Pakistan’s persistent natural gas shortage has emerged as a critical bottleneck, impeding economic growth and affecting the lives of millions. The confluence of factors, including dwindling domestic production, inefficient utilization, and the burden of subsidies, has exacerbated the crisis. Unfortunately, providing precise and up-to-date figures for Pakistan’s total gas production, consumption, and sectoral distribution is challenging due to several reasons: data variability, discrepancies, and real-time challenges.
While estimates suggest approximately 4 billion cubic feet per day (bcfd) of production and a consumption ranging from 6 to 8 bcfd, indicating a significant supply-demand gap, these figures should be considered approximations. Industrial, domestic, power, and fertilizer sectors consume roughly 20-25%, 20-25%, 30-35%, and 15-20% of the total gas, respectively. Accurate and up-to-date data on these aspects is crucial for effective policymaking, resource allocation, and investment decisions.
The number of domestic gas consumers has surged from 10.3 million to over 10.7 million nationwide, yet a significant portion of households still lacks access to natural gas for cooking.
Distribution losses for Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL) stand at approximately 18.28% and 12.32%, respectively. These figures far exceed the industry standard of 2-3% for line losses, representing the unaccounted-for gas within the distribution system.
The country’s reliance on imported Liquified Natural Gas (LNG) to meet a quarter of its demand underscores the fragility of its energy supply chain. While the government’s subsidy to the fertilizer sector, aimed at boosting agricultural output, is understandable, it has drained public coffers and distorted the market. The fertilizer industry, a major gas consumer, operates with antiquated technology, leading to significant energy wastage. This not only amplifies the gas shortage but also contributes to environmental concerns. The knock-on effects are far-reaching, with higher fertilizer prices impacting farmers and, consequently, food prices.
Industries from textiles to steel have borne the brunt of gas curtailments. Production cuts, delays, and escalating costs have eroded competitiveness. The ripple effects extend to the broader economy as dependent industries face disruptions. The willingness of these sectors to procure gas at international rates highlights the desperate need for a reliable supply.
The recent gas leakage in a feeder line supplying Sui Southern Gas Company (SSGC) has exacerbated the situation, leading to supply disruptions in Sindh and Balochistan. While the company is undertaking repair work, it highlights the vulnerability of the gas infrastructure.
The gas transmission company, in a alert on Facebook, said that a Gambat GPF IV feeder line was found to have a leakage due to which the system is experiencing a gas shortage of 38mmcfd.
The alert added that a team of Pakistan Petroleum Limited (PPL) has begun pipeline repair which is expected to be completed within 20 hours.
“Due to this reason, some areas in Sindh and Balochistan will face low gas pressure. Inconvenience is regretted,” said the SSGC.
According to The News, the SSGC last week said it was implementing a gas pipeline augmentation and expansion plan in Karachi and adjoining areas to ensure enhanced gas pressures and supplies.
The SSGC recently commissioned two projects — a pipeline project from Sheedi Goth to Future Colony and a pipeline from Azeempura to Jam Sadiq Ali Bridge.
The introduction of a tiered pricing system for domestic consumers has sparked controversy. While intended to promote efficiency, the lack of transparency and the differential impact on consumers have ignited public discontent. The exclusion of a significant portion of households from the gas grid underscores the need for a comprehensive approach to energy access.
Addressing the gas crisis necessitates a multi-pronged strategy. Eliminating gas subsidies, as recommended by the State Bank of Pakistan, can create a level playing field and encourage private sector investment in LNG. While this may lead to short-term challenges, it is essential for long-term sustainability. Investing in gas infrastructure, reducing distribution losses, and promoting energy efficiency are critical steps. The government must also expedite the transition to cleaner and more efficient cooking fuels for households. Diversification of the energy mix through renewable sources can help alleviate pressure on the gas sector. Additionally, exploring regional gas cooperation can provide alternative supply options.
Pakistan’s gas crisis is a complex issue demanding decisive action. By implementing a combination of market-based reforms, infrastructure investments, and energy efficiency measures, the government can mitigate the impact of the shortage, support industrial growth, and improve the lives of its citizens. A sustainable and equitable energy future is within reach, but it requires a concerted effort and a long-term vision.
The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance
