Pakistan Discovers Major Gas Reserves in North Waziristan, Securing 17 Years of Supply
KARACHI: Pakistan has unveiled significant gas reserves, estimated at 351.2 billion cubic feet (BCF), in the Shewa fields of North Waziristan. This find is expected to sustain gas production for 17 years, with plans to inject 70 million cubic feet per day (mmcfd) from the Shewa-2 well into the national grid. This development is anticipated to increase the country’s daily gas output by over 3%, markedly reducing reliance on expensive fuel imports and saving substantial amounts in foreign exchange.
The 2024 Annual Report by Mari Petroleum indicates that the company is set to deliver 70mmcfd of gas from Shewa-2 through a new pipeline constructed by Sui Northern Gas Pipeline Limited (SNGPL). Analyst Sunny Kumar from Topline Research noted that hydrotesting of the pipeline is currently underway.
The project, which faced initial delays due to security concerns, saw the pipeline completed in August 2024. Gas injection into the grid will commence after the Early Production Facilities (EPF) are operational and a gradual ramp-up is completed. Mari Petroleum’s report highlights that this new development will boost domestic gas supply by over 3%, expand production capacity, and enhance the company’s portfolio, leading to significant revenue growth.
As of June 2024, Shewa’s gas reserves are reported at 351.2 BCF, with a production lifespan of about 14 years at the rate of 70mmcfd. Following this announcement, Mari Petroleum’s share price increased by 1.93%, closing at Rs3,510.73 on the Pakistan Stock Exchange (PSX), with a trading volume of 125,759 shares. Mari Petroleum holds a 55% stake in the Waziristan Block, while Oil and Gas Development Company (OGDC) and Orient Petroleum Inc (OPI) own 35% and 10% interests, respectively. The projected annual impact on Mari Petroleum’s shares is estimated at Rs60-65 (11-12% of annual earnings for FY25), with OGDC’s shares expected to rise by Rs1.2, based on oil and gas price assumptions of $80 per barrel and $5.9-6.0 per mmbtu (million British thermal units).
