ISLAMABAD - Pakistan has inked an agreement for the sale of tight gas in the country with Polish Oil & Gas Company Pakistan branch and price of the gas explored from Kirthar reserves would stand at $6/mmbtu.
The agreement signing ceremony was held here on Tuesday where official of Sui Southern Gas Company Limited (SSGCL) and Polish Oil & Gas Company signed on the document of the agreement. The Polish Oil & Gas Company Pakistan branch will own 70per cent while PPL will own 30 percent under a joint venture agreement in this regard. The Kirthar area lies in District of Dadu in Sindh and Lasbella in Balochistan zone-III.
Advisor to the Prime Minister on Petroleum & Natural Resources Dr Asim Hussain present on the occasion said that production of tight gas in the country would start from upcoming May in next year and 30 million cubic feet of gas would be sale out to the SSGCL from Kirthar block at $6/mmbtu. He said 30 million cubic feet of gas would be supplied to Nori Abad industrial zone of Karachi.
Dr Asim Hussain further said that Polish Oil & Gas Company had already invested $40 million in the discovery of tight gas and so far the company had drilled two wells of tight gas and would also drilled more wells. State owned gas utility the Sui Southern Gas Company Limited would establish a 46km long gas pipeline with a heavy cost worth of Rs32 crores and 50Lakh to utilise the explored tight gas of Kirthar block.
It may be mentioned here that the Polish Oil and Gas Company is a public sector company operating within and outside Poland, through a network of specialised divisions and companies.