Daily Times

Pakistan is putting 14 new oil and gas blocks located across different parts of the country up for bids, Minister of Energy Hammad Azhar said on Friday.

In a tweet, Hammad Azhar said that the Petroleum Division has announced a bidding round of 14 new blocks covering 24,000 square kilometres for exploration of oil and gas amid gas shortage in the country. He added that new blocks will bring around $100 million investment and carry out $1.2 million social welfare schemes in surrounding localities.

Earlier on Wednesday last, Prime Minister Imran Khan directed the authorities concerned to fast-track the issuance of licences for domestic oil and gas exploration, terming it the cheapest source of natural gas. The prime minister also directed the concerned departments to remove hurdles in the process of installation of new LNG terminals and virtual pipeline projects by investors.

Current constrained demand for gas in the country is 4,700 MMCFD which increases to 6,000-6,500 MMCFD during the winter season. The current domestic supply amounts to 3,300 MMCFD which is decreasing every year. Petroleum products have witnessed an increase in demand since after normalisation of economic activity following the lockdown. Demand will also find support from better farm economics and up to 5 percent real GDP growth expected for the 2021-22 financial year.