The production of natural gas has witnessed a negative growth of 1.98 percent in current fiscal year (2018-19) as compared with last fiscal year (2017-18), according to data released in Pakistan Economic Survey 2018-19 launched on Monday. The survey revealed that the production of indigenous natural gas decreased from 1,458,935 million cubic feet (mmcft) in fiscal year 2017-18 to 1,430,097 mmcft in current fiscal year (2018-19) which was 1,471,854 mmcft in fiscal year 2016-17.
The average natural gas consumption was about 3865 million cubic feet per day (mmcfd) including 785 mmcfd volume of RLNG during July 2018 to February 2019. Despite the shortage of gas, both utility companies-Sui Northern Gas Pipeline Limited (SNGLP) and Sui Southern Gas Company Limited (SSGCL) provided 428,305 additional gas connections including 425,404 domestic, 2,770 commercial and 131 industrial during the period.
It is expected that gas will be supplied to around 430,695 new consumers during the next fiscal year 2019-20. Gas utility companies have planned to invest Rs 7 billion on transmission projects, Rs 48 billion on distribution projects and Rs 18.5 billion on other projects bringing the total investment to around Rs 74 billion in next fiscal year.
Power sector was at the top with gas consumption of 1411 mmcfd, domestic consumption was 889 mmcfd, commercial 89 mmcfd, CNG 183 mmcfd, fertilizer 645 mmcfd and general industry consumed 648 mmcfd during July-February 2019. For viable growth of gas sector, government has approved provision of RLNG with fiscal incentives of gas infrastructure development cess (GIDC) at the rate of zero and sales tax at the rate of five percent.
The production of crude oil posted an insignificant growth of 0.47 percent during July-February 2019. The volume of crude oil extraction was 32,711 JSB (000) in fiscal year 2018-19 which stood 32,557 JSB (000) during last fiscal year 2017-18. Domestic production of crude oil was 24.6 million barrels during July-March 2019 compared to 21.8 million barrels during the corresponding period last year. As indigenous resources of oil are not enough, the quantity of crude oil imported remained 6.6 million tons at a cost of $ 3.4 billion during first nine months of current fiscal year compared to 7.8 million tons at a cost of $ 2.9 billion during the same period last year.
"The deferred payment on imported oil from Saudi Arabia will give an ease to the government on balance of payments", the Survey states. Till March 31, 2019, paid up capital of four listed oil and gas exploration companies on Pakistan Stock Exchange was Rs 66.1 billion. The market capitalization of these companies was Rs 1332 billion and profit after tax stood Rs 131 billion.
The profit after tax of eight oil and gas marketing companies was Rs 31.9 billion. The paid up capital of listed companies at Pakistan Stock Exchange was Rs 14.6 billion. The market capitalization was Rs 249 billion. Listed four refineries had paid up capital of Rs 57 billion. The market capitalization was Rs 73 billion and profit after tax was Rs 7.8 billion.
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