Bangladesh, which once considered the possibility of exporting natural gas in the wake of promising new gas discoveries offshore, is currently short of 5-10 Bcma versus domestic demand. Generally, the basins which were considered valuable – those that had a higher percentage of finding oil and gas – have been already discovered and depleted. In the last year, we have seen extensive activity in the upstream sector where 45 exploratory and 36 development wells were drilled out, of which 14 discoveries of gas/condensate were found. These five fields represent over 50 percent of Pakistan’s recoverable reserves. In Punjab, gas usage increased from 1035 mmcfd in 2014-15 to 1154 mmcfd in 2015-16; Sindh consumption increased from1139 MMCFD to 1256 MMCFD while Khyber Pakhtunkhwa (KP) consumption increased from 241 mmcfd to 266 mmcfd the report maintained. KPK has the lowest consumption of 1,769,151 MCFt, which is mainly driven by household consumption and its transport sector. The country’s first LNG import terminal developed by a JV between Engro Corporation and Royal Vopak of the Netherlands came online in March 2015. Pakistan Today. Initially, much of the oil and gas discoveries made in Pakistan were by foreign companies, such as Stanvac, Hunt, Sun Oil, and Esso, etc., that came into the country and developed fields and often stayed until they were depleted. Read more: Reports on Oil & Gas discovery in Pakistan untrue! According to the 2018 Pakistan energy yearbook, Pakistan’s energy mix consists of 88 percent fossil fuels (34% Natural gas, 31% Oil, 13% Coal, 9% imported LNG and 1% LPG), and 8% hydropower and 4% other. Pakistan dependence on natural gas reached an all-time high of 50.4 percent in FY2006 in the overall energy mix. Figure - 13. Country aggregates for OECD Total, OECD Americas, OECD Asia Oceania, OECD Europe, IEA and regional totals are included. Currently, the government’s Petroleum Exploration and Production Policy 2012 is in operation. and the Lower Indus basin, where all discoveries in the Hyderabad districts come under. Pakistan Energy Mix: Overview of Gas Sector (Upstream), Pakistan’s gas sector attracting huge foreign, local investment, Government takes credit for “exceptional growth” in Oil and Gas sector. However, while tens of blocks, if not more that are owned by companies for decades, have had no work started on them, while the government has clauses in the contract that can penalize or take back blocks, it has never really enforced these and not taken one back in decades. When the company, for example, goes for surveys, it has to inform the government, what it finds, submit reports, start exploratory wells, and so on. From frequent electricity breakdowns to acute gas load-shedding, these crises have only worsened in one way or another. The Potowar basin which covers, Jhelum district, Attock, and Chakwal districts – started decades ago, and it is now mostly exhausted. 15 14 12 16. Currently, Mari provides the government with the lowest price for its field located in the1950’s at around $1.40 compared to the 2012 pricing policy, which has set it about $5.70. Dispute that as numero uno reason. They are termed development wells when something is discovered. In FY18-19, the country injected 13 new wells producing 373 thousand barrels of crude oil and 4,867-meter cubic feet gas in its production. Read more: Government should have one Export Policy for all sectors of Industry. Owing to the country’s large transmission and distribution gas grid, natural gas will remain a major part of the energy mix (see Figure 1). It has been driven by not only an annual increase in its consumer base but also due to a switch by industries and automobiles from using oil to running on gas over the past decade and a half. In order to ensure transparency and to counter industrial lobbying, the public needs to demand data-driven accountability that not only clarifies the extent of the shortfall and its impact but also enables a clear, candid and honest debate so that all stakeholders can chart an effective policy for the future. A couple of weeks ago, the gas shortage reached such a high level in Sindh that industrialists in Karachi threatened to shut down factories in protest if the government did not address the problem. Who is responsible for the smuggling of Pakistani girls to China? However, ironically Pakistan’s gas consumption is nearly the same as in France, … The government may return a specific percentage – often 35-45 percent – if the well comes up dry so that the company does not make a complete loss. Gas production in Europe will decline rapidly. Pakistan’s economy is known for its boom and bust cycles prevalent every five years. Pakistan’s total energy supplies grew by 8 percent from a year earlier from 80 to 86 million tons of oil equivalent, and consumption grew by 9.7 percent year on year. The expanded capacity of the newbuild FSRU will help Pakistan meet its growing demand for natural gas. Generally, when discoveries are made in a basin, it propels other companies to jump into the same basin; since they now think there is a higher probability of a breakthrough. … Senate: Where it came from? To read more subscribe to the Herald in print. The portal will present all shades of opinion to enhance understanding. The gas purchase agreement for the Mari field allows a minimum return of 30 percent, net of taxes on shareholder’s funds. Natural gas supplies during the year stood at 4.357bcfd, of which Sindh supplied 50pc, whereas Khyber