Pakistan's oil import bill may go up

Feb 17, 2002 01:00 AM

Federal Minister for Petroleum and Natural Resources, Usman Aminuddin said that Pakistan's oil import bill could go up to $ 8 bn by the year 2010-11 if internal resources were not tapped. Speaking at the ICC's regional foreign direct conference, the minister said at present the country's 41 % of primary energy demand was being met through imports which cost around $ 3 bn per annum and represented 30 % of total export earnings.
Usman Aminuddin said at 5 % annual oil consumption growth, by 2010-11 the country would require to import 700,000 bpd which would be costing between $ 3.33 bn to $ 8.26 bn depending upon the market price of the commodity at that time. He said currently oil import stood at around 450,000 bpd and the country had to foot a huge bill of around $ 2.55 bn per annum. The domestic oil production was at around 50,000 bpd and the same may go up to 100,000 bpd by the year 2010-11.

On the other hand, the minister said, the share of gas which was a reliable resource in primary energy supply, had increased from 37 % to about 41 % in the last five years. The natural gas demand grew at an ACGR of 6 % against a total energy demand growth at an ACGR of 4.8 % and was expected to grow at a similar rate to 2010, he added.
Consequently, he said, time had come to implement one of the three pipeline projects -- Iran-Pakistan, Qatar-Pakistan and Turkmenistan-Pakistan -- to meet the growing demand and ensuring of reliable energy resource. The minister said that Iran-Pakistan gas pipeline possibly be extend to India once it acts as pure buyer and evolves compensatory mechanism through LNG supply.
As a result of this, Usman said, there would be an involvement of international consortium and agencies and it would also bring attractive transit fee to Pakistan.

He said by the year 2015, country's total gas demand would go up to 4,452 mm cfpd from the present level of 2061 mm cfpd with bulk of it going to power generation. Against this, he said, the supply would stand at 2439 mm cfpd whichwill leave a huge gap of 2013 mm cfpd.
Referring to ongoing infrastructure expansion programme, the minister said both the utility companies -- SSGC and SNGPL -- have embarked upon rehabilitation of existing network, additional pipelines and compression facilities which will give additional gas supply of 900 mm cfpd.
Usman Aminuddin said the SSGC was working to provide around 460 mm cfpd additional gas and SNGPL 440 mm cfpd. The estimated cost of these works, he said, would be around Rs 20 bn which be met by these companies from their own resources and some commercial borrowing.

Source: The DAWN Group of Newspapers
Alexander's Commentary

Change of face - change of phase

In the period of July 20 till August 3, 2015, Alexander will be out of the office and the site will not or only irreg

read more ...
« January 2020 »
January
MoTuWeThFrSaSu
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31

Register to announce Your Event

View All Events