Strategic Underground Gas Storages (SUGS)

A Feasibility Study on the development of Underground Gas Storages (Project) in Pakistan was conducted by the Consultant (SOFREGAZ France) on the directions of MOE-PD, which was funded by Asian Development Bank in 2007. The Consultant studied 107 fields all over Pakistan and recommended conversion of Khorewah and Bukhari gas fields in Badin, Sindh to gas storage reservoir.

The said feasibility study has been updated by ADB appointed Consultant, who submitted the Final Feasibility Report on 29th April 2022, recommending Khorewah gas field as most suitable field for conversion into underground gas storage. In addition to Khorewah, Bukhari and Turk fields have also been shortlisted being in the same area and similar geological conditions.

Gas Field: Khorewah

Storage Capacity: 188 Bcf (including cushion gas) 

Peak withdrawal Capacity: 792 MMcfd

Injection Capacity: 396 MMcfd

  • The Planning commission (CDWP) of Pakistan has approved the PC-II, to conduct bankable feasibility study and transaction advisory services.
  • ADB on December 2021 approved Technical Assistance Program for updating the feasibility study to a bankable level, preparation of legal regulatory framework and financial and economic due diligence.
  • MOE –PD approved TORs for the Consultant which broadly cover the evaluation of comparative analysis of above ground and underground gas storage, propose suitable policy, legal, and regulatory frameworks on gas storages, prepare a (bankable) project information memorandum (PIM) for the Project and develop the recommended transactional model and financing structure for the selected Project.
  • ADB has issued RFPs to the shortlisted firms on 6th January, 2023 while the revised study is planned to be completed by March 2024.