Islamabad, September 22, 2024 – In a significant move to harness Pakistan’s indigenous energy resources, the Oil and Gas Development Company Limited (OGDCL) has signed a Memorandum of Understanding (MoU) with China’s CCDC to explore shale and tight gas reserves in Pakistan.
The MoU was formalized during the 8th Silk Road International Expo for investment and trade forum, held in Xi’an, Shaanxi province, China.
The signing ceremony was witnessed by Pakistan’s Federal Minister for Petroleum, Dr. Musadik Malik, highlighting the importance of the agreement in the context of Pakistan’s ongoing efforts to address its growing energy needs. The partnership between OGDCL and CCDC is aimed at tapping into Pakistan’s vast but underdeveloped shale and tight gas reserves, which could play a crucial role in alleviating the country’s energy crisis.
“This MoU underscores the commitment of both Pakistan and China to further develop Pakistan’s shale and tight gas potential, an essential step toward reducing our reliance on imported energy and enhancing our energy security through local resources,” stated Minister Musadik Malik at the event.
The exploration of shale and tight gas, unconventional energy sources that require advanced extraction techniques, has the potential to significantly boost Pakistan’s domestic energy production. According to industry experts, Pakistan’s untapped shale and tight gas reserves hold immense promise, but require the right technical expertise and investment for successful exploration and development.
China’s CCDC, with its extensive experience in shale gas exploration and drilling technologies, is well-positioned to assist Pakistan in unlocking these resources. The partnership will focus on leveraging CCDC’s expertise in hydraulic fracturing and horizontal drilling to tap into Pakistan’s unexplored reserves.
Minister Musadik Malik thanked the Chinese government and CCDC for their continued support and collaboration in the energy sector. “We are grateful to China for hosting Pakistan as the Country of Honor at this prestigious forum. The cooperation between OGDCL and CCDC will undoubtedly open up new opportunities and strengthen ties between our countries in all areas of the energy sector,” he added.
The MoU is expected to pave the way for future investments in energy infrastructure and exploration activities. It represents a strategic step forward in Pakistan’s pursuit of energy independence and diversification, helping the nation meet its growing demand for gas while reducing its dependence on imported fuels.
The exploration and development of shale and tight gas will not only contribute to Pakistan’s energy security but also stimulate economic growth by creating jobs and fostering technological innovation. As this new chapter unfolds, both countries look forward to deepening their collaboration in the energy sector for the mutual benefit of their economies.
