ISLAMABAD -  Baluchistan produces 17 percent of the total natural gas in the country; however, the province consumed only 2 percent natural gas during 2015-16, according to the Oil and Gas Regulatory Authority (Ogra) report.

The gas consumption in all the provinces have increased during the year 2015-16; however, it was decreased in Baluchistan where the gas consumption was reduced by 4 mmcfd from 55 mmcfd in 2014-15 to 51 mmcfd in 2015-16, said the Ogra report on the State of the Regulatory Petroleum Industry 2015-16.

In Punjab, the consumption increased from 1035 mmcfd in 2014-15 to 1154 mmcfd in 2015-16, Sindh consumption from 1139 mmcfd to 1256 mmcfd while KP consumption increased from 241 mmcfd to 266 mmcfd, the report maintained. The report said that Sindh and Punjab are the biggest gas consumers with 46 percent and 42 percent share respectively, followed by Khyber Pakhtunkhwa and Baluchistan using 10 percent and 2 percent gas, respectively.

About the province-wise gas production and consumption during FY 2015-16 in SNGPL and SSGC Systems, the report said that Sindh produces 63 percent of the natural gas, Baluchistan 17 percent, KP 7 percent, Punjab 3 percent while 7 percent is LNG import, the report said. On average, during the last 5 years, more than 324,534 consumers are connected to gas network in 2015-16 out of which about 255,736 consumers were in Punjab.

It is projected that in face of ever increasing demand for gas, Pakistan will face an increasing deficit in gas supply. Since the increase in demand of natural gas will amplify further in the next few years therefore the government has initiated various measures to bridge the gap between demand and supply which includes incentivising indigenous exploration, import of natural gas in the form of Liquefied Natural Gas and import through development of Cross Country Gas Pipelines, the report maintained.

Regarding LPG, the report said that the size of LPG market during the period under review was 1,115,130 MT/annum, mainly consumed by domestic, commercial and industrial sectors with respective shares of 38 percent, 37 percent and 25 percent, respectively. The total supply of LPG during FY 2015-16 was 1,022,367 tonnes, accounted for about 0.5 percent of the total primary energy supplies in the country. Around 64 percent of the LPG consumed is met with local production in Pakistan, whereas the rest is imported.

Regading LNG, the report said that injection of additional volume of RLNG in the national grid shall mitigate the natural gas shortfall. Pakistan produces around 4,000 mmcfd (4 bcfd) of indigenous natural gas against demand of over 6,000 mmcfd (6bcfd). Regarding the oil consumption, the report said that the consumption of petroleum products registered a moderate growth rate of 5.2 percent (23.7 million tons) during FY 2015-16 compared to previous year’s growth of 5.1 percent (22.6 million tons).

The consumption of Motor Spirit (MS) in transport sector witnessed a growth of around 22 percent during period under review. This may be attributed to lower prices and increased demand of generators. Similarly, Pakistan State Oil (PSO) remained the lead player in total energy products supply to the consumers with 56 percent market share. In 2014-15 PSO share was 57 percent; however, PSO lost around 1 percent of its total market share to other players and lost five percent of its share in Motor Spirit (MS) sale which was reduced from 47 percent last year to 42 percent during the year.

Similarly, PSO supplied about half of total High Speed Diesel (HSD) sales during 2015-16; however, its market share was reduced to 48 percent from the early 50 percent last year. Furnace Oil (FO) was mainly supplied by the PSO and its market share was increased to 71 percent from 67 percent last year. Total production by the refineries during 2015-16 was 11.31 million tons compared to previous year’s 11.43 million tons. This year’s production fell to 1 percent from 3.5 percent last year.