Pakistan to get crude oil from Russia on discounted rate: Musadiq

• Russia has decided to provide crude oil, refined petrol, and diesel to Pakistan at a discounted rate
• Pakistan has started negotiations to procure LNG from Russian private-sector companies
• Musadiq Malik said the government is providing extra gas this year and monitoring the situation

ISLAMABAD: Minister of State for Petroleum Dr Musadik Malik said Russia has decided to provide crude oil, refined petrol and diesel to Pakistan at a discounted rates.

Addressing a news conference, the minister of state termed his recent visit to Russia ‘very successful’ as the host country has decided in principle to provide oil at cheaper prices.

He said negotiations with private sector companies of Russia have been initiated for procurement of Liquefied Natural Gas (LNG), while talks for long-term contracts have also been initiated.

Musadik Malik said he held fruitful discussions on gas pipeline projects including establishing of Pakistan Stream Gas Pipeline, commonly known North-South (Lahore-Karachi) Gas Pipeline, and another gas pipeline to get the commodity from Russian hydrocarbon deposits.

He said an inter-governmental delegation of Russia, led by its Energy Minister, would visit Pakistan by mid-January make progress on oil and gas sale-purchase agreements between the two countries.

Commenting on the current gas crisis in the country, he said local gas production was witnessing around 8-10 percent decline annually and despite all these odds, the government had arranged extra gas for months of November, December and January as compared to the same months of the last year.

He said an effective monitoring system of gas supply to domestic consumers was in place, under which the Petroleum Division kept a vigil eye on the demand and supply of the commodity.

He said the gas companies had been directed to ensure gas supply, especially during breakfast, lunch and dinner preparation timings i.e. 6-9 AM, 12-2 PM. and 6-9 PM.

He said the incumbent government is providing extra gas as compared to last year and monitoring the supply situation regularly. However, he said there was a problem of poor infrastructure which created a gas pressure issue for the remote areas, which was being rectified on priority basis.

To bridge the demand and supply gap, the minister said the gas companies were providing more than 20,000 tons Liquefied Petroleum Gas (LPG) per month in areas facing gas-pressure shortage issues.

He disclosed that Iran had announced to give Pakistan LPG worth two million pounds for which all formalities have been completed. He said the additional LPG would help ensure better gas supply to domestic consumers in December.

The minister was of the view that the government believed in providing sufficient energy to the industrial sector as it would help move the economic wheel at a fast pace, thus generating employment opportunities for youth and increasing the country’s exports.

Accordingly, he said the government was utilizing all available options and contacting different countries including Central Asian States to meet its energy requirements.

He highlighted the importance of exploiting the country’s indigenous oil and gas potential, saying that two new policies related to tight gas and revival of old hydrocarbon wells, were being worked out.

Musadik Malik said the country needed 8-10 per cent addition in energy efficiency, if it wanted to improve Gross Domestic Product (GDP) at the rate of 5-6 per cent annually.

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