Islamabad: A new avenue of cooperation has opened up between local and Chinese companies in Pakistan’s gas and energy sector. Pakistan’s Shaheen Energy Private Limited and China’s Anton Oilfield Services Group have signed a memorandum of understanding to explore joint opportunities in gas and upstream energy projects.
The cooperation between the two companies will explore the possibility of investing around Rs 20 billion over the next 3 to 5 years. The proposed projects include gas sales, production expansion, field development, gas processing and energy infrastructure projects.
The importance of this collaboration has also increased as the government has made changes to the Petroleum Exploration and Production Policy 2012. Under the new scope, exploration and production companies can sell up to 35 percent of their pipeline-quality gas to licensed third-party buyers through a competitive process. This move could increase the chances of bringing gas reserves to the market that are not being fully exploited due to low pressure or limited infrastructure.
Shaheen Energy has experience in local gas processing and operations. The company is operating a gas processing facility in Sindh’s Sindh’s Sindh province. The plant has a design capacity of 10 million standard cubic feet per day, while about 8 to 10 mmscfd of gas is currently being processed.
According to the company, the plant uses advanced membrane technology to remove carbon dioxide from low-pressure gas and convert it to pipeline-grade gas. The process can help bring underutilized gas into economic activity and reduce gas wastage.
Chinese company Anton Oilfield Services Group provides a range of services to the oil and gas sector, including drilling, well completion, reservoir assessment, production enhancement and field management. The company operates in more than 30 countries and regions.
A key aspect of the proposed partnership is the focus on making low-pressure and inactive gas usable. If these projects prove commercially viable, they could help increase domestic gas production and reduce pressure on imported energy.
Pakistan is already looking for foreign investment and advanced technology to meet its energy needs and increase domestic production. This year, the government also expressed interest in collaborating with the Chinese company Shandong Xinshu Group on various energy projects, including oil and gas production, drilling and field optimization.
However, it would be more accurate to consider the current proposal of Rs 20 billion as a stage of exploring potential projects rather than a final investment. The real economic impact will come after the approval, financing, commercial feasibility and practical implementation of the projects.
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