The federal government will complete formalities for implementation on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) and Iran-Pakistan (IP) gas pipeline projects during 2018-19. According to Annual Plan 2018-19, the TAPI project activities including signing of gas transportation agreement, pipeline service rules, transit fee agreement and completion of front end engineering and design (FEED) work would be implemented during the next financial year.
Breaking of construction phase for Pakistan's part of TAPI gas pipeline will be held during 2018-19. On February 23, 2018, new construction phase from Afghanistan to Pakistan under TAPI gas pipeline project of 1680 km length and gas volume of 3.2 billion cubic feet of natural gas per day (BCFD) launched in Turkmenistan. The project is expected to be completed by 2020.
The implementation on IP project will be reviewed during the next financial year in consultation with Iranian counterparts to discuss and finalize all outstanding issues including amendments in the gas sale purchase agreement (GSPA) for preparing revised implementation framework for completion of the project. During the Iranian President's visit to Pakistan in March 2016, it was agreed to revive discussions on the project in wake of lifting sanctions on Iran.
The IP project envisages laying 1931km pipeline having 750 MMCFD capacity could not proceed well due to sanctions on Iran. The Petroleum Division is in process of resolving all outstanding issues including amendments in the GSPA.
The government has budgeted gas infrastructure development cess (GIDC) collections at Rs 100 billion in next fiscal year. The funds gathered from this source were supposed to be spent on gas import projects like liquefied natural gas and pipelines from Iran and Turkmenistan.
The federal government has also fixed domestic crude oil and natural gas production at 35.45 million barrels and 1.51 trillion cubic feet gas for financial year 2018-19. The supply demand gap in both oil and gas sectors will be met through import of crude oil and petroleum products. The indigenous gas supply will be supplemented through LNG imports to the tune of 9.0 million tons during next financial year.
A total of 90 wells (50 exploratory and 40 developments) are planned to be drilled by the exploration and production (E&P) companies during the next financial year. The Oil and Gas Regulatory Authority (OGRA) proposed construction of 10 new oil storages, having combined capacity of petrol 304,445 metric tons and diesel 446,355 metric tons. Moreover, 10 new oil marketing companies are expected to be established in financial year 2018-19.
Both Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) have plans to add 1.1 million new connections and 12,898 km of transmission and distribution pipelines in their networks during the next financial year.
The SNGPL will also construct RLNG-3 (770 km from Sawan to Lahore) pipeline project with capacity of 1.2 BCFD. The project will be completed by 2019. The gas company will also install three LPG air mix plants in Gilgit and Chitral. The SSGCL will also construct 30 LPG air mix plants in Balochistan.