Pakistan has 10,159 trillion feet reservoirs of shale gas: Study

ISLAMABAD: Pakistan has a massive potential of 10,159 trillion cubic feet shale gas and 2.3 trillion oil resource, several times higher than the initial estimates of US Energy Information Administration (USEIA), reveals latest study conducted with the help of USAID.
USEIA had reported in April 2011 presence of 206 TCF shale gas in place in lower Indus Basin out of which 51 TCF were technically recoverable.
However, in June 2013, USEIA revised shale gas resource in Pakistan as 586 TCF in place out of which 105 TCF were tipped as risked technically recoverable and also included 9.1 billion barrel shale oil risked technically recoverable out of 227 billion barrel shale oil in place.
In an interaction with media persons here on Thursday Petroleum Minister Shahid Khaqan Abbasi said that shale gas study was initiated with support of USAID in January 2014 which had been completed in November this year. He said that study had confirmed that Pakistan had 10,159 trillion cubic feet shale gas resource and 2,323 billion shale oil.
“Risked technically recoverable resource is 95 trillion cubic feet shale gas and 14 billion barrel shale oil resource,” Abbasi said adding that recoverable data of 1,611 wells was collected and shale formation of 1312 wells through drill was done. He said that 70 per cent of wells data was used to develop this study.
He said that samples were sent to New Tech laboratory in Houston to verify shale gas and oil resource in place. He said that study confirmed that Pakistan had potential of shale gas and oil which was more than expectations.
The minister further said that technology available in Pakistan for exploring conventional oil and gas could be used for exploiting shale oil and gas. However, country requires more technology for the purpose on a larger scale. He said that real challenges were environmental issues, provision of water and higher cost of drilling. He said that one well required 3-8 million gallons water. The minister said that OGDCL has been asked to initiate one pilot project for exploring the shale gas well.
“We have water but real issue is disposal of water,” he said adding that shale gas would cost $10 per Million British Thermal Unit (mmbtu).However, he said that cost would come down further in case more recovery of shale oil. He said that world was exploring shale gas and oil and Pakistan wanted to utilise this potential also. “We have assigned OGDCL and PPL to explore shale gas and oil from one well to determine cost of extracting this resource,” he said adding that shale resource policy would be formulated following cost of drilling by these two companies”.
Petroleum Advisor to Petroleum Ministry Zaid Muzaffar said that OGDCL was working on one well to find out shale gas and oil. “We are hopeful to find results in next two to three months,” he said adding that one well needs $2 to $3 million additional cost to explore shale resource.
Petroleum minister said that country had 20 trillion cubic feet conventional gas reserves and 385 million barrels oil.” The gas is enough to meet requirements for 15 years at existing level of production,” he said.
The minister said that gas would be available for domestic consumers in Punjab only. He said that power plants and fertiliser units would be run on LNG. “CNG sector may also get LNG if supply is available,” he said adding that captive power plants would also be switched to LNG. He further said that transparent process was followed in awarding LNG contract. He said that Petroleum Ministry had also provided all required information to National Accountability Bureau (NAB). “I have been engaged personally in process of LNG and therefore, I take the responsibility,” he said adding that Transparency International had also declared LNG process transparent. He said that LNG import was open to everyone. In principle, we should not involve in this business,” he said.
He said that Petroleum Ministry had moved a summary to the Economic Coordination Committee (ECC) to deregulate oil prices but the proposal was not approved. ”We are looking at petroleum situation again whether it should be deregulated or not,” he said.
He said that a summary had also been moved to Council of Common Interests (CCI) to approve regulation of LPG prices to provide relief to the consumers.