Zardari will help resolve these issues.