Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi claims that petroleum price in Pakistan is the lowest among oil importing countries. He also claims that loadshedding will be eliminated by the next summer.
He was talking to media after the inauguration of Pakistan Oil Gas and Energy Expo (POGEE), organized by the Pauses Consultancy.
Talking to journalists, the Minister said that current government passed on the benefit of reduced petroleum prices to the common man. He also stated that Pakistan is dependent on petroleum imports where the country’s demand is 800,000 barrels and the local production is only 100,000 barrels.
“Pakistan is selling petroleum at the lowest price as compared to other importing countries. It is expected that the petroleum price will remain between 40 to 60 dollar per barrel.” – Khaqan Abbasi
Shahid Khaqan Abbasi told that there are power plants worth 10,000 MW under construction. Elaborating on them further, he said that 7000 MW will be generated by coal and 3000 MW from LNG. He also said that most of them will come online till the start of 2018. In September this year, he hoped that the supply and demand gap in power sector will be bridged.
Pakistan produces much of its electricity via furnace oil. It is not very efficient, and additionally it is an expensive fuel. Within the next five years, furnace oil will be eliminated as per the Petroleum Minister.
Abbasi further said that liquefied natural gas (LNG) is the most efficient and cheapest source of energy. Government is willing to enhance the LNG related infrastructure that reduces dependency on furnace oil. After taking charge of the ministry, Shahid Khaqan said that within 11 months, the first LNG Terminal was operational and it is providing gas to the country since 2 years. He added that the next LNG terminal will be operational within 4 months.
“Government is constructing 3 power plants based on LNG, with an efficiency rate of 65 percent. Within 5 years Pakistan will be importing the 30 million tonnes of LNG. Foreign Direct Investment (FDI) will be welcome in the LNG sector.” Abbasi said.