‘LNG import a concrete solution for medium-term needs’

Delays in the import of liquefied natural gas have cost the nation hundreds of millions of dollars.

KARACHI: Delays in the import of liquefied natural gas (LNG) have cost the nation hundreds of millions of dollars, according to the federal minister for petroleum and natural resources, Syed Naveed Qamar. “Every ton of LNG foregone to furnace oil imports represents a loss to the national exchequer,” he said during an exclusive interview with The Express Tribune.

The Supreme Court had taken suo motu notice of the government’s plan to import liquefied natural gas. Chief Justice Iftikhar Muhammad Chaudhry referred the matter to the Economic Coordination Committee, ordering it to reassess the credentials of companies that submitted bids for the LNG import deal.

The minister was of the view that importing liquefied natural gas (LNG) is a concrete solution to the country’s medium-term needs although he admitted that the government’s plans to import LNG had been delayed due to litigation.

Qamar claimed that over the past one year the government had auctioned more blocks for exploration than ever before in the country’s history. But he highlighted that the security situation in Pakistan was under constant scrutiny of potential investors.

“The highest production and best prospects for future production are witnessed in troubled areas like Waziristan and the western parts of Balochistan,” he said. Attracting foreign companies to these areas is an uphill task due to the deteriorating law and order situation.

Talking about more long-term solutions for energy-related problems, Qamar pointed out that total production of molasses in Pakistan is more than what can be used for ethanol production locally. Similarly, ethanol production also exceeds domestic capacity to produce ‘E10’, he added. E10 is a blended fuel with 90 per cent petrol and 10 per cent ethanol.

Although Qamar admitted that the use of ethanol as fuel would provide a “cheap, indigenous fuel supply,” but he stopped short of pledging a reduction in exports of ethanol and molasses to facilitate production by local companies.

Flood havoc

The government has worked at war footing to keep gas supplies unhurt in flood-affected areas and hundreds of SSGC and Wapda employees joined hands to make this possible, said the federal minister for petroleum and natural resources.

The minister disclosed that the Qadirpur gas field may be closed for annual maintenance during Eid holidays. The closure would amount to a loss in gas supply of 450 million cubic feet per day (MMCFD).

Talking about the damage caused to Zamzama field during the recent floods, he disclosed that two wells were lost to the waters but the other three wells and the plant were still functional. According to him, the field is currently producing 300 MMCFD.

Published in The Express Tribune, September 9^th, 2010.