TAPI gas pipeline project to be launched next month: Khaqan
Minister for Petroleum and Natural Resources ShahidKhaqanAbbasi said on Wednesday the groundbreaking ceremony of the long-awaited transnational gas pipeline, dubbed as Turkemanistan-Afghanistan-Pakistan-India (TAPI) project would be held next month.
Highlighting the TAPI project as one of attractive opportunities for investment in the country’s oil and gas sector here at the Pakistan Investment Conference organised by Board of Investment, he said the pipeline, which would carry around 3.2 billion cubic feet (BCF) gas, would be laid in four years.
The government, he said, was working on all fronts to meet the country’s growing energy needs, and it had adopted policies in this regard with attractive incentives, including high return for investors. He said the country’s upstream sector also had many opportunities for service provider companies and investors could consider participating in ventures in select high growth areas such as drilling and seismic acquisition.
The minister said numerous projects were being pursued in the oil and gas sector with special focus on exploration and production fronts and all these offered handsome investment opportunities like investing in infrastructure development or service provision.
Khaqan said Pakistan had natural gas shortage of over 2 BCF per day and the Ministry of Petroleum and Natural Resources was working on a multi-pronged strategy to overcome the shortfall. Pakistan, he added, would encourage investors to help maximise its local production by exploring indigenous hydrocarbon resources. Over two dozen E&P (exploration and production) companies were engaged in the upstream sector, including several international ones, which were receiving good returns on their investment, he added.
He said the upstream sector included two majority government-owned companies – Oil and Gas Development Company Ltd (OGDCL) and Pakistan Petroleum Ltd (PPL). There were many joint venture opportunities for international and domestic companies in existing blocks with these companies. Special incentives were offered for tight gas, offshore discoveries and for exceeding certain production target thresholds, he maintained. He said there were vast opportunities for investment in shale gas sector as the country, according to a survey, was rich in shale gas resources. The companies could investment in exploring shale gas resources as well, he highlighted.
Among other opportunities for investment, the minister said three LNG-based power plants were being constructed to add around 3,600 WM to national grid as part of efforts to overcome power shortfall. He said the first LNG (liquefied natural gas) regasification terminal became operational in March in record time while a second LNG terminal was planned at Gwadar with support from China. The project would include a pipeline linking the terminal at Gwadar to Nawabshah, added the minister.
Investment opportunities existed for the setting up of additional LNG terminals also. There were also opportunities for companies and investors to participate in the supply of LNG to Pakistan. He said more LNG terminals would be constructed to import more natural gas to the country.Replying to a question, the minister said Pakistan had almost completed its work to import gas through Pak-Iran Gas Pipeline and once sanctions were lifted on the latter, work would start again on the ambitious project.