Report by Engineering Post
Pakistan’s fuel sector was playing a critical role in achieving energy security in line with 5Es i.e. Exports, Equity, E-Pakistan, Energy and Environment and URAAN Pakistan. Natural gas accounts for 35 percent of the country’s energy supplies. In order to reduce the country’s reliance on meeting its energy requirements on imported fuels, which currently accounts for meeting 30 percent of gas and addressing infrastructure gaps, the Petroleum Division of the Federal Government has prioritized three key initiatives for the financial year 2025-26.
These key initiatives included Village Gasification and Refinery Up gradation.
The Village Gasification project as such will expand access to 81 villages near gas fields through laying of 2770 kilometers of new pipelines by the Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipeline (SNGPL) in their respective regions.
As regards Refinery Upgrades, under the Pakistan Oil Refinery Policy 2023, this initiative seeks to increase refining capacity by 15 percent by 2027.
Oil & Gas Performance-wise, during the financial year 2024-25, the production of 23.55 million barrels of crude oil was achieved against a target of 26.55 million barrels. The domestic production of natural gas was 1.08 trillion cubic feet (TCF) against a target of 1.21 TCF. The local LPG supply stood at 0.73 million tons against a target of 0.79 million tons.
A total of 35 wells, including 14 exploratory and 21 development were drilled against a target of 67 wells (27 exploratory and 40 development).
Coal: A target of 15.4 million tons was set for local coal exploration, with 13.82 million tons achieved, representing a 90 percent success.
LNG Import: In order to meet the gas supply demand, during the period under review here against the targeted import of 8.85 million tons of Liquefied Natural Gas, 7.0 million tons was estimated to have been procured by end June 2025. According to the official sources, the target could not be achieved due to non-supply of LNG from the international suppliers as per contractual agreement.
During the last financial year, SNGPL and SSGPL collectively added 20061 new consumers of all categories against the target of 68990.
Moreover, both the Sui Companies also added 2254 km transmission and distribution pipelines against a target of 3274 kms.
