CCI to discuss amendments to gas policy

KARACHI: The Council of Common Interests (CCI) is set to address the issue of amendments to the Petroleum (Exploration & Production) Policy 2012, which would allow exploration and production (E&P) companies to sell 35 per cent of indigenous gas to third parties. This move has been opposed by the Sindh government.

The CCI Secretariat has requested detailed information from the Petroleum Division on various issues within the oil and gas sector, including the proposed amendments to the Petroleum Policy. A meeting of the council is expected to take place soon.

The CCI has not convened since January 2024. Recently, the Sindh chief minister wrote a letter to the federal government, urging that a meeting be held in accordance with constitutional requirements.

Earlier this year, in January, the CCI allowed oil and gas E&P companies to sell up to 35 per cent of indigenous gas to third parties, a decision that has faced opposition from the Sindh government.

Besides this, the CCI has requested information about the windfall levy on crude oil. According to an office memorandum, the Petroleum Division has been asked to provide details on the windfall levy, which is currently in litigation in the Islamabad High Court. The federal government has set a target of Rs28 billion in revenue from the windfall levy on crude oil for the current financial year.

The CCI also sought details regarding the import of liquefied natural gas (LNG). Pakistan has been importing LNG to address the shortfall in domestic gas production, which has sharply declined in recent years. However, this year, the country saw a significant drop in gas consumption, leading to the deferral of LNG cargo imports.

Furthermore, the CCI has asked the Petroleum Division to provide details on the Tight Gas Policy 2024, which will be discussed in the next meeting. The policy aims to boost tight gas exploration in a technically and commercially viable manner, as the country’s energy requirements have grown significantly, with demand primarily met through conventional hydrocarbons and imported alternative fuels.