ISLAMABAD: An Islamabad-based petroleum exploration and lease company on Monday announced it has discovered gas reserves in the southern Pakistani province of Sindh that will “positively contribute” to mitigating the country’s energy demand and supply gap from indigenous resources.
Oil and gas make up the largest portion of Pakistan’s imports and the cash-strapped South Asian country has been hit with widespread gas blackouts after several failed attempts to buy gas from the expensive international spot market.
Pakistan tried to get a long-term deal at more reasonable prices, but that hasn’t materialized, according to Bloomberg. Local media has also reported that oil supplies remain tenuous owing to difficulties in paying for imports.
In a statement shared with the Pakistan Stock Exchange (PSX) on Monday, the Mari Petroleum Company Limited, an integrated exploration and production company that is operating the country’s second-largest gas reservoir, said it had discovered reserves in Sindh’s Ghotki district as a result of its exploratory efforts.
“Mari Petroleum Company Limited (MPCL), the Operator of Mari Development & Production Lease (Mari D&PL) with 100 percent working interest, is pleased to announce a gas discovery resulting from its exploratory efforts at Mari Ghazij-1 Exploration Well, drilled in Mari D&PL, located in District Ghotki, Sindh Province,” the statement read.
“The said discovery in Mari D&PL shows the commitment of MPCL to exploit the hydrocarbon (HC) potential of the Lease and aggressive exploration strategy. It has opened a new avenue and will positively contribute to mitigating energy demand and supply gap from indigenous resources and will add to the hydrocarbon reserves base of MPCL and the Country.”
Last month, the Oil & Gas Development Company Limited (OGDCL), a leading Pakistani exploration and production firm, announced the discovery of oil and gas reserves in the Sanghar district of Sindh.
Gas shortages always intensify in Pakistan with the arrival of winter. Pakistan needs 4.1 billion cubic feet per day (bcfd) of gas, with winter demand peaking to around 4.5 bcfd against a production of 3.22 bcfd. The shortfall is bridged through LNG imports.
Pakistan began importing LNG seven years ago. However, the price of the commodity in the international spot or short-term market rose from the lows of $2 per million British thermal units (mmBtu) in 2020 to the highs of $57 in August last year after demand in Europe surged, pushing Islamabad out of the market.
