KARACHI, Dec 24: The government has revived and activated the Inter-State Gas Systems Limited (ISGSL) to handle Pakistan’s long term energy requirement in the gas sector through import of gas.
The ISGSL, incorporated four years back, has been practically remained dormant till now as consecutive gas discoveries in the country diminished the urgency for gas imports.
Sources in gas companies said Pakistan would require import of gas in five to six years time and therefore it has become imperative to revive the ISGSL. “The company is now examining gas import options,” they told Dawn on Monday.
The main objective of ISGSL, a joint venture company, co- sponsored by Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL), is to look after import of gas from Qatar, Iran and Turkmenistan. Both companies have a combine base of 3.2 million consumers.
“The Company’s mandate also includes exploring overseas business opportunities in the oil and gas sectors,” the sources said.
An official in the SSGC said that sufficient potential exists within the country to tap vast market for infrastructure development in the oil and gas sector internationally.
The sources said that SSGC had already received joint venture partnership proposals from public and private sector companies based in Qatar, UAE, Oman, Kuwait and Nigeria. Besides, it is also consulting with major oil and gas companies within Pakistan for joint venture collaboration for undertaking projects in this sector.
SSGC holds 51 per cent share while 49 per cent share is owned by the SNGPL in the ISGSL. The chairman and managing director of the ISGSL are Aitizaz Shahbaz and Mukhtar Ahmed respectively. They also hold same posts in the SSGCL board.
Other objectives of the Inter Gas Company includes: preparation of country’s long term gas supply and demand position on different scenarios by making direct interaction with prospective users of gas (power, fertilizer, industry, etc.,) either on its own or in coordination with SNGPL/SSGCL.
ISGSL will determine the quantities of gas to be imported on a time scale basis, keeping in view the developments in the country, using different assumptions of increase in local production of gas and other fuel. It will also undertake feasibility for the import of gas from various sources.
Other objectives are: conceptional planning for infrastructure development of gas transmission system within the country to utilize the imported gas in close coordination with SSGCL and SNGPL.
— Monitor the feasibility being conducted to use Sui Field as storage in the context of imported gas. Investigate the costs and benefits of pre-building market by converting existing power plants as well as new power plants on dual firing system so that when import of gas commences, its full benefit is obtained by maximising flows.
- Negotiate gas sale agreement with gas suppliers on a take or pay basis inter alia the pricing mechanism of gas delivered into Pakistani market on the basis of its heating values, pressures, volumes and other related factors.