Gas Demand Grows In Pakistan
Gas Demand Grows In Pakistan: In terms of natural gas consumption Pakistan is among the 20 countries. Gas market expanded with the introduction of LNG (liquefied natural gas) that would be increasing in the next 7 years at 8 billion cubic feet per day.
Pakistan is ahead of Australia, France and Spain among advanced countries and Indonesia, Malaysia and Singapore in Asia where gas is used enormously in every sector. The government has initiated various measures to plug the gap between demand and supply which includes: incentivizing indigenous exploration, import of natural gas in the form of Liquefied Natural Gas (LNG), and import through the development of Cross Country Gas Pipelines.
With the increasing demand the issue of gas storage has gained importance. Here comes the role of gas scheduling conditions. There is a need to introduce flexible gas schedule to facilitate the gas storage capacity.
- Imported LNG has to be consumed as per contractual conditions from exporting companies and countries.
- KPK recently suffered heavy losses due to reduction in the production of oil and gas necessitated with the introduction of LNG
How Gas Problem Can Be Handled
- By building storages: Gas can be stored in three types of reservoirs. Under ground, above ground and in steel tanks (in case of LNG) known under the title of depleted gas fields, water aquifers and salt caverns. Depleted gas field types are most popular almost everywhere where all infrastructures like gas facilities and pipelines are usually available and only renovation and incremental facilities have to be installed. In Pakistan, all 3 types can be built as all the three resource types are present in the country. There are depleted salt mines in Khewra which is close to markets also. There are many depleted gas fields as well. An investment of $50-75 million would be required per site on the average.
- Few FSUs (floating storage units) could also be considered. Old LNG shops or FSRUs could be utilized for these purposes.
- Oil problem can be handled by installing conversion facilities in the country’s large refineries.
A policy may be prepared for gas storage and floated for the consideration and input from stakeholders. OGDCL, PPL and other public/private sector companies must come up with a strategy keeping in view the situation created by LNG to meet the current growing demand of gas in Pakistan.
Increasing the Gas price Would Be Unfair
Sui Northern Gas Company has asked for an increase in gas tariff by 78% up to Rs.811 per mmbtu from the existing tariff of Rs.455 per mmbtu which will be implemented from July 1st, 2018 increasing the gas prices.
