Pakistan Has 35 Tcf of Tight Gas

Pakistan has an estimated 35 Trillion Cubic Feet (TCF) tight gas reserves, which are more than the existing approved natural gas reserves of 28.5 TCF, Business Recorder reported citing officials.

Referring to a report of Pakistan Petroleum Exploration and Production Companies Association (PPEPCA), offcials said that the country would have sufficient natural gas if tight gas was explored which required advance technology and huge investment, reported Business Recorder. 

The country has announced various incentives to attract private companies to the sctor.

Companies, which succeed in recovering gas from tight fields within two years will get 50 percent hike against 2009 price and if it takes more time they will get only a 40 percent hike. Besides, the lease for the fields will now be for 40 years instead of 30 as per the 2009 policy, the official said.

Even with the improved prices for the tight gas to be paid to the exploration companies, it is estimated that Pakistan will have to pay a maximum of $6.5/Btu for the gas compared to $12.3/Btu for imported gas. 

They said that investors will be offered 40 percent premium on the current gas price for exploring tight gas. Similarly, 50 percent premium will be offered on current gas price to investors if they commission their project within two years. 

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