The discovery of massive gas reserves in the Shewa fields in northwestern Pakistan is a significant development for the country’s energy sector. Estimated at 351.2 billion cubic feet (BCF), these reserves are expected to bolster domestic production and enhance energy security.
Key details about the discovery include:
- Production Contribution: The Shewa-2 well is projected to contribute 70 million cubic feet per day (mmcfd) to the national gas grid. This addition is expected to boost domestic gas production by over 3% daily.
- Duration of Reserves: With planned production rates, the Shewa reserves are estimated to last for 17 years, providing a substantial buffer against the country’s reliance on expensive fuel imports and conserving foreign exchange reserves.
- Infrastructure Development: Mari Petroleum Company Limited plans to transport the gas via a new pipeline built by Sui Northern Gas Pipeline Limited (SNGPL), facilitating efficient delivery to the national grid.
- Stock Market Impact: Following the announcement, Mari Petroleum’s stock increased by 1.93% to Rs3,510.73 per share, with a trading volume of 125,759 shares on the Pakistan Stock Exchange (PSX).
- Overall Reserves Status: Recent figures indicate a positive trend in Pakistan’s oil and gas reserves. Crude oil reserves have increased by 26%, and gas reserves have grown by 2% as of mid-2024. This growth extends the lifespan of the country’s reserves to 10 years for oil and 17 years for gas.
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Mari Petroleum and Oil & Gas Development Company (OGDC) have been instrumental in this progress, with Mari Petroleum’s oil reserves doubling since December 2023 and significant increases in gas reserves.
This discovery is a promising development for Pakistan’s energy sector, offering potential relief from energy shortages and reduced dependence on imported fuels.
