KARACHI, Feb 18: As Pakistan’s total energy requirements are expected to grow substantially during the next decade, recourse to import of LPG and LNG is critical to bridge the gap between demand and supply and ease pressure on local gas production.

This was stated by Prime Minister Yusuf Raza Gilani at the inauguration of SSGC-LPG terminal and storage facilities at Port Qasim on Saturday.

Sindh Governor Dr Ishrat-ul-Ebad Khan, Chief Minister Syed Qaim Ali Shah and Dr Asim Hussain, Advisor to Prime Minister on Petroleum & Natural Resources were also present.

Gilani was of the view that establishment of SSGC-LPG Terminal at Bin Qasim will greatly facilitate the handling of energy imports in the shortest possible timeframe.

He admitted that Pakistan has been facing acute energy shortages for last many years. The gap between demand and supply has hampered the socio-economic development of the country. The energy crisis that the nation faces today is the result of neglect by the successive governments.

Emphasising that achieving self-sufficiency is a key factor to keep the engine of economy running as well as meeting the future demands of the economic growth.

Pakistan meets 53 per cent of its total energy requirements through indigenous oil and gas production, whereas other indigenous resources further meet 19 per cent of the country’s energy needs, he said adding that remaining 27 per cent of the energy needs are currently being met through imports.

The key mega projects undertaken by the present government to meet the energy demands include Diamir Bhasha dam, Thar Coal power project, TAPI project, and CASA-1000 in addition to dozens of small and medium-sized dams across the country.

Pakistan is also committed to Iran-Pakistan gas pipeline project, which will help the country overcome its energy problem to a large extent. The implementation of these mega projects will not only enhance overall energy supplies, provide energy diversity but also lead to a greater energy security.

Despite economic constraints imposed by natural disasters, energy deficits, global recession and the war on terrorism, the fundamentals of Pakistan’s economy are showing positive signs. Given the size and diversity of our economy,

He also referred to the recently approved National Petroleum Exploration & Production Policy 2012. that recognizes the operating challenges and key considerations that face Pakistan oil exploration and development industry. It signifies the government’s commitment to provide fiscal and regulatory incentives to E&P companies, which will provide an impetus to them to speed up their exploration and development programmes with a view to maximizing domestic oil and gas production in the coming years.

Gilani said the core objectives of this Policy are to accelerate exploration & production activities in Pakistan with the purpose to achieve optimum self-sufficiency in energy by increasing oil and gas production; promoting direct foreign investment in the country’s energy sector by increasing competitiveness of its terms of investment; and to encourage the Pakistani oil and gas companies to get fully involved in the investment opportunities.

The salient features of this policy are indigenous production and decreased reliance on imported energy in a phased manner.

He also referred to the MoU signed during his recent visit to Qatar for import of 500 million cubic feet of LNG per day. The imported LNG will be provided to power houses to generate 2500 megawatt of power in the country.

Due to its attractive geo-strategic location and immense natural resources, Pakistan has the potential to become the regional hub of economic activity, said Gilani.