Pakistan, Chinese Firms Eye Rs. 20 Billion Gas Sector Investment
Pakistan's Shaheen Energy and China's Anton Oilfield Services Group are exploring investments of approximately Rs. 20 billion in Pakistan's gas and upstream energy sector over the next three to five years, marking a significant step in bilateral energy cooperation.
The two companies signed a memorandum of understanding (MoU) to identify commercially viable projects, with potential areas of collaboration including third-party gas sales, upstream development, field expansion, production enhancement, gas processing, and energy infrastructure.
The proposed cooperation follows recent amendments to the Petroleum (Exploration and Production) Policy 2012, which now permit exploration and production companies to sell up to 35 percent of their pipeline quality gas to licensed third-party buyers through a competitive process. This regulatory shift has opened new avenues for private sector participation in Pakistan's energy market.
Under the agreement, Shaheen Energy will contribute its local operations and gas processing expertise, while Anton will provide oilfield technology and capabilities in upstream development. Shaheen currently operates a gas processing facility at the Sinjhoro field with a designed capacity of 10 million standard cubic feet per day. The facility employs membrane technology to process low-pressure permeate gas, remove carbon dioxide, and upgrade the gas to pipeline quality.
The facility is presently processing around 8 to 10 million standard cubic feet per day, helping monetize previously underutilized gas while reducing flaring. Shaheen is also collaborating with exploration and production companies on processing, transporting, and selling natural and flare gas to third-party buyers under the emerging regulatory framework.
Anton Oilfield Services Group operates across more than 30 countries and regions, providing services including drilling and completion, reservoir engineering, production enhancement, field management, and energy resource commercialization. The proposed partnership is expected to focus on stranded and low-pressure gas resources, gas monetization, field development, and technology-based production enhancement, contributing to Pakistan's efforts to optimize its domestic energy resources and reduce reliance on imports.