ExpressTtribune: Pakistan’s fuel shortage: Is Tight gas the answer to the prevailing energy crisis?

Pakistan is facing an energy crisis of gigantic proportions and it is expected to get worse as the summer months approach. Along with that, and in some ways related to that, the country is also tackling an ever-worsening gas crisis. The winter months are the worst as demand for gas increases. But with the rising demand, from domestic consumers, the industry and also power producers, the gas crisis is only going to get worse.

This has led to the search for alternatives like importing LNG – which is expensive – or adding LPG-air mix to the natural gas system, also an expensive solution.

The Tight Gas (Exploration & Production) Policy was promulgated in May 2011 by the Ministry of Petroleum and Natural Resources and subsequently approved by the Council of Common Interests (CCI).

One of the objectives of the policy is to attract foreign direct investment, given the high cost of exploration and production. As Tight gas exploration is more difficult and the required technology is more expensive, companies don’t typically go in for exploration until given attractive incentives. MORE