Pakistan misses oil, gas production targets as drilling falls short in FY26

Pakistan fell short of its crude oil and natural gas production targets during the financial year 2025-26, while domestic liquefied petroleum gas and coal output exceeded annual estimates, according to the Annual Plan 2026-27.

Indigenous crude oil production reached 23.85 million barrels, or 95% of the annual target of 25.18 million barrels. Natural gas production stood at 1.07 trillion cubic feet against the target of 1.16 trillion cubic feet as output from mature gas fields continued to decline.

Domestic LNG production, however, rose to 0.767 million tonnes, surpassing the target of 0.567 million tonnes. Indigenous coal production also exceeded expectations, reaching 21.147 million tonnes against the target of 20.47 million tonnes, achieving 103% of the estimate.

Pakistan had planned to import 6.5 million tonnes of liquefied natural gas during FY26, but procurement was estimated at 5.26 million tonnes by June 2026 due to the Middle East conflict.

Liquefied petroleum gas imports, meanwhile, increased to 1.5 million tonnes against the target of 1.05 million tonnes to supplement domestic supplies.

Exploration and drilling activity remained substantially below target. Exploration and production companies drilled 36 wells, including 12 exploratory and 24 development wells, compared with the annual target of 87 wells.

Despite the lower drilling activity, 17 hydrocarbon discoveries were reported during the year. These included one oil discovery and 16 gas or condensate discoveries. The government also granted 16 prospecting licences to exploration and production companies.

Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited collectively added 383,220 consumers against the target of 429,220. The two gas utilities, however, achieved their combined target of laying 3,707 kilometres of transmission and distribution pipelines.

The Petroleum Division continued work on one project funded through the Public Sector Development Programme. An allocation of Rs245 million was made for the expansion and upgradation of Pakistan Petroleum Corehouse to support oil and gas exploration research and maintain its operations.

Exploration and production companies invested Rs446.082 billion during the year, while investment in the liquefied petroleum gas sector stood at Rs100 million.

For FY27, the government has set production targets of 25.38 million barrels of crude oil, 1.29 trillion cubic feet of natural gas, 0.75 million tonnes of liquefied petroleum gas and 24.53 million tonnes of coal.

It also plans to import 5.56 million tonnes of liquefied natural gas and 1.55 million tonnes of liquefied petroleum gas to meet domestic fuel requirements.

Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited have been assigned a combined target of providing 609,740 new gas connections and laying another 2,560 kilometres of pipelines during FY27.

The government also plans to advance the Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline Project and undertake Public Sector Development Programme projects aimed at improving geological data, encouraging exploration and identifying hydrocarbon resources in frontier regions.