No gas pipeline project part of cpec_ govt

ISLAMABAD – FAWAD YOUSAFZAI – A parliamentary committee was informed on Friday that Pakistan State Oil has 50 days stocks of High speed diesel and furnace oil while the stock of petrol is enough for only 8 days.

The official of the PSO stated this while briefing the Senate Standing Committee on Petroleum and Natural Resources, which met under the chairmanship of Senator Talha Mehmood.

The PSO official informed the committee that the company was enhancing storage capacity for the motor spirit. The committee was also informed that power sector has to pay Rs 130 billion outstanding dues, from 2015, to the state-owned oil company.

The committee expressed serious anger over PSO management for not regularizing the jobs of trainees from Balochsitan. These trainees were inducted in 2013 for a period of two years and a commitment was made to make them permanent after completing training. The PSO assured the committee that all the trainees of Balochsitan will soon be made permanent as per directions of the committee.

The committee directed the PSO management to provide details of province-wise employees in PSO and for the time being stop appointments on these vacancies so that provincial quota can be ensured. The PSO official informed the committee that the current strength of the company employees was 2,285.

The committee was informed that 215 vacancies were vacant at Pakistan State Oil (PSO) and to fill these vacancies the jobs have been advertised in media and the process will be completed within next 6 months.

Sui-Northern Gas Pipelines Limited (SNGPL) officials informed the committee that the company has laid 1,812 kilometers of gas pipelines out of a total 2,798 kilometers in past three years in KP province, while the rest of the pipelines will be completed within next six months.

The officials Northern Gas Pipeline (SNGPL) and Sui-Southern Gas Company Limited (SSGCL), while briefing the committee on the gas supply/demand situation, said that total gas demand on SNGPL network was 4 BCFD, while on SSGCL network 1.7 Bcfd.

Director General Petroleum Concessions (DGPC), Saeedullah Shah, while briefing the committee, said that Hungarian oil/gas exploration and production (E&P) company MOL was ready to start exploration of oil/gas in the tribal areas which has significant potential of oil/gas.

Saeedullah Shah further said that current gas production was 4.16 BCFD against total demand of 8 BCFD. He said that in past three months E&P companies have made oil/gas discoveries but connecting these wells with distribution lines will take time. The Petroleum and Natural Resources Minister informed the committee that 100 million cubic feet per day (MMCFD) of gas has been allocated to Khyber Pakhtunkhwa (KP) for power generation.

Regarding Iran-Pakistan pipeline, Shahid Khaqan Abbasi said so far no work on Iran Pakistan (IP) gas pipeline project was started due to international sanctions against Iran. However, he said that the matter is on the agenda of Iranian president’s ongoing visit to Pakistan.

He said that Pakistan has lifted sanctions against Iran and was serious to complete the long awaited pipeline which will transport 750 MMCFD of gas from Iran to Pakistan and will cost $2 billion. “If today the work started on the project it will be completed by 2018,” the minister claimed.

He said no gas pipeline project including construction of Liquefied Natural Gas (LNG) projects is a part of China Pakistan Economic Corridor (CPEC). However, he said that China will construct a LNG pipeline from Gawadar to Nawabshah with a capacity to transport up to 1.2 billion cubic fee per day (BCFD) of LNG, but it was not a part of CPEC.

The minister also said that Russia will build Karachi to Lahore LNG pipeline with a cost of $2 billion on Built Operate Transfer (BoT) basis. For this project, both the governments signed an agreement and at present negotiations on commercial agreement were under process, he added.