TAXILA: The government is working on drafting a new petroleum policy under which there will be a uniform policy in place for oil, gas, liquefied petroleum gas (LPG) and liquefied natural gas (LNG), Minister for Petroleum and Natural Resources Ghulam Sarwar Khan said on Monday.

The new policy and its implementation are a part of the 100-day agenda announced by Prime Minister Imran Khan.

Speaking to Dawn, the minister said the government wishes to resume work on the Iran-Pakistan pipeline project that was shelved two years ago. He said they wished to fast track the project despite the sanctions on Iran, as “we have to look for our own interests as a country facing an energy deficit”.

“The Iran-Pakistan pipeline project is among the top priority for Pakistan, more than any other gas pipeline project, as the 2,775 kilometre pipeline would deliver around a billion cubic feet of natural gas per day to meet our future needs,” Mr Khan said, and hinted that there is room to negotiate the price mechanism with Iran.

He added that the government will review the Turkmenistan-Afghanistan-Pakistan-India (TAPI) Pipeline project and address the issues in the execution of the project so that work on it may begin in 2019.

The government will also present five new blocks for exploration through open bidding in the first 100 days of its term.

Such blocks were previously allotted to the state-owned Oil and Gas Development Co. (OGDCL), Mr Khan said, but blocks in Balochistan, Sindh and Khyber Pakhtunkhwa will be offered through open bidding to national and international exploration companies in order to ensure competition.

Work on 40 blocks is ongoing, and the exploration of five new blocks would fetch remarkable oil and gas reserves, he said.

Mr Khan said Pakistan has rich oil reserves that will be given attention and will be explored in order to improve local production. Efforts will also be made to improve the local production of refined and crude petroleum products, which currently stand at 15pc while imports make up 85pc.

All major agreements in the oil and gas sector, including those kept hidden and particularly the import of LNG from Qatar, will be made public despite the presence of certain clauses relayed to prices and payment procedures that are not to be made public even after 10 years of the agreement’s expiration, the minister said.

“The Federal Investigation Agency and National Accountability Bureau are currently examining the LNG deal with the help of experts. If flaws in the agreement are uncovered, they would provide grounds for renegotiation with the Qatari authorities,” he said.

The minister also refuted the claim that the government has dropped a “gas bomb” on the public, saying that gas prices will be increased by 10 to 15pc for the majority of consumers using 50 to 200 cubic metres of gas per month, which would mean an impact of less than a hundred to a few hundred rupees on low-income communities.

The 10 to 15pc increase has been made to meet the Rs152 billion deficit facing gas supply companies such as Sui Northern Gas Pipelines and Sui Southern Gas Company, he added.

He said 23pc of consumers use the gas network system while 60pc use LPG, and the cost of LPG cylinders has been reduced from Rs1,600 to Rs1,400 to benefit them.

Subsidised LNG will also be provided to the export-oriented industry so it remains competitive and the millions of people who have lost their jobs can seek employment in the textile sector.

While discussing the possible increase in prices of petroleum products in the next couple of days, Mr Khan said the prices of petroleum products and taxes will be reviewed and determined in accordance with the international market.

Published in Dawn, September 25th, 2018