Pakistan discovers largest gas reserve after 15 years

Islamabad: Pakistan has discovered one of the largest hydrocarbon reserves, while energy crisis has forced the country to depend on imported gas. The hydrocarbon reserve can add one trillion cubic feet, and located in Margand block of Balochistan owned by the Pakistan petroleum limited (PPL).
PPL works in the block with 100 percent working interest and already declared the discovery of margand X-1, near Kalat region, Balochistan.
But, PPL state owned oil and gas exploration firm, has not declared the exact size of the hydrocarbon reserve found in the block.
June 30, 2019, margand X-1 was discovered which has a depth of 4,500 meter inside Chiltan limestone. Modular dynamics testing was conducted with the help of wire line logs, which confirmed the presence of hydrocarbon.
Cabinet told body gas crisis may get worst next year.
Drill stem test was conducted and the well showed a flow of 10.7 million cubic feet of gas every day at 64/64 inches block size and the pressure of 516 pound per square inch. This means 132 barrels of liquid each day.
Due to beaureaucratic snags and low wellhead gas, no major discovery of hydrocarbon gas was made since 2000. Many companies like British petroleum, Nikko resources and Malaysia based companies left the country as no hydro-carbon gas reserves were found.
No major attention was given to the issue in former government of Pakistan Muslim League (PML-N) and rather than exploiting domestic resources, liquefied natural gas was imported by signing contracts.
Now, the country is dependent on imported gas to bridge gaps as no discovery was made for hydrocarbon gas in the past few decades.
An official revealed “Initial estimates based on the structure of the Margand block reveal that this block has one trillion cubic feet of reserves”.
He said “Pakistan will save $900 million due to LNG import substitution if PPL flows reach 300 mmcfd”.
The present government of Pakistan, the PTI Pakistan Tehreek-e-Insaf government has offered 10 blocks to the investors to explore oil and gas; however no positive response has been received from international firms.
The government of Pakistan is proceeding to invite bids for more discoveries in the margand block are a good step to encourage foreigners to come and explore more such resources. The existing gas reserves of the country are depleting 7 percent each year. The officials declared that local gas production is at still i.e. 4 billion cubic feet each day since 2000. Whereas, the demand has increased too much, leading to shortfall. The price of LNG is 100 percent more than the domestically produced gas.
This will lead to another financial crisis whether the government offers subsidy or not.
The spokesperson said that drilling of margand X-1 not finished as yet and “The estimate of reserves cannot be made until the well is drilled to the targeted depth and subsequent tests are carried out”.–Worldwide News

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