Gas production from the Dera Bugti well commences at 5 MMSCFD.

Dera Bugti, Balochistan is home to a freshly drilled well that the Oil and Gas Development Company Limited (OGDCL) has started producing gas from.

The natural gas output of Pakistan has been significantly boosted by this breakthrough.

A letter sent by OGDCL to the Pakistan Stock Exchange states that the well is generating five million standard cubic feet of gas each day, which is quite an astounding amount.

The Uch Gas Processing Plant has been effectively connected with the gas output, which will help distribute and streamline the increased gas supply. The Dera Bugti well is fully owned by OGDCL, the biggest exploration and production company in the country, as stated in its letter to the PSX.

In response to a decline in power demand, Pakistan opted to divert its imports of liquefied natural gas (LNG) to local users on November 12th.

This article also discusses Pakistan’s decision to use imported LNG for domestic use.

The Ministry of Petroleum has estimated that an amount of Rs163 billion will be necessary to fund the supply of LNG to households in the country. According to sources, the pressure on pipelines is continuously increasing due to the imported LNG.

Confirmation from reliable sources indicates that 600 MMcfd of LNG has been consumed by the power industry. Since captive power facilities are being shut down, there will be an excess of 150MMcfd of LNG, and the gas industry is also making 400 billion rupees from captive electricity.

To solve the problem of circular debt, the government intends to raise gas pricing and do away with the tariff differential between domestic gas and LNG imports.

There is a current tariff of Rs1,550 per MMcfd on domestic gas and Rs3,500 per MMcfd on imported LNG. The government hopes to earn Rs200 billion by removing this tariff difference. As a part of the larger strategy to raise government revenue, the tariff for fertiliser firms will also be hiked.