The Petroleum and Natural Resources Ministry has informed the government that materialisation of at least one of the three proposed gas pipeline projects was essential for Pakistan before the expiry of current calendar year to meet future gas demands.
An official told Business Recorder here on Tuesday that early completion of any of the three proposed gas pipeline projects was the focal point of the presentation given to Prime Minister Shaukat Aziz by Petroleum and Natural Resources Minister Amanullah Jadoon and his team recently.
The prime minister was informed that inordinate delay in import of gas would leave Pakistan with no other option, but to produce gas from its indigenous coal which would cost 100 percent extra. The costly gas could hit Pakistan's growth rate, which was projected between 6.5 percent and 8.5 percent for the next five years.
Pakistan is working on three gas pipeline projects simultaneously. These included Pakistan-India-Iran gas pipeline project, Qatar-Pakistan-India gas pipeline and Pakistan Afghanistan and Turkmenistan gas pipeline project. India has been invited to join the proposed gas pipeline projects.
The ministry has said that all the three gas pipeline projects were viable for Pakistan even if India does not become party to them. However, it argued that India's participation could make these projects more viable for the parties and international donor agencies.
The feasibility studies for these gas pipeline projects have been completed and international donors are ready to finance the projects.
Prime Minister Shaukat was informed that Pakistan could not depend on its indigenous gas reserves to meet its increasing gas demand in future since its major discoveries were depleting quickly. The discoveries, which are listed among depleting wells included Sui gas, which used to contribute over 50 percent of the total gas production in the past.
Sources said the presentation covered 10 points. These were current gas and oil production and consumption, projected estimates and targets for state-owned oil companies for oil and gas production, setting up of at least one new oil refinery, laying down of multinational gas pipelines, role of regulator for oil and gas sector, import of LNG, exploration of minerals, including precious stones and foreign investment prospects for oil and gas sector.