In a major policy decision, the Economic Coordination Committee of the cabinet approved diverting of gas available in dormant Latif gas field to nearest gas Sawan processing plant to reduce the natural gas shortages in the short term. Dr Waqar Masud Khan Secretary Finance told Profit that ECC approved diversion of raw gas from Latif field to the nearby Sawan processing plant. He said it would allow injection of 100 million cubic feet per day gas in the system. The state owned gas utility companies will make an investment of PKR 2.3 billion to lay 50 kilometers pipeline to take the raw gas to Sawan plant. A sub committee was formed to suggest amendments in the Petroleum Concession Agreement of Latif field. The committee also directed bringing other dormant fields online. ECC deliberated on the summary proposed by Ministry of Petroleum which considered laying of a new 50 kilometers pipeline from Latif field to Sawan plant where surplus capacity is available that can be used for processing. Foreign operators were reluctant to make additional investment in the construction of pipeline connecting Latif field to Sawan plant saying it was not economically feasible due to low gas price capped at USD 2.64 per mmbtu as allowed under Petroleum Policy 2001. Since there is acute shortage of gas on the system of two state owned gas utility companies, it was decided to buy raw gas at Latif field gate and take it to Sawan plant for processing, provided the Oil and Gas Regulatory Authority allows this expenditure as admissible for determination of their revenue requirements and will become part of consumer gas price.

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