Energy Forum 2018 To Set New Line Of Action: Ghulam Sarwar Khan

Federal Minister for Energy (Petroleum Division) Ghulam Sarwar Khan Wednesday said Energy Forum 2018 will set new line of action for the power sector.

ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Oct, 2018 ) :Federal Minister for Energy (Petroleum Division) Ghulam Sarwar Khan Wednesday said Energy Forum 2018 will set new line of action for the power sector.

Addressing the inaugural session of 'Pakistan Energy Forum 2018', the minister said that the Ministry of Energy (Petroleum Division) has taken a commendable initiative to have consultative dialogue to explore new arenas for sustainable energy solutions.

He hoped that the participants would deliberate fruitful ideas during the session which would help the ministry to develop its long term policies for the generations to come. The minister while highlighting the reasons for severe energy crisis in the country said Pakistan under Indus-Water Treaty in 1960 with India surrendered its three rivers and kept only three, adding consequently in the same decade it constructed the biggest reservoirs. "There was will and vision to make the country resilient to cater its water needs as it was an agro-based economy country, however the dams were multipurpose reservoirs that could be hydro-power source and water conservation facility both at the same time," he added.

Unfortunately, the minister said no new dam was constructed, however Kalabagh Dam was the next proposed water reservoir which was politicized. The industry of the country then fell into turmoil due to lack of competition rendering serious repercussions over the economy, he added.

"No government ever proposed any project or development in energy sector with sincerity but at present we have will and firm determination to do something for the nation, for our generations to come," he vowed.

Sarwar Khan said that the former governments without any planning and resolve opted alternates to overcome increasing energy issue of the country. "Independent Power Producers (IPPs) introduced by the former regime changed the paradigm of energy generation from hydro to thermal power generation which was much expensive despite many other alternates," he regretted.

He said, "We accomplished the Neelum-Jhelum Dam at run of Indus River which was estimated to be completed within 10 years at a cost of over Rs80 billion within 20 years at the rate of Rs500 billion while India also intervened in the project to curtail its efficacy. The Bhasha Dam was also planned since 2000 which was inaugurated by the then President Gen (R) Pervaiz Musharraf also by President Zardari, Prime Minister Yususf Raza Gillani and even PM Nawaz Sharif but still it is unaccomplished.

He urged the participants to guide the Petroleum Division through their expert opinions and suggestion to devise short-term, midterm and long-term policies that could help revival of energy sector in the country.

United Energy Pakistan Limited, Chief Executive Officer (CEO) Zaheer Alam gave his suggestions for improvement in the energy sector. He said that the country had all key factors making petroleum products exploration feasible. He believed that country risk, geology and returns are key ingredients to control the flow of investment in Up-Stream oil and gas sector. He said that regulatory overload can be lessened with both paradigm shift in regulatory bodies and policies.

The regulatory challenges in the energy sector are knowledge and legislative gaps, discretionary powers and institutional weakness, however it is required to strengthen regulatory bodies with proper human resource and market-based packages, he added.

Pakistan's offshore hosts 'Second Largest Submarine Fan' which is also least explored in the world and needs to be exploited in time for better results. He added that it is time think of a paradigm shift in regulatory policy.

Chairperson, Oil and Gas Regulatory Authority (OGRA) Uzma Adil Khan said the authority since its inception in 2002 deals with the licensing of construction and operation of oil and gas pipelines, refineries, marketing companies and oil storage facilities. It has three members and a chairperson in its administrative structure who determines the price of natural gas with consensus among all stakeholders. "One needs will to work on ethical norms then there is no fear to be questioned at any forum," she added.

The core objective of OGRA, she said is to foster competition, increase private investment, level playing field to the investors, effective and efficient regulation and protect public interest, adding the proposition of merging midstream, upstream and down stream sectors of the petroleum sector is also under consideration.

Oil Companies Advisory Council (OCAC) CEO Dr Ilyas Fazil said the only comprehensive petroleum policy since 1991 and 1993 was announced in 1994, however it was necessary for the government to announce the one in 2018 as it will have impact on the growing economy. He informed that as many as 25 marketing companies and 36 oil refineries were granted permission to establish till date. He added, "In 2016-17 petroleum product consumption reached 2 million tons while imports of refined products were 15 million tons whereas the total refining capacity was 19.37 million tons with local refineries meeting 40 percent of the total demand." He said the incumbent government should take initiatives to enhance indigenous oil production, ensure power availability and elimination of load shedding, reduce deficits. Successful policy, he said attracts private sector for investments, ensures consistency and have a road map to deregulate with clear time lines.

During the first session of the Forum Executive Director, Oil and Gas Development Corporation (OGDCL) Saeed Khan Jadoon said that the country needs to conduct aggressive exploration to unleash untapped petroleum reserves as there was no discovery petroleum products including certain parts of Punjab, 90 percent Balochistan and Khyber Pakhtunkhwa whereas the main focus was on Indus Basin. He informed that in offshore exploration in the country first oil well was drilled in 1963 whereas the first natural gas well was bored in 1866.

He said the confirmed gas reserves in the country are 66,625 BCF and Oil reserves 3,585 MPCF whereas a total of 17 wells have been drilled yet.

Jadoon said that the country possessed good Shale Gas potential whereas OGDCL is going to have a well of Shale Gas in Sindh by this year to ensure that the Shale Gas reserves are productive. He suggested that coal to liquid technology was found to be sustainable and efficient product as discovered by United States of America and South Africa was its biggest producer in the world, adding it was undiscovered in Pakistan which should be done despite its being capital intensive. "We need to enhance exploration activities by three fold in frontier region and Balochistan and also to identify coal Bed Methane," he said.