SANGHAR: Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Monday said that Pakistan-Iran Gas Pipeline was a matter of great importance for the country and Pakistan would honor its agreement with the neighbouring Iran regardless of any pressure, foreign or domestic.
He was visiting Gambat South Block in District Sanghar, Sindh to mark recent discoveries made by Pakistan Petroleum Limited (PPL), the operator of the block. He said that no geo-political influence was the cause of concern for Pakistan in this regard. “Turkey and Armenia are already purchasing natural gas from Iran and if there is no sanction for these countries, there would be none for Pakistan either,” Abbasi categorically said.
He informed that this gas project would cost around $1.5 billion, which would be raised through Gas Infrastructure Development Cess (GIDS). “Though the Islamabad High Court (IHC) has stayed the Cess but the matter would be resolved soon. The government also has sorted out some other internal sources of funding in this regard,” he informed.
It may be mentioned here that no international donor or financing institution is interested fund this project, as this project is against the interests of United States in the region. It may also be mentioned here that bureaucracy at the ministries’ level has its doubts and reservations about the project and according to sources a very high level meeting has made critical observations about the project that government must decide whether the hands or the neck.
Abbasi said that the project would be completed soon and Pakistan could get one billion cubic feet per day (BCFD) gas from Iran.
About the LNG import, the minister said that it was the only option in the short term to meet the country’s energy needs and informed that a tender has been floated after removing all the reservations of stakeholders.
He said that LNG supply and terminal development had been separated for transparency in the entire scheme. “LNG would come to the country by the end of next year,” he assured.
The minister reiterates the government’s stake in promoting oil and gas exploration to plug the energy deficit faced by the country on the one hand and the importance of the discovery by PPL that has 65 percent working interest in the block along with its joint venture partners Government Holdings (Private) Limited and Asia Resources Oil Limited, with 25 percent and 10 percent interests, respectively, made two back-to-back gas-condensate discoveries at exploration wells Wafiq X-1 and Shahdad X-1 within a span of approximately one month.
Welcoming the minister and other guests, which comprised representatives of the Ministry of Petroleum and Natural Resources (MP&NR), provincial government, local administration, MD and CEO Asim Murtaza Khan highlighted the importance of the discoveries, particularly in light of the prevailing energy crisis, adding that PPL was striving to fast track production from the two wells through Extended Well Testing. “As a key public sector E&P company, we are cognizant of our responsibility to optimize production and reserves replacement of hydrocarbons to decrease reliance on oil imports and secure a safe energy future for the country.”
The minister also visited the rig at Shadad X-1 well site and ignited the gas flare.
It is interesting to note that PPL, which has become a multi-national exploration and production company operating blocks in Iraq and Yemen, has dedicated internet connectivity or business centers at its production fields.
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