WASIM IQBAL

ISLAMABAD: The Senate Standing Committee on Petroleum has sought the details from Ministry of Energy (Petroleum Division) of $16 billion long-term LNG contract with Qatar, signed on February 10, 2016.

Mohsin Aziz chaired the committee meeting on Thursday. The committee has directed the relevant ministries to brief the standing committee in the next meeting regarding the Pak-Qatar LNG contract. The committee further sought details why Pakistan had inked government to government agreement with only Qatar when options with other LNG producing countries were available.

It is the first time that any parliamentary committee has sought comprehensive details of the Pak-Qatar LNG contract. On Thursday, the committee sought briefing on the import of LNG, details of its agreements, rates of import and supply, details of LNG terminals, agreements between the government and the terminal authorities, their productions, utilization and idle capacities on monthly basis and payments of penalties on under utilization of installed capacity.

The committee was also informed that consumers have been charged more than Rs35 billion as capacity charges of LNG Terminal since 2015. Members committee expressed their serious concerns on knowing this.

Officials of Petroleum Division informed the committee that Pakistan has spent $3.80 billion on import of 161 LNG cargos.

The committee was further informed that price for Pak Qatar long-term LNG contract was 13.37 percent of Brent Oil.

The officials of Ministry of Energy (Petroleum Division) apprised the committee members that power was produced from various sources. In energy mix, gas contributes 38 percent, LNG 6 percent, furnace oil 34 percent, LPG 1 percent, coal 8 percent, wind power 10 percent.

For discoveries of oil and gas, 830,000 square kilometer were surveyed. 1055 oil and gas wells were dig and 1386 wells are on developed stage. Success percentage was 34 percent. So far 174 licenses were issued in oil and gas exploration sector and 180 leases have been issued to exploration and production companies. 57 trillion cubic feet gas was discovered. Out of total, 36 trillion cubic feet gas was extracted and included in the main stream. Gas deposits of 21 trillion cubic feet are available which would be lapsed after 13 years.

Oil deposits are 1197 million barrels. Out of total 865 million barrels were consumed. Deposits of 332 million barrels are available for future consumption which are enough for 10 years based on present demand.

The committee was informed that non-development budget of the ministry is Rs187 million and development expenditure is Rs179 million. The country utilized 26.4 million ton petroleum production during 2016-17. Indigenous oil production meets 15 percent of total crude oil production. The federal government collected Rs167.45 billion from petroleum levy during 2016-17.