Minister of State for Petroleum Dr Musadik Malik has said local gas output is declining by around 10% yearly; hence the government has booked additional gas for January 2023. Additional liquefied natural gas (LNG) cargoes have also been secured from Qatar for January and February, he said. An agreement for the sale of “distressed” LNG cargoes from the international market at the lowest price was nearly finished with the Azerbaijani trading company SOCAR, he added.

According to Musadik Malik, the natural gas firms have been told to ensure the availability of gas, particularly during the times when breakfast, lunch, and dinner are prepared, which are 6-9 a.m., 12-2 p.m., and 6-9 p.m. He said that although the Petroleum Division had established a successful system for tracking commodity demand and supply, it was hindered by weak infrastructure, which led to a problem with gas pressure in distant locations, which is now being fixed.

The minister said that in places where gas pressure problems and shortages predominate, the gas firms are supplying more than 20,000 metric tonnes of liquefied petroleum gas (LPG) each month to close the gap between demand and supply. In areas where there is a lack of natural gas, Sui Northern Gas Pipelines Limited (SNGPL) has established LPG cylinder outlets for the first time.

The minister said that the government is aware of the need for energy in the industrial sector and its importance to jobs, exports, and economic stability. He stated that as a result, the administration is making use of all alternatives and getting in touch with other countries, particularly the Central Asian States.

In order to fulfil the rising demand for gas, the administration is contacting all possible countries for buying gas, whether through pipelines or LNG shipments, he said. He emphasised the significance of fully using the country’s natural gas and oil resources and mentioned two new regulations being developed about tight gas and the reactivation of ageing hydrocarbon wells.

He said that Russia has made a preliminary agreement to provide Pakistan with cheap crude oil, petrol, and diesel. The government is of the opinion that the light crude oil, which will be imported from Russia, will play a significant role in lowering the cost of energy, he added.

In addition, Pakistan has begun talks with private and public sector businesses in Russia about purchasing LNG to satisfy its energy demands. The plan also includes the early construction of the Pakistan Stream Gas Pipeline, also known as the North-South (Lahore-Karachi) Gas Pipeline, as well as another “big gas pipeline” to transport the commodity from Russian hydrocarbon reserves, he said.

A Russian intergovernmental group headed by the energy minister would travel to Pakistan the following month to advance bilateral oil and gas sale-purchase agreements. With a demand for 8 billion cubic feet per day (BCFD) and an average domestic gas extraction rate of 3.5-7 BCFD, it is challenging for any government to effectively serve the demands of the residential, commercial, and industrial sectors.

The increased import of LNG and LPG, as well as the acceleration of hydrocarbon exploration activities in promising regions of the country, are bridging the demand-supply gap, he said. The government is currently awarding exploration blocks to successful businesses following a thorough bidding process, he added.

Given the circumstances, the government is making every effort to utilise local hydrocarbon resources in order to achieve energy sector independence. As a result, a strategy is being developed to offer incentives to both domestic and international exploration and production corporations to increase drilling activity around the country. According to a senior official with knowledge of the energy development sector, an efficient package of incentives would be provided to the corporations since making discoveries and extracting oil and gas using the latest equipment are urgent needs.

Credit : Independent News Pakistan-WealthPk