Pakistan aims to increase its refining capacity by 15% by 2027 through various plant upgrade projects, as outlined in the Oil Refining Policy 2023 and the Annual Plan for fiscal year 2025-26.
The country’s energy sector is undergoing transformative efforts to address energy security, affordability, and sustainability. The Integrated Energy Planning Initiative, led by the Ministry of Planning and Development, aims to reshape the energy landscape through data-driven decision-making and policy formulation.
The country has set targets for crude oil and natural gas production at 24.24 million barrels and 1.24 trillion cubic feet (tcf), respectively, for FY26. Additionally, the target for local liquefied petroleum gas (LPG) supply has been set at 0.75 million tonnes.
To address the shortfall in domestic gas supplies, Pakistan plans to import 7.5 million tonnes of liquefied natural gas (LNG). Gas transmission and distribution companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), aim to add 116,270 new consumers and 2,770 kilometers of transmission and distribution pipelines during the year.
Efforts will also be made to explore 14.8 million tonnes of local coal to reduce reliance on imports and lower the import bill. In line with these objectives, the Petroleum Division has prioritised key initiatives, including the expansion of the Village Gasification project, which will extend gas access to 81 villages near gas fields through the installation of 2,770 kilometers of new pipelines.
In FY25, crude oil production reached 23.55 million barrels, falling short of the target of 26.55 million barrels, while natural gas production was 1.08 tcf, below the target of 1.21 tcf. Local LPG supply also missed its target, reaching 0.73 million tonnes instead of the targeted 0.79 million tonnes. The country drilled 35 wells in FY25, well below the target of 67 wells.
To bridge the gas demand-supply gap, Pakistan is expected to import 7 million tonnes of LNG by June 2025, short of the target of 8.85 million tonnes, due to failures in supply agreements with international suppliers.
SNGPL and SSGC together added 20,061 new consumers in FY24-25, far behind the target of 68,990. They also added 2,254 kilometers of pipelines, against a target of 3,274 kilometers.
The Petroleum Division’s ongoing projects include the expansion of Pakistan Petroleum Corehouse and the Strategic Underground Gas Storage project. A budget of Rs2,541 million has been allocated for these initiatives, which aim to ensure sustainable operations and facilitate oil and gas exploration.
