Pakistan’s LNG imports threaten local gas fields

ISLAMABAD: Pakistan’s local gas fields are shutting down, as the import of LNG from Qatar under an agreement is already straining the country’s aging pipeline infrastructure, a Senate committee was told Monday.

Officials briefed the lawmakers that under an agreement with Qatar, Pakistan imports 10 LNG cargoes each month, sidelining domestic gas production. Officials warned that deteriorating pipelines, already under immense pressure, face a growing risk of rupture, while inadequate storage facilities further complicate supply management.

The Senate Standing committee on Petroleum that met here with Senator Umar Farooq in the chair, called for urgent oversight, urging a detailed daily review of drilling operations and costs. Farooq recommended a comprehensive report on gas extraction, drilling frequency, and timelines to assess sustainability.

The committee also raised serious concerns over delays in the Iran-Pakistan gas pipeline, noting that while development projects face restrictions, goods continue to arrive from Iran without sanctions.

The panel reviewed financial and administrative irregularities in the oil and gas sector. Lawmakers criticized the Oil and Gas Development Company Limited (OGDCL) for failing to issue a production bonus despite a Supreme Court ruling. Officials argued OGDCL was not obligated to pay, but the Petroleum Ministry had yet to review the court’s judgment.

The committee was also briefed on major financial administrative irregularities, including details of inquiries conducted over the past three years. It was reported that embezzlement of pipeline material at the Central Base Store (CBS) in Manga by company officials had resulted in a financial loss of nearly Rs380 million. Senator Umar Farooq sought clarity on the reported loss, and upon inquiry, the officials confirmed the amount.

Similarly, the committee was informed about the Bannu West project, where stolen civil material had resulted in an estimated financial loss of Rs5 million. Additionally, the embezzlement of scrapped industrial materials at CMS Lahore and the recovery of approximately Rs28 million were also reported.