The government has decided not to increase gas price for domestic consumers against the recommendations of Oil and Gas Regulatory Authority (Ogra), which last month approved up to 36 percent increase in gas tariff for 2016-17.
Addressing a press conference here on Thursday Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi said that gas price would remain at the present level in a bid to provide relief to gas consumers.
The government is bound to review gas prices biannually following decisions of Ogra, which had approved an increase in gas price up to 36 percent for the ongoing financial year (2016-17).
He said that domestic gas consumers in Punjab were facing a 40 percent gas shortage as a result of the implementation of article 158 of constitution. Under article 158, the government is bound to provide more gas to the gas producing province. "Council of Common Interests (CCI) needs to review this clause for uniform gas distribution for domestic consumers in all provinces", Abbasi said adding the situation in the 2016 winter in Punjab would be better compared to last year.
He said that the present government has provided new gas connections to one million consumers on the network of Sui-Northern Gas Pipelines Limited (SNGPL), adding that the government had ensured merit policy in provision of gas connections.
The Minister said that state owned Oil and Gas Development Company Limited (OGDCL) has made three oil/gas discoveries in three different blocks located in Sindh which will add 29 Million Cubic Feet per Day (MMCFD) of gas into the system.
Abbassi further claimed that the success rate in oil and gas exploration had increased to 55 percent from 31 percent during the present government and activity in oil and gas exploration increased by 40 percent compared to the performance during the previous government. He also claimed 90 oil and gas discoveries during the present government out of a total of 319 wells drilled compared to 35 discoveries during previous government''s tenure.
466 MMCFD gas from new wells and 478 mmcfd gas from existing wells was added into the system. Due to increased oil and gas exploration activities, 11000 barrels per day oil through new discoveries and 21,000 barrels per day crude oil from existing fields were added to the system.
Abbassi accused the previous governments of failing to install processing plant at Kunar Pasaki Deep (KPD) field for the last ten years and stated that OGDCL succeeded in installing the plant during the PML-N government which would result in bringing 80 Mmcfd additional gas, 400 tons LPG and 4,000 barrels per day oil into the system in the coming winter.
He said that oil and gas exploration activity had dropped by 60 percent in the world due to dip in oil prices but exploration activities increased in Pakistan due to incentives offered by present government. Abbassi said that foreign investment in oil and gas sector had not declined, though gas production declined but due to injection of gas from new resources, the gas supply situation was better. He said that OGDCL had made three new discoveries in Sindh province which would help add 29 mmcfd gas in the system.
As a result of government''s efforts, the Unaccounted for Gas (UFG) has declined by 3 percent from 13 percent in 2013 to 10 percent 2016, he said.
The Minister said that the federal government and the Khyber Pakhtunkhwa (KPK) government had reached an understanding to legalise the illegal gas connections mainly installed in Karak, Kohat and Bannu districts. Giving the details of the plan, he said that gas companies would provide 60 percent funds whereas KPK government would provide 40 percent.
Abbasi said that the CCI had approved regulation of LPG prices and LPG imports during this year have doubled due to government policy and stable LPG prices.
He said that second LNG terminal would be functional by the end of June 2017 as per contracts which will handle 600 MMCFD LNG.
Chairman OGDCL Board of Directors Zahid Muzaffar and Managing Director (OGDCL) Zahid Mir were also present on the occasion.