PPL makes maiden offer for raw gas sale to third party

Javed MirzaWeb Editor

22nd Jun, 2021. 08:18 pm
petroluem

KARACHI: The Pakistan Petroleum Limited (PPL) has made a maiden offer to sell 3mmscfd (million standard cubic feet per day) wellhead raw gas from its Naushero Feroz Block for sale to the third party, an official document suggested.

The NF Hor-1 well is one of the deepest and longest horizontal wells in tight gas reservoirs drilled in Pakistan. It is also the country’s first well to be completed with 10-stage multi-frack.

PPL made a tight gas discovery at NF X-1 in 2014; followed by an extensive in-house geological and geophysical studies to design the optimum horizontal well to appraise the discovery.

NF Hor-1 is in Naushero Feroz Block, Sindh, with PPL as the operator with 90 per cent of the working interest and the remaining 10 per cent holding of Asia Resources Oil Limited.

The federal government in December 2020 had approved the sale of gas through the third party auction.

An official said gas could be sold to the third party in case it was not of pipeline quality or connecting it with the system was unviable due to lower flow.

According to the tender offer for the third party gas sale, the successful bidder will build all necessary facilities process units, utilities, auxiliaries, workshop, testing lab, and all necessary provisions for the construction of the plant’s civil, process, mechanical and piping, etc, within four months of the issuance of the letter of award.

Moreover, PPL will complete its well-site facilities in all respects to deliver the specified quantity of gas to the facility to be set up by the successful bidder.

It will deliver 1.5mmscfd to 3mmscfd wellhead raw gas flow directly from the well after the choke at a pressure from 900-50 psig. The ‘Take or Pay’ raw gas volume is 1.5mmscfd.

Pakistan imports a significant quantity of hydrocarbons in the form of oil and liquefied natural gas (LNG).

The country’s energy mix is tilted towards natural gas due to the presence of substantial but declining gas reserves in the country.

Indigenous production remained around 4Bcfd of gas and 80,000 barrels/day of oil in recent years. However, on the back of enhanced local demand, energy imports are increasing; hence, the share of local hydrocarbons in the overall energy mix is witnessing a declining trend.

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