Strategy afoot to increase oil, gas storage capacities

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ISLAMABAD: The government is working on a multi-pronged strategy to construct gas storage facilities, which the country lacks for smooth supply of the commodity, especially during peak winter and summer seasons.

Under the strategy, a feasibility study had already been started to set up storage facilities after experts predicted that the gas supply system would expand from existing 5 Billion Cubic Feet (BCF) to 7 BCF in the next two to three years, a senior official privy to petroleum sector developments told APP.

“Currently, we have a system of 5 BCF gas. The demand will increase to 7 BCF in next two to three years, but we have no gas storage system, which is a major problem for us,” he said.

The official said the gas demand and consumption was increasing with each passing day, which was being met through import of Liquefied Natural Gas (LNG) and domestic production. “So, there is a need to have proper storage facilities that will be established in collaboration with China.”

Accordingly, he said Pakistan had requested the Chinese government to incorporate this scheme in China Pakistan Economic Corridor (CPEC) projects.

Replying to a question, the official said the overall storage capacity of Motor Spirit (MS) and High Speed Diesel (HSD) oil had witnessed around 13.07 percent increase during the fiscal year 2018-19 as compared to last year.

The storage capacity for both MS and HSD oil had been increased from 1,712,691 Metric Ton to 1,936,550 MT during the period under review.

The MS oil storage capacity was enhanced from 490,408 MT to 594,299 MT, showing 21.18 percent increase during the period under review.

Meanwhile, HSD oil storage capacity was expanded from 1,222,283 MT to 1,342,251 MT, projecting a 9.81 percent increase.

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