“If we do not find solutions and face this problem collectively, the whole energy system of the country could collapse,” said the minister. He was speaking at a press conference organised at the head office of Sui Southern Gas Company (SSGC) on Monday.
Hussain warned that the problem will persist if stakeholders do not try to find solutions. “The demand and supply gap of gas has reached 2.2 billion cubic feet (bcf). The gas in the system is 3.8 bcf while the demand has shot up to 6 bcf,” he explained.
Hussain said that Pakistan needs to import liquefied petroleum gas (LPG). In response to the public criticism on government policies in oil and gas sector, Hussain said, “Those who criticise us must give solutions and suggest how we can improve the supply of gas in the country,”
The country is facing the present crisis because no serious efforts were made to explore oil and gas in the country, he said, adding that the biggest oil and gas company in country, Oil and Gas Development Company Limited (OGDCL) has not bought any rig since 1985. The company now has to buy two rigs every year, he added.
Similarly, the country did not have the processing technology for geological surveys so it was being done from abroad, costing companies like OGDC over a million dollars. The technology has now been purchased for $3.1 million and 23 experts are being sent to Egypt for training.
Referring to Baluchistan, he said, owing to the deteriorating security in some areas of country, the exploration companies were not allowed to explore oil and gas.
He also censured the CNG sector for agitating against the gas management plans and said that CNG sector is not trying to understand the problem of gas shortage instead they are trying to make it a political point-scoring tool.
The present government has banned the import of CNG kits and the opening of CNG stations in country to control the uneven growth of this sector, he added.
Published in The Express Tribune, January 3rd, 2012.
COMMENTS (7)
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@Cautious:
All of this goes into the "To Hard To DO" box, which is right next to the "Hold" box
While this govt shouldn't be excused this mess didn't happen overnight and took decades of mismanagement and lack of insight to get into this predicament. There are no quick fixes to this issue -- you can change govt and change management and they will not be able to make much of a dent in this problem during the short term. . Long term fixes will require higher taxes, higher energy prices, courting outside capital (namely the American's), establishing security/peace in Baluchistan, tossing people who don't pay there taxes/utilities in jail and you may have to outsource management of the energy sector.
Please give us a breakkkk! Stop blaming and accept responsibility of your govt. Dr. Sahib, WHY IMPORT LPG? YOU HAVE PLENTY OF COAL BED METHANE (CBM) right here in Thar, Sindh. ACTUALLY THE SINDH GOVT HAD SIGNED A CBM EXPLORATION & DEVELOPMENT AGREEMENT for THAR coal fields in March 2007 AND YOUR GOVT IS NOT HONORING IT. We could have easily recovered 5 TCF of CBM, which is basically natural gas and at least 50 million gallons of water as a by product on daily basis. What this water could have done to Thar? Dr Sahib check with officials of your ministry and Sindh Coal & Mines Department! They should remember Cathay Oil & Gas of Canada. Pakistan does not have the technology for geological surveys BUT CATHAY OIL OFFERED Geological Survey of Pakistan – again part of your ministry to conduct a gravity survey of Pakistan without any charges. Kindly note that this highly sensitive gravity survey equipment was cleared by US Department of Defense to be used in Pakistan. In turn Cathay had an agreement with US Geological Survey (USGS) to conduct the survey in Pakistan. IMAGINE WHAT KIND OF DATA WE COULD HAVE GOT—TOTAL INVENTORY OF OUR NATURAL RESOURCES! By the way Cathay did same job in Afghanistan and found the largest lithium mine in the world, 1.3 billion barrels of oil, substantial deposits of gold & copper etc. Afghanistan is tendering some contracts right now. SOME HEADS SHOULD ROLL for this criminal negligence. Now with GAS CRISIS getting worse by the day, it could possibly be a catalytic factor in your govt downfall!
Poor performance by petroleum ministry.
Who knew Egypt was a leader in oil and gas exploration.
What is the minister trying to say that OGDC does not have the funds to buy rigs ? They have enough funds to give jobs to thousands of people who do virtually nothing but avail benefits and ultimately pension. Government would do well to privatize OGDC and stay out of commercial ventures. That business model died with the Soviet Union, and even they couldn't manage to run it efficiently.
Its funny that the minister states we should confront this problem collectively. Are the commissions reaped through award of contracts distributed to everyone as well ?
I am still waiting for my cheque. But I jest. The minister should have resigned rather than make this lame statement. He probably saw this problem coming years before it actually hit but PPP tends to remain quiet as they make big commissions on signing rental power agreements because of "public" pressure to get the services quickly.