International experts recorded that natural gas has a wide range of applications across sectors, counting power generation, heating, and high-temperature industrial processes, as well as being a feedstock in, for example, the petrochemical and fertiliser industry. It is expected to play a pivotal role in the energy transition by balancing renewables-based power generation until energy-storage technologies are deployed at scale.
Statistics showed that global gas demand is projected to grow past 2030 in all scenarios, with a total projected growth of between 10 and 15 per cent. Even in faster decarbonisation scenarios, growth is expected until 2030-40. After 2035, demand is projected to diverge significantly, with 2050 gas demand projected to grow by between 15 and 30 per cent in the slower scenarios but to decline by up to 20 per cent in the faster scenarios. Regionally, gas demand could vary significantly in different geographies due to differences in the uptake of technology, local policy, and geopolitical factors, among many others.
| Natural Gas Consumption (July-March FY2023, MMCFD) | |||
|---|---|---|---|
| Sector | Gas Consumption | RLNG | Total |
| Power | 600 | 399 | 999 |
| Domestic | 906 | 1 | 907 |
| Commercial | 54 | 6 | 60 |
| Transport (CNG) | 60 | 2 | 62 |
| Cement | 3 | 0 | 3 |
| Fertilizer | 635 | 52 | 687 |
| General Industry | 369 | 171 | 540 |
| Total | 2,627 | 631 | 3,258 |
Furthermore, overall, Asia is expected to account for the largest growth in gas demand, with North America accounting for some growth in the medium term, driven by coal-to-gas switching in Asia and growing demand in the ASEAN, Chinese, and US power sectors. In Europe, gas demand is expected to steadily decline to 2050 in line with net-zero commitments. In contrast, the Middle East, North America, and Russia are projected to remain the main sources of gas supply, accounting for approximately 70 to 80 per cent of global supply across scenarios. As a consequence, traded gas in the form of LNG is expected to play a key role in bridging the gap between geographically disconnected supply and demand.
According to the Government of Pakistan Natural Gas’s indigenous supplies contribute about 29.3 per cent (FY2021) of the Pakistan’s total primary energy supply mix. Our country has an extensive gas network of over 13,775 Km Transmission, 157,395 Km Mains, and 41,352 Km Services gas pipelines to cater to the requirement of more than 10.7 million consumers in Pakistan. The government has been pursuing its strategies for improving indigenous gap production and imported gas to meet the increasing energy demand in Pakistan.
Presently, the capacity of two FRSUs to RLNG is 1,200 MMCFD. Accordingly, RLNG is being imported to mitigate the gas demand-supply shortfall. During July-March FY2023, the average natural gas consumption was approximately 3,258 MMCFD, counting 631 MMCFD volume of RLNG. During the same period, the two Gas utility companies (SNGPL and SSGCL) laid a 225 Km gas transmission network, 1,170 Km Mains, and 63 Km service lines and connected 92 villages/towns to the gas network. Furthermore, 7,102 additional gas connections (including 5,068 domestic, 1,948 Commercial, and 86 Industrial) were provided nationwide.
Statistics showed that natural gas is expected to supply almost 520,801 new consumers during FY2024. In addition, gas utility companies planned to invest Rs38,674 million in transmission projects, Rs47,700 million in distribution projects, and Rs9,416 million in other projects bringing the total investment to Rs95,790 million during FY2024.
Natural gas scarcity presently is a major issue that impacts both industries and citizens of Karachi, the largest and economic center of the country.
Karachi has experienced a constant gas supply disruption, which has presented many difficulties for its citizens and businesses. Natural gas shortages are a common occurrence in Karachi because of the city’s vastly greater demand than supply, mainly during busy seasons or severe weather. With its population and businesses growing, Karachi’s gas infrastructure cannot keep up with the city’s increasing demand. The distribution system is antiquated and frequently fails to provide homes and businesses with gas in an effective manner. The issue has been made worse through corruption and poor management in the gas distribution industry, with unauthorized connections, metro manipulation, and inefficient distribution all playing a part in the overall deficit. Pakistan’s energy industry has a number of challenges, counting reliance on foