Underground gas storage facility: Petroleum Division to conduct study

ISLAMABAD: The Petroleum Division will conduct a study for developing an underground gas storage facility in the country with the assistance of the Asian Development Bank (ADB) and a consortium of European oil and gas equipment companies.

A meeting was held between the Special Assistant to Prime Minister (SAPM) on Petroleum, Nadeem Babar, with representatives of the ADB and the consortium of European oil and gas equipment companies, which is leading the study.

While explaining the rationale for building Strategic Underground Gas Storage (SUGS), the SAPM said that the country had considered building emergency stockpiles of gas to deal with supply disruption amid country's growing domestic and commercial demand especially in winter.

The construction of the SUGS is part of the government's policy to improve energy security and affordability in the country.

The meeting took place here at the Petroleum Division, and both sides agreed to expeditiously complete the study report on methodology of underground gas storages till May 2021, so that, availability of funds for the facility will be met in due course of time.

Final report will provide blueprint for facility with respect to size, modulation and security supply of gas.

Earlier, in 2019, the Minister for Energy and the SAPM on Petroleum had discussed the SUGS with the ADB who agreed to undertake a feasibility study for the project for which also allocated a grant.

Inter State Gas Systems (Pvt) Ltd (ISGS), a fully government owned entity, will be the focal agency for the project.

Recently, the ADB has completed its competitive bidding process and appointed the international consultant for preparing a feasibility study.

Project infrastructure could be funded through the Gas Infrastructure Development Cess (GIDC).

The Strategic Underground Gas Storage facilities are crucial for the country in view of committed supplies of imported gas under the international gas agreements and fast-growing gas demand in the country to keep pace with the economic progress.

The project would also significantly enhance Pakistan's capability to provide uninterrupted gas supply for sustainable economic growth.

In 2018, the ISGS headed than by Mobin Saulat geared up endeavours to materialise the task to build the underground gas reserves with an aim to ensure energy security.

Pakistan has many such gas fields where the gas has been enormously depleted and there are the areas where in the imported gas can be stored.

Copyright Business Recorder, 2020