The government of Pakistan has decided to increase exploration activities in various oil and gas fields of the country. The decision has been made after taking into account the future energy needs of the country. The main objective of the plan is to make full use of the indigenous resources of the country to decrease the dependence on foreign energy suppliers.

Prime Minister Shahbaz Sharif has directed the Petroleum Division to actively find a long-term solution to the energy problem of the country. He urged the division to attract foreign investment in the sector to increase oil and gas exploration activities. The government has already taken various steps to increase such activities in the country. In this regard, 11 revoked licences of different Exploration and Production (E&P) companies have been restored and 14 new bids have been received for new exploration blocks.

With the award of new E&P blocks, the country would get more than USD 92.8 million investment in three years, besides the utilization of funds amounting to over USD 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.

Pakistan’s existing hydrocarbon deposits are depleting at the rate of around 10% 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 the petroleum sector developments said 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. He said that on instructions of Prime Minister Shehbaz Sharif, 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 has 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 that the government had arranged extra gas for the months of November, December and January compared to the same months of the last year.

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 that the Sui companies had been directed to ensure 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 the commodity’s demand and supply is being observed by the Petroleum Division. However, poor infrastructure is a hurdle creating a gas pressure issue for remote areas.” To bridge the demand and supply gap, the minister said, “gas companies are providing more than 20,000 tons of Liquefied Petroleum Gas (LPG) per month in 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.”

He said that the government was cognizant of the industrial sector’s energy demand and its importance to economic stability, exports and employment. Malik said, “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.” Russia, he said, had agreed in principle to provide crude oil, petrol and diesel to Pakistan at a discounted rate. “We believe that the light crude oil will play a crucial role of in bringing down the energy prices.”

It is pertinent to mention here that Pakistan has initiated negotiations with Russian private and public sector companies for procurement of Liquefied Natural Gas (LNG) to meet the energy needs. Malik said that the early establishment of the Pakistan Stream Gas Pipeline, commonly known as 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 said that 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.

He said that 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 the needs of domestic, commercial and industrial sectors 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.”

Pinning high hopes, a Petroleum Division official said Allah Almighty has bestowed the country with great natural resources and once these were 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.”

Credit : Independent News Pakistan-WealthPk