In a significant development for Pakistan’s energy landscape, the Oil & Gas Development Company Limited (OGDCL) has officially launched commercial gas production from its Nur West Well-1, situated in the Sujawal district of Sindh. This announcement, made on August 12, 2024, marks a pivotal moment for the country as it grapples with high energy import costs and seeks to bolster its domestic gas production capabilities.
A Crucial Energy Boost
OGDCL’s new gas production from the Nur West Well-1 is a timely boost for Pakistan, a nation that heavily relies on importing Petroleum, Oil, and Lubricants (POL) products. The introduction of this new source of gas comes as a welcome relief for a country that is persistently facing economic challenges. By tapping into local gas reserves, Pakistan aims to reduce its dependency on costly energy imports, which consume a substantial portion of its budget.
The Discovery and Development
The journey to this production milestone began earlier in the year. On April 8, 2024, OGDCL made a groundbreaking announcement about discovering gas at its Sujawal Well-1. This discovery was a significant step forward, showcasing the potential of untapped gas reserves in the region.
OGDCL, Pakistan’s largest exploration and production company, has a 100% stake in the Nur Development & Production Lease (D&PL). The well, drilled to a depth of 2,975 meters, is part of the company’s ongoing efforts to exploit and develop hydrocarbon resources within the country.
Integration and Infrastructure Enhancement
The gas produced from the Nur West Well-1 is currently flowing at a rate of 1.5 million standard cubic feet per day (MMSCFD) with a wellhead pressure of 1050 PSI. This gas has been integrated into the Sui Southern Gas Company Limited (SSGCL) network, marking a significant advancement in strengthening Pakistan’s national gas supply infrastructure.
The integration into the SSGCL network not only enhances the country’s gas distribution but also contributes to stabilizing the energy supply, which is crucial for both domestic and industrial needs.
The Role of the Tight Gas (Exploration & Production) Policy 2024
The timing of OGDCL’s announcement aligns with the federal government’s introduction of the Tight Gas (Exploration & Production) Policy 2024. This policy represents a strategic move to encourage the exploration and development of unconventional gas reserves.
Under this policy, an innovative pricing strategy has been introduced, offering a 40% premium on the zonal price defined in the Petroleum (Exploration and Production) Policy 2012. The Council of Common Interests (CCI) later approved this policy, which aims to stimulate investment and activity in the tight gas sector.
Technical Challenges and Solutions
The Nur West Well-1 encountered what is known as a “tight formation,” a type of rock formation with very low permeability. This presents significant challenges for conventional gas extraction methods, which were initially unsuccessful in achieving viable production rates.
To overcome these challenges, OGDCL employed hydraulic fracturing, commonly known as “fracking.” This technique involves injecting a mixture of water, sand, and chemicals into the well at high pressure to create fractures in the rock formation. These fractures allow the gas to flow more freely and be extracted more efficiently.
Hydraulic fracturing is a well-established method used to access natural gas and oil from deep, tight rock formations. Despite its effectiveness, it requires careful management and regulation to minimize environmental impacts.
The Future of Gas Production in Pakistan
The successful production from Nur West Well-1 represents a promising step forward for Pakistan’s energy sector. By tapping into local gas reserves and utilizing advanced extraction techniques, OGDCL is helping to address the country’s energy needs more sustainably.
As Pakistan continues to explore and develop its hydrocarbon resources, the focus will likely shift toward optimizing production techniques and expanding exploration efforts. The success of the Nur West Well-1 could pave the way for more such projects, contributing to greater energy security and economic stability.
In summary, the commencement of gas production from Nur West Well-1 is a significant milestone for OGDCL and Pakistan. It not only provides a crucial new source of energy but also highlights the effectiveness of the new tight gas policy. With ongoing advancements in extraction technology and strategic policy support, Pakistan is making strides toward a more self-sufficient and resilient energy future.
