Mari Petroleum Company Limited (MPCL) has identified a one trillion cubic foot giant gas reservoir in North Waziristan, Khyber Pakhtunkhwa, Pakistan. The amount of gas discovered in North Waziristan will produce 15% of the total gas produced in the country.
MPCL is Pakistan’s second-largest gas producer, with a market share of 21% and a reserve base of roughly 600 million BOE (Barrels of Oil Equivalent). The Pakistan Stock Exchange was notified of the discovery by MPCL (PSX). The cost of this indigenous gas will be roughly $4 per million British Thermal Units, according to details (MMBTU).
With the discovery of the new gas reserves, Pakistan will save $1.5 billion in annual foreign remittance. The discovery was made as a consequence of MPCL’s exploratory efforts at a well in the Bannu West block, according to the company.
MPCL says that this is a significant gas/condensate discovery, the first in North Waziristan, and that it is the consequence of the company’s aggressive exploration approach, which was backed by the Joint Venture partners.
However, assessment is necessary to establish the discovery’s scope and production potential. It will contribute to the hydrocarbon resource base and help to reduce the gas demand and supply gap from indigenous resources once it is developed.
The new production will help Pakistan curb its energy shortages that are increasing with time. Pakistan is currently facing energy shortages because of the consumption in the summers to generate electricity.
Pakistan is relying on foreign Liquid Natural Gas (LNG) from Qatar to handle its energy requirements but because of the imports, the prices are higher and also it increase the imports bill.
Pakistan needs its own Oil and gas reserves to handle the worsening situation. Other backups are required. For example, Pakistan was planning to buy cheap fuel from Russia to reduce the prices but now the new government also needs to work on acquiring cheap substitutes.