Gas import by state-owned companies after 2010 may be opposed

The Planning Commission is likely to oppose the idea of importing gas by the state-owned gas companies after 2010 to meet the shortage in supply, as there are sufficient untapped reserves available in the country to meet increase in demand. However, in case of severe scarcity the commission may support the idea of gas import by the private parties without government guarantees, an official source told Business Recorder here on Thursday.
"The Planning Commission is likely to once again oppose the idea of gas import", the source said, adding that the commission has also opposed the idea in 1998.
The Planning Commission is not ready to accept the gas companies claim that they would not be able to meet future demands from the local gas supplies and would require import, saying that the reserves of the Gurguri gas field has not been incorporated in the developmental and security of supplies plan, which can improve the gas supply situation in the country for another four to five years.
The source said that the gas companies informed the government about the gas supplies, which indicates that gas availability would be less as compared to demand after 2010.
Gurguri has about 9 TCF gas reserves, which is equivalent to the Sui reserves and it is one of the highest quality gases ever found in the country. The Sui gas is 950 BTU, while Gurguri is of 1,150 BTU, the source added.
But the Sui Southern Gas Company Limited (SSGCL) was of the view that Gurguri reserves are about 40 percent of the Sui.
The Gurguri field was found on the Tal Block 3370-3 near the town of Kohat, some 175km south-west of Islamabad.
A Hungarian Oil Company, with 10 percent interest, is the operator of a joint venture that includes Pakistan's Oil and Gas Development Company (30 percent), Pakistan Petroleum (25 percent), and Pakistan Oilfields and Government Holdings (35 percent).
Currently, around 43 percent of the energy requirements are met by the natural gas, 38.3 percent by oil, 11.3 percent by hydroelectric power, 5.4 percent by coal, 0.4 percent by LPG and 0.9 percent by nuclear electricity.
The source said that the Planning Commission has asked the gas companies to bring exact development plan. The source said that the gas in Gurguri is of best quality and some of it could be used in petrochemical industry.
About the Planning Commission's exact position on the gas import, the source said that in case of shortage of gas supplies in future the commission could only support the idea of cheaper import of gas without involving the government guarantees.