Islamabad, Dec 19: The Senate Standing Committee on Petroleum, chaired by Senator Umar Farooq, convened a meeting where officials from the petroleum sector provided a comprehensive update on oil and gas exploration activities, drilling operations, and associated costs over the past three years.
According to the briefing, 56 drilling operations were carried out for oil and gas exploration, with a total cost of Rs. 430 billion. Currently, Pakistan is producing 7,696 barrels of crude oil per day, alongside 260.77 million cubic feet of gas per day (MMCFD).
Committee member Qurat-ul-Ain Marri raised concerns over the import of gas despite the country’s cheaper domestic gas. Officials clarified that imported gas is 10 times more expensive than locally produced gas, adding that the absence of infrastructure for underground gas storage exacerbates the situation, limiting the options for managing gas supply.
In response, the Secretary of Petroleum explained that Pakistan is bound by international agreements requiring gas imports, even if local production is available. Furthermore, local production is sometimes reduced to prevent pipeline explosions due to overpressure. He also highlighted that without injecting imported gas into the pipeline system, LNG (liquefied natural gas) cargo ships would remain stranded at sea, leading to additional costs.
Senator Umar Farooq expressed concern over ongoing gas shortages in Karachi and other cities and urged officials to find solutions. Senator Mohsin Aziz questioned the flexibility of Pakistan’s agreements with Qatar, to which officials responded that several government-to-government agreements are in place, some lasting until 2030, and these agreements require the country to fulfill gas purchases for the power sector.
Despite the country’s domestic gas resources, Chairman Farooq noted frustration that the gas is not reaching consumers, even as the country continues purchasing it. Officials mentioned that gas is supplied based on demand from 5 a.m. to 11 p.m., with lower demand during the remaining hours. However, Marri questioned why gas is not supplied throughout the 24 hours.
Officials explained that maintaining gas in pipelines increases the risk of explosions during periods of low demand. The meeting ended with calls for improved management of gas resources and addressing the ongoing shortages affecting citizens.
