PGNiG Still Unpaid for its Pakistani Tight Gas

Polish Oil and Gas Company (PGNiG) has not been receiving payments for the tight gas it has been producing in Pakistan, according to newspaper Express Tribune.

The Polish firm has invested $77 million in exploration work and is supplying tight gas to Sui Southern Gas Company.

The company says that Pakistan’s Oil and Gas Regulatory Authority (Ogra) has not yet announced the gas price causing the delay in payments.

After promulgation of the Tight Gas Exploration Policy 2011, the Polish company was given the right of incentives. The policy says that 40% premium will be given over the zonal price of Petroleum Policy 2009 and an additional 10% premium will be offered on the gas that is brought into production within two years of announcement of the policy.

According to Express Tribune, PGNiG has been producing 10 mmcfd since June 25 this year in a bid to determine the size of the reserves. After that, it will be able to place the commercial discovery before the government for approval.

The director general gas has requested Ogra to announce a provisional price for the tight gas. However, in a letter to the DG gas, Ogra has sought a sample of calculating the price.

“Owing to lack of quorum, Ogra is currently dysfunctional, hence the case of Polish gas company for setting a provisional gas price shall be determined after induction of member gas which will complete the quorum,” a source quoted Ogra as saying in its reply.

Sign-up for our free weekly newsletter update via email here