Pakistan Provides Tight Gas Incentives

Pakistan has approved a new tight gas exploration policy with improved incentives as compared with its 2009 policy, to overcome the country's gas shortfall and attract foreign investment, a petroleum ministry official said Wednesday.

Under the new policy, exploration companies will be offered 40-50% higher prices for the gas compared with the $4.26/Btu price announced in Exploration and Production Policy 20, which even after giving such incentives the cost of local gas would be cheaper than imported gas.

Source: Platts