Gas supply: IP pipeline still not shelved, says government

Petroleum minister awards exploration blocks to OGDC and PPL.

ISLAMABAD:

Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has declared that the Iran-Pakistan (IP) gas pipeline project is not a ‘gone story’ despite the threat of US sanctions and has sought an extension in the timeframe for its implementation.

He stated this here on Monday while addressing a ceremony for the grant of 12 petroleum concession agreements and exploration licences to Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL).

Replying to a question, he said Pakistan was committed to the IP pipeline and suggested that the timeframe set for commissioning the project should be extended because of the risk of US sanctions.



He pointed out that the government was also working on liquefied natural gas (LNG) terminals and the project would be completed in November to handle LNG imports. He ruled out LNG imports from the US, saying the government had initiated talks with Qatar on LNG supply.

On January 23, the government provisionally awarded 50 petroleum exploration blocks to eight local and international companies. Of these, 12 were formally given to OGDC and PPL.

According to the minister, the remaining 38 petroleum concession blocks will soon be awarded to other companies and the government is expecting a minimum investment of $176 million from them.

OGDC is a public limited company engaged in exploration and production of oil and gas in the country for the last four decades. It holds the largest share in oil (58%) and gas (42%) reserves. Its percentage share in total oil and gas production is 52% and 27% respectively.

PPL is Pakistan’s oldest and largest exploration and production company, which was incorporated during the 1950s. At present, PPL is the operator of 16 exploration blocks and has working interest in 16 other blocks operated by other companies.

Published in The Express Tribune, February 11^th, 2014.

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