By an OGJ correspondent
KARACHI, Apr. 3 -- Pakistan is seeking to help Iran develop its compressed natural gas motor fuel industry. As one of the world's largest CNG motor fuel users, Pakistan is in a position to provide technical expertise and cooperation to develop and promote the CNG industry in Iran, a government official said.
Pakistan Natural Resources Sec. M. Abdullah Yusuf made the comment recently to a six-member Iranian delegation led by Chief Advisor to the Minister for Oil Fereidoun Saghafiyan.
CNG stations are economically viable in Pakistan, which is why the CNG industry is being promoted at an accelerated pace, Yusuf said. Pakistan currently has 200 CNG refueling stations, and that figure is expected to double in 2 years, he added.
Meanwhile, Chinese oil and gas companies have indicated an interest in helping Pakistan develop its oil, natural gas, and coal resources and possibly build a refinery there.
Pakistan's experience
The Hydrocarbon Development Institute of Pakistan (HDIP) introduced the CNG industry to Pakistan in 1982. After HDIP demonstrated pilot stations at Karachi and Islamabad, the government formulated Pakistan CNG rules in 1992 and commercialized CNG as an alternative motor fuel.
The government has declared all the equipment for CNG stations and vehicle concessions exempted from import duty and sales tax for 5 years, Yusuf said, adding that Pakistan has prioritized replacing diesel with CNG to cut costs for imported diesel.
Pakistan has 24.9 tcf in natural gas reserves, and given current consumption-production levels, those reserves are expected to last for about 31 years. Gas discoveries in the country date to the 1950s, when state-owned Oil & Gas Development Corp. (OGDC), with the help of some international partners, discovered natural gas in Sui field. This is Pakistan's largest field, with a current production of 650 MMscfd (OGJ, Jan. 28, 2002, p. 24.)
Chinese interest in Pakistan
Yusuf met recently meet with senior executives of Chinese petroleum companies regarding exploration opportunities in Pakistan.
Three public companies agreed to explore both onshore and offshore for oil and natural gas, Yusuf said.
A Chinese petroleum delegation is expected to visit Pakistan next month to discuss exploration opportunities and to examine the possibility of building a refinery.