Islamabad—Oil and Gas Exploration companies working in different parts of the country drilled 102 wells during the last four years and discovered 38 reservoirs, taking the natural gas production from 3,973 million cubic feet per day (MMcfd) to 4,165 Mmcfd. The Ministry of Petroleum and Natural Resources awarded 47 exploration licences, from 2007 to 2011, to exploit the natural oil and gas resources.
The companies dug 102 wells and found 38 new reservoirs, which increased the gas production from 3,973 Mmcfd to 4,165 Mmcfd,” official sources in the Ministry of Petroleum and Natural Resources told reporter on Sunday while commenting on the four-year performance and achievements of the ministry. Besides, around 800 Mmcfd gas would be added in the system by August-September after producing through local reservoirs.
The sources said the ministry announced Petroleum Policy in 2009 and gave a number of incentives to oil and gas exploration companies aimed at achieving self-sufficiency in the sector. While, the Policy-2012 has been finalized, which would be announced soon, the Council of Common Interests has accorded its approval in principle, which would help attract more local and foreign investment in oil and gas sector, they added.
Apart making indigenous efforts, they said, the government is working on different plans like Iran-Pakistan (IP) gas pipeline and Turkmenistan-Afghanistan-Pakistan-India gas pipeline projects to import the commodity for meeting the growing energy demand in the country.
“Work on the I-P gas pipeline project is at a fairly advanced stage. Under the project, Pakistan will construct approximately 800 km pipeline from Iran-Pakistan border to Nawabshah. The venture has entered into the implementation phase and work on Front End Engineering and Design, Feasibility and Detailed Route Survey has already been started by the consultant which is scheduled to be completed by June,
2012,” they observed.
Bids for construction of the pipeline will be invited after completion of the survey. Pinning high hopes with the gas pipeline project, the sources termed it ‘hallmark’ of the government, which would help bridge the projected gas shortfall in the country. Pakistan and Iran had signed the Intergovernmental Framework Declaration in May, 2009 for early implementation on the project conceived in early nineties.
Subsequently, respective commercial entities Inter State Gas Systems Limited (ISGS) from Pakistan side and National Iranian Oil Company (NIOC) from Iranian side entered into the Gas Sale and Purchase Agreement (GSPA) on June 5, 2009. The pipeline of 56-inch diameter will cover around 1931- Kilometer distance starting from Iran’s South Pars gas field. The project implementation and construction is targeted in four years and the first gas flow will be available by the end of December 2014. The 750 mmcfd gas volume will help generate around 4,000 MW electricity and provide more job opportunities in backward areas of Balochistan and Sindh.
Similarly, Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project is being undertaken, which would cost around US$ 7.6 billion. All the stakeholders have achieved consensus on a number of issues and accordingly signed three agreements in December 2010. First gas flow is expected in 2016 and Pakistan will get 1325 Mmcfd of gas – almost double as compared to IP project. The sources said the ministry is formulating the low British Thermal Units (BTU) policy for power sector, according to which, low BTU gas fields and unconventional hydrocarbon reservoirs will be prepared separately to meet the rapidly increasing energy requirements.
They said Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) policies have been introduced to ensure LPG availability in every nook and corner of the country besides encouraging LNG’s import. For the first time in history of the country, the sources said, the present democratic government introduced Gas Theft Act- 2011 to stop unauthorized use of gas
“Theft of natural gas has been declared a cognizable offence.” They said a think-tank has been established for providing expert advice on issues pertaining to oil and gas sector. A Task Force has been established for monitoring and checking compressed natural gas cylinders to avoid any untoward incident.
During last four years, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) installed 13,90,234 new domestic, commercial and industrial gas connections. Giving the break-up, the sources said the SNGPL granted 970,699 domestic, 13,379 commercial and 1,693 industrial gas connections. Whereas, the SSGCL provided the facility to 397,654 domestic, 5,944 commercial and 865 industrial consumers.