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The state-owned Exploration and Production (E&P) companies; Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company Limited (OGDCL), have started drilling of country''s first ever shale oil/gas well in Sindh. This was stated by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, who was flanked by State Minister for Petroleum Jam Kamal Khan and Advisor Petroleum Ministry Zahid Muzafar, while addressing a press conference here ion Thursday.
He said that in a new study undertaken by Director General Petroleum Concession (DGPC) with financial support from United States Agency for International Development (USAID) the shale gas revised in place resources of the country stand at 10,159 Trillion Cubic Feet (TCF) against previous estimated resources of 586 TCF. The minister said that out of this an estimated 200 TCF of shale gas resources are recoverable against 105 TCF of previous study.
Advisor Petroleum Ministry Zahid Muzafar, who is also Chairman Board of Directors OGDCL, in response to a question on the completion of first shale oil/gas well of the country said that it would be completed within four to five months and after the completion of first well the government will be in a position to determine wellhead price for shale gas/oil. He added that it would be around $10 per Million British Thermal Unit and on the basis of the pilot project the government will devise shale oil/gas policy to formally invite the local as well as international E&P companies to invest in the sector. Abbasi said that the new study had put the shale oil resources at 2,323 Billions of Stock Tank Barrels (BSTB) of which technically recoverable resources were 58 BSTB and risked technically recoverable resources estimated at 14 BSTB.
Talking about the gas supply and demand situation in the winter, the minister said that in Punjab gas demand for winter stands at 950 Million Cubic Feet per Day (MMCFD) against daily supply of 650 MMCFD. As a result of huge demand/supply gap the government in winter will not be in a position to supply gas other than to domestic consumers, adding that even domestic consumers will have no gas from 10 PM to 5 AM.
To a question he said that the Petroleum Ministry had sent a summary to the Council of Common Interest (CCI) requesting to regulate the prices of Liquefied Petroleum Gas (LPG). He added that the Ministry has suggested the government to fix LPG''s domestic cylinder containing of 11.8 kg price at Rs 900 per cylinder. He said that Pakistan was a gas prone country and 48 percent of country''s energy mix requirement was met through indigenous gas supply. Currently, the country is producing 4.16 Billion Cubic Feet per Day (BCFD) of gas, which is not sufficient to meet the ever increasing demand for natural gas in the country, he said.
Abbasi said that at present, there was a gap of around 2 BCFD of gas between the indigenous supply & constraint demand, adding that to bridge the gap, the government was making all out efforts to enhance the gas availability in the country. He said that for this purpose the government had adopted three-pronged strategy: (i) Import of gas through transnational pipelines, (ii) Import of LNG and (iii) to enhance indigenous gas supplies through extensive exploration activities. "For this purpose government is not only focusing on enhancing conventional gas but has also providing incentives to discover & exploit unconventional gas resources like Marginal Gas, Tight Gas and Shale Gas," he added.
Talking to reporters on the occasion DGPC Saeedullah Shah said that the US Energy Information Administration (USEIA) in April 2011 reported presence of 206 TCF Shale Gas in Place Resource in Lower Indus Basin out of which 51 TCF were technically recoverable. However, in June 2013, USEIA revised Shale Gas resource in Pakistan as 586 TCF in place out of which 105 TCF were tipped as risked technically recoverable and also included 9.1 Billion Barrel Shale Oil risked technically recoverable resource out of 227 Billion Barrel Shale Oil in place.
The DGPC added that to get authenticate Shale Gas Resources in the country, Shale Gas Study with financial support from USAID was initiated in January 2014. The objectives of the study were to (i) validate Shale Gas Resource estimate of USEIA, (ii) assess availability of required technology and infrastructure for Shale Gas operations and (iii) formulate guidelines for Shale Gas Policy. The study was completed in November 2015 with a total cost of $2.2 millions. The study covered lower and middle Indus basin which geographically spread over Sindh and southern part of Punjab and eastern part of Balochistan province. Total area under the study was 271,700 km, which constitutes 33 percent of total sedimentary area of Pakistan. Under the study, detailed analysis of 124 wells were carried out including laboratory analysis on Shale Cores and Cuttings in USA. The study has confirmed presence of substantial Shale Gas and Shale Oil as under:
In place resource: Free gas (TCF), 3,778, adsorbed gas (TCF), 6,381Total gas (TCF), 10,159 and Oil (BSTB), 2,323 of which technically recoverable resource include free gas 188 TCF and Oil 58 BSTB. Risked technically recoverable resources are free gas 95 TCF and oil 14 BSTB.
