PGNiG, Sui Southern Gas Company Ink Tight Gas Deal

Polish Oil and Gas Company (PGNiG) and Sui Southern Gas Company (SSGC) on Tuesday signed a gas sale and purchase agreement, aimed at supplying 30 million cubic feet per day (mmcfd) of tight gas to SSGC from Kirthar block located in Dadu district of Sindh.

Tight gas production from the Kirthar block, jointly owned by the Polish firm and state-owned Pakistan Petroleum Limited (PPL), will start in May next year, the Pakistani newspaper Express Tribune reported. Initially, two wells will produce tight gas, with output of 15 mmcfd each. More well have been planned for the future. 

The price of the gas will be $6 per million British thermal units (mmbtu) – 40% higher than the current gas price.

The Polish firm and PPL will provide gas to SSGC, which will then supply to the industrial sector using a 46km pipeline. The firm has invested $40 million in exploration of tight gas from the Kirthar block.