ISLAMABAD: A parliamentary panel on Thursday was apprised that the gas drilling has been carried out at 56 different locations over the last three years with the total expense of around $1,230 million. Approximately, around 7,696 barrels oil and 260 mmcf gas has been produced daily from these explorations.
The Senate Standing Committee on Petroleum meeting chaired by Senator Umar Farooq was convened to discuss the gas shortfall and gas exploration conducted countrywide to meet the nation gas demand.
Senator Quratul Ain Marri inquired about the alleged gas containment when local gas and imported RLNG was surplus in the country.
OGDCL begins oil & gas production from Hyderabad
Director General Gas (Petroleum Division) informed that gas has been contained at North side, however, gas shortfall at southern region is mainly due to gas depletion. Additionally, the gas has been contained due to low demand of Power Sector as it is economically unviable to sell gas at the rate of Rs1,200 domestically which is being sold to power sector at the rate of Rs3,600. “Lack of storage for gas and limited capacity of gas pipelines was constrains in smooth supply of gas”, he said.
He said gas pipeline has no capacity to store gas beyond certain point and the country lack storage capacity. Senator Marri lamented the Petroleum Division, stating that despite not having any system in place to transmit and store domestically produced gas the government has agreement with Qatar for gas imports and above all, gas companies have been spot buying from Azerbaijan at inflated rates.
She argued that all the domestically produced should be introduced into the system. The committee deferred the matter stating that the minister for petroleum will brief the committee on the issue.
Furthermore, the committee deliberated on the private member bill, “The Pakistan Minerals Regulatory Authority Bill, 2024”.
Senator Mohammad Abdul Qadir, the bill’s mover stated that the purpose of the bill is to establish the authority at the federal level to promote the mineral industry.
The committee opined that the subject of “mineral” is devolved and fall under the ambit of provinces.
However, the proposed authority could not be established at Federal level.
Additionally, the committee was briefed by MD PMDC on the acquisition of nine kanals and six kanals land from the Peshawar Development Board for establishing PMDC office and an employees colony. Officials apprised that PMDC offices have been constructed on the six kanals land which was bought for commercial purposes. However, the nine kanals land acquired for residential could not be utilised and the matter is pending before the court. The PMDC is looking for settlement of nine kanals with Peshawar Development Authority and it will be resolved soon.
While discussing the working and performance of Government Holdings Private Limited (GHPL), officials informed that the entity is owned by Government of Pakistan and its objective is to maximise energy production with sustainable return. The GHPL earned its revenue majorly from oil and gas and the entity has a record profit during the last financial year.
Copyright Business Recorder, 2024
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