The consumption of natural gas has increased from only 1.3 MTOE in 1965 to 31.2 MTOE in 2019. The intensified use of natural gas has led to a widening gap between supply and demand. With no large discoveries in recent years, Pakistan’s gas production has started declining, thus, increasing its dependence on imports. We do have potential gas resources but exploration activities are weak. In the downstream, there are inefficiencies in the supply chain. Both the gas companies SNGPL and SSGC are facing cash flow issues. There are issues in the gas pricing mechanism. There is an urgent need for improvement in the two gas distribution companies.
Insights from Research on Pakistan’s Economy
October 7, 2024
