Pakistan’s energy sector has long been grappling with the dwindling reserves of Sui gas, a resource that has been a cornerstone of the nation’s energy supply for decades. However, the recent discovery of new oil and gas reserves has provided a much-needed lifeline to the country’s energy infrastructure. These newly found reserves have extended the lifespan of Pakistan’s oil and gas resources by an estimated one to ten and seventeen years, respectively.

Over the past six months, significant strides have been made in exploring and uncovering these reserves, marking a breakthrough after nearly two decades of stagnation in major discoveries. One of the most noteworthy finds occurred in the Sanghar district of Sindh, where a substantial oil and gas reserve was discovered. According to the Oil and Gas Development Company Limited (OGDCL), this site is expected to yield 388 barrels of crude oil per day and 6.8 million cubic feet of gas daily. The drilling of the Baloch well-2, which commenced in February 2024, has been a critical component of this success.

Additionally, on 29 July 2024, a Hungarian company, MOL, announced the discovery of oil and gas reserves in Khyber Pakhtunkhwa. This discovery is projected to reduce the country’s import bill by an impressive $59.85 million, highlighting the potential economic benefits of such exploration efforts. Another significant discovery was made by Mari Petroleum in the Latifabad area of Khairpur district, further contributing to the nation’s growing energy reserves.

Energy sector analysts estimate that these new discoveries will result in an increase of 50 million barrels in crude oil production and a net addition of 364 billion cubic feet to the country’s gas reserves. Despite these promising developments, Pakistan’s daily gas consumption remains at 6.5 billion cubic feet, while the current daily production stands at 3.3 billion cubic feet. Experts have pointed out that the existing crude oil reserves currently meet 70% of the country’s diesel needs and 30% of its petrol requirements, with the remainder being fulfilled through imports.

The available data suggests that Pakistan’s oil reserves have increased from 193 million barrels to 243 million barrels, and its gas reserves have risen to 18.10 trillion cubic feet. These figures indicate that Pakistan is not lacking in resources; rather, it is the effective utilization of these resources that remains a challenge.

The recent discoveries in Sanghar and Khairpur, combined with the vast coal reserves in Thar and the potential for solar energy, present an opportunity for Pakistan to significantly reduce its dependence on imported petroleum products. By capitalising on these resources, the country can save billions of dollars annually, which are currently spent on energy imports. The path forward lies in harnessing these discoveries and integrating them into a comprehensive energy strategy that prioritises self-sufficiency and sustainable development.

GULAB UMID,

Turbat.