Drilling of first shale oil/gas well starts in Sindh: Abbasi | Business Recorder
He said that in a new study undertaken by Director General Petroleum Concession (DGPC) with financial support from United States Agency for International Development (USAID) the shale gas revised in place resources of the country stand at 10,159 Trillion Cubic Feet (TCF) against previous estimated resources of 586 TCF. The minister said that out of this an estimated 200 TCF of shale gas resources are recoverable against 105 TCF of previous study.
Advisor Petroleum Ministry Zahid Muzafar, who is also Chairman Board of Directors OGDCL, in response to a question on the completion of first shale oil/gas well of the country said that it would be completed within four to five months and after the completion of first well the government will be in a position to determine wellhead price for shale gas/oil. He added that it would be around $10 per Million British Thermal Unit and on the basis of the pilot project the government will devise shale oil/gas policy to formally invite the local as well as international E&P companies to invest in the sector. Abbasi said that the new study had put the shale oil resources at 2,323 Billions of Stock Tank Barrels (BSTB) of which technically recoverable resources were 58 BSTB and risked technically recoverable resources estimated at 14 BSTB.
Talking about the gas supply and demand situation in the winter, the minister said that in Punjab gas demand for winter stands at 950 Million Cubic Feet per Day (MMCFD) against daily supply of 650 MMCFD. As a result of huge demand/supply gap the government in winter will not be in a position to supply gas other than to domestic consumers, adding that even domestic consumers will have no gas from 10 PM to 5 AM.
To a question he said that the Petroleum Ministry had sent a summary to the Council of Common Interest (CCI) requesting to regulate the prices of Liquefied Petroleum Gas (LPG). He added that the Ministry has suggested the government to fix LPG''s domestic cylinder containing of 11.8 kg price at Rs 900 per cylinder. He said that Pakistan was a gas prone country and 48 percent of country''s energy mix requirement was met through indigenous gas supply. Currently, the country is producing 4.16 Billion Cubic Feet per Day (BCFD) of gas, which is not sufficient to meet the ever increasing demand for natural gas in the country, he said.
Abbasi said that at present, there was a gap of around 2 BCFD of gas between the indigenous supply & constraint demand, adding that to bridge the gap, the government was making all out efforts to enhance the gas availability in the country. He said that for this purpose the government had adopted three-pronged strategy: (i) Import of gas through transnational pipelines, (ii) Import of LNG and (iii) to enhance indigenous gas supplies through extensive exploration activities. "For this purpose government is not only focusing on enhancing conventional gas but has also providing incentives to discover & exploit unconventional gas resources like Marginal Gas, Tight Gas and Shale Gas," he added.
Talking to reporters on the occasion DGPC Saeedullah Shah said that the US Energy Information Administration (USEIA) in April 2011 reported presence of 206 TCF Shale Gas in Place Resource in Lower Indus Basin out of which 51 TCF were technically recoverable. However, in June 2013, USEIA revised Shale Gas resource in Pakistan as 586 TCF in place out of which 105 TCF were tipped as risked technically recoverable and also included 9.1 Billion Barrel Shale Oil risked technically recoverable resource out of 227 Billion Barrel Shale Oil in place.
The DGPC added that to get authenticate Shale Gas Resources in the country, Shale Gas Study with financial support from USAID was initiated in January 2014. The objectives of the study were to (i) validate Shale Gas Resource estimate of USEIA, (ii) assess availability of required technology and infrastructure for Shale Gas operations and (iii) formulate guidelines for Shale Gas Policy. The study was completed in November 2015 with a total cost of $2.2 millions. The study covered lower and middle Indus basin which geographically spread over Sindh and southern part of Punjab and eastern part of Balochistan province. Total area under the study was 271,700 km, which constitutes 33 percent of total sedimentary area of Pakistan. Under the study, detailed analysis of 124 wells were carried out including laboratory analysis on Shale Cores and Cuttings in USA. The study has confirmed presence of substantial Shale Gas and Shale Oil as under:
In place resource: Free gas (TCF), 3,778, adsorbed gas (TCF), 6,381Total gas (TCF), 10,159 and Oil (BSTB), 2,323 of which technically recoverable resource include free gas 188 TCF and Oil 58 BSTB. Risked technically recoverable resources are free gas 95 TCF and oil 14 BSTB.
Drilling of first shale oil/gas well starts in Sindh: Abbasi | Business Recorder
