Oil & Gas Sector

Pakistan’s oil and gas sector contributes significantly to the economy, there is a need for continued investment, technological advancement, and policy reforms to ensure sustainable development and energy security. The oil and gas sector is crucial to the country’s economy, providing energy for various sectors and contributing to government revenue.

Pakistan has modest reserves of oil and natural gas. The exploration and production activities are primarily carried out by both local and international oil and gas companies. Significant exploration efforts are ongoing to discover new reserves and enhance production from existing fields.

Despite domestic production, Pakistan relies heavily on imported oil and gas to meet its energy needs. Crude oil, petroleum products, and liquefied natural gas (LNG) are major imports. The country has been increasing LNG imports to bridge the gap between supply and demand. Pakistan has been investing in LNG infrastructure and import terminals to diversify its sources of natural gas supply. LNG terminals have been established, and long-term supply contracts have been signed with various countries to ensure a steady supply of gas.

Pakistan has several oil refineries, both public and private, which process crude oil into various petroleum products such as gasoline, diesel, jet fuel, and liquefied petroleum gas (LPG). Refining capacity has been expanded in recent years to meet growing demand. The country has an extensive network of pipelines, storage facilities, and distribution infrastructure for transporting and delivering oil and gas across the country. Efforts are ongoing to modernize and expand this infrastructure to improve efficiency and reliability.

The oil and gas sector in Pakistan is governed by various policies, regulations, and licensing regimes. The government has been working on reforms to attract investment, improve the business environment, and enhance transparency in the sector. The oil and gas sector in Pakistan faces several challenges, including security concerns in certain regions, aging infrastructure, technical constraints, and policy uncertainties. Additionally, the sector is susceptible to global market dynamics, including fluctuations in oil prices and geopolitical factors.

There is increasing awareness and focus on addressing environmental issues associated with the oil and gas sector, including air and water pollution, greenhouse gas emissions, and climate change mitigation. Efforts are being made to promote cleaner energy sources and improve environmental regulations.