Thursday May 26, 2022

PM orders speedy issuance of licenses for domestic gas exploration

Meeting told that under the current infrastructure, a shortfall in winter of nearly 1,000 MMCFD of gas arises

December 29, 2021
Prime Minister Imran Khan reading a document in this PID file photo.
Prime Minister Imran Khan reading a document in this PID file photo.

ISLAMABAD: Prime Minister Imran Khan on Wednesday, while discussing the current demand and supply of gas in the country, directed the authorities concerned to ensure fast-track issuance of licenses for domestic exploration for it was the cheapest source of natural gas.

The prime minister also instructed the relevant departments to remove hurdles in the installation of new LNG terminals and virtual pipeline projects by investors.

The meeting was briefed about the demand, supply from the domestic reserves, shortfall and import of LNG.

It was informed that the current constrained demand of gas in the country was 4,700 MMCFD which increases to 6,000-6,500 MMCFD during the winter season.

The current domestic supply amounts to 3,300 MMCFD which is decreasing every year, it was told.

The resulting shortfall has to be managed by importing LNG.

With the current infrastructure, a shortfall of nearly 1,000 MMCFD in winter arises, for which multiple options are being adopted.

The meeting was further told that for the short term, the existing capacity of domestic terminals is being optimised and the process of issuance of virtual pipeline licenses is being expedited.

In addition, installation of two new LNG terminals is underway with all bottlenecks being removed on a priority basis.

In this regard Ministry of Maritime Affairs, Ministry of Petroleum and Oil and Gas Regulatory Authority were directed to coordinate with each other and also take all other stakeholders on board including investors.

In addition, the prime minister while emphasising the importance of the North-South Gas Pipeline, ordered its execution without further delay in the agreed timeline.

The meeting was attended by federal ministers Shaukat Fayyaz Tarin, Hammad Azhar, Asad Umar, Ali Haider Zaidi, SAPM Mahmood Maulvi and officials of the concerned departments.