Mari Energies Signs Historic Private Gas Sale Deal in Pakistan

Mari Energies has made history in Pakistan's energy sector by signing the country's first private gas sale deal under the Petroleum Policy 2012. The company awarded up to 17.5 million cubic feet per day (MMCFD) of natural gas from its Spinwam discovery in North Waziristan to Universal Gas Distribution Company Limited (UGDCL), a leading private gas distributor.

The deal marks a significant milestone for Pakistan's emerging private gas market, with UGDCL set to increase its portfolio to nearly 60 MMCFD. The company already supplies over 40 MMCFD of natural gas to industrial consumers and will now become the country's largest private gas distributor upon completion of the transaction.

The bidding process attracted around four dozen companies, including non-licensed entities, with UGDCL emerging as the successful bidder following a competitive bidding process. The winning bid was reportedly offered at a premium over the Petroleum Policy 2012 gas price of $6.86 per MMBtu, with the delivered price expected to range between $10 and $10.50 per MMBtu after transportation charges.

Mari Energies operates the Spinwam Gas Discovery and holds a 55% working interest in the Waziristan Block, while its joint venture partners include Oil and Gas Development Company Limited (OGDCL) with a 35% stake and Orient Petroleum Inc. with the remaining 10%.