BMI View: While a string of recent exploration successes boosted Pakistan's oil and gas reserves in 2014, we forecast the country's reserves to continue declining over the next decade due to excessive use and lack of new significant discoveries. Nonetheless, recent discoveries and greater private sector involvement in the upstream sector pose an upside risk to our forecast and could stimulate much needed investment thus helping the country temper or reverse the negative trend.
|Proven oil reserves, mn bbl||247.5||300.0||400.0||374.2||358.0||326.1||288.5|
|Crude, NGPL & other liquids prod, 000b/d||85.2||98.2||100.6||102.6||103.8||105.9||107.8|
|Refined products production & ethanol, 000b/d||223.4||201.4||224.1||241.9||237.3||232.9||230.0|
|Refined products consumption & ethanol, 000b/d||437.3||454.8||468.4||477.8||482.6||502.8||523.4|
|Natural gas proven reserves, bcm||679.6||754.6||707.9||678.2||648.9||620.0||591.5|
|Dry natural gas production, bcm||38.9||38.9||39.3||39.7||39.3||38.9||38.5|
|Dry natural gas consumption, bcm||38.9||38.9||39.9||41.4||41.4||42.2||42.6|
Key industry developments:
According to reports in July 2015, Pakistan has started building a 700km pipelin e from the western Pakistani Gwadar port to Nawabshah in Sindh to import liquefied natural gas (LNG) from China, according to Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi (Voice of America). China will fund 85% of the project costs and will also undertake installation of the pipeline. The project is expected to begin in October and will be built in 30 months.
In July 2015, UK-based energy explorer Premier Oil has put its Pakistan operations up for sale after receiving an 'attractive' offer from an unnamed suitor, according to CEO Tony Durrant. The company's Pakistan business, which includes stakes in producing gas fields, has been generating about USD30mn to USD50mn in surplus cash, noted Durrant, without revealing further details on the offer received.
Pakistan-based Engro Corporation received its first shipment of Qatari liquefied natural gas (LNG) on March 26 2015. By late July 2015, the terminal has received seven shipments from Qatar.
In May 2015, Hungary-based MOL announced the discovery of commercial natural gas from the Mardan Khel-1 exploration well in the TAL block in northern Pakistan. The company plans to carry out an appraisal plan which includes additional wells on the eastern and western parts of the structure.
In April 2015, Pakistan's Economic Coordination Committee (ECC) extended the five-year tax holiday for liquefied natural gas (LNG) and gas import projects, reports News International. The ECC has also extended the 23-year tax holiday for Gawadar port by giving it the status of Gwadar Port Free Zone as requested by China Overseas Port Company. The country's Oil and Gas Regulatory Authority will decide the price of LNG each month without undergoing the process of a public hearing, according to a decision by the ECC.