New Delhi: Pakistan’s stressed economy may find some relief in the discovery of new oil and gas reserves in Sindh’s Shah Bandar block. Pakistan Petroleum in an exchange filing shared that the Jhamp East X-1 well in the Shah Bandar block yields 10 million standard cubic feet (scf) of natural gas per day, the Express Tribune Pakistan reported. The block also yields over 150 barrels of light oil per day.
Jhamp East X-1 well’s natural reserves have a pressure of 2,800 pounds per square inch. This has enhanced the natural gas supply in the region as the Sujawal gas processing plant is supplying into the Sui Southern Gas Company’s lines. Pakistan Petroleum owns a majority stake in the Shah Bandar block.
Gas supply issues in Pakistan
Pakistan PM Shahbaz Sharif had flagged the decline in domestic household gas availability. He had also called for immediate gas supply reforms. A transaction for the acquisition of gas by Pakistan’s private utility company Universal Gas Distribution Company has run into opposition from other private gas discoms who are unhappy about the allocation to UGDC without a bidding process.
Pakistan’s Oil and Gas Regulatory Authority slashed LPG gas prices by Rs 4.01 per kg for January 2025. An 11.8 kg LPG cylinder is now priced at Rs 2,953.36 in Pakistan, down from Rs 3,000.79 per cylinder in December 2024.
Pakistan finds world’s 4th largest oil reserve
This is not the first time that Pakistan has discovered key oil and gas reserves. In September 2024, Pakistan discovered the world’s 4th largest oil and gas reserve, the Dawn Pakistan reported, citing senior officials. The reserves also house other valuable minerals and elements for mining purposes, according to the report.
However, OGRA member Muhammad Arif cautioned that there’s a difference between the expected and actual discovery of oil and gas reserves. He said that based on the size and recovery rate of these reserves, Pakistan may find relief in its LNG and oil import bill. The true picture will only be revealed once the actual drilling begins, he added. While the exploration is likely to cost $5 billion the entire process is expected to be spread out over 4-5 years, according to the report. Further, the investment will be required to develop the wells on discovery and extract fuel from these reserves, he said.
Venezuela, Saudi Arabia, Iran, Canada and Iraq make the list of top 5 countries with the world’s highest oil reserves. The US has the largest untapped oil reserves.
Pakistan’s economy registers 1% growth
Pakistan’s economy grew by 0.92 per cent in Q1 FY25 even after a contraction in industrial output, according to data released by the country’s Statistics Bureau which was vetted by the National Accounts Committee. Pakistan secured a $7 billion loan facility from the IMF. Agriculture and services were the main drivers of Pakistan’s economy in Q1 FY25 which grew at a slower pace compared to 2.69 per cent during the same period a year ago.
Pakistan has made a new oil and gas reserve discovery in the Shah Bandar block area. Here’s why it is important for the country’s cash-strapped economy Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
