OGDCL, ISGS agree to collaborate for development of SUGS project

Source: Brecorder

ISLAMABAD: The Oil and Gas Development Company Limited (OGDCL) and Inter State Gas Systems (Private) Limited (ISGS) have agreed to collaborate for the development of the Strategic Underground Gas Storage (SUGS) Project to address the challenge of surplus gas management in the country.

Subject to technical and commercial feasibility, the project involved the development of withdrawal wells, compressors, and connecting pipelines and the construction of storage facilities capable of accommodating up to 15 billion cubic feet (BCF) of gas, equivalent to five cargos, sufficient for a period of two months

A memorandum of understanding (MoU) was signed between the OGDCL and the ISGS, on Thursday, at the OGDCL House.

The parties will evaluate potential opportunities in developing SUGS at OGDCL fields to enhance the country’s energy infrastructure and ensure efficient utilization of gas resources.

The SUGS Project is a critical initiative designed to establish storage facilities for surplus gas, particularly during off-peak seasons when demand is low relative to supply in the Pakistani market. Through the SUGS Project, the OGDCL and the ISGS aim to mitigate these challenges by creating storage capacity and facilitating gas-swapping arrangements with other stakeholders in the industry on a commercial basis.