ISLAMABAD: The centre is seeking dedication of natural gas produced in all the provinces to residential consumers as a first priority to overcome acute shortages during winter, instead of the current arrangement under which gas is supplied to all sectors of a province where it is produced.

“Pakistan is a federation and gas should be provided to all citizens of the federation….All domestic consumers should be treated equally,” Petroleum Minister Shahid Khaqan Abbasi said at a press conference on Thursday.

“We are taking a case to the Council of Common Interests to ensure that residential consumers are given top priority in supply of gas,” he said, adding: “Gas shortage has now expanded to all the provinces and we need to find a solution on a permanent basis.”

This will be a departure from the existing arrangement under which a provincial government can provide fresh gas finds to industrial, commercial and CNG sectors within the province even if domestic consumers of other provinces face serious shortages.

Minister says residential consumers in all provinces should be given first priority

The minister said that at present Punjab’s domestic consumers faced over 40 per cent gas shortage. Gas supply in the province at present was about 60pc of demand in the residential sector and there was no gas for any other consumer category, he said.

He added that the overall shortage in Punjab would be overcome to a large extent through induction of imported liquefied natural gas (LNG) by next year. Currently 400 million cubic feet per day (mmcfd) of LNG is being supplied to large consumers in Punjab — almost 16-17pc of the total gas supply.

Mr Abbasi said that even domestic consumers in Punjab were getting gas for three hours twice a day from 6 o’clock to 9 o’clock (both morning and evening). The problems of tail-enders in the system are still there as gas companies continuously address technical issues which crop up again and again as cities are expanding beyond imagination.

He said LNG supply would be increased to 1200mmcfd by the end of 2017. This will take care of shortages in the northern region while another 1200mmcfd will have to be arranged for the south in subsequent years.

The minister said the Oil and Gas Development Company (OGDC) had made two major discoveries of gas and oil in Sindh and Khyber Pakhtunkhwa — 35.8mmcfd of gas in Thal East-well-I (Sindh) and 1,032 barrels per day of crude in Nashpa-well-V (KP). He said the company had been given a target of drilling 31 wells during the current financial year.

He said the Pakistan Petroleum Limited (PPL) had also made two discoveries — 468 barrels per day of crude and 56mmcfd of gas. “These two companies will be able to add 90mmcfd gas to the system which will help minimise gas loadshedding.”

He said the Sui field was producing 300-350mmcfd of gas and the government would have to offer a new price to attract further investment in the sector. He said the government had given a one-year extension in lease to PPL and permanent extension would be given after the signing of a fresh agreement with the Balochistan government.

Mr Abbasi said LNG-based power plants were being set up and the government would be able to overcome loadshedding to some extent next year.

In reply to a question, he said the Iran-Pakistan gas pipeline project had been delayed because of sanctions imposed on Tehran and work would start after sanctions were lifted.

He said the Economic Coordination Committee of the cabinet had authorised Pakistan State Oil to sign a commercial agreement with Qatar Gas. “The price of LNG stands at $5.50 per mmbtu after a revised deal with Qatar,” he said.

The minister said all sectors, including textile, CNG and power, would have to pay the full cost of LNG. The textile sector is getting 60mmcfd of LNG.

OGDC Managing Director Zahid Mir said the company would meet the target of drilling 31 wells by the end of June this year. He said OGDCL had also started work on those wells in Balochistan which were under force majeure. The company has 24 blocks in Balochistan and work has started on eight blocks.

Published in Dawn, January 15th, 2016