ISLAMABAD: International economic recession and regional tussles landed many of the world’s nations in serious issues to meet the energy needs of their people during chilly winters.
Unlike many past years, the post-COVID and Russia-Ukraine war had rung alarm bells across Europe and Asian countries. The situation has also not been different for Pakistan, a country facing energy shortage over the years due to the rising population and growing energy demands by domestic, industrial, and commercial sectors.
Failure of the previous regime to make prudent decisions and embark on an exploration program has another reason behind that phenomenon. All is not well yet; the multi-faceted strategies of the present government bear fruit in tackling the current situation.
There has been no denial of consumers’ complaints regarding commodity shortages in many areas across the country. But a sensible regulation of gas supply to domestic consumers has allayed the fears of acute shortage. Supply and demand variations are still due to depleting domestic resources and infrastructure problems.
Extra gas for November
With all these challenges, we have arranged the extra gas for November, December, and January as compared to the same period the previous year. Additionally, the LNG cargoes for January and February have also been secured from Qatar, Dr. Musadik Malik. Informed Minister of State for Petroleum
He said that local gas production was experiencing around a 10% decline annually; therefore, the government is approaching the others countries and the global markets to secure the required amount of a gas. A Gas Framework Agreement with the Azerbaijani trading firm SOCAR has near completion for the availability of ‘distressed’ LNG cargoes from the global market at the cheapest rates.
Musadik Malik said that the Sui companies had been directed to ensure a gas supply, especially during the breakfast, lunch, and a dinner preparation timing, i.e., 6-9 a.m., 12-2 p.m., and 6-9 p.m.
The minister said that an effective monitoring system of commodity demand and supply was in place as we encountered infrastructure issues resulting in low gas pressure in remote areas. We are also rectifying this problem.
He said that the gas companies were providing more than 20,000 tons of Liquefied Petroleum Gas (LPG) per month in shortage or low-pressure areas. The first time, the Sui Northern Gas Pipelines Limited (SNGPL) is opened LPG cylinder outlets in such places.
Commenting on the industrial sector energy demand, Musadik said that the government is aware of this sector’s importance for the economic stability, exports and employment generation. Therefore, we have utilized all available options, including reaching out to Central Asian States to purchase gas through pipelines or Liquefied Natural Gas (LNG) cargoes from potentially friendly countries.
He also mentioned two new policies related to tight gas and the revival of old hydrocarbon wells to exploit the country’s indigenous oil and gas potential.
He said Russia had agreed to provide crude oil, petrol, and diesel to Pakistan at a discounted rate. “This can play an important role in improving supply and lowering energy prices.”
Gas Deal with Russia
Pakistan is already negotiating with Russian private and public sector companies to procure Liquefied Natural Gas (LNG). The early establishment of the Pakistan Stream Gas Pipeline, commonly known North-South (Lahore-Karachi) Gas Pipeline and another significant gas pipeline to get the commodity from the Russian hydrocarbon deposits was also a part of the plan.
Next month, an inter-governmental group of Russia, led by its Energy Minister, would visit Pakistan to make progress on oil and gas sale-purchase agreements between the two countries.
The federal government also discussed several measures at Tuesday’s cabinet meeting to conserve energy to mitigate the masses’ suffering and save a handsome amount for the national kitty.
A country’s domestic gas extraction varies around 3.5-7 Billion Cubic Feet per Day (BCFD) against the demand of 8 BCFD. It is difficult for any the government to meet domestic, industrial, and commercial sector needs in prevailing scenario.
The demand-supply gap is being bridged with the rise of import of liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), and accelerating hydrocarbon exploration activities in the country. The government grants exploration a blocks to successful companies after the fair bidding process.
The plan has also been worked out to incentivize local and foreign exploration and production (E&P) companies to step up drilling activities in the potential areas.
A senior authority privy to the energy development sector said that an effective package of incentives should be offered to the companies making discoveries and extracting oil and gas enabling us to meet our needs.
He said that Pinning high hopes in nature’s bounties bestowed to Pakistan, by utilizing our natural resources to the optimum, we have achieved complete autarky in the energy sector to pave the way for national prosperity.
He observed that there is light at the end of the tunnel. We just need to steadfastly move in the right direction by making the right decisions at the right time.
The energy crisis has been lingering on challenges faced by recent past governments as the ever-increasing population resulted in mounting gas demand, especially during the winter.
Therefore, aware of the situation, the coalition government is making all-out efforts to exploit indigenous hydrocarbon resources for self-reliance in this sector and exploring avenues to secure inexpensive deals with global exporters. — APP
