Gas sale-purchase agreement of Tight Gas production signed
ISLAMABAD: First ever Tight Gas Sale Purchase Agreement by Polskie Gornictwo Naftowe i Gazownictwo (PGNiG), Pakistan Petroleum Limited (PPL) and Sui Southern Gas Company Limited (SSGCL) was signed on Tuesday.
The Kirthar Joint Venture, operated by PGNiG with PPL as its partner, is going to be the first production from a Tight Gas Reservoir in the petroleum history of Pakistan.
The agreement was signed in the presence of Dr. Asim Hussain Advisor to the Prime Minister on Petroleum and Natural Resources and Dr. Waqar Masood Secretary Ministry of Petroleum and Natural Resources.
Waldemar Woiciech Bak, Managing Director (MD) of PGNiG SA Pakistan Branch welcomed the Advisor Ministry of Petroleum Natural Resources, Secretary Petroleum, Managing Director SSGCL and his team for gracing this occasion.
Managing Director of PGNiG hoped that this was going to be the beginning of a new era of unconventional gas development and production in Pakistan.
He also hoped that production and supply of gas from the Rehman Field will help in reducing gas shortage being faced by Pakistan.
Speaking on the occasion, Dr. Asim Hussain Advisor to the Prime Minister on Petroleum reiterated that the agreement was a significant step in the implementation of Pakistan’s Tight Gas Policy announced in 2011 for providing economically viable sources of energy.
He stressed that the Government of Pakistan has introduced incentives and investor friendly policies for boosting investment in the Oil and Gas sector for substantially bridging the Demand and Supply of Natural Gas gap.
MD PPL, Mr. Asim Murtaza Khan, Praised PGNiG and its team for their hard work of pioneering the tight gas discovery and its ongoing development.
He hoped that timely completion of Rehman project will increase the gas supply significantly. He assured POL’s full support in this endeavor.
He also appreciated Government of Pakistan for introducing incentives and investor friendly policies to boost investment in petroleum sector.
MD SSGCL, Zuhair Siddiqui, appreciated JV partners for leading the industry in unconventional gas production and hoped that they will be bringing in more gas to the system in near future.
An agreement between PGNiG and SSGCL for construction / laying of 52 kms pipeline from PGNIG Rehman Field to Naing Value Assembly of SSGCL, District Dadu, Sindh was also signed on the occasion. SSGCL was awarded the contract for laying pipeline after a competitive tendering process.
The pipeline laying project is likely to be completed by April, 2013.
MD SSGCL expressed his hope that this venture would be bench mark in laying basis for a long lasting commercial relations between the two companies.
He expressed his desire to work more closely with PGNiG in current as well as future projects in Pakistan.