Ministry proposes new Rs190m projects

WASIM IQBAL

ISLAMABAD: Ministry of Petroleum and Natural Resources has proposed two new projects, worth Rs190 million, for coal exploration and evaluation in different localities of Balochistan, and carrying out a survey for underground water in Quetta in the upcoming budget 2018-19.

Sources said that Rs190.033 million estimated cost has been proposed for the next fiscal year to carry out two new schemes for coal exploration and evaluation in Nosham and Bahlol areas of Balochistan and the underground water survey.

Sources further said that the proposed unbundling of Sui gas companies as part of gas sector reforms would also be included in the budget 2018-19. On proposal of the World Bank, the unbundling of Sui gas entities has been put forward by Prime Minister Shahid Khaqan Abbasi, which would split it into five public sector companies and bring in private sector participation into the system.

Sources said a proposal has also been under consideration of the government to allow the private sector to market imported gas under the energy sector reforms in next year budget. In this respect, the ministry has already been engaged in designing reforms for the downstream gas sector with key stakeholders. The reforms entail a two-tier gas market, non-discriminatory access to gas networks (including third-party access) and restructuring of transmission and distribution systems along with a new tariff and subsidy methodology.

Under the two-tier formula, gas utilities will be allowed to market locally produced gas and the private sector will be allowed to market imported LNG by using the pipeline network. Additionally, under third-party access rules, private parties will be charged a tolling fee for the transportation of re-gasified LNG to consumers.

Sources further said that an amount of Rs445.6 million has been released for Petroleum and Natural Resource Division out of its allocation of Rs554.291 billion during July-March 2018.

Other ongoing projects of the ministry worth Rs467 million are: acquisition of four drilling rings with accessories for the geological survey of Pakistan; appraisal of new discovered coal resources of Badin Coal Field and its adjoining areas of southern Sindh, exploration of evaluation of metallic minerals in Bela and Uthal areas, district Lasbella, Balochistan, and exploration of tertiary coal in Central Salt Range, Punjab.