ISLAMABAD: Prime Minister Yousuf Raza Gilani on Sunday announced the formation of a Government-Industry Energy Council (GIEC) with the mandate to prepare recommendations to address the energy crisis in the country. Addressing the inaugural session of three-day 'Energy Conference', organised by the Petroleum Institute of Pakistan, the PM nominated Petroleum Institute of Pakistan as permanent member of GIEC.
The Prime Minister said that energy was an essential driver of the country's economy. He said that he would be looking forward to the recommendations coming from the conference, and asked the Petroleum Institute of Pakistan to deal with them through the Energy Council.
He said that the government cannot alone tackle the energy-related issues and needed help of private sector to move forward. This would entail team effort and forging a mutually rewarding and strategic partnership between the government and the energy sector, he added.
The Prime Minister held out an assurance to the Petroleum Institute of Pakistan that the government would work on the implementation of mutually acceptable agenda. He said that to achieve accelerated GDP growth, the economy needs reliable, uninterrupted, and affordable supply of energy. But Pakistan today, he said, is facing the overwhelming task of bridging its energy demand and supply gap which is likely to double in the next 15 years.
Gilani said that the Sui field, at the time of discovery in the fifties, was believed to have enough natural gas reserves for two centuries, which obviously is no longer the case on account of rapid growth in demand and depleting reserves from this field. He said that despite several gas discoveries, the growth in energy demand is more than the supply from domestic sources.
He said that the country is already experiencing load management measures being taken by the gas distribution companies to balance the current supply and demand situation.
He said that the share of natural gas as one of the primary energy sources had increased from 40 percent in 1999 to 60 percent in 2010. "We consumed our entire domestic natural gas production, providing for approximately 50 percent of our total energy requirements," he added. The Prime Minister said that Pakistan is an energy-deficit country, meeting nearly 90 percent of its oil requirements through imports. The government, he said, was trying to move fast to start importing natural gas via LNG and regional pipelines in the near future to offset the growing gas deficit in the country.
Gilani said that the government is struggling to keep up with an increasing energy import bill on he one hand adversely affecting the trade deficit while on the other hand it is difficult to pass on the full impact of the increase in the international oil prices to the people.
About development of local energy sources, including hydel projects and the Thar coal field, he said that they all also remain a high priority for the government. "We have already added 1700 MW in the national electricity grid during last three years", he said, adding that simultaneously many more power projects are at various development stages.
"Fuelling the Future, therefore, requires finding new oil and gas reserves through aggressive exploration activities, optimising production from existing fields by applying cutting-edge technology, enabling gas imports from across the borders via regional pipelines and LNG shipments. The government is encouraging foreign investments in energy infrastructure development and, in a broader context, development of alternative sources of energy and energy conservation, for a sustainable energy supply.
"As major players of the industry, I call upon you to come forward and play the role befitting your stakes in the country's development and economic prosperity," he said and added "You are capable of turning the tide and delivering results, and I am also counting on all the friends present in this conference to facilitate technology transfer, form international joint ventures, and bring foreign investment to Pakistan's energy industry".
He said that the 'Energy Conference' would have working sessions on very important subjects, including oil and gas exploration and production, LNG imports, development of Thar coal fields, power sector progress, oil infrastructure development and safety recommendations for the energy sector.
"Here I would particularly acknowledge the efforts of the Petroleum Institute of Pakistan and its member companies for making this event possible," the Premier said, adding that such a crucial international event being held in Pakistan by the Petroleum Institute of Pakistan clearly indicates the priority accorded to highlighting the country's energy issues by the Petroleum Institute being the representative body of the most important public and private sector companies in the oil and gas sectors of the country.
The Prime Minister said that Pakistan today is faced with a number of challenges which include security issues arising from its fight against terrorism and a growing trade deficit as a result of rising energy prices globally. He said that these challenges had caused financial constraints in the country and the government was however determined to face these challenges in the same way as done in the political arena.
High economic growth, reduction in poverty levels and improvement in countrywide literacy remain important and achievable targets for this government, he said. "The government is taking the necessary steps in the short term to reach these goals and in the long term will strengthen the relevant institutes in the country to bring about sustainable change for the betterment of the people," added Gilani.