Tight gas from Kirthar block to be added to SSGC network – Alfalah Securities Limited

Karachi, November 14, 2012 (PPI-OT): Pakistan Petroleum Ltd. (PPL), Sui Southern Gas Company Ltd. (SSGC) and Polskie Gornictwo Naftowe i Gazownictwo (PGNIG) have signed Gas Sales Purchase Agreement (GSPA) to add 30 mmcfd tight gas from Kirthar Block in Sindh in SSGC’s system.

According to Alfalah Securities Limited, PPL holds 30% working interest in the Kirthar with Polish company as the operator of this block. The gas would be sold at USD 6 per mmbtu and the production would start in May 2013. SSGC would lay a 52km pipeline at an estimated cost of PKR 325 million from the Suleman Range to Nooriabad industrial estate. The additional gas from Kirthar Block is likely to contribute an annual incremental EPS impact of PKR 0.65 to PPL’s profitability in the next year.

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