New Market Research Report: Pakistan Oil & Gas Report Q2 2013

Fast Market Research recommends "Pakistan Oil & Gas Report Q2 2013" from Business Monitor International, now available

by Bill Thompson

(WireNews+Co) - Boston, MA - 07 March 2013

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View Full Report Details and Table of Contents (http://www.fastmr.com/prod/541258_pakistan_oil_gas_report_q2_2013.aspx?afid=201) (http://www.fastmr.com/prod/541258_pakistan_oil_gas_report_q2_2013.aspx?afid=201)

uccessive energy shortages in Pakistan have led the government to acknowledge that longterm gas self-sufficiency has become impossible. Domestic consumption continues to rise rapidly, boosted by the start-up of additional gas-fired power stations and continued use of Condensate Natural Gas cars. As import volumes rise, LNG is set to become part of the energy mix. In the meantime, Pakistan will again attempt to privatise more of its various state-controlled energy companies and stimulate investment in domestic oil and gas production. While we do not believe it would render Pakistan gas self-sufficient over the next 10 years, the recent start-up of shale gas exploration creates a large upside risk to our forecast.

The main trends and developments we highlight for Pakistan's Oil & Gas sector are:

- Energy minister Asim Hussein has acknowledged that the current situation in Pakistan requires policy rationalisation. Several steps have been taken including a rise in regulated gas prices, a revamp of licensing regulation to promote exploration and distribution of production in local markets, the offer of 60 onshore blocks in a licensing round, offshore and unconventional exploration, and development of necessary import infrastructures.
- We expect gas reserves to fall until 2022 as consumption increases from 39bn cubic metres (bcm) in 2012 to 55bcm by the end of the forecast period. Production will not follow that trend. We see gas output peaking at 40.1bcm in 2015 and falling afterward to slightly above 35bcm by 2021 as the Sui Gas Field, the main producing field in Pakistan, reaches the end of its life.
- We see oil demand rising from an estimated 376,600 barrels per day (b/d) in 2012 to nearly 482,000b/d in 2022, about 30,000b/d more than previously forecast. While we expect production to continue its increase throughout the decade, this will leave the county with a growing import requirement. From 62,000b/d in 2011, we see oil output growing steadily until 73,500b/d in 2022.
- LNG imports will start throughout 2013. The government expects to import 2bcm of LNG in 2013, acquired on the spot market and arriving at Port Qasim. International supply contracts are to be allocated for up to 8bcm in the coming years, while discussions have reportedly already started with the US and Qatar.
- The controversies surrounding the IP and TAPI pipelines continue, with the US providing increasing support for Pakistan to support its energy needs through LNG imports. At the same time, Iran continues to build its section of the IP pipeline and Iranian firms are proposing to build the Pakistani section. We do not believe that LNG imports will be sufficient and we hardly envisage a scenario where neither pipeline is built by the end of the decade.
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