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Pakistan has finalised a Liquefied Natural Gas (LNG) sale and purchase agreement with Qatargas and has been submitted to the Economic Co-ordination Committee (ECC) for its approval. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi informed the National Assembly on Monday through a written reply to the questions raised by the members.

He said that Pakistan State Oil (PSO), being the government of Pakistan-designated LNG buyer, has finalised an LNG sale and purchase agreement with Qatargas which had been submitted to the ECC on November 20, 2015 for approval. He said the same will be executed on the receipt of direction from the ECC. However, to keep the terminal operational, the PSO is importing LNG under spot arrangements through a competitive tendering and till date 17 cargoes have been imported, he added.

Answering another question, the Minister said there is a vast gap between demand and supply of natural gas which is bridged through load management in power, industry, CNG and fertiliser sectors in order to cater for high priority domestic and commercial sectors in accordance with the Natural Gas Allocation and Management Policy, 2005.

He said the situation worsens during winter on account of usage of gas heaters and geysers. He said that due to an exponential increase in demand during winter, the consumers located at tail-end of gas distribution network may face a low pressure.

"Even with the said suspension of gas in industrial, CNG, power and fertiliser sectors the available gas is not sufficient to fully meet the demand of domestic consumers. The gas utility companies are undertaking system augmentation, looping of line, re-drilling of service tee, establishment of emergency teams to resolve low pressure complaints. Operational teams are working round the clock for this particular activity," he said.

Answering another question, the Minister said that per liter price of petrol and diesel, excluding all types of taxes, in the country at present are Rs 51.94 and Rs 41.54, respectively.

He said the total quantity of the indigenous oil/gas produced in the country during the month of November 2015 remained at 2,699,462 barrels of oil and 122,490 MMCFT of gas. He said that about 70 percent gas demand of the country is being met through indigenous gas production and 17 percent through indigenous oil.

He said the Sui Southern Gas Company Limited (SSGCL) has identified 22 towns in the province of Balochistan for installation of LPG-Air Mix plants. He said that in this context SSGCL has planned to install LPG Air-Mix plants in a phased manner subject to availability of funds and has commenced installation process at Awaran and Bella with its own resources during financial year 2015-16.

He said that during November 2015, 21.47 percent of the total gas production of the country came from the Balochistan province. While proven gas reserves, ie, Lease area, is 0.34 percent of the total area of Balochistan, he said. Answering a question, he said that as a way forward Iran - Pakistan (IP) Gas Pipeline has been strategized as well as Gwadar-Nawabshah LNG Terminal and Pipeline Project under which a LNG plant will be constructed at Gwadar to Nawabshah. The remaining segment of 80 kilometers from Gwadar to Pak-Iran border will be connected with Iranian system when sanctions on Iran are fully lifted, he said.

Minister of Defence Production Raba Tanveer Hussain also told the House that Pakistan has sold a total of 9,505 of arms to various countries, including the US and UK, during the last three years. In a written reply to a question, the Minister said that Pakistan sold 185 SMG MP5 to US in 2015, 600 G3A3 to Kenya, 300 G3A3 Bahrian, 30 DMR MK-1 to UAE, 3000 G3A3 to Luxembourg etc. In 2014, he said that Pakistan sold 520 AMG MP5 and 150 SMG PK to US, 35 SMG MP5 to UK and 35 SMGPK to South Korea etc. In 2013, Pakistan sold 371 G3A3 to US, 69 SMG MP5 69 UK, 3000 G3A3 to Kenya, etc.

Copyright Business Recorder, 2016


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