Gas Production in Pakistan Declines by 6% During Last Fiscal Year

The production of indigenous gas has declined by over 6 percent to 2,006 MMCFD in 2020-21 from 2,138 MMCFD during 2019-20, whereas during the same period, its consumption has increased by over 5 percent, reaching 3,884 MMCFD from 3,683 MMCFD.

However, despite the reduction in indigenous gas production, gas utility companies expanded their transmission and distribution networks to cater to the demand of their new consumers.

Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) have extended their transmission network by 37 km and 17 km, respectively, during FY 2020-21. Similarly, SNGPL extended its distribution network by 7,141 km and SSGCL by 929 km during the same period, said OGRA’s State of the Regulated Petroleum Industry report 2020-21.

The country has a huge network of 13,768 km of transmission and 191,478 km of distribution gas pipelines providing natural gas to domestic, industrial, commercial, and transport sectors.

Addition of new consumers:

SNGPL has connected 371,618 new consumers during FY 2020-21, reaching 7.41 million total consumers on its network. Whereas, SSGCL has added 95,436 new connections making a total of 3.21 million consumers on its network. Overall, there were 10.62 million natural gas consumers in the country by the end of the financial year 2020-21.

Natural gas supply during the year was 4,172 MMCFD compared to 4,050 MMCFD last year. Out of total gas supplies, 1,153 MMCFD, as against 1,057 MMCFD last year, was supplied by the gas fields/producers directly to their consumers and the remaining through gas utility companies.

Province-wise gas share:

Sindh’s share in total gas supply has declined by 11 percent from 1,344 MMCFD in FY 2019-20 to 1,192 MMCFD in FY 2020-21, Punjab’s share declined by 9 percent from 91 MMCFD to 83 MMCFD and Baluchistan by 1 percent from 335 MMCFD to 333 MMCFD. Whereas, the share of KP has increased by 8 percent from 368 MMCFD to 398 MMCFD during the same period. In overall gas supplies, the share of Sindh has declined from 45 to 40 percent, KP from 13 to 12 percent, whereas the share of Balochistan and Punjab remain steady at 11 and 3 percent, respectively.

Sector-wise supply of gas:

The main consumer of natural gas was the power sector, consuming over 30 percent (1,305 MMCFD), followed by the domestic sector with 20 percent (862 MMCFD), fertilizer with 19 percent (829 MMCFD), General Industry with 8 percent (365 MMCFD) and captive power 5 percent (203 MMCFD) of the total gas consumed during FY 2020-21. In Province-wise gas consumption, Punjab’s share was 52 percent (1,426 MMCFD), Sindh 39 percent (1,052 MMCFD), KP 7 percent (190 MMCFD) and Balochistan 2 percent (64 MMCFD) of total gas consumption during the year under review.