ISLAMABAD: Pakistan’s gas production has been dropping an average five to seven percent per annum for the last five years as there was no auction of exploration and production blocks, a senior official said on Friday.
“Energy is an essential driver of the country’s economy and to achieve accelerated GDP growth, the economy needs reliable, uninterrupted, and affordable supply of energy,” Special Assistant to Prime Minister on Petroleum Nadeem Babar said during a meeting with Ambassador Denmark Rolf Michael. The country currently produces around four billion cubic feet/day (bcfd) of natural gas – accounting for 48 percent share in the primary energy mix – against demand of more than 6 bcfd. The demand-supply gap of gas during FY2017/18 was 1.4 bcfd.
The gap is expected to rise to 3.7 bfd by FY2019/20, the Oil and Gas Regulatory Authority said in a report. Gas shortfall will likely more than double to 4.6 bcfd in the next five years.
On upcoming projects of the petroleum division, Babar said the government is drafting a new exploration and production policy with seven major amendments. It will be tabled in front of the cabinet till August, 2019 for the cabinet approval.
The country has a total sedimentary area is 827,000 square kilometers. Area under exploration is 361,000 square kilometers. Around 1,100 exploratory wells have so far drilled in the country.
“Despite low density of wells Pakistan’s oil and gas discoveries success is very impressive (1: 3.2),” the PM assistant said. “Forty new blocks have been identified.” Babar said that five local refineries, which are basically hydro-skimming produce only 12 million tons per annum of petroleum products against the current demand of over 25 million tons per annum.
The upcoming mega refineries with cooperation of Saudi Arabia and UAE and expansion in other refineries and retail chains will help in meeting the local demand and also exporting it to regional markets.
The PM assistant said several foreign companies, such as Russian and Chinese consortium and local gas companies are also interested in laying trans-pipelines.
Babar said the country has two liquefied natural gas (LNG) terminals. “Apart from this few private companies are also interested in construction of LNG terminals,” he added. “Work on Lahore to Peshawar oil pipeline has also started.”