DefinePK

Abstract

Pakistan's petroleum sector is characterized by the upstream exploration and production of natural gas. Natural gas has been a significant energy source in the country for many decades, accounting for approximately half of the country's energy requirements. Until 2015, all supplies came from indigenous reserves, and natural gas was highly subsidized for consumers from households and the manufacturing industry, making it relatively lower-priced than oil-based fuels and LPG. The demand for natural gas has increased significantly over the past two decades, whereas domestic gas reserves are unable to meet the growing demand. This rising demand is attributed to the introduction of captive power generation in the domestic industry, the increasing use of gas for cooking and heating in residential areas, and the adoption of CNG in the transportation sector.