ISLAMABAD: Energy Minister Omar Ayub Khan on Friday informed the Senate that the government was importing around 1.2 billion cubic feet (Bcf) Liquefied Natural Gas (LNG) to meet the shortfall.
He told the upper house that the country’s indigenous gas production stood at 3.5Bcf as against the demand of 7.5Bcf, and that the LNG import would help reduce the demand and supply gap.
Responding to various supplementary questions, Khan said at present, gas was being allocated to the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company (SSGC) on the basis of its discovery in the respective province. Further, he added, the companies had been directed to meet the requirements of domestic and commercial sectors.
To a question, the minister said work on the Iran Pakistan Gas Pipeline (IPGP) project was stalled due to global sanctions on Iran.
“Pakistan had completed the major project preparatory activities, including bankable feasibility study, detailed route survey, front-end engineering and design, installation of concrete markers on the entire route, initiation of land acquisition process and NOCs from the environmental authorities of Balochistan and Sindh,” he maintained.
Khan said recently, with the approval of the cabinet, Iran and Pakistan had signed an amended agreement to the Iran Pakistan gas sales purchase agreement (GSPA), allowing both sides a further period of five years to complete the project.
However, any further progress would be linked to the lifting of US sanctions on Iran, he concluded.