The Summit attracted a host of international energy experts and representatives of companies operating in the region

Apr 03 - 09, 2006

Pakistan is well poised to become the largest natural gas consumer in the region. Since 70 percent of its energy mix has already been tilting in favor of gas efforts are required to find new ways to meet the growing energy need and to ensure sustainable gas supply to the industrial consumers.

In this backdrop Pakistan made its presence felt at the 11th International Middle East Gas Summit 2006 held in Doha, Qatar last month.

The Summit attracted a host of international energy experts and representatives of companies operating in the region, including QATARGAS, Qatar Petroleum, ConocoPhillips, Aramco, Yemen LNG, Oman LNG and Shell.

Abdullah Bin Hamad Al-Attiyah, Second Deputy Premier and Minister of Energy and Industry of Qatar inaugurated the conference and was Keynote Speaker. He stated that the steady increase in the price of oil in recent years, and growing uncertainty about prices and supply in future, will accelerate the pace of development in natural gas. He also pointed out that traditionally Japan and South Korea were major markets for LNG from Qatar, but the focus is now shifting towards regional markets. He stated that Qatar is looking at the requirement of neighbouring states, as these are expected to provide sizable off-take on an economic basis

The MD SSGC Mr. Munawar Baseer Ahmad met with H.E. Abdullah Bin Hamad Al-Attiyah, Second Deputy Premier and Minister of Energy and Industry and conveyed to him greetings from Mr. Amanullah Khan Jadoon, the Federal Minister for Petroleum and Natural Resources. H.E. Abdullah Bin Hamad Al-Attiyah reciprocated the feelings and supported the MD's view that Qatar, hopefully, would be part of Pakistan's future planning for gas imports.

The MD SSGC later presented Pakistan's 25-Year National Energy Plan at the Summit and apprised the audience about the country's robust gas distribution infrastructure. The delegates showed keen interest in SSGC's integrated LNG import project, which is envisioned to create additional capacity of between 3.0 - 3.5 mtpa, equivalent to 400 - 500 mmcfd of natural gas, in the first phase. The project requiring an estimated capital investment of US$400 - 500 Million, includes the construction of an LNG storage and re-gasification terminal near Karachi, and is set for completion in 2009. In the second phase capacity is projected to increase by another 3.5 mtpa equivalent to nearly 1 bcfd of natural gas.

Commenting on the statements made by some of the Indian speakers, regarding uncertainties associated with the Iran-India pipeline, the MD SSGC clarified that the pipeline should actually be seen as Iran-Pakistan-India pipeline, and expressed the Government of Pakistan's position that the project would remain feasible even if it is restricted to supplying gas from Iran to Pakistan alone. Demand for natural gas is growing at a rapid rate in Pakistan, in view of accelerated GDP growth targets set by the government.

Later, the MD SSGC and his team visited the offices of QATARGAS, to discuss options for future collaboration between the two companies. They met with Mr. Ahmed Yousef Al-Khulaifi, Chief Operating Officer (COO) - Commercial and Shipping, as well as other senior managers, and updated them on progress made on SSGC's integrated LNG import project. The MD SSGC informed them that Financial & Technical Advisers appointed for the project are in the process of completing the feasibility studies and giving the project final shape. He hoped that some viable options would emerge as a consequence of this, for Qatar to become part of Pakistan's LNG supply chain.

Mr. Al-Khulaifi proposed that as soon as the feasibility and concept paper of the LNG project were finalized SSGC and QATARGAS should enter into bilateral discussions to assess opportunities and modalities for his company's participation. The MD SSGC agreed with Mr. Al-Khulaifi and also invited him to visit Pakistan, for a more comprehensive understanding of the operations of gas companies and the natural gas infrastructure in the country.

The COO QATARGAS accepted the offer and agreed to do so as soon as the Financial Advisers' work on fully defining the LNG project is complete. Meanwhile, SSGC agreed to stay in close contact with Qatar Gas and keep them informed about any significant developments on the project.


During July - Dec 2005, OMC industry sales volumes declined approx. 10%. Mainly LDO and Furnace oil sales were lower, plunging approx. 42% and 20% respectively on the back of increased shift of auto industry to CNG and country's lower reliance on thermal power. During the period, sales volumes of HSD, MoGas and Kerosene depicted declines at approx. 7%, 10% and 7% respectively. However, increased sales revenue emanated from improved product mix and increased expansion in retail network with particular focus on CNG outlets.

During first half of the financial year, Shell Pakistan launched specially formulated CNG oil, Shell Helix CNG Super, for CNG vehicles and became the only company in Pakistan to tap this major market segment. Moreover, Pennzoil Long Life Oil was another major addition to the company's product line. Pennzoil Long Life Oil is a leading USA brand, especially formulated to meet the rigorous demands of all heavy-duty diesel engines. The company launched this product specially to target the agro-consumers and to increase market share in the agriculture segment of the country. Shell also signed an agreement with Dewan Farooque Motors to develop an alliance for declaring Shell Helix as the only recommended engine oil for Hyundai vehicles across the country.


The Lubricants Business Society of Pakistan (LBSP) has formed a study group to devise a strategy to effectively counter the menace of spurious and smuggled base oil.

The group was announced at a meeting of the LBSP Managing Committee under the chairmanship of Mr. Kalim A. Siddiqui - Executive Director (Customer Services), Pakistan State Oil.

The meeting reviewed the overall performance of LBSP secretariat and the three standing committees against the tasks assigned by the chairman.

The report on LBSP Secretariat was presented by Mr. Muzaffar Alam-Secretary, LBSP who informed the participants that it was for the first time that the accounts of LBSP were audited by a reputed chartered accountant firm. The issues of LBSP office accommodation and collection of outstanding subscription fee were also resolved with the intervention of the chairman, he said.

The report of the three Standing Committees -- Commercial, Technical and Finance & Taxation -- was presented by Mr. Anwar A. Siddiqui- General Secretary, LBSP, who informed the house that during last six months the committees have successfully resolved the issues of reduction in duty on the Lubricating Oil Additives, imposition of CED on import of Carbon Oil, settlement of issues related to privatization of NRL, carry forward/ refund of sales tax & CED, Anomaly in Federal Excise Act 2005, etc. He also acknowledged that the Society has become more vibrant under the chairmanship of Mr. Kalim A. Siddiqui.

The house was also informed about the future plans, which included arrangement of seminar on 'Recycling of used Lubricating Oil' and establishment of technical library at LBSP office.

The chairman commended the efforts of LBSP and said that with concorted efforts of all members, the society had overcome teething problems and its operations had been streamlined.

He also said that the financial position of Society has improved. He urged members to ensure proactive participation in order to make LBSP a more effective platform for resolving the problems of lubricant industry.





Untapped Potential

Gas production


Wells Oil & Gas

Sectoral Gas Consumption








9063 KM Transmi-


Power 43.7%
Fertilizer 16.4%


Trillion Cubic Feet

Trillion Cubic Feet


billion Cubic /day



Cement 1.2%

. . . . . . .

General 19.5%

. . . . .



Domestic 14.8%

. . . . . .


Transport 2.1%


. . . .

& Service Network



Source * Ministry of Petroleum Government of Pakistan.