Mr. Nadeem Babar Chaired a Meeting on Development of Underground Gas Storage Facility.


Special Assistant to Prime Minister on Petroleum, Mr. Nadeem Babar chaired a meeting on development of underground gas storage facility this afternoon at Ministry of Energy, Petroleum Division. Asian Development Bank (ADB) is supporting this effort and a constorium of European oil & gas equipment companies is leading the study.

While explaining the rationale for building Strategic Underground Gas Storage(SUGS), SAPM said that Pakistan had considered to build emergency stockpiles of gas to deal with supply disruption amid country’s growing domestic and commercial demand especially in winter. The construction of strategic underground gas storages (SUGS) is part of the Government’s policy to improve energy security and affordability in the country.

At conclusion of the meeting, it was agreed by both sides to expeditiously complete the Study report on methodology of underground gas storages till May 2021, so that, availability of funds for facility will be met in due course of time. Final report will provide blueprint for facility with respect to size, modulation and security supply of gas.

Earlier, in 2019, Minister for Energy and SAPM on Petroleum had discussed the SUGS with ADB who agreed to undertake a feasibility study for the Project for which also allocated a Grant. Inter State Gas Systems (Pvt) Ltd., a fully government owned entity, will be the focal agency for the Project. Recently, ADB has completed its competitive bidding process and appointed the international consultant for preparing a feasibility study. Project infrastructure could be funded through Gas Infrastructure Development Cess (GIDC).

The Strategic Underground Gas Storage facilities are crucial for the country in view of committed supplies of imported gas under the international gas agreements and fast-growing gas demand in the country to keep pace with the economic progress. The Project would also significantly enhance Pakistan’s capability to provide uninterrupted gas supply for sustainable economic growth.


Please enter your comment!
Please enter your name here