LAHORE - The Mehar Gas Development Project in the interior Sindh has come on stream.

According to the reliable sources, the formal inauguration of the plant shall shortly be taking place.

The development owned by OMV and constructed by SPEC Energy DMCC has the capacity to cater for 30 MMCFD of sales gas and 3300 BPD of Condensate. Production and sale of condensate has already started from the facilities.

The OMV had acquired Mehar Exploration License and Development and Production Lease as part of the acquisition of the entire share capital of Petronas Carigali (Pakistan) Ltd (renamed after acquisition to OMV Maurice Energy Limited) in July 2011. The Mehar development included the drilling of one additional production well, completion of three production wells, and the construction of a central gas and condensate processing plant in Mehar.

Gas will be exported via a 60 km pipeline to the SSGCL network; condensate will be sold to the PARCO refinery. Stabilized condensate will be trucked to Karachi until completion of a condensate pipeline which is currently in the final planning phase. OMV’s joint venture partners in Mehar are GHPL (25pc), OPL (11.8pc) and ZPCL (4pc).

The new discovery’s proximity to the Mehar field provides the opportunity of using the Mehar gas and condensate plant for processing. The Mehar field development is in its mechanical completion phase; production start-up is expected in Q4/13.

It will provide the opportunity to utilize the Mehar gas plant for processing of Sofiya gas and condensate, which should enable cost-effective and accelerated development of this new discovery. This discovery adds value to the Petronas acquisition in 2011, which is an important part of growth strategy of the government of Pakistan.