Only solution to energy crisis is gas import: Abbasi

Says govt will eliminate shortages before end of its five-year term.

GUJJAR KHAN:

Petroleum and Natural Resources Minister Shahid Khaqan Abbasi has announced that the government will eliminate the energy crisis before the end of its five-year term.

“We will be able to say in our five-year tenure we have resolved the energy crisis and formulated a future strategy,” Abbasi said on Tuesday at inauguration of the liquefied petroleum gas/natural gas liquid plant-III at Pakistan Petroleum Limited’s (PPL) Adhi field in Gujjar Khan, Rawalpindi.



National Assembly members Raja Javed Ikhlas and Malik Ibrar Ahmed were also present besides provincial and local government officials as well as PPL management and staff.

Abbasi said it was unfortunate that the only solution to the energy crisis was imported gas.

“For the last 15 years, there has been no increase in domestic natural gas production which stands at 4 billion cubic feet per day (bcfd),” he said, adding the demand had jumped to 8bcfd and the government was striving to enhance local production.



During the term of current government, he pointed out, 67 gas discoveries were made, but the rate of depletion of older gas reserves was higher than that.

Abbasi declared that the government would come up with a sustainable solution to the energy crisis. “We are working on a pipeline project worth Rs150 billion and will start work on another pipeline costing Rs250 billion to provide gas to the consumers.”

The minister denied that any province was self-reliant in gas production. “Gas demand has gone up in all provinces compared to their production,” he said, adding Punjab had gas to meet the needs of 60% of its consumers whereas the rest were facing the load management plan.

“Twenty two per cent of the population receives gas through pipelines whereas 78% depend on firewood and liquefied petroleum gas (LPG),” he said, insisting that LPG distributors were fleecing the consumers.

Elaborating, the minister said LPG producers had cut prices by 30% but dealers had instead increased the rates by 50% for end-consumers.

The petroleum ministry has sent a summary to the Council of Common Interests (CCI) seeking powers to regulate LPG prices in order to provide relief to the consumers. “LPG consumers are paying 10% higher prices compared to gas supplied through pipelines,” Abbasi said.

Speaking on the occasion, PPL Managing Director Syed Wamiq Bokhari outlined the company’s recent achievements and milestones along with projects initiated under the corporate social responsibility programme for the disadvantaged communities living around its operational areas, especially Adhi.



Located about 70 kilometres south of Islamabad in the Pothwar region, Adhi field is a joint venture among PPL, which works as an operator, Oil and Gas Development Company and Pakistan Oilfields Limited.

At present, 16 wells are producing hydrocarbons at the field, churning out on average around 50 million cubic feet of gas per day, 2,000 barrels of natural gas liquid per day, 4,500 barrels of oil per day and 155 tons of LPG per day.

Published in The Express Tribune, January 6^th, 2016.

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