Pakistan is blessed to be rich in natural resources of oil and gas and has the capacity to become self-sufficient in energy. Geographical location of Pakistan makes it the ‘regional gateway’ for energy. Since the independence, Pakistan industry has seen phenomenal growth in oil and gas sector by making large indigenous discoveries. Pakistan mainly depends upon Oil and Gas for energy generation. Pakistan meets about 15% of its oil demands from local sources. The Sui gas field (Baluchistan) discovered in 1952 is currently the biggest natural gas field in Pakistan. It accounts for 26% of Pakistan’s gas production.
The Pakistan economy relies heavily on natural gas which meets 49% of its overall needs. Natural gas accounts for 37.68% of the total energy supply, 27.5% of total natural gas is consumed in the power sector while fertilizers, industries, transport and domestic sectors also need natural gas. Pakistan is also looking for pipelines with Turkmenistan-Afghanistan-Pakistan-India (TAPI) and Iran-Pakistan (IP). The Government is contemplating an LNG (liquefied natural gas) terminal at Gwadar and in talks with Qatar, Iran and PETRONAS (Malaysia) for the purposes of LNG import.
Pakistan produces about 100,000 barrels of oil per day. Current contribution of oil and gas sector to the National Exchequer is approximately Rs 230 billion per annum. New petroleum policy 2007 is investment friendly in the region by, predictability and transparency in award of blocks and later on its development and production. New policy has been aimed to offer better pricing terms for oil and gas. In the oil and gas sector, the Oil and Gas Development Corporation (OGDC) is the biggest public-sector corporation which produces about half of Pakistan’s oil and one-third of its gas. Pakistan’s economic salvation lies in finding another Sui or an oil bonanza and in using shale technology.
Author: Faeza Khan