20000223

Lasmo set to

bring in sizeable

investment

ASHRAF KHAN

KARACHI: Lasmo Oil Pakistan, a local chapter of Lasmo of UK, is set to bring in a sizeable investment for the development of gas sector, it is learnt.

The assurance was held out to Pakistan during a company's delegation meeting with Federal Minister for Petroleum and Natural Resources, a couple of days back, sources on Tuesday said.

The investment is likely to be made in development of infrastructural facilities as well as Lasmo-owned gas fields.

The company, reposing confidence in the Petroleum Policy 1997 observed that it offers incentives to the foreign investors, they said

Lasmo has been the operator of two big gas discoveries in Kirthar foldbelt, Bhit and Bhadra, carrying gas deposits of 1.5 trillion cubic feet (TCF). In the Kirthar formation over three tcf gas recoveries have been made in recent years.

However the development of these fields could not be embarked upon because of gas price mechanism dispute between the gas companies and the government. Since the matter has almost settled down, the development may take its full pace soon, they said.

The utilisation of gas from this belt has been considered under alternative options, they said. The new gas deposits are lying mainly along the Indus Right Bank Pipeline of SSGC.

The injection of this gas in bulk into the existing system will require expensive processing upgrading because it contains high proportions of inerts, but not sulphur.

Nevertheless, this gas can be used without processing into thermal power generation as well as for certain industries as the gas has low BTU value, they said.

Experts are of the view that by an early utilisation of all the new gas discoveries, the government could reduce its energy imports by 500 million dollars annually besides earning hundreds of millions in terms of taxes and royalties.

Natural gas accounts for 38 percent of the total energy supplies in Pakistan.