ISLAMABAD-Cognizant of the country’s existing and future energy needs, thePetroleum Division (PD), during the year 2020, has aligned its strategy tostreamline the matters related to the oil and gas sector. It introduced theease-of-doing-business plan and took radical measures to ensure alevel-playing field for all competitors in the energy sector.
For the purpose, as many as 10 unnecessary steps, out of 24, were abolishedto encourage investment in the petroleum sector. Recounting the governmentachievements in the oil and gas sector, a senior official privy to thepetroleum sector developments told APP that the PD started importing Euro-5standard petrol and diesel for the first time in the country’s history.Accordingly in June-2020, Minister for Energy Omar Ayub Khan inaugurated aEuro-IV and V standard fuel testing laboratory in Islamabad at theHydrocarbon Development Institute of Pakistan (HDIP), a body responsible toensure the provision of quality petroleum products across the country.
The facility was set up in line with Prime Minister Imran Khan’s directivesto ensure availability of high-grade fuels conforming the latest vehiclesand tackle environmental issues like smog and air pollution. During theone year, the official said the government also implemented a ‘Plattsbased’ formula, under which it started determining the prices of petroleumproducts fortnightly instead of a monthly basis. Besides, the PD drafted anew Liquefied Petroleum Gas (LPG) policy, which was now in the final phaseof completion. The PD, he said, had also completed dualization of the WhiteOil Pipeline, from Karachi to Sheikhupura, for smooth supply of petrol anddiesel to Oil Marketing Companies (OMCs) and reducing reliance on thetraditional mode of transportation through tankers. “Currently, thepipeline is in the testing phase and will be operational soon.”
He said the pipeline would be expanded to Peshawar for which a contract hadbeen awarded to the Frontier Works Organization, which had completed itsnecessary work. Hopefully, the practical work on the expansion projectwould start in the next few months and complete in 18-24 months, he added.With the completion of the project, known as Machike-Tarujabba oilpipeline, the official said all imported diesel and fuel besides localproduction in the south of the country, would move through the pipelinefrom Karachi to Peshawar instead of oil lorries. However, he said, onwarddistribution from OMCs’ oil depots to petrol pumps would remain intactthrough tankers. “It will greatly help reduce traffic congestion,environmental pollution and transportation cost.”
Under the project, a 427-kilometre pipeline from Sheikhupura to Peshawarwould be laid aimed at ensuring a smooth supply chain of petroleum productsfrom Karachi to Peshawar.
The pipeline had been conceived after frequent incidents of oil tankers’overturn, especially Ahmedpur Sharqiya tragedy in 2017, to ensure safe,efficient and reliable mode of supplying petroleum products across thecountry. The project consists of three sections, including Machike-ChakPirana (135-km), Chak Pirana-Rawat (117-km) and Rawat-Tarujabba (175-km),which would be capable of transporting dual oil products like High-SpeedDiesel and Motor Spirit Oil to different depots. The official said thegovernment also started the process of upgrading existing oil refineriesand establishing new facilities to achieve self-sufficiency in the crudeoil refining sector to bring down the country’s oil import bill.
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Commenting on the gas sector, he said significant progress had been made onTurkmenistan-Afghanistan-Pakistan-India (TAPI) and North-South gas pipelineprojects, adding physical work on the North-South gas pipeline would startin 2021. He said the PD also finalized a plan to establish StrategicUnderground Gas Storages (SUGS) and hopefully its feasibility study wouldcomplete by May and construction to start in August 2021. The official saidthe government also expedited the pace of awarding new exploration blocksafter seeing constant depletion in the existing reservoirs andnon-discovery of any major deposit since long.
In a first, he said, the PD developed an advanced and innovative dashboardapplication for effective assessment of real-time E&P data information andtaking timely remedial measures, in case of any decrease or delay in oiland gas production. Besides, the system was devised to maintain daily salesdata of oil marketing companies and petrol pumps to avoid hoarding or anyshortage, he added. During the year 2020, he said, the governmentreconstituted boards of directors of 10 companies, working under thePetroleum Division, besides appointing professional chief executives andmanaging directors in Pakistan State Oil, Oil and Gas Development CompanyLimited, Pakistan Mineral Development Corporation, Pak-Arab RefineryCompany, Sui Southern Gas Company and Sui Northern Gas Pipelines Limited,to improve their efficiency.
The Petroleum Division also held several activities and seminars to discussways and means to exploit the country’s full potential in oil and gas andachieve autarky in the energy sector.
