No #3

The Financial Daily - - CONTINUATIONS -

The Eco­nomic Co­or­di­na­tion Com­mit­tee (ECC) of the cabi­net had en­dorsed the pol­icy. The acute short­age of elec­tric­ity is said to erase three per­cent­age points off eco­nomic growth ev­ery year in ad­di­tion to plagu­ing the en­tire en­ergy chain.

Pump­ing of gas into pipelines from a new well takes two and a half years, but by de­vel­op­ing a power unit close to the well, elec­tric­ity could be pro­duced im­me­di­ately.

Of­fi­cials said the govern­ment was now fo­cus­ing on re-gasi­fied im­ported liq­ue­fied nat­u­ral gas (LNG) which would be con­sumed for power pro­duc­tion. An es­ti­mated 600 mil­lion cu­bic feet of LNG per day (mm­cfd) will gen­er­ate 3,600 megawatts of elec­tric­ity.

An LNG ter­mi­nal with a ca­pac­ity of han­dling 600 mm­cfd is be­ing set up in Karachi on a fast track, which will start func­tion­ing in the next two months. Ten­der for an­other 400-mm­cfd ter­mi­nal has been is­sued and is be­ing pur­sued vig­or­ously.

The govern­ment is also fo­cus­ing on ex­plo­ration of in­dige­nous gas re­serves and their al­lo­ca­tion for power gen­er­a­tion plants.

It has im­ple­mented Pe­tro­leum Pol­icy 2012 af­ter ob­tain­ing ap­proval of the Coun­cil of Com­mon In­ter­ests (CCI). Un­der the pol­icy, 44 new ex­plo­ration agree­ments have been signed whereas 137 wells have been drilled and in the last 17 months 37 oil and gas dis­cov­er­ies have been made.

Oil pro­duc­tion has hit the peak at 98,980 bar­rels per day (bpd). Against de­ple­tion of 19,000 bpd, 30,000 bpd has been added, caus­ing a pos­i­tive fi­nan­cial im­pact of Rs20 bil­lion per year.

In the case of gas pro­duc­tion, com­pared to the de­ple­tion of 490 mm­cfd, 500 mm­cfd has been added and the pos­i­tive fi­nan­cial im­pact is cal­cu­lated at Rs10 bil­lion per year.

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