ISLAMABAD: Petroleum Minister Musadik Masood Malik announced that the government plans to boost domestic production of petroleum products, such as gas and crude oil.
Addressing an energy symposium, he stated that the government has put blocks up for bidding and is actively working to attract global players in exploration activities.
He stated that Pakistan is open for business and committed to fully digitizing the regulatory process to enhance transparency.
Malik highlighted the importance of the TAPI gas pipeline project, which he said would provide cheaper gas. He reaffirmed the government’s commitment to ensuring an uninterrupted and affordable energy supply, recognizing it as a top priority. He said that Pakistan currently spends over $18 billion annually on energy imports.
The minister reassured attendees that the government is expediting oil and gas exploration within the country and welcomes foreign companies to invest in this sector. He said that investment processes and information regarding oil and gas exploration have been digitized and simplified to facilitate this.
To reduce electricity tariffs, the government is working on various proposals, he said. By supplying local gas to efficient power plants, the cost of electricity could be reduced to Rs12 per unit, compared to Rs24 per unit when using LNG.
He acknowledged the high theft and losses in the gas sector, particularly in Balochistan, where gas losses have increased in Sui-Southern. To combat urban gas theft, modern systems, including comprehensive monitoring of the gas network using technology, are being implemented.
He advocated for increased utilization of Pakistan’s abundant renewable energy resources, especially as the country’s solar energy costs have significantly decreased. He said, that multiple policies have been formulated to boost local production after a long period.
Regarding the TAPI framework, he said that project financing would be jointly provided by Pakistan and Turkmenistan. He highlighted Turkmenistan’s vast gas reserves and limited market, primarily China, and proposed that European countries purchase LNG from Turkmenistan to enhance their energy security.
He mentioned that Pakistan has proposed to European countries the idea of purchasing LNG from Turkmenistan, which would enhance energy security for Europe.
He clarified that a gas pipeline will be constructed from Turkmenistan to Pakistan, with gas subsequently supplied to Europe via a train. He also noted that a policy for shale gas and tight gas had been officially finalized.
