SLAMABAD: Pakistan’s economy will sink if the government fails to import the Liquefied Natural Gas (LNG) in the next 18 months, newly- appointed Adviser to the Prime Minister on Petroleum and Natural Resources, Dr Asim Hussain, told the media during his maiden press briefing on Monday.
“There is now no other option but to make a firm plan in the next 3-4 months to start importing the LNG,” said the new adviser. “We are currently looking to import 500 million cubic feet of gas per day (mmcfd) in the first phase. In my view, the government should import LNG at spot prices on a short term basis to immediately meet the increasing gas availability crisis.”
The remarks of Dr. Asim take on an added significance in the backdrop of government’s internal assessment of the gas situation in the immediate future. According to government’s own estimation, the projected gas supply in 2014 will be 4.28 bcfd while demand will be around 7.46 bcfd and Pakistan’s gas shortage will stand at 3.18 billion cubic feet per day (bcfd). Responding to a question about the PM’s sacking on Sunday of managing directors of all oil and gas companies, Dr. Asim said the layoffs were inevitable since the MDs had failed to deliver and it was also the people’s demand that non-delivering top honchos be changed. The government would post national and international advertisements for suitable replacements within the next 10 days, he said, adding,”But until the new appointments are made, the succession plan will continue; that is, senior officials will replace the outgoing MDs for the time being and the organisations will continue to function”. On the issue of the reconstitution of the Board of Directors (BoDs) of all oil and gas companies, Dr Asim said the current BoDs would be dissolved as per the rules and professionals with innovative ideas would be involved. Ministers or secretaries will not be BoD chairmen, he said, arguing that their exclusion will ensure independence as well as the efficient running of the organisations.
In the preliminary statement about his vision on how to cope with the energy crisis, Dr Asim said he would put together a committed team to exploit, on a fast track, oil, gas and coal reserves in Balochistan and Sindh. He said the federal cabinet had already approved a rigorous and focused gas policy and its implementation plan was now being finalised. In addition, the low-BTU gas policy was also being prepared under which dormant gas fields would be exploited. He promised to announce the Hydrocarbon Vision as another effective tool to help the country through the energy crisis.
Sui Northern and Sui Southern will set up Liquefied Petroleum Gas (LPG) distribution companies to provide LPG to the masses at affordable rates, the adviser announced. “This will place a huge dent on the private parties who are massively fleecing the people,” Dr Asim said. He also announced that no new industrial and commercial gas connections would be issued while new connections would be given only to domestic consumers and that too provided a gas pipeline was already passing by their houses. Dr Asim also disclosed that in the next three years, under the tight gas policy, the country would get 400 mmcfd gas from the Miano and Sawan gas fields in Sindh. Responding to a question about the two-day weekly closure of CNG stations, Dr Asim admitted that the gas availability situation had deteriorated considerably and Pakistan now had no choice but to import the LNG at market prices on a short terms basis. He said it was the Finance Ministry’s responsibility to resolve the issue of circular debt in the energy sector. He said there is a huge disparity between the recoveries of arrears and the import of petroleum products.
When asked about the status of the Iran-Pakistan (IP) gas pipeline, Dr Asm said he has not been fully updated on the issue. However, he promised that the international mega project would be implemented and commissioned as per schedule. The News
“There is now no other option but to make a firm plan in the next 3-4 months to start importing the LNG,” said the new adviser. “We are currently looking to import 500 million cubic feet of gas per day (mmcfd) in the first phase. In my view, the government should import LNG at spot prices on a short term basis to immediately meet the increasing gas availability crisis.”
The remarks of Dr. Asim take on an added significance in the backdrop of government’s internal assessment of the gas situation in the immediate future. According to government’s own estimation, the projected gas supply in 2014 will be 4.28 bcfd while demand will be around 7.46 bcfd and Pakistan’s gas shortage will stand at 3.18 billion cubic feet per day (bcfd). Responding to a question about the PM’s sacking on Sunday of managing directors of all oil and gas companies, Dr. Asim said the layoffs were inevitable since the MDs had failed to deliver and it was also the people’s demand that non-delivering top honchos be changed. The government would post national and international advertisements for suitable replacements within the next 10 days, he said, adding,”But until the new appointments are made, the succession plan will continue; that is, senior officials will replace the outgoing MDs for the time being and the organisations will continue to function”. On the issue of the reconstitution of the Board of Directors (BoDs) of all oil and gas companies, Dr Asim said the current BoDs would be dissolved as per the rules and professionals with innovative ideas would be involved. Ministers or secretaries will not be BoD chairmen, he said, arguing that their exclusion will ensure independence as well as the efficient running of the organisations.
In the preliminary statement about his vision on how to cope with the energy crisis, Dr Asim said he would put together a committed team to exploit, on a fast track, oil, gas and coal reserves in Balochistan and Sindh. He said the federal cabinet had already approved a rigorous and focused gas policy and its implementation plan was now being finalised. In addition, the low-BTU gas policy was also being prepared under which dormant gas fields would be exploited. He promised to announce the Hydrocarbon Vision as another effective tool to help the country through the energy crisis.
Sui Northern and Sui Southern will set up Liquefied Petroleum Gas (LPG) distribution companies to provide LPG to the masses at affordable rates, the adviser announced. “This will place a huge dent on the private parties who are massively fleecing the people,” Dr Asim said. He also announced that no new industrial and commercial gas connections would be issued while new connections would be given only to domestic consumers and that too provided a gas pipeline was already passing by their houses. Dr Asim also disclosed that in the next three years, under the tight gas policy, the country would get 400 mmcfd gas from the Miano and Sawan gas fields in Sindh. Responding to a question about the two-day weekly closure of CNG stations, Dr Asim admitted that the gas availability situation had deteriorated considerably and Pakistan now had no choice but to import the LNG at market prices on a short terms basis. He said it was the Finance Ministry’s responsibility to resolve the issue of circular debt in the energy sector. He said there is a huge disparity between the recoveries of arrears and the import of petroleum products.
When asked about the status of the Iran-Pakistan (IP) gas pipeline, Dr Asm said he has not been fully updated on the issue. However, he promised that the international mega project would be implemented and commissioned as per schedule. The News
