Govt to issue 18 tenders for oil, gas exploration blocks

ISLAMABAD: The federal government plans to issue international tenders for 18 oil and gas exploration blocks on Wednesday (tomorrow) to meet the country’s energy needs in an efficient manner.

Special Assistant to Prime Minister on Petroleum Affairs Nadeem Babar said on Monday that the government was working on giving incentives to E&Ps by cutting down approvals to half. “From field to production, the sector needed to take 28 different approvals we have brought them down to 14 now.”

He said local gas production reduces by seven percent every year. Federal Energy Minister Omar Ayub Khan spoke about the issue of Sindh government’s pending permission to grant “right of way” to the Sui Southern Gas Company (SSGC) pipelines for evacuating gas from various gas fields. He warned that if Sindh government does not give the right of way, supply would not only be affected throughout the country, including Sindh, but Karachi could also face 250 to 300 mmcfd shortage next winter.

Regarding the Sindh government’s stand on Article 158 of the constitution to first meet the gas demand of the province’s consumers and then of other provinces, Nadeem babar said it would create distortion if “we do so”.

Babar said, “Last February, we had intimated the Sindh government that there would be around 300 mmcfd gas shortage in the province, due to the incomplete projects, but no heed was given to our request.”

He said there would be a meeting with the provincial government in a few days to discuss this issue and convince Sindh on getting this right of way for projects.

Refuting Sindh government’s claim of producing 2,300 mmcfd of gas and consuming less, Babar said that Sindh was producing 2,200 mmcfd of gas, of which 1,225 mmcfd was supplied by SSGC to domestic consumers, while another 750 to 800 mmcfd was being supplied to fertiliser and energy plants in the province.

The projects that the federal government wants Sindh to give right of way to include 17km pipeline from LNG terminals to Parkland station, 125-Km pipeline from gas field in interior Sindh to Parkland, and 25 mmcfd of gas evacuation from Aminah and Ayesha fields.

Babar said the provincial government has recently given permission for the later projects, but permission was still awaited on others. “If these projects are also given right of way, after completion, we can move 13,00 mmcfd of gas which is currently 1112 mmcfd. We can also increase LNG procurement,” he added.

Due to the current shortages, we had to stop gas supply to all industries except processing and zero-rated industries in Punjab from December 19-30. “On Tuesday (today) we are resuming gas supply to CNG sector, while in Sindh supply to only the CNG sector was been discontinued during this period.” He said supply was also affected by closure of the MOL gas field in district Karak of KP because of local protests. To provide gas to the locals, approval of Rs10 billion has been taken from the ECC, he added.