The Petroleum Ministry has failed in implementing a plan to bring up to 800 Million Cubic Feet gas per day (MMCFD) into the system. The plan was devised by the Ministry on January 25, according to which by the end of June 30, 2012 an estimated 800 MMCFD gas was to be added in the system to overcome the current energy crisis.
Sources in the Petroleum Ministry told Business Recorder that had the government utilised and developed the discovered gas reservoirs in a time, the economy of the country could be protected from huge loss. Sources said that some of the Exploration and Production (E&P) companies were not ready to put discovered gas into the system due to price disputes with the government.
"These gas companies are requesting the government to enhance well-head gas price in accordance with the 2012 gas policy, wherein the government has announced well-head gas price in the range of $6-$9per Million British Thermal Units (MMBTU)", the sources maintained. Pakistan's current gas production is 4.2 Billion Cubic Feet per day (BCFD), against total demand of around 6.5 BCFD. The government during past four years did not take any concrete step to access the gas reservoirs, which accounts for many local manufacturers relocating to other countries, including Bangladesh.
The important projects from where the government was planning to inject 800 MMCFD gas into the system are as follows: 186 Mmcfd from Kunnar Pasaki, 160 Mmcfd from Uch gas field, 30 Mmcfd from Sinjhoro, 30 Mmcfd from Rehman gas field, 30 Mmcfd from Mehr, 30 Mmcfd from Makori, 10 Mmcfd from Nur-Bagla, 6 Mmcfd from Jhakro, 15 Mmcfd from Jhal Magsi, 10 Mmcfd from Sajawal, 20 Mmcfd from Kandkot and 120 Mmcfd from Sara west. Qadirpur compression project has expected production of 100 MMSCFD gas, Bahu field has an expected production of 24 MMSCFD (due to commence production in 2010, however delayed reportedly till June 2012), while Dhakhni expansion project is expected to inject 12 MMSCFD gas to the national utilities.
The sources stated that the country has sufficient discovered gas reservoirs to deal with the current energy crisis, but materialisation of these projects has been delayed time and again due to some petty issues that, sources alleged, are related to commissions and extension of contracts.
Sources added that nearly 200 Mmcfd of gas was planned from tight and shale gas, to be dedicated to power sector or CNG sector. Moreover, from above-mentioned gas fields the country could have over 1,000 tons of Liquefied Petroleum Gas (LPG) daily, which would help reduce LPG shortage as well as bring down commodity prices. Pakistan currently is producing some 1,200 tons LPG per day if the projects were completed Pakistan's LPG production may surge to 2,200 ton per day, resultantly the commodity prices may decline, which at present is being sold at Rs 120 to Rs 140 per kg.
The government is trying to deal with current gas shortage through the Gas Load Management Programme, which according to Petroleum Ministry officials had been prepared after consultations with all stakeholders. Furthermore, if Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company (SSGC) bring down the unaccounted-for-gas (UFG) to standard level of 4 percent, it would save up-to 250 MMCFD additional natural gas.
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