Pakistan’s indigenous gas reserves are expected to halve by fiscal year 2026-27, placing significant strain on the country’s energy supply, according to a report by Sui Southern Gas Company (SSGC).
SSGC warned that the replacement fuel i.e. imported RLNG, is becoming increasingly expensive and difficult to procure under current scenarios.
With declining natural gas production necessitating reliance on import channels, SSGC underscored the urgent need for prudent utilization of available gas volumes. The company has proposed a synthetic gas substitute from Thar Coal, a domestic resource with immense potential.
Thar Coal has the capacity to generate 100,000 MW of electricity for over two centuries, according to SSGC. The company’s subsidiary, SSGC Alternate ENERGY (AE), has been actively promoting the establishment of coal to gas (C2G) plants through collaborations with local and foreign firms, facilitated by multiple Memorandums of Understanding (MoUs).
However, the transition to renewable energy sources is not without its challenges. SSGC said approximately $2 billion is required for a coal gasification plant to produce 100 MMSCFD of synthetic natural gas (SNG).
It further suggested tapping into other energy sources like cow dung, municipal solid waste, and energy crops. With a potential production capacity exceeding 200 MMSCFD, biogas presents a promising avenue for reducing RLNG imports and enhancing energy self-sufficiency.