800mmcfd more gas by Sept: Dr Asim

ISLAMABAD: Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain on Wednesday said that around 700 to 800mmcfd gas would be added in the system by September.

Addressing a news conference, Dr Asim said the country was facing gas shortage and there was a dire need to promote alternative energy resources.

He said when he took over the ministry in April, 2011, the country's gas production was 3890mmcfd, which had been increased to 4282mmcfd. "Around 700 to 800 additional gas will come to the existing system by August-September."

He admitted that the country was facing a severe gas crisis, which might continue in next winter season too.

He said today is the era of mix-energy and "we should opt for other resources like coal, hydel, Liquefied Petroleum Gas, solar and wind to generate energy instead of totally relying upon the natural gas. The cost of gas production is much higher than the alternative energy resources."

The advisor said the government was paying a huge amount as subsidy on gas to domestic consumers and if it was passed on to them, it would become unaffordable for the general public.

Dr Asim said the ministry was making all-out efforts to meet the growing demand of gas in the country, adding that it was negotiating with different countries including Iraq, Algeria and Qatar to get oil and gas at cheaper rates.

Expressing dissatisfaction over the capacity of existing oil refineries, he said the country should have state-of-the-art facilities having ability to produce all kind of crude oil.

He said gas production from the Kunnar Paski gas field had been started which was presently contributing 100mmcfd gas in the system which would hopefully be increased to 284mmcfd soon.

During the current year, the Liquefied Natural Gas terminal would be operative, which would be helpful to meet the growing energy demand in the country to some extent.

He the Petroleum Policy-2012 would be announced within eight to ten days as the Council of Common Interests had already approved it in principle.

He said more incentives would be announced for local and foreign investors, which would help bring sufficient investment in oil and gas sector.

Commenting on the Iran-Pakistan gas pipeline project, Dr Asim said at present there were some hurdles in the project and "We will go ahead with this project after removing these."

He said the Prime Minister would inaugurate the Progas terminal, which was being set up in Karachi for LPG import, during the current month. (APP)