SUI: Pakistan, largely dependent on imported fuels for its energy needs, will be importing a cumulative of 3.0 billion cubic feet (bcf) per day of liquefied natural gas (LNG) by 2018 to bridge the demand supply gap, which has already crossed 4.0 bcf mark, a government minister said on Monday.
The country’s current natural gas production is around 4.0 bcf/day, while the demand had crossed already crossed 8.0 bcf/day mark, said Shahid Khaqan Abbasi, minister for Petroleum & Natural Resources.
He was speaking at the inauguration of the Compressors Revamping Project undertaken by Pakistan Petroleum Limited (PPL) at Sui gas field, which has increased the supply from the field by25-30 mmcfd to 437 mmcfd.
“One LNG terminal is already operational, while another would be ready by January 2017 and third by July 2017, while two private sector terminals would be operational by 2018,” Abbasi said.
He said the country is already importing 0.6 bcf of LNG, another 0.6 bcf will come by January 2017 to be followed by 0.6 bcf in July 2017, taking the LNG imports to 1.8 bcf per day. As two private sector terminals would be commissioned in 2018, the country's total gas imports would reach 3.0 bcf per day.
“The government is in negotiations with six countries including Russia, Malaysia, Oman, Azerbaijan and two other countries for LNG supplies,” Abbasi said. “Other than the government-to-government contracts, several tenders are also being issued for LNG procurement.”
Abbasi said a number of local as well as international suppliers have responded to these tenders.
The minister said around 30 exploration blocks would be put up for bidding as soon as their security clearance was received. “The government is in talks with China's largest exploration company, Sinopec and a couple of other companies of Hungry and Poland for strategic allotment of exploration blocks,” Abbasi said.
Earlier, Syed Wamiq Bukhari, chief executive officer of PPL said the last fiscal year had been a momentous year for the state-run firm as the company had now been transformed into an asset-based organisation.
“Through a series of initiatives, the PPL has been able to arrest the decline in output and gas production registered an increase of 5.0 percent in the last fiscal year compared with a decline of 6.0 percent in the previous year,” Bukhari said.
PPL chief informed that an exploration budget of Rs20 billion had been earmarked for Baluchistan alone, which would be spent in the next 10 years.
He said the company is committed to improve its reserve replacement ratio (RRR) and 28 new wells would be spud this year compared with 23 wells last year.
The compressors revamping project was undertaken in continuation of the PPL's endeavors towards production enhancement and reserves replacement. The project was completed well ahead of time with an actual cost of Rs3.0 billion. This has enabled additional recovery of almost 217 bcf gas reserves and 25-30 mmcfd increase in gas production from the compressors.