KARACHI�Pakistan state company Sui Southern Gas Co. has signed another gas purchase deal with Pakistan Petroleum Ltd. (PPL), also a state firm. An informal agreement provides for the offtake of up to 15 MMcfd from PPL's Hassan gas field in the upper Sindh area, said an official of SSGC.
"We have inked an informal gas purchase agreement with PPL which facilitates the early development of newly discovered Hassan field in the Block 22," said the official.
Though the details are yet to be settled, the agreement would enable PPL to continue smoothly its developmental work at Hassan field so that gas production could begin soon, he said. About 10-15 MMcfd of gas could be fed into the SSGC grids from Hassan field, he said.
"Yes, we have reached an understanding with SSGC to sell our Hassan gas to the utility," confirmed a PPL official. But the official put the gas volume at 14-20 MMcfd.
PPL discovered Hassan field on Block 22 in April 1999. The block covers an area between Shikarpur, Sukkur, and Jacobabad, Pakistan.
PPL holds 45% of the field, Petroleum Exploration Ltd. (PEL) 30%, and Pyramid Resources Ltd. 20%. The government of Pakistan owns a 5% stake but can increase its interest to 25%.
Sources told OGJ Online that initial gas production from the Hassan field is not voluminous, but its availability to the SSGC system is encouraging. Lately, SSGC has allocated gas quotas to 29 industrial units that would utilize almost the same quantity of gas as Hassan produces. SSGC is looking for increased supplies to the industries.
Of late, its gas sale-purchase agreements have been characterized by controversy over the price of gas between the government and the gas producing companies. This controversy has caused delays in the development of a group of newly discovered fields that hold an estimated 8 tcf of gas.
