At a critical juncture when there is a worldwide movement towards rapidly shifting from fossil fuels to green energy sources to sustainably power homes, factories, and markets; a conference took place in Islamabad at the end of May 2024 to delve into the history, current state, and future prospects of the Pakistani oil and gas sectors.
The Monthly Energy Update, continuing its tradition of hosting interactive forums and dialogues on various aspects of alternative and conventional energy sources for powering our homes and workplaces, organized this conference at Serena Hotel in the federal capital.
The Energy Update collaborated with the Ministry of Energy (Petroleum Division) and Oil and Gas Regulatory Authority (OGRA) in Pakistan to organize the Oil & Gas Conference Pakistan-2024. The aim was to bring together all key stakeholders of the Pakistani fossil fuel market for an interactive dialogue.
Former Prime Minister Shahid Khaqan Abbasi, who previously served as the Federal Petroleum and Natural Resources Minister, and the current OGRA Chairman, Masroor Khan, were the keynote speakers at the event. They, along with other representatives from the Pakistani oil and gas industries, discussed in detail the issues, challenges, and prospects for the growth of the fossil fuels sector. Among the topics covered were the measures needed to ensure the sustainable operations of Pakistani fuel industries, minimizing harm to the national economy and environment. They also explored the technological advancements that oil and gas companies should implement to enhance their operations.
Other topics addressed during the event included the overdue deregulation and privatization of the Pakistani energy sector, safety protocols for the oil and gas industries, as well as the widespread issue of smuggling and illegal sale of petroleum products in Pakistan.
Speakers at the conference emphasized the significance of deregulating the petroleum sector and underscored the necessity of eliminating obstacles to the development of the oil and gas industries in the country.
They were of the view that all stakeholders, including the government and regulators, should sit together and devise a concrete strategy in the larger national interest to counter various mafias creating hurdles in the promotion of this important sector
Speaking as the keynote speaker, the OGRA Chairman Masroor Khan said that OGRA was providing facilities to the industry through its regulatory framework. The OGRA was also assisting the industry to cope with the emerging challenges, he said.
He said there were 180 oil terminals in the country and petroleum stock for 20 days was available. There were also 3000 illegal petrol stations for which necessary steps were required to eliminate such fuel pumps.
Despite the dying state of the CNG sector, the regulator has received several applications for setting up new CNG pumping stations in the country, he said.
He said that currently there were two LNG terminals, and the process for setting up three additional terminals was under progress, while 10 more applications have been received for setting up virtual LNG terminals.
The OGRA Chairman said that the current share of LPG in the energy mix stood at 1.3 per cent with 5000 metric tonnes per day of consumption. He, however, said the LPG share would likely touch 6 to 8 per cent in the next seven to eight years with 10,000 metric tonnes per day consumption in the country.
He said there was a huge opportunity to make an investment in setting up LPG storage, transportation, and standard cylinders in the country, adding that OGRA was ready to provide full cooperation to the investors in this regard.
Speaking on the occasion, former prime minister Shahid Khaqan Abbasi said that there was a huge potential in the energy sector of the country. Due to depleting gas reserves, the use of LPG is increasing as serious efforts are required to resolve the energy crisis.
He went on to say that despite awareness of the grave energy crisis, timely decisions were not taken to address this problem. “Everyone knows the problems being confronted in the energy sector, and now is the time to take decisions to resolve them,” he said.
Abbasi said the cabinet had decided to deregulate the petroleum sector in 2018, but unfortunately, it was not yet deregulated. The petroleum sector in the entire world had been deregulated but in Pakistan, it was partially deregulated, he said. Let the private sector take over the petroleum sector, he added.
He said the petroleum sector could not flourish in the country due to a lack of timely decisions.
He said that Pakistan in the present day has various effective forums, including the Special Investment Facilitation Council, for making solid and timely decisions in this regard.
The former PM said it took three years to set up a petrol pump in Pakistan. The refinery policy has been delayed for eight years, and everyone was aware of the issue, he said.
Chairman of Associated Group, Iqbal Z Ahmed, stressed the need to remove bureaucratic hurdles to bring improvement to the energy sector. He also called for innovative decisions to flourish the energy sector in the country.
He also stressed the need for the promotion of local production of LPG rather than focusing on importing it.
MD Attock Refinery Limited Adil Khattak urged the government to take strict measures to control the smuggling of oil as it caused huge losses to the national exchequer. He said that although some measures were taken to curtail the smuggling of oil, more efforts should be made in this regard.
He went on to say that unfortunately, in the last several years, no new oil refinery has been set up in the country. He added that a high level of capital investment was also needed to upgrade the oil refinery.
In his welcome address, the Chairman of the Organising Committee, Muhammad Naeem Qureshi, said that the conference aimed to showcase Pakistan’s potential in the energy sector, focusing on advancements in domestic production, exploration, and sustainable practices.
He said the conference would explore strategies for enhancing energy security, reducing import reliance, and promoting local energy resources. The event would feature a diverse range of sessions covering key themes such as exploration and production strategies, renewable energy integration, regulatory frameworks, technological advancements, and investment opportunities, he added.
Other speakers including Senior ED OGDCL Shahzad Safdar, Ali Talha Tamimi , Andrzej M Kaczorowski, Arshad Hussain Partner at Energy Resource Managemen,t Barrister Sarah Kazmi, Halima Khan, Sarmad Hassan Shareef, PEPL; Razi Uddin Razi; Shahid Karim, Firsat Shah , Dr. Saeed Jadoon and others also spoke on the occasion.
Later mementoes were distributed among the speakers and sponsors of the event.
