Tight gas reserves in Sui – PPL to start drilling in 3 Months
Karachi: Minister for Petroleum & Natural Resources Dr Asim Hussain revealed that the country had more than 100 TCF of shallow and tight gas reserves.
According to Alfalah Securities Limited, in order to extract the tight gas, PPL is expected to start drilling the first well in the next 3 months. In order to encourage exploration of tight gas, the allocation of gas would be made on the basis of flow rates supported by third-party determination under the ‘Tight Gas (Exploration and Production) Policy 2011’.
As per the tight gas policy the allocation of gas shall be done on the basis of flow rates in case gas is produced from the same well or from different zones of the D&P lease. Moreover, 40% premium would be given over the respective zonal price of Petroleum Policy 2009 in order to exploit tight gas.
The exploration of tight gas is expected to raise the production levels which are critical to meet the long term energy requirement of the country.