PM directs fast-track licence issuance for domestic gas exploration

In a bid to secure the cheapest source of natural gas, Prime Minister Imran Khan has directed the authorities concerned to fast-track issuance of licences for domestic gas exploration.

According to Prime Minister’s Office Twitter handle, the premier chaired the high-level meeting to review the “gas situation in Pakistan”.

“The meeting was briefed about the demand, supply from the domestic reserves, shortfall and Import of LNG,” it added.

During the meeting, Prime Minister Imran directed the relevant departments to remove hurdles in the process of installing new Liquefied Natural Gas (LNG) terminals and virtual pipeline projects.

Underscoring the importance of the North-South Gas Pipeline, he directed officials to ensure its execution without further delay to complete it within the stipulated timeline.

Earlier, the participants of the meeting were apprised that the current constrained demand for gas in Pakistan is 4,700 mmcfd which increases to 6,000-6,500 mmcfd in winter.

They were told that the current domestic supply amounts to 3,300 mmcfd, which is decreasing every year. The resulting shortfall has to be managed by importing LNG.

With the current infrastructure, a shortfall of nearly 1,000 mmcfd in winter arises for which multiple options are being adopted.

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The meeting was further informed that for the short term, the existing capacity of domestic terminals is being optimised and the process of issuance of virtual pipeline licences is expedited.

In addition, the installation of two new LNG terminals is underway, with all bottlenecks being removed on a priority basis.

In this regard, the ministries of maritime affairs, petroleum, as well as Oil and Gas Regulatory Authority (Ogra) were directed to coordinate and also take all other stakeholders on board including investors.

The meeting was attended by federal ministers Shaukat Fayyaz Tarin, Hammad Azhar, Asad Umar, Ali Haider Zaidi, SAPM Mahmood Maulvi and officials of the relevant departments.

It is worth mentioning here that Pakistan is currently facing a shortage of gas for both industrial and domestic use. Earlier this month, Sui Southern Gas Company Limited (SSGCL) suspended gas for non-export general industries in compliance with the plan devised by the Ministry of Energy to manage gas reserves.

Separately, a local news outlet reported that one of Pakistan’s LNG suppliers also informed the country that it would not be able to deliver the commodity, prompting fears of the gas crisis getting worse.