For the fiscal year 2012/13, the government plans to increase crude oil production to 69,000 barrels per day (bpd), whereas gas production will be increased to 4,791mmcfd, official documents suggest.
Moreover, the gas utility companies have planned to invest Rs38.381 billion on transmission projects, Rs21.604 billion on distribution projects and Rs13.143 billion on other projects, bringing the total investment of Rs73.128 billion for the upcoming fiscal year.
During 2011/12, the expected local crude oil production stands at 64,624bpd, while domestic gas production at well-head is expected to be 4,197mmcfd, it revealed.
During the current fiscal year, the gas utility companies invested Rs1.420 billion on transmission projects, Rs7.065 billion on distribution projects and Rs3.596 billion on other projects, bringing the total investment to around Rs12.081 billion, it said.
According to the framework for growth strategy for the energy sector of the Planning Commission, several measures are in the offing to enhance exploration and production (E&P) activities, including the Petroleum Policy 2012.
“It is expected that consequent upon promulgation of the Petroleum (Exploration & Production) Policy 2012, exploration and production will increase considerably,” the document revealed.
Besides, Tight Gas (Exploration & Production) Policy, 2011, to attract exploration companies to invest in tight gas fields, has been formulated and Low BTU Gas Pricing Policy, 2012 and Shale Gas Policy, 2012 are being formulated in order to exploit hydrocarbon to alleviate shortage of energy, it said.
Gas will be supplied to approximately 391,705 new consumers and about 580 new towns and villages will be connected to the gas network, it said. According to the Planning Commission’s Annual Plan 2012-13, Pakistan’s primary energy supplies heavily depend upon the imported crude oil and petroleum products due to which the country’s oil import bill is around $13 billion, which is a huge burden on the economy.
In order to curtail the oil import bill to a sustainable level and to cater to the energy needs of all sectors, the government is pursuing policies to attract private investment in the energy sector and to replace the imported furnace and diesel with alternative fuels in a sustainable manner at competitive prices with a greater reliance on indigenous resources.
Moreover, initiatives such as import of piped gas, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) as alternative fuels were taken. New initiatives include conversion of existing thermal power stations on indigenous / imported coal, operation and maintenance of public sector power projects through the private sector O&M contractors and implementation of upfront tariff.
“The present energy scenario suggests that an affordable and sustainable energy roadmap for the country is essential to capitalise on the use of indigenous resources in the energy mix. Development of indigenous energy resources such as coal, hydro and alternative / renewable sources is critical for our country’s economic growth,” the document added.
Source:The News International