LAHORE: Federal Petroleum and Natural Resources Minister Shahid Khaqan Abbasi said on Saturday that his ministry has already moved a summary to the federal cabinet to lift the ban on new gas connections.

He added, however, that gas supply would be available to consumers after six to eight months of the lifting of the ban and subject to availability of additional gas.

The minster was addressing a press conference following a meeting with representatives of the All Pakistan Textile Mills Association who had invited him to express gratitude for the improved gas supply to the textile industry.

He claimed that Pakistan would have no shortage of power and gas by March 2018, as the PML-N government was adding gas to the system at a fast pace to facilitate domestic consumers as well as industrial units.

Mr Abbasi said his ministry had been tasked by the prime minister to provide gas to all corners of the country by the end of the incumbent government’s tenure. “The first step was completed in 2016 with the addition of 450mmcfd gas (37 per cent addition) to the gas pipeline systems to fulfil the energy demands of multiple industries.”

The minister said that 750,000 tonnes of urea was imported last year, but Pakistan Fertilisers was now in a position to export the commodity. “All power plants that were closed or running on diesel switched over to gas again after the improved gas supply,” he said.

“By the end of March 2018, the ministry will be able to provide additional 800mmcfd gas to the country to cater to the need of all sectors”, the minister said.

The petroleum minister said that the federal government was investing Rs500bn in the domestic pipeline network in addition to the budgetary allocations and CPEC, through other arrangements. Another Rs100bn have been allocated for terminals.

He said the private sector was being given the opportunity to invest in the energy sector and use state infrastructure.

In reply to a question, the minister said that the government was working on two gas pipeline projects, involving the SNGPL and the SSGPL, worth Rs140 billion, adding that both projects were poised for completion by December 2016.

He said that another gas project, worth Rs200bn, was being launched in collaboration with the Russian government for the provision of 600mmcfd gas under the first phase by the end of 2017 and double that volume by 2018.

The minister dispelled the impression that the federal government was not pursing a gas pipeline project with Iran. He explained that banks had some reservations earlier, but the lifting of sanctions on Iran had cleared the way for the realisation of the project.

Published in Dawn, May 1st, 2016

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