ISLAMABAD: Petroleum Minister Musadik Malik has claimed on Wednesday that Pakistan’s negotiations with investors (Saudi Development Fund) have entered final stages on the Reko Diq copper-gold project (Balochistan).

Talking to media, Minister for Petroleum said he was holding key negotiations with Saudi government regarding Reko Diq and other water projects.

Responding to Iran-Pakistan Gas Pipeline, he said there was no truth that Pakistan received Rs 18 billion notice by Iran for delay in Iran gas pipeline project. He said there was still no estimate on both sides of penalty on Pakistan regarding IP gas pipeline.

The petroleum minister also said four to five teams of the government were working to provide relief to the masses on electricity prices.

The petroleum minister said separate teams were working on electricity prices, GENCOS, circular debt and capacity payments issues.

Musadik Malik said commercial report for green refinery to come out by December 2024, adding, demand for petrochemicals was increasing worldwide due to introduction of electronic vehicles. Greenfield refinery will have 40-50 percent petrochemical and 50 percent crude petroleum to save premium.

The minister further said that the gas deficit in winter would be managed with system gas as imported RLNG has reached to 1,000 mmcfd while local pipleine is 1,350 mmcfd inaddition to 1,200 mmcfd dedicate local gas.

He said the government had taken steps to increase the investment in oil and gas exploration in the country and timely payment to E&P companies. He said the government has succeeded as SNGPL cleared 95 percent dues of E&P companies.

He further said that Petroleum Division in coordination with Maritime Affairs Division was working to reduce taxes and port charges on imported RLNG which was around $4 dollar on single cargo and passed on to consumers.

He further said to meet the gas shortage in winter and deal with capacity payment in the power sector, a seasonal tariff may be introduced.

The minister further said the price rationalisation/WACOG is essential to control the gas prices. Well head price is Rs 570 per mmbtu, Rs 1,280 is pipeline gas and Rs 3,600 per mmbtu is RLNG. In case, local and imported gas blended the price would be around 1,700 to 1,800 per mmbtu and the government would be able to subsidise poor segments of society.

Copyright Business Recorder, 2024

Comments

Comments are closed.