Minister’s media talk: Govt wants to make some changes in IP gas pipeline contract
LNG imports to start from November this year.
“We are committed to completing Iran-Pakistan (IP) gas pipeline, but desire to make a few changes in the contract with Iran,” said Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi CREATIVE COMMONS
ISLAMABAD:
Pakistan wants to make some changes in an agreement with Iran on the gas pipeline project amid risk of US sanctions.
“We are committed to completing Iran-Pakistan (IP) gas pipeline, but desire to make a few changes in the contract with Iran,” said Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi while talking to the media here on Friday.
He was speaking after a contract signing ceremony for the award of exploration licences and petroleum concession agreements for eight blocks to Oil and Gas Development Company, Pakistan Petroleum Limited and Mari Petroleum Company.
Abbasi said the government had not yet talked about liquefied natural gas (LNG) prices with Qatar, but the country would start importing LNG from November this year.
He declared that the government was open and ready to allow any investor and sector to start LNG import in order to end the longstanding energy crisis, which was inflicting significant losses to the economy.
Warning of a $10 billion loss if LNG import was halted, he said the country was facing an annual loss of $1 billion compared to furnace oil prices.
India has signed an LNG deal with Australia at $18 per million British thermal units (mmbtu).
Energy blocks
In the eight blocks awarded on Friday, the companies have agreed to invest a minimum of $49.58 million. Apart from this work commitment, they will spend at least $30,000 per year in each of the blocks on social welfare schemes. Total area covered by the blocks is 16,117.09 square kilometres.
The Ministry of Petroleum has already signed 12 exploration licences and petroleum concession agreements for exploration of hydrocarbon reserves in different blocks.
Abbasi said they were giving high priority to the exploration and production sector in an effort to exploit and develop hydrocarbon resources that would bridge the gap between demand and supply of oil and gas.
Since the current government took over in June last year, according to Abbasi, 73 wells have been dug and 17 discoveries made.
These discoveries will add 130 million cubic feet of gas per day (mmcfd) and 3,553 barrels of oil per day (bpd) to existing production. So far, 45 mmcfd of gas and 1,924 bpd of oil have been added.
Moreover, in existing fields, production has increased by 184 mmcfd and 5,962 bpd. Last week, country’s oil production reached 84,374 bpd – the highest in its history.
Abbasi stressed that these efforts would bear fruit as more hydrocarbon reserves would be tapped over the next few years. He expressed the hope that new licences and agreements would not only stimulate investment in the petroleum sector, but would also bridge the gap between energy demand and supply.
Published in The Express Tribune, February 22nd, 2014.
Pakistan wants to make some changes in an agreement with Iran on the gas pipeline project amid risk of US sanctions.
“We are committed to completing Iran-Pakistan (IP) gas pipeline, but desire to make a few changes in the contract with Iran,” said Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi while talking to the media here on Friday.
He was speaking after a contract signing ceremony for the award of exploration licences and petroleum concession agreements for eight blocks to Oil and Gas Development Company, Pakistan Petroleum Limited and Mari Petroleum Company.
Abbasi said the government had not yet talked about liquefied natural gas (LNG) prices with Qatar, but the country would start importing LNG from November this year.
He declared that the government was open and ready to allow any investor and sector to start LNG import in order to end the longstanding energy crisis, which was inflicting significant losses to the economy.
Warning of a $10 billion loss if LNG import was halted, he said the country was facing an annual loss of $1 billion compared to furnace oil prices.
India has signed an LNG deal with Australia at $18 per million British thermal units (mmbtu).
Energy blocks
In the eight blocks awarded on Friday, the companies have agreed to invest a minimum of $49.58 million. Apart from this work commitment, they will spend at least $30,000 per year in each of the blocks on social welfare schemes. Total area covered by the blocks is 16,117.09 square kilometres.
The Ministry of Petroleum has already signed 12 exploration licences and petroleum concession agreements for exploration of hydrocarbon reserves in different blocks.
Abbasi said they were giving high priority to the exploration and production sector in an effort to exploit and develop hydrocarbon resources that would bridge the gap between demand and supply of oil and gas.
Since the current government took over in June last year, according to Abbasi, 73 wells have been dug and 17 discoveries made.
These discoveries will add 130 million cubic feet of gas per day (mmcfd) and 3,553 barrels of oil per day (bpd) to existing production. So far, 45 mmcfd of gas and 1,924 bpd of oil have been added.
Moreover, in existing fields, production has increased by 184 mmcfd and 5,962 bpd. Last week, country’s oil production reached 84,374 bpd – the highest in its history.
Abbasi stressed that these efforts would bear fruit as more hydrocarbon reserves would be tapped over the next few years. He expressed the hope that new licences and agreements would not only stimulate investment in the petroleum sector, but would also bridge the gap between energy demand and supply.
Published in The Express Tribune, February 22nd, 2014.