With lifting of sanctions on Iran the pace of work on Iran-Pakistan gas pipeline will be expedited for its early completion which would be helpful in resolving the massive gas shortage in the country, Parliamentary Secretary on Petroleum and Natural Resources told National Assembly on Wednesday. Shahzadi Umarzadi Tiwana, Parliamentary Secretary on Petroleum and Natural Resources, was responding to queries of the parliamentarians in the House during Question Hour.
She told the house that as many as 67 new oil and gas discoveries were made since the government took over in 2013. She further said that 46 new leases were granted for exploration during tenure of the present government. She said that 560 mmcfd gas had been added to the system, besides an production of 27000 barrels of oil during the period.
She said that TAPI gas pipeline, which would be cheaper, was expected to be completed in 2019, while work would be expedited on Iran-Pakistan gas pipeline project after lifting of sanctions against Tehran. Regarding the rates of gas under TAPI, she said that at prevailing crude oil price, which is US $30/ barrel, TAPI gas price at Turkmen-Afghan border translate to 70 percent in terms of MMBTU.
About the transit fee to be paid by India to Pakistan under TAPI, the House was told that India will pay US $0.495/MMBTU to Pakistan for TAPI gas. The parliamentary secretary further told the House that LNG was also being imported from Qatar and its price would be very viable. About agreement with Qatar on LNG, the House was informed that the Sale and Purchase Agreement (SPA) has not been executed with Qatargas so far.
She said that re-gasified LNG was being supplied to textile sector in Punjab since the last week of last month to help meet shortage of gas. Giving province-wise production and consumption of the natural gas in the country during first quarter of year 2015-16, she said that consumption of Punjab was 1,122 MMCFD with 145 MMCFD production. Khyber Pakhtunkhwa consumed 293 MMCFD with a total production of 362 MMCFD, Sindh's consumption was 1,870 MMCFD and production was 2,781 MMCFD. While Balochistan with a total production of 875 MMCFD, consumed 405 MMCFD, he said.
To another query, she said that the benefits of the reduction in petroleum prices in international market were being passed on to the consumers. However, she said that due to reduction in international prices, the government taxes were also reduced, therefore, the benefit of reduction is partly passed on to consumers. Resultantly tax rates are increased by Ministry of Finance /FBR to meet the country's revenue targets approved in Finance Bill, she said, adding that sometime the impact of hike in prices are not passed on in order to provide relief to consumer through reduction in taxes.
Responding to another question, she said that on SNGPL's system, there is a vast gap between demand and supply of gas which is bridged through load management in different sectors in Punjab including power industry, CNG and fertiliser in order to cater for high priority domestic and commercial sectors in accordance with the Natural Gas Allocation and Management Policy, 2005.
She said that there was no curtailment in Khyber Pakhtunkhwa due to the decision of Peshawar High Court in a writ petition invoking Article-158 of the constitution. She said that SNGPL endeavoured to ensure maximum supplies to the textile sector even during winters, despite suspension of gas supply to all sectors other than domestic and commercial including non-textile industrial consumers. However, with further decrease in ambient temperature, she said that the demand of domestic sector increased and the company was left with no option but to reduce gas supplies to textile sector.
In realisation of the hardships that they may face due to inevitable discontinuation of system gas supplies, she said that the government and SNGPL explored the possibility of re-gasified LNG (RLNG) supplies to textile sector. Resultantly, from December 25, 2015, SNGPL initiated RLNG supplies to textile sector consumers in Punjab, she added.
She further said that textile sector in Khyber Pakhtunkhwa was consuming around 23 MMCFD indigenous gas, whereas the textile sector in Punjab is being supplied RLNG for four hours per day only.
She further said that textile sector in Punjab required around 60 MMCFD gas to operate for four hours daily for Textile Captive Power and 17 percent of Allocated Load for Textile Processing. However, since all textile sector consumers in Punjab have not yet opted for RLNG supplies, they are currently consuming around 45-50 MMCFD RLNG, she added. To a question about the per liter tax collected on POL products, she said that the government was presently collecting Rs 24.31 taxes [custom duty, petroleum levy and GST] per liter on petrol while Rs 39.25 per liter are being collected in terms of taxes on high speed diesel.
About the total number of domestic, commercial and industrial gas connections provided by the present government, she said that the incumbent government provided 0.9 million domestic, 1166 commercial and 93 industrial connections of gas across the country.