BMI View: Despite more attractive domestic gas pricing terms, Pakistan will struggl e to draw private sector investment in its nascent shale sector due to the high cost of drilling and significant risk to exploration.
Pakistan’s Minister for Petroleum & Natural Resources, Shahid Khaqan Abbasi, has announced that the Pakistani government is close to finalising its Shale Gas Policy (SGP). The government is also conducting a technical study to determine the extent of the country’s shale potential; the study is due for completion in August 2014. However, according to estimates from the US Energy Information Administration (EIA), Pakistan’s technically recoverable shale resources stand at around 2.97trn cubic metres (tcm) of gas and 9.1bn barrels (bbl) of oil.
The SGP is due to be submitted to the Economic Coordination Committee for approval, and will reportedly offer a wellhead price for gas of USD12 per million British thermal units (/mnBTU). Abbasi is targeting shale gas exploration by 2015 and has looked to technical assistance from the US.
Heavy Hydrocarbons Dependency
Pakistan Electricity Generation By Source (TWh)
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