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Sunday, April 14, 2024

$1.5b gas discovered in Pakistan

With this discovery, the country’s foreign remittance of approximately $1.5 billion per annum will be saved.

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.

Read more: Turkey aims gas pipeline with Israel

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.

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 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.