Pakistan’s gas reserves are dwindling at an alarming rate, with projections suggesting a halving by the year 2027, according to a statement from the Sui Southern Gas Company (SSGC). The company has highlighted the rapid consumption of natural gas, emphasizing the urgent need to transition to imported RLNG (Regasified Liquefied Natural Gas) from local gas sources.
The SSGC is actively exploring alternative sources of gas production, including biogas, nitrogen production, and gas extraction from coal. However, the challenges of meeting the country’s growing gas demands loom large.
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In response to the impending gas shortage, Pakistan’s caretaker cabinet has approved the continuation of work on the Pak-Iran gas pipeline. However, concerns raised by the United States, stemming from international restrictions on Iran, have complicated the project’s progress.
Earlier measures, such as the increase in gas tariffs across Pakistan, aimed to meet the conditions set by the International Monetary Fund (IMF). The tariff adjustments, which include a significant hike for non-protected consumers, reflect the government’s efforts to address the impending energy crisis.
Exploring Alternative Solutions
SSGC’s report underscores the urgent need for diversifying energy sources to mitigate the impending gas crisis. With indigenous gas reserves projected to decline rapidly, the focus shifts to alternative options such as synthetic gas production from Thar Coal.
Thar Coal, boasting the world’s 7th largest reserves, presents a viable opportunity to generate electricity and produce synthetic natural gas (SNG). SSGC’s initiatives to encourage investment in coal-to-gas plants through partnerships with local and foreign firms signal a proactive approach to energy sustainability.
In addition to coal-based solutions, SSGC is exploring the potential of renewable energy sources to supplement gas production. The abundant availability of biogas resources in Pakistan, including animal dung, municipal waste, and energy crops, presents a promising avenue for reducing reliance on RLNG imports.
Commercial-scale biogas production, even at modest initial levels, holds the potential to significantly offset LNG import costs. SSGC’s emphasis on leveraging untapped renewable energy sources underscores the importance of a multi-faceted approach to addressing Pakistan’s energy needs.
Amidst growing concerns over depleting gas reserves and increasing demand, strategic investments in alternative energy sources and infrastructure upgrades are imperative to navigate Pakistan through the impending gas crisis.