Pakhtunkhwa, Balochistan and Punjab supplied 12, 11 and 4pc respectively. Nevertheless, as domestic companies start moving in here and finding hydrocarbon finds, foreign companies are also expected to join over time. The latter company otherwise operates in Pakistan’s logistics and oil and goods transportation sector. The upstream oil and gas sector is led by the state-owned companies, namely, Oil and Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Mari Petroleum (which is owned by Fauji Foundation and OGDCL). Natural gas is certainly affected by economic growth, but its price fluctuates more on demand and supply throughout the year. LNG: the Rolls Royce of gases – Dr Farid A Malik. Pakistani companies are significant players in the gas E&P market. Reserves can change annually with discoveries, through appraisal of existing fields, and production of existing resources. Natural Gas Allocation and Management in Pakistan 28 ISSRA Papers 2014 primary energy supplies in Pakistan increased by just 0.3 percent at the time, when demand has … Already when there is a 40 per cent increase in the demand during winter season, it always leads to cuts in supply but those cuts are never applied to the two industries — power and fertilisers. Demand and Supply of Natural Gas. The remaining basins in Pakistan are perceived as offering higher risk – lower reward returns, especially in light of the security conditions. The current domestic production of gas currently meets around 67 percent of domestic consumption, with output at 3,997 million cubic feet (MCFt) per day. Gas demand is Pakistan is highly supply constrained, with an unmet demand potential of 1.5–2.0 Bcf/d (see Figure 5). Worst, the company is not allowed to sell elsewhere or even to export it to markets that can deal with those specifications. So, while we celebrated the cheaper fuel option that natural gas provided, we did not prepare ourselves for its shortfall and did not consider the fact that its production as well as import take both money and time. One of the major causes behind this is the mismanagement of its balance of payments. Sindh is also the major supplier of natural gas – followed by Balochistan – which makes it strange that the province is also suffering an acute shortage this winter. The proposed gas pipeline project will take Iranian gas across Pakistan to India which will spur industrial, commercial and domestic economic activities in all the three counties. We encourage our writers to be respectfully irreverent and our readers to be tolerant. Exploratory wells are those dug where gas or oil is suspected to be there. Read more: With rising gas prices, all eyes on TAPI. In addition, Pakistan is consuming Liquefied National Gas (LNG), Liquefied Petroleum Gas … The midstream involves processing hydrocarbons into petrochemical products. Fertilizer. According to PPP Senator Saeed Ghani, Sindh produces 70% of the natural gas while the provincial consumption stands at 45%. Baluchistan has large areas still unexplored, especially in the frontier. Mian Asad Hayauddin said that otherwise, the existing force of 250 security personnel would take 780 years to do the same job. Furthermore, the government’s 2012 petroleum policy, which tries to encourage indigenous companies to develop expertise in the field, has also inadvertently helped ‘smart trading’ companies buy blocks, which they do not develop, but rather wait for other companies to enter the area, and develop its potential so that they can sell share of their block to other partners taking a premium. France & Germany threaten AstraZeneca with legal action if they favored UK over EU... Strategic Consequences Of Myanmar’s State Of Emergency: The Quad vs. China & Russia? As per developed forecast the primary energy demand will increase at annual growth rate of 4.4% and 6.1% under the two cases respectively. Pakistan Natural Gas Consumption is at a current level of 45.66B, up from 43.59B one year ago. E&P companies can send directly to fertilizer companies, power plants; otherwise, all goes to SSGPL and SNGPL. So, for example, any gas produced from the Sui gas field or Mari gas fields found in the 1950s are receiving prices set by the applicable pricing policy at the time. • Theountry C constrained demand for Natural gas is 6,000 MMCFD. The import of natural gas is impacted by not only national and regional politics but also by industrial groups that have become dependent upon it. Forgotten Women of Kashmir: Thirty Years On…! It does not happen in Pakistan, which limits the growth of offshore drilling. Gas demand is Pakistan is highly supply constrained, with an unmet demand potential of 1.5–2.0 Bcf/d (see Figure 5). Global Village Space is a news web portal that aims to provide a platform to all to promote dialogue and understanding. Sector wise Natural Gas Consumption in Pakistan (%age) SECTOR. Pakistan whose gas production is concentrated onshore is currently short of nearly 20 Bcma. NATIONAL. Additionally, the opacity of the way the change was allowed to take place hindered holistic and long-term planning. The company overall has 43 exploratory licenses, the largest exploration acreage in Pakistan, covering 24% of total awarded acreage as of June 2019. Ogra recommends 47% rise in gas prices – fulfilling an IMF demand? Read more: Government takes credit for “exceptional growth” in Oil and Gas sector. This is often due to the fear of justifying themselves to NAB why ‘expensive’ equipment was bought. 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