Pakistan government to build strategic oil and gas storage reserves in the country
ISLAMABAD - The government is working on a multi-pronged strategy to construct gas storage facilities, which the country lacks for smooth supply of the commodity, especially during peak winter and summer seasons.
Under the strategy, a feasibility study had already been started to set up the storage facilities after the experts predicted that the gas supply system would expand from existing 5 Billion Cubic Feet to 7 BCF during next two to three years, a senior official privy to petroleum sector developments told APP.
“Currently, we have the system of 5 Billion Cubic Feet (BCF) gas. The demand will increase to 7 BCF in next two to three years, but we have no gas storage system, which is a major problem for us,” he said.
The official said the gas demand and consumption was increasing with each passing day, which was being met through import of Liquefied Natural Gas (LNG) and domestic production. “So, there is a need of having proper storage facilities that will be established in collaboration with China.”
Accordingly, he said Pakistan had requested the Chinese government to incorporate this scheme in China Pakistan Economic Corridor (CPEC) projects.
Replying to a question, the official said the overall storage capacity of Motor Spirit (MS) and High Speed Diesel (HSD) oil had witnessed around 13.07 percent increase during the fiscal year 2018-19 as compared to the corresponding year.
The storage capacity for both the MS and HSD oil had been increased from 1,712,691 MT to 1,936,550 MT during the period under review.
The MS oil storage capacity was enhanced from 490,408 Metric Ton (MT) to 594,299 MT, showing 21.18 percent increase during the period under review.
While, the HSD oil storage capacity was expanded from 1,222,283 MT to 1,342,251 MT, projecting 9.81 percent increase.