OGDCL signs agreement with China to develop Pakistan’s unconventional gas potential

The logo of the Oil and Gas Development Company (OGDCL) is pictured at the facade of their headquarters in Islamabad on June 20, 2023. (AFP/File)
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Updated 08 October 2024
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OGDCL signs agreement with China to develop Pakistan’s unconventional gas potential

  • Tight gas is type of unconventional gas that requires advanced extraction methods
  • Tight gas is found in reservoir rocks with low permeability, most often sandstone

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.


Pakistan to face 5 million ton wheat shortage next year amid reduced sowing area

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Pakistan to face 5 million ton wheat shortage next year amid reduced sowing area

  • Federal government wants 33.58 million tons, while provinces expect 27.92 million due to reduced sowing area
  • Farmers urge minimum support price announcement from Punjab to encourage wheat sowing this season

ISLAMABAD: Pakistan is expected to face a wheat shortage of over five million tons next year with a reduction in the crop sowing area and production, according to provincial governments estimates, as economists and food security experts say this will strain on the economy and lead to inflation.
Wheat is a staple food in Pakistan and its shortage can lead to political unrest and protests against governments. The South Asian nation of 241 million is expected to face a shortfall of 5.66 million tons of the commodity next year and would have to spend foreign exchange to import wheat to fulfill local demand.
This year, the government allowed the private sector to import over three million tons of wheat to overcome shortages while tens of thousands of farmers staged protests in several cities over the government’s decision not to buy their wheat, causing them huge income losses.
The government routinely purchases around 20 percent of all the wheat produced by local farmers at a fixed cost to ensure price stability, prevent hoarding, and maintain the supply chain. However, it lowered its purchase target to two million tons from around six million tons this year, with farmers in Punjab, the country’s largest wheat producer, asking the authorities to stop imports and purchase the commodity from them at the minimum support price fixed officially.
“The provinces have come up with a lower sowing area and production target of wheat for the next year, therefore the country will face a shortage of the commodity,” Yasir Shakeel, a deputy director at Ministry of National Food Security and Research, told Arab News. “The provincial governments have been taking measures to achieve the sowing and production targets of wheat to fulfill the local need.”
He said the Federal Committee on Agriculture had set a wheat production target of 33.58 million tons from target area of 10.368 million hectares for 2025-26 based on national requirement for the produce to attain self-sufficiency.
“According to provincial governments’ proposals the target area for wheat will be 9.263 million hectares with production of 27.92 million tons,” he said.
The official said the Indus River System Authority’s advisory committee has anticipated a shortage of water to the extent of about 16 percent for Punjab and Sindh during the winter crop season, running from October to April, which could impact the wheat production along with other crops.
Farmers on the other hand have urged the government to announce a minimum support price of over Rs4,500 per 40 kilogram to encourage their community to sow the crop to achieve the government’s production target.
“There are still 15 to 20 days before the wheat sowing season concludes, so the government’s intervention at this stage may help encourage farmers sow the crop instead of looking for the alternatives,” Khalid Bath, President Kissan Ittehad, a farmers’ association, told Arab News.
As per the Kissan Ittehad estimates, the wheat sowing area can drop more than 30 percent this year compared to the previous year due to the Punjab administration’s policy of reducing the procurement target.
Dr. Abid Qaiyum Suleri, food security expert, said the farmers had not received a fair price for their cash crop, adding they were short of investments to sow the wheat crop on a large area.
“Farmers are looking for substitutes to earn profits on their crops as the government is apparently not willing to announce the minimum support price for the next year’s crop,” he told Arab News. “This will definitely lead to food shortages in the country, and the private sector will have a role to play to import the product to meet the local demand.”
Asif Arsalan Haider, a senior economist, maintained Pakistan’s inflation rate was heavily influenced by the agricultural products in the country, pointing out that wheat shortage would have a major impact on it.
“Pakistan’s rural economy is dependent on agriculture,” he said. “Therefore, farmers may face hardships if the government does not procure their produce at a fixed price.”
“The government should come up with a long term agricultural policy instead of resorting to stopgap arrangements each year,” he added.
Earlier this year in May, local media reported that the Punjab government had reduced its usual wheat procurement, allowing the private sector to play a larger role in purchasing the crop due to significant financial constraints, with annual procurement costs reaching around Rs400 billion ($1.4 billion).
The move was described partly as a response to the International Monetary Fund’s recommendations to cut provincial expenditures.
Reports also quoted Punjab’s Finance Minister Mujtaba Shuja-ur-Rehman as saying that most farmers had sold their wheat to middlemen, leading to market prices of Rs3,200-3,300 per maund, a traditional unit of mass commonly used in South Asia, amounting to about 40 kilograms, though this shift slightly reduced profit margins for farmers.
 


