Petroleum Minister Dr. Asim Hussain said on Wednesday that he the Ministry to work on quickly to explore tight gas reserves of 100 trillion cubic feet meet to the rising requirements of the country.
Talking to a select group of reporters he said that gas reserves of 100 trillion cubic feet were available in the country even though the Petroleum Ministry is reporting them to be 40 trillion cubic feet. “I have urged them to use these reserves to overcome the energy crisis”.
He said that the tight gas reserves were of 34 trillion cubic feet while the shale gas reserves were of 76 trillion cubic feet. The tight gas reserves are located after the first rock formation of existing reserves while shale gas reserves are after the second rock formation. The challenge to recover these reserves lies in drilling horizontally unlike the prevalent way of vertical drilling.
He said that Pakistan Petroleum Limited conducting a test drill to explore tight gas reserves at Sui gas field while the Oil and Gas Development Company Limited had also shown interest in starting a pilot research and development drill. When asked about the time it would take to overcome the gas shortage he said that at least one year was required. He also said that this year 100 mcfd would be added to national transmission from Kunar Pasakhi Deep (KPD). He added that more effort was required on the other projects in the pipeline. For expediting exploration activity, he noted that simple issues like jobs, clean drinking water and schools for local population need to be resolved.
“I will be visiting Balochistan soon to resolve these issues”, he said. He called Zin Block in Balochistan the “most prospective” as it could provide 600 mcfd of gas in the short term. But in order to utilize that reservations of the local population need to be addressed with full commitment.
Talking about the gas crisis he said that the shortage cannot just be overcome by enhancing supplies but some structural issues like cross subsidies, misuse of gas by domestic users and gas theft also need to be addressed. “We would have to reduce supplies to IPPs and fertilizer sector if we want to provide gas to domestic consumers”. He said that a ship load of LNG would cost close to $50 million and no investor would like to invest if 9 per cent of the supplies vanish.
Gauging the reserves of basin requires a) foremost an acceptablel well head price, then b) seismic studies, c) technology, d) drlling. You don't know until you drill.
Pakistan E&P activity has been seriously constrained by low well head prices, and GoP restrictions on drilling by OGDC and private sector. In 2000 only 3 rigs were operating. There should be hundreds.The price should be indexed those agreed for the LNG, TAP and Iran pipedreams. Why give foreingers more? These three grand and non commercial projects will never materlisze.
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