In a welcoming development, Mari Petroleum Company Limited (MPCL) has discovered a mega gas reservoir of one trillion cubic feet in North Waziristan, Khyber Pakhtunkhwa.
With a 21% market share, MPCL is the second-largest gas producer in Pakistan and has a reserve base of around 600 million BOE (Barrels of Oil Equivalent).
MPCL sent a notice regarding the discovery to the Pakistan Stock Exchange (PSX). According to details, the price of this indigenous gas will be around $4 per million British Thermal Unit (MMBTU).
Most importantly, with this discovery, the country’s foreign remittance of approximately $1.5 billion per annum will be saved. MPCL said the development was a result of its exploratory efforts at a well in Bannu West block.
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The well was spud-in in June last year and successfully drilled down to the depth of 4,915 meters. This is the first-ever Gas and condensate discovery in North Waziristan Area. Due to Pakistan’s current fuel crunch, the discovery of a gas well, especially in North Waziristan, is great news for the country.
“Great news for Pakistan, Pakhtunkhwa, and in particular North Waziristan. This discovery of hydrocarbons near Mir Ali in a new gas field is brilliant, producing 15% of the countries future gas; possible due to the Imran Khan government prioritizing exploration activity,” Taimur Khan Jhagra, PTI Finance and Health Minister of KPK tweeted.
1. Great news for Pakistan, Pakhtunkhwa & in particular N. Waziristan.
This discovery of hydrocarbons near Mir Ali in a new gas field is brilliant, producing 15% of the countries future gas; possible due to the IK govt prioritising exploration activity. https://t.co/DYbm5FNzQ8— Taimur Khan Jhagra (@Jhagra) June 2, 2022
Pakistan looking for gas
Pakistan said it is considering signing a liquefied natural gas purchase agreement with various countries including Russia as it seeks to secure supply and ease a crippling shortage.
The government “will go for the most favorable deal,” the Ministry of Energy said in a statement to Bloomberg News.
Read more: Russia stops natural gas supplies to Poland and Bulgaria
Pakistan said it’s considering to sign a long-term LNG deal with Russia
🇵🇰 🤝 🇷🇺 ❓🗣 Government talking to various countries, including Russia, to ease shortage
💰 Pakistan “will go for the most favorable deal,” said Ministry of Energyw/ @FaseehMangihttps://t.co/SObcMXC94B
— Stephen Stapczynski (@SStapczynski) May 26, 2022
Pakistan has been hit especially hard by rising fuel costs. Pakistan’s LNG import cost has increased 83% to $3.7 billion in the 10 months ended April, according to government data.