ISLAMABAD: Pakistan’s Oil and Gas Development Company Limited (OGDCL) and the China Central Depository and Clearing Company (CCDC) have signed a deal to develop Pakistan’s tight gas potential, state media reported on Tuesday, as Islamabad pushes a strategy to boost gas production.
Tight gas refers to a type of unconventional gas — which requires advanced extraction methods — found in reservoir rocks with low permeability, most often sandstone.
State-owned ODGCL in August this year began tight gas production in the southern Sindh province, starting commercial production from the Nur West #01 tight gas well in Jujawal. The well was drilled to a depth of 2,975m and encountered a tight gas formation. Conventional testing did not yield sufficient gas, and the well was hydraulically fractured, the company said.
The well is now currently producing 1.5 MMscfd of gas with 1,050 psi wellhead flowing pressure from the lower Guru formation. The gas has been integrated into the Sui Southern Gas Co. Ltd. (SSGCL) network.
“Oil and Gas Development Company Limited (OGDCL) and China Central Depository and Clearing Company (CCDC) have signed a memorandum of understanding to develop Pakistan’s shale and tight gas potential,” Radio Pakistan said.
“OGDCL has already invested thirty million dollars to tap the shale gas reserves to meet the country’s energy needs.”
Around the world, dominant state energy producers including Aramco have in recent years stepped up development of geologically challenging oil and gas reservoirs, including those holding shale gas, shale oil and coalbed methane.
In a bid to facilitate investment by the oil and gas industry in unconventional hydrocarbons, the Pakistani federal government has also approved the Tight Gas (Exploration & Production) Policy 2024.
As per the document, several national objectives have been set in the policy, including:
-Incentivize oil and gas industry to invest in the exploration of unconventional/tight gas resources that are not being produced due to non-commerciality.
-Provide a policy regime for transparent, effective, and efficient processing of regulatory approvals.
-Address commercial viability issues of existing tight gas reservoirs.
-Open new frontiers for exploration of tight gas which would help increase the exploration activities in the country.
-Enhance indigenous production of hydrocarbons.
-Minimize reliance on imported fuels and regenerate additional revenues for federal and provincial governments.
-Reduce recourse to sovereign debts by saving foreign currency.
-Keep local gas prices at affordable level for the consumers by producing cheaper local gas vis-à-vis imports.
-Create employment opportunities in the gas sector.
-Promote transfer of technology and collaboration between local and foreign equipment manufacturers.
-Increase dependability and security of supply and its sustained availability.
