ISLAMABAD-Making a true calculation of the country’s existing and future energy needs, the incumbent coalition government has aligned its strategy to achieve self-sufficiency in the oil and gas sector by stepping up exploration activities to exploit indigenous resources in potential areas. The Petroleum Division, under the dynamic leadership of Prime Minister Shehbaz Sharif, has taken solid steps to find a permanent solution to energy scarcity and reduce reliance on imported fuel by attracting investment in the oil and gas sector. For this purpose, the government, during its first six months, not only restored 11 revoked licences of different exploration and production (E&P) companies but also received bids for the award of 14 new exploration blocks through a transparent bidding process. With the award of new E&P blocks, the country would get more than $ 92.8 million investment in three years, besides the utilization of funds amounting to over $1.2 million by the successive E&P companies under the Corporate Social Responsibility (CSR) initiative to carry out welfare activities in surroundings localities of their oil and gas production fields.
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The country’s existing hydrocarbon deposits are depleting at the rate of around 10 per cent annually because E&P companies unfortunately could not make any major discovery since long.
It is hoped that with the restoration of the revoked E&P licenses and the award of new exploration blocks, the companies would accelerate drilling activities to exploit the country’s real potential of indigenous resources.
A senior official privy to petroleum sector developments told APP that the government was cognizant of the prevailing oil and gas supply situation and had made sufficient arrangements to meet the needs of the country accordingly.
On instructions of PM Shehbaz Sharif, he said, the supply of petroleum products and gas to consumers was being monitored daily.
He said there existed sufficient petrol and diesel stocks, while the government made timely arrangements to procure additional Liquefied Natural Gas (LNG) cargoes for the peak winter season. Minister of State for Petroleum Dr Musadik Malik said the government had arranged extra gas for the months of November, December and January as compared to the same months of the last year. “Additional LNG cargoes for January and February have also been secured from Qatar.”
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He said a Gas Framework Agreement with the Azerbaijani trading firm SOCAR was near completion for the availability of ‘distressed’ cargoes of LNG from the international market for purchase at the cheapest rate.
Musadik Malik said the Sui companies had been directed to ensure the gas supply, especially during ‘breakfast, lunch and dinner’ preparation timings i.e. 6-9 a.m., 12-2 p.m. and 6-9 p.m.
He said an effective monitoring system of commodity’s demand and supply, observed by the Petroleum Division, was in place but the poor infrastructure was a hurdle creating a gas pressure issue for the remote areas, which was being rectified. To bridge the demand and supply gap, the minister said the gas companies were providing more than 20,000 tons of Liquefied Petroleum Gas (LPG) per month in the areas where gas-pressure issues and shortages prevailed. Sui Northern Gas Pipelines Limited (SNGPL) has opened for the first time LPG cylinder outlets in the localities facing natural gas shortages.
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The minister said the government was cognizant of the industrial sector’s energy demand and its importance to economic stability, exports and employment.
Accordingly, he said the government was utilizing all available options and contacting different countries including the Central Asian States and added, “We are reaching out to all [potential] countries for buying gas either through pipelines or Liquefied Natural Gas (LNG) cargoes to meet the ever-increasing gas demand.”
He highlighted the importance of exploiting the country’s indigenous oil and gas potential, saying that two new policies related to tight gas and the revival of old hydrocarbon wells, were being worked out.
Russia, he said, had agreed in principle to provide crude oil, petrol and diesel to Pakistan at a discounted rate. “We believe that there will be a crucial role of the light crude oil, which will be imported from Russia, in bringing down the energy price.”
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In addition to that Pakistan has initiated negotiations with Russian private and public sector companies for procurement of Liquefied Natural Gas (LNG) to meet our energy needs.
The early establishment of the Pakistan Stream Gas Pipeline, commonly known North-South (Lahore-Karachi) Gas Pipeline, and another ‘big gas pipeline’ to get the commodity from Russian hydrocarbon deposits was also part of the plan, he added.
Next month, an inter-governmental delegation of Russia, led by its Energy Minister, would visit Pakistan to make progress on oil and gas sale-purchase agreements between the two countries.
The country’s domestic gas extraction varies around 3.5-7 Billion Cubic Feet per Day (BCFD) against the demand of 8 BCFD and it is difficult for any government to meet domestic, commercial and industrial sectors’ needs efficiently. The demand-supply gap is being bridged with the increased import of Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG) and accelerating hydrocarbon exploration activities with the award of new blocks to the E&P companies.
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Pinning high hopes, a Petroleum Division official said Allah Almighty bestowed the country with great natural resources and once these were potentially exploited; there will be a complete autarky in the energy besides national prosperity. “There is a light at the end of the tunnel. We just need to move in the right direction with steadfastness.” The Nation, 01 Jan, 2023