Islamabad, December 5, 2025 – State-owned Oil & Gas Development Company Limited (OGDCL) is set to sharply expand its unconventional gas programme from early 2026, with Managing Director Ahmed Hayat Lak confirming a tripling of the tight-gas study area and an accelerated shale pilot that could add hundreds of millions of cubic feet of daily production.
The ambitious push aims to unlock Pakistan’s vast tight and shale gas potential in Sindh and Balochistan, easing the country’s heavy dependence on costly imported LNG and strengthening energy security.
Pakistan’s state-run Oil & Gas Development Company (OGDC) is planning a major expansion of unconventional gas developments from early next year, aiming to boost production and reduce reliance on imported liquefied natural gas.
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Key Highlights
Tight-gas study area expanded to 4,500 square kilometres after fresh seismic data showed larger-than-expected reservoirs.
Phase-two technical evaluation to wrap up by January 2026, paving the way for full development plans.
Shale pilot upgraded from one test well to five–six wells in 2026–27, targeting 34 mmcfd per well initially.
Successful shale development could eventually deliver 600 mmcfd to 1 bcfd of new supply.
OGDCL open to international partners on a reciprocal basis and plans first deep-water offshore well in Q4 2026.
Next five-year corporate plan described as “drastically different” with unconventional gas at its core.
A Strategic Boost for Domestic Energy
Speaking to Reuters, Lak said early results across multiple reservoirs are “significant,” giving confidence to scale up quickly. “We started with 85 wells, but the footprint has expanded massively,” he noted.
The renewed drive follows years of slow progress on tight and shale resources, despite favourable geology highlighted in international studies. OGDCL now sees real commercial promise – especially as Pakistan works to replace expensive LNG imports and ease pressure on the external account.
While current gas surplus from weak demand and rigid LNG contracts has forced temporary production curbs, Lak made clear the long-term outlook remains tight. Unlocking domestic unconventional resources, he stressed, is the most reliable path forward.
With offshore exploration also advancing – including a new block award involving Turkey’s TPAO – Pakistan is steadily building a more self-reliant energy future. The coming year will be pivotal as drilling results start flowing in and partnerships take shape.
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