Govt should revise tight gas policy

The government should revise its tight gas policy to nudge energy companies towards exploring natural gas that’s obtained from reservoir rocks with low permeability using advanced technology. Addressing a seminar organised by CFA Society Pakistan on Tuesday, energy sector expert Muhammad Asim Subhani said each well that’s dug for tight gas must get a third-party certification in order to receive formal price confirmation from the government. “There’s been a success (in finding tight gas). But companies are reluctant to invest because once they explore, produce (and) flare their gas, they still have to spend years in getting the price confirmed from the authorities,” said Mr Subhani who serves as director of new business and subsurface at Prime Pakistan Ltd, an exploration and production firm that formerly operated as Eni Pakistan. At least one company is currently producing tight gas, even though the country is estimated to have reserves of 100 trillion cubic feet.