Pak-Iran gas pipeline project may be completed in 2015: National Assembly informed

The National Assembly was informed on Monday Pakistan-Iran gas pipeline project is expected to be completed in 2015, which would help bridge the increasing gas demand and supply gap in the country. Responding to various queries on the Pakistan-Iran gas pipeline project during the question-hour, Minister for Water and Power Syed Naveed Qamar informed the house that the supply of gas through Pak-Iran gas pipeline project is planned from December, 2015.
Presently, there is no proposal under consideration to include another country in the Pak-Iran gas pipeline project. A team of experts was going to visit Tehran on Tuesday to discuss the general sales agreement with Iranian authorities. To another question, Naveed Qamar informed the house that Pakistan State Oil (PSO) has entered into several existing and new Fuel Supply Agreements (FSA) with Power Generation Companies for the supply of Fuel Oil for next 5 to 10 years. However, they may be affected by non-clearance of Circular Debt.
With the existing consumers, we will be supplying up to 30,000 MT on an average. The supply quantity may increase if we enter into new the FSAs with new consumers in Power Generation Sector. He said the PSO is fully meeting its commitment in this regard, which is evident from its huge receivables from power generation sector. As per the directives of ministry of petroleum and natural resources, all the imported cargoes are allowed to discharge after the clearance from HDIP, laboratory. If the quality is rejected by the HDIP the vessel is not allowed to discharge its cargo into shore tank. The qualified cargo from HDIP laboratory is then only allowed to discharge the cargo into shore tanks. The product is then transshipped to PSO Lalpir Depot from where the supply of product to AES Pakgen and KAPCO is made.
Naveed Qamar further informed the house that a dedicated Enforcement Department of Oil and Gas Regulatory Authority (OGRA) is in place to check and eradicate hoarding and price hike by Oil Marketing Companies (OMCs). He said 800 petrol pumps of all OMCs had so far been inspected besides taking action against those found involved in violation of laws and rules including hoarding and price hike.
He pointed out that the fine of Rs 15 million has been imposed on OMCs on account of hoarding and overcharging. The imposition of fine on public and private sector OMCs sent a loud and clear message to the industry, adding that with the passage of time intensity and volume of violations were going down.
To another question, minister informed that the government grants Exploration Licenses under Pakistan Petroleum (Exploration and Production) Rules for oil and gas exploration in the country. The existing procedure for award of blocks is through competitive bidding.
During the last five years, eighteen (18) exploration licenses were granted for oil/gas exploration in the Balochistan province. As a result of exploratory drilling efforts, two discoveries namely Khost-2 (Oil) and Ziarat-1 (gas) respectively, were made in District Harnai (newly created district) of Balochistan, both discoveries are under evaluation/appraisal to determine the size of reserves.
In the aforesaid block ie Ziarat, an amount of 95,718 dollars has been spent during the last five years by the Mari Gas Company Limited (MGCL) on various welfare schemes of health, water supply and education for the benefit of residents of Khost, Ziarat and Harnai areas of Balochistan. Besides, the contractor of Mari Gas Company Limited has recruited 29 persons from the locality for working at the discovery area.
The House was informed that the Coal resources of Sindh province are about 184 billion tons that occurs in Thar, Badin, Sonda-Jherrick and Lakhra coal fields. As per constitutional apportionment Coal is a provincial subject. Federal government has the mandate to generate basic geological data through geological surveys. Geological Survey of Pakistan (GSP) has discovered and explored these deposits. The GSP developed four coal blocks out of total eight blocks through intensive drilling in Thar coal fields with an investment of over Rs 2 billion. The Government of Sindh has also established four coal blocks in the Thar Coal Field.
To act as one stop organisation for development of Sindh coal resources the GOS established Sindh Coal Authority (SCA). Thar Coal and Energy Board (TCEB) has also been established by GOS on 22-7-2008 to accelerate development of Thar Coal deposits.
TCEB and SCA are making efforts to develop Thar Coal deposits. The Sindh government has signed a Joint Venture with Engro Power Generation to develop a coal mine and power plant of the capacity of 1000 MW based on the coal potential of block-II of Thar coal-field. In the JV share of Engro Power Generation is 60 percent and GOS is 40 percent. The expected completion of the project is by 2015-16.
The GOS has granted a mining concession to Cougar Energy, UK, a subsidiary of Cougar Energy Australia, which shall develop block-III for underground coal gasification leading to commissioning 400 MW. He further informed the house that the oil and gas exploration companies operating in different potential areas of the country had drilled 148 exploratory wells during last the six years, out of which 56 remained successful. He said 227 appraisal and development wells were drilled to determine the discovered hydrocarbon reserves and bring them for production.
He said 1.7.94 million barrels of oil and 1.61 trillion cubic feet gas were added to national oil and gas reserves during the said period. Naveed Qamar said no oil and gas company had stopped its exploration activities in any part of the country just because of fiscal problems, however, there were some cases in which exploration work was halted due to security concerns in some troubled areas.