ISLAMABAD: The government will decide on opening gas supply to CNG sector after reviewing demand and supply situation of the domestic sector.
“It is not possible to allow CNG filling stations to start supply before January 31, after that gas situation will be reviewed especially with regard to gas pressure for domestic sector prior to taking decision in this regard,” an official of the ministry of petroleum and natural resources told APP.
The official added, the government was according priority to domestic sector and did not want it affected with any adverse decision.
He also informed that government for the first time in its history has formulated policies on Tight Gas and Low BTU Gas. As regards the prospects of oil and gas exploration in the country, he pointed out that Pakistan is endowed with vast sedimentary area of over 800,000 square kilo-meters of which over 70 percent is yet to be explored.
The success ratio of oil and gas discoveries is one of the best in the world as is evident from the success ratio of 1: 3.22 discovery rate. Similarly, he added, the Sui Southern Gas Company (SSGC) and United Energy of USA recently signed a Memorandum of Understanding (MoU) pertaining to supply of Liquified Natural Gas (LNG) in Houston.
He said according to the MOU signed between SSGC and United LNG of USA, the later will supply 4 million metric tons of Liquefied Natural Gas (LNG) per year to SSGC, supplementing the government’s efforts to ensure energy security of the country.
As per MOU, Pakistan will also own share in Liquefaction facilities in Gulf of Mexico together with United LNG of USA, he added.
Recently as a promising sign, the official said the Oil and Gas Development Company Limited (OGDCL) has made a discovery of 20 mmcfd gas at well head flowing pressure of 3340 PSI in Sindh Province, which would go a long way in easing the gas crisis.
The official said the government was giving top priority to domestic consumers and during the present government 1.6 million consumers were given gas connections.
Moreover, he said the government recently announced a new exploration bid round offering 60 exploration blocks along with Road Shows in Houston and London in early December to showcase the Petroleum Policy 2012 and lure the multinational companies to participate in this bid round.
He said policy was as one of the best in the world since it offers level playing field for E and P companies, both local and international ones.
He said the policy offers price up to a maximum of US $ 6.5 per MMBTU for onshore and up to a maximum of US $ 9 per MMBTU for offshore oil and gas discoveries.