ISLAMABAD\u00a0\u00a0 –\u00a0 Cognisant of the increased consumption of gas during the winter season, the\u00a0government\u00a0is working on establishing Strategic Underground Gas Storages (SUGS) and hopefully would complete its feasibility study by May 2021. \u201cThe construction of SUGS is part of the government\u2019s policy to improve energy security and affordability in the country,\u201d a senior official privy to petroleum sector developments told media. He said the development of the SUGS was aimed at meeting the country\u2019s growing domestic and commercial needs especially during peak winter months of November, December, January and February. The underground facilities would be constructed in collaboration with the Asian Development Bank (ADB). Whereas, a consortium of European oil and gas equipment companies is leading the study.<\/p>\n\n\n\n
Explaining the rationale for building the SUGS, he said Pakistan had considered building emergency stockpiles of gas \u201cto deal with supply disruption amid the country\u2019s growing domestic and commercial demand especially in winter.\u201d Recently, he said, all stakeholders held a meeting and agreed to expeditiously complete the study report on the methodology of underground gas storage till May 2021, so that availability of funds for facilities would be met in due course of time. \u201cFinal report will provide a blueprint for the facilities with respect to size, modulation and security supply of gas.\u201d In 2019, the official said, Minister for Energy Omar Ayub Khan and Special Assistant to Prime Minister on Petroleum Nadeem Babar had discussed the SUGS with the ADB, who agreed to undertake a feasibility study for the project and allocated a grant.<\/p>\n\n\n\n
Inter-State Gas Systems (Pvt) Ltd, a state-owned entity, would be the focal agency for the project.<\/p>\n\n\n\n
Recently, the ADB has completed its competitive bidding process and appointed an international consultant for preparing a feasibility study. Project infrastructure could be funded through Gas Infrastructure Development Cess (GIDC).<\/p>\n\n\n\n
The SUGS facilities are crucial for the country in view of the committed supplies of imported gas under the international gas agreements and fast-growing gas demand in the country to keep pace with economic progress.<\/p>\n\n\n\n
The project would also significantly enhance Pakistan\u2019s capability to provide uninterrupted gas supply for sustainable economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD\u00a0\u00a0 –\u00a0 Cognisant of the increased consumption of gas during the winter season, the\u00a0government\u00a0is working on establishing Strategic Underground Gas Storages (SUGS) and hopefully would complete its feasibility study by May 2021. \u201cThe construction of SUGS is part of the government\u2019s policy to improve energy […]<\/p>\n
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