OGDCL, PPL to explore shale gas

ISLAMABAD: Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Company Limited (PPL) have been tasked to carry out a pilot project to explore shale gas deposits, estimated at more than 10,000 trillion cubic feet (TCF), an official source said.

There is a gap of around two billion cubic feet/day (bcfd) gas between the indigenous supply and constraint demand. Given the growing energy needs, the government is also diverting resources to explore shale gas deposits in the country.

Currently, the country, the source added, is producing 4.16 bcfd gas, which is not sufficient to meet the ever-increasing demand. The project is being launched following a study conducted in cooperation with USAID, confirming availability of 10,159 trillion cubic feet (Tcf) shale gas and 2,323 billions of stock tank barrels (BSTB) shale oil across the country, said the official.

The source said analyses of 124 wells were carried out, including laboratory analysis on shale cores and cuttings in the United States.

The shale gas is a new phenomenon worldwide and so far only US shale has been proved commercially viable and shale gas exploration and production is capital extensive, around 10 times higher than conventional oil and gas, the source said.

However, the source added horizontal drilling and hydraulic fracturing technology, which is used for shale gas exploration, is available in the country and already being used for conventional and tight gas reservoirs.

The government’s efforts to fulfill the country’s growing energy needs have started yielding results with adding 65 new oil and gas discoveries so far.

However, a total of 227 wells have been drilled, while 46 new petroleum exploration licenses were awarded – a record performance in the country’s history, claimed the source.

Similarly, the source said around 560 million metric cubic feet/day of additional gas and 27,000 BOPD of oil have been injected in the system. By virtue of these discoveries, so far over one trillion cubic feet of gas and 16 million of barrels of new oil reserves have been added into the system, the source added.