The federal government, in its bid to facilitate investment by the oil and gas industry in unconventional hydrocarbons, has prepared a Tight Gas (Exploration & Production) Policy 2024.
The government, through this policy, aims to give impetus to tight gas exploration in a technically and commercially viable manner.
As per the document, available with Business Recorder, tight gas, natural gas that cannot flow naturally at commercial rates with conventional methods, is amongst the major unconventional resources.
However, policy interventions in the past could not attract the desired investment and resultantly the industry has yet to benefit from country’s tight gas reservoirs, read the document prepared by the Ministry of Energy.
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As per the government document, the Tight Gas Policy is based on the achievement of several national objectives i.e.
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Incentivize oil and gas industry to invest in the exploration of unconventional/tight gas resources that are not being produced due to non-commerciality.
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Provide a policy regime for transparent, effective, and efficient processing of regulatory approvals.
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Address commercial viability issues of existing Tight Gas reservoirs.
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To open new frontiers for exploration of Tight Gas which would help increase the exploration activities in the country.
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Enhance indigenous production of hydrocarbons.
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Minimize reliance on imported fuels and regenerate additional revenues for Federal Government and the Provincial Governments.
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Reducing recourse to sovereign debts by saving foreign currency.
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Keeping the local gas prices at affordable level to the consumers by producing cheaper local gas vis-à-vis imports.
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Create employment opportunities in the country.
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Promote transfer of technology and collaboration between local and foreign equipment manufacturers.
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Increase dependability and security of supply and its sustained availability.
The government said the policy is essential as Pakistan’s energy requirement has surged over the years and the demand is primarily being met through conventional hydrocarbons and import of alternative fuels.
The Tight Gas (Exploration & Production) Policy shall come into effect from the date of its publication in the official gazette, read the document.
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“The incentives of this policy shall apply to the gas discoveries that qualify and are accepted as ‘Tight Gas’ under the existing and future Exploration Licences (EL), Petroleum Concessions Agreements (PCA) and Development & Production Leases (D&P)/fields and Mining Leases (ML).
“The incentives will also apply to existing tight gas discoveries that have not been developed as of the effective date of this policy,” it said.
Days ago, the Council of Common Interests (CCI) approved the draft Tight Gas Exploration and Production Policy 2024.
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