Pakistan Hopes in World Bank to Help Revive Gas Sector

Pakistan is seeking World Bank’s help in improving the health of its gas sector.

According to a local newspaper The News, World Bank is advising Islamabad on how to revive the sector in view of depleting domestic gas reserves and rising LNG imports. The World Bank will advise on what kind of pricing regime could be implemented in the new environment.

Pakistan is in dire need of gas to feed its power plants and manufacturing sector. It has signed a long term deal with Qatar to import LNG. It has also inked short terms deals with other suppliers. Plan is afoot to build five LNG terminals with combined capacity to import 2.7 bcf per day. 

In few years Pakistan could expect to receive gas via TAPI gas pipeline and Iran pipeline as well.

The government is not clear on what kind of gas pricing regime should be in future keeping in view the new scenario where imported gas supply is expected to dominate the economy, The News reported. Currently, Pakistan has two-tier pricing, one for domestic gas and one for imported fuel.

World Bank on Wednesday initiated the consultative process with stakeholders which include Ministry of Petroleum and Natural Resources, gas companies, industrial sector and CNG sector, the newspaper reported.

Pakistan is already consulting the World Bank on how to unbundle the gas companies --- Sui Southern and Sui Northern — into transmission and distribution entities.