Islamabad: National Petroleum Minister Musadik Malik announced on Wednesday that Pakistan’s discussions with the Saudi Development Fund regarding the Reko Diq copper-gold project in Balochistan are nearing conclusion.
According to the details, the minister highlighted ongoing discussions with the Saudi government on various projects, including Reko Diq and water initiatives. Addressing the Iran-Pakistan Gas Pipeline, Malik clarified that there is no basis for the claim that Pakistan received a PKR 18 billion notice from Iran due to delays in the project. He further stated that there is no penalty estimate for either side concerning the pipeline.
In light of this news, other key features gaining attention include the following:
Multiple teams are working on electricity pricing, generation companies (GENCOS), circular debt, and capacity payments.
Commercial report for a green refinery expected by December 2024, with 40-50% focus on petrochemical production and the rest on crude petroleum, potentially reducing premium costs.
Winter gas supply deficit to be managed using system gas.
Imported RLNG has reached 1,000 (million cubic feet per day) MMcfd, with an additional 1,350 MMcfd from local pipelines and 1,200 MMcfd from dedicated local gas sources.
Efforts to boost investment in oil and gas exploration and ensure timely payments to E&P companies, with SNGPL clearing 95% of its dues.
Collaboration with the Maritime Affairs Division to reduce taxes and port charges on imported RLNG, currently around USD 4 per cargo.
Seasonal tariffs may be introduced to address winter gas shortages and capacity payments in the power sector.
Focus on price rationalisation and Weighted Average Cost of Gas (WACOG) to manage gas prices, blending local and imported gas to bring the price to approximately PKR 1,700-1,800 per (metric million British thermal units) MMBtu.
Subsidies for lower-income segments through gas price blending, with wellhead price at PKR 570 per MMBtu, pipeline gas at PKR 1,280 per MMBtu, and RLNG at PKR 3,600 per MMBtu.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
