Mari Energies Limited has awarded a gas supply contract from its Spinwam gas discovery in the Waziristan Block, Khyber Pakhtunkhwa, to Universal Gas Distribution Company (Pvt) Ltd (UGDC) following the successful completion of a competitive bidding process under Pakistan's third-party gas allocation framework.

Mari Energies, the operator of the Waziristan Block with a 55% working interest, is partnered by Oil and Gas Development Company Limited (OGDC), which holds 35%, and Orient Petroleum, which owns the remaining 10% stake.

In a notification submitted to the Pakistan Stock Exchange (PSX), Mari Energies announced that it has issued a Letter of Award to UGDC for the sale of up to 17.5 million standard cubic feet per day (mmscfd) of natural gas from the Spinwam discovery. The agreement remains subject to regulatory approvals under the government's Framework for Sale of Gas to Third Parties.

The bidding process attracted strong market interest, with around 50 companies reportedly submitting bids. The development reflects growing private sector participation following the federal government's decision to allow exploration companies to allocate up to 35% of gas production to third-party buyers through competitive bidding, replacing the previous limit of 10%.

The revised policy is intended to improve the cash flow of exploration and production companies, encourage investment in new exploration projects and help address gas curtailment issues that have affected the energy sector in recent years. Industry participants believe the framework will also contribute to reducing circular debt by enabling producers to market a larger share of their gas directly to private consumers.

Pakistan's gas sector continues to face circular debt exceeding Rs1.5 trillion, while previous supply curtailments had adversely affected production of natural gas, crude oil and liquefied petroleum gas (LPG). The implementation of third-party gas sales is expected to improve operational efficiency, strengthen investment in upstream exploration and support a more competitive domestic gas market.