Dozens arrested in southwest Pakistan as clashes between police, Imran Khan’s party injure 14

Updated 08 November 2024
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Dozens arrested in southwest Pakistan as clashes between police, Imran Khan’s party injure 14

  • PTI members tried to stage a rally near the Chief Minister House in Quetta, seeking Khan’s release
  • Quetta’s deputy commission says two of the arrested people were carrying guns and hand grenades

QUETTA: Dozens of protesters were rounded up by police in southwestern Balochistan on Friday after clashes broke out between former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) supporters and law enforcement personnel, leaving at least 14 people injured, including eight policemen.
The incident occurred in the provincial capital of Quetta after PTI protesters attempted to stage a rally near the Chief Minister House, demanding the release of the ex-premier from a high-security jail in Rawalpindi. Khan has faced prison trials on multiple charges since his arrest last year in August, which he claims are fabricated to keep him out of the country’s political landscape.
Police officials said the PTI organized the rally without securing official permission, violating Section 144 of the Code of Criminal Procedure imposed in the city, which prohibits gatherings of four or more people to maintain order or address urgent threats to public safety.
“The protesters were carrying weapons that they used against the police,” said Station House Officer (SHO) of Civil Line Police Naseebullah Khan while speaking to Arab News. “They pelted stones and even hit our officials with their vehicles. Fifty-five protesters have been arrested and a first information report has been lodged against the PTI workers.”

Pakistan Tehreek-e-Insaf (PTI) party's supporters protest to demand the release of former prime minister Imran Khan, in Quetta on November 8, 2024. (AFP)

The SHO informed a senior police officer was among the injured, adding that both of his legs were fractured after a protester tried to run him down with a car.
Quetta’s Deputy Commissioner Saad bin Asad said the PTI was protesting without official permission, which had been denied despite the party’s decision to appeal to the court.
He added that authorities informed the judge they would not permit the gathering and provided reasons for the decision.
“But they deliberately came out for a rally,” Asad said, adding that among the arrested individuals, “two were carrying guns and hand grenades while participating in the protest.”
He confirmed that at least 14 people, including eight policemen, were injured in the clashes.
Asad said PTI supporters began pelting police with stones, prompting law enforcement to use tear gas to disperse them.
Dawood Shah, PTI’s provincial president in Balochistan, told Arab News the party was holding a peaceful rally near Quetta Railway Station because the government had “refused its workers permission to hold the rally at the designated venue.”
“Unknown people disguised as protesters started pelting stones and instigated PTI workers,” he said, adding that 67 PTI supporters were arrested and nine were injured in the clashes.
“Peaceful protest is our democratic right,” Shah continued. “We scheduled a peaceful rally at the Hockey Ground for the release of Imran Khan, but the administration did not give us permission.”
He accused the authorities of “attempting to repeat the 9th May episode,” referencing last year’s riots where people carrying PTI flags targeted government buildings and military installations after Khan’s brief arrest on corruption charges.
The incident triggered a crackdown on the party, whose leaders distanced themselves from the protests, alleging that they were intended to discredit the PTI.


Pakistan’s Punjab bans entry to parks, zoos and playgrounds amid pollution

Updated 08 November 2024
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Pakistan’s Punjab bans entry to parks, zoos and playgrounds amid pollution

  • The province has set up a ‘smog war room,’ using satellite, drones and AI to monitor and address pollution
  • Environmentalists want government to address fuel quality, renewable electricity and industrial emissions

LAHORE: Pakistan's eastern Punjab province banned entry to parks, zoos, playgrounds and other public spaces on Friday to protect the public from polluted air, and is considering closing down universities after shutting schools earlier this week.

The air quality in Lahore has deteriorated drastically, earning Punjab's regional capital the rank of world's most polluted city from Swiss air purification equipment maker IQAir.

"We are closely monitoring the situation. There's a possibility of closing universities and colleges on Monday to reduce vehicle emissions," said Jahangir Anwar, Secretary of the Environment Protection Department Punjab.

Friday's order from the regional government placed a "complete ban on public entry in all parks ... zoos, playgrounds, historical places, monuments, museums and joy/play lands" until Nov. 17 in areas including Lahore.

In addition to shutting schools, the province has already taken other steps such as suggesting half of employees work from home and banning rickshaws in certain areas.

South Asia annually faces severe pollution due to trapped dust, emissions and stubble burning - the practice of setting fire to fields after the harvest of grain.

Punjab has attributed this year's particularly high pollution levels to toxic air from neighbouring India, where air quality has also reached hazardous levels.

Punjab has set up a "smog war room," using satellite, drone technology and AI to monitor and address pollution. Nevertheless, Anwar says there is not enough equipment to effectively monitor the province, with only four air quality monitoring machines for the entire city of Lahore, "whereas we should have 50.”

Anwar said the department had imported and deployed five mobile monitoring units and plans to deploy eight more by year-end.

Ahmad Rafay Alam, an environment lawyer and member of the Pakistan Climate Change Council, stressed the need for robust data and policy changes.

"Right now, we just simply don't have those monitors, we simply don’t have as robust data as we should have to make decisions," Alam said.

He warned that without addressing fuel quality, renewable electricity and industrial emissions, the problem will continue to worsen.

 


Father accused of killing daughter tells UK jury wife told him to confess

Updated 08 November 2024
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Father accused of killing daughter tells UK jury wife told him to confess

  • Urfan Sharif is accused of murdering Sara Sharif last year, alongside her stepmother and uncle
  • Police found the girl’s body with multiple fractures, bruises, burns and bite marks at her home

LONDON: The father of a 10-year-old British-Pakistani girl on trial in London for her murder on Friday said his wife told him to confess to killing his daughter.
Urfan Sharif, 42, is accused of murdering Sara Sharif on August 8 last year, alongside her stepmother Beinash Batool, 30, and the girl’s uncle, Faisal Malik, 29.
All three deny the charge and of causing or allowing her death.
A jury at the Old Bailey court was told that all three left the family home in Woking, southwest of London, the day after Sara died and flew to Pakistan.
Sara’s body, which had multiple fractures, bruises, burns and bite marks, was found by police after a tip-off from Sharif in Islamabad.
Giving evidence for a fourth day, he said he was devastated by her death but agreed to leave because Batool had told him Sara had been beaten by another of his children, and he feared the consequences for them.
Before leaving, he wrote a note taking the blame. “Whoever sees this note, it’s me Urfan Sharif who killed my daughter by beating,” it read.
But Sharif told the jury that the confession was dictated by his wife.
“I was merely writing, the wording was not mine,” he said, insisting he took the blame to protect his other children.
Before leaving on August 9, 2023, Sharif left the house keys under the doormat, so the police would not have to break through the door, and had resolved to tell the authorities about Sara when he was out of the country.
A recording was played in court of Sharif’s garbled phone call to police in the UK after arriving in Islamabad.
“I killed my daughter, I killed my daughter,” he said.
Instructing police to the house, he said he “left in a panic” and added: “I promise I’ll come back.”
One month later, Sharif, Batool and Malik returned to the UK and were arrested.


Pakistan PM unveils winter power relief package to cut electricity costs for consumers

Updated 08 November 2024
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Pakistan PM unveils winter power relief package to cut electricity costs for consumers

  • PM Shehbaz Sharif says the initiative will alleviate financial pressure on consumers, stimulate economic activity
  • Relief package will reduce tariffs for domestic, industrial and commercial users for three months starting December

ISLAMABAD: Prime Minister Shehbaz Sharif announced on Friday a three-month electricity relief package starting in December, aimed at reducing tariffs for domestic, industrial and commercial consumers.

The announcement comes after the government faced widespread protests earlier this year over rising inflation and high electricity costs following the presentation of its first budget in June. Political parties urged the Sharif administration to renegotiate agreements with independent power producers to lower tariffs.

Pakistan’s manufacturing sector has also expressed concerns over the years due to the rising cost of electricity, saying the elevated power tariffs render national exports uncompetitive in the global market.

“The government has decided to offer an electricity relief package for the three winter months of December, January and February, providing substantial reductions in electricity prices for additional usage,” the prime minister said during a ceremony in Islamabad.

“Under this package, domestic consumers will pay a flat rate of Rs26.07 per unit for incremental electricity usage, resulting in savings of Rs11.42 to Rs26 per unit for household users,” he continued. “The package will apply across Pakistan.”

Electricity consumers in the country pay their bills according to the number of units that fall into various slabs, each with its own tariff rates.

Under the new winter package, industrial consumers will benefit from savings ranging between Rs5.72 and Rs15 per unit, according to Sharif, translating to an 18 percent to 37 percent reduction in electricity costs.

Commercial consumers are set to save between Rs13.46 and Rs22 per unit, equating to overall savings of 34 percent to 47 percent.

Sharif also emphasized the broader economic benefits of the initiative, saying it would alleviate financial pressures on consumers and stimulate economic activity in the country.

“With reduced electricity costs, industries will grow across Pakistan, agriculture will flourish, business and exports will expand, production will increase and Pakistan’s economy will strengthen further,” he said.