Pakistan’s Oil and Gas reserves will end in 10 and 13 years respectively
Senate Standing Committee on Petroleum was informed that the country’s existing oil reserves will see an end only after 10 years while gas reserves are to witness an end after passing 13 years if the current ratio of their respective demand is continued.
This shocking disclosure was made by the officials of petroleum division during a meeting of Senate Standing Committee on Petroleum, which was held at the Parliament House. The meeting was attended by Senators and other officials including secretary petroleum, PSO Managing directors, SNGPL, and SSGCL etc.
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The meeting of the Senate panel held to discuss in detail and analyze the work strategy, responsibilities, performance, and budget problems being faced by the subordinate bodies of the petroleum ministry including corporations, companies, and organizations etc. The meeting also took up the recommendations of a Senate special committee for implementation regarding GIDC (Gas Infrastructure and Development Cess) and matters related to LNG supply agreement, LNG terminals, LNG supply/import, its use and wasted capacity of the terminals etc. Also, the meeting sought complete details of records pertaining to government’s LNG supply/import agreement with Qatar and with terminal authorities.
Statistical Analysis and Present Situation in Pakistan
Petroleum Division Brief History
The petroleum and natural resources division was established in 1977 and in August 2017 new ministries of energy, petroleum and power divisions were created. And, there are 15 different bodies attached with petroleum division including OGRA, Pakistan State Oil, Pakistan Petroleum Limited (PPL), Pak Arab Refinery, Sui Northern and Sui Southern gas companies, Pakistan LNG Limited etc.
The Situation of Gas Reserves
It was informed that around 0.5 million consumers were being added annually to the existing number of 8.8 million of gas consumers in the country. It was informed that with diminishing domestic production, LNG requirement which currently stands at 1000 MMCFD was projected to reach 3600 MMCFD by 2030. It was also informed that gas consumers have paid more than Rs45 billion on account of terminal capacity charges from the year 2015 till date.
Sui Southern Gas Company Limited (SSGCL) is mandated to meet the gas demand of Sindh and Balochistan provinces. And, total it (SSGCL) has 8.8 million gas consumers in two provinces while SSGCL”s transmission network pipeline is 12,794 kilometers and distribution is 1,63,497 kilometers. Natural gas production of the country stands at 4,000 million cubic feet per day (MMCFD) and 1,000MMCFD of RLNG is being imported to meet the gas demands.
About the LNG imports to the country, LNG supply agreement with Qatar was for ten years, while LNG supply contract with Gunvor, Eni will stand effectively till 15 years.
So far 161 Liquefied Natural Gas (LNG) cargos have been imported at a cost of $3.8 billion. It was further told that LNG price is fixed with the price of crude oil price in the global oil market and review in the price of LNG can be made after ten years.
The Situation of Petroleum Reserves
It was informed in that 26.4 million tones of petroleum products were used during 2016-17 and local crude meets only 15 percent demand as the rest of the 85 percent demand of the crude oil is being met with imported crude. Local crude oil is being refined from six big and two small refineries of the country.
The government had collected $167.45 billion petroleum levy on petroleum products during the financial year 2016-17. A big refinery is to be built in Balochistan which will refine the crude oil of 2.5 lakh barrel on a daily basis and cost of this project is estimated at $5 billion while it will be completed by 2023.
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Electricity Production and Resource Utilization
The electricity is being generated with different sources and the country’s current energy requirements of 79.58 million Tonnes of Oil Equivalent (MTOE) is being met through 38 percent gas, 34 percent oil, 06 percent LNG and other resources including 01 percent LPG, 10 percent Hydro and 8 percent coal resources.
What is going on and what needs to be done?
Almost 8.3 lakh square kilometer area is specified to find oil and gas reserves while the search of oil and gas reserves is continued in 3.4 lakh square km area. So far, 1055 wells have been drilled in search of oil and gas while developed wells in the country are 1386 and success ratio of the search is 34 percent in the country.
174 licenses have been granted while 180 licenses of lease contract awarded. More than 57 trillion cubic feet of gas is discovered and out of which 36 trillion is extracted as 21 trillion is left in reserves which can meet gas demands of the country for next 13 years if consider the current speed of exploitation of gas reserves.
Pakistan has oil reserves of 1197 million barrel and out of this so far 865 million barrels have been produced as 332 million barrel is left with reserves and the oil reserves can satisfy oil needs of the country for next 10 years if count the present ratio of consumption/demand of the oil.