ISLAMABAD – In Pakistan, in addition to water crisis, a severe gas crisis is also on the horizon.
The gas crisis can be attributed to poor vision of Musharraf government which decided to promote CNG stations for short term gains and the unfortunate geopolitical environments in the region that have restrained implementation of TAPI and Iran Pakistan Pipeline.
The policy of burning gas as cheap fuel has led to a situation, where the sectors adding value to the natural gas with no substitute raw material will suffer and have ultimate negative impact on economy and food security.
The demand and supply situation of gas has been changed from affluence to deficiency and after 2006 the country has entered into the deficiency phase. The natural gas proven reserves of Pakistan at the end of 2012 were 22.7 trillion cubic feet (0.6 trillion cubic meters) with reserve to production ratio is 15.511 (R/P ratio).
This ratio shows that the reserve would last for approximately 16 years more, if they are used at current rate of production. Pakistan’s domestic natural gas reserves are declining. If current gas scenario prevails, Pakistan would bear gas shortfall of 8 bcfd by the year 2025-26.
Although Pakistan has been blessed with natural gas reserves, “Sui Gas”, the largest natural gas field located at Sui, Balochistan but years of mismanagement, lack of strategic vision, limited investments in energy sector and inadequate exploration of these gas reserves have led to shortage of natural gas in Pakistan.
This prime energy source is to be distributed among five critical sectors i.e. households, commercial, industry, power, transport. While all others burn this precious commodity, the fertilizer manufacturing is based on processing the natural gas into Ammonia and then Urea, thereby adding value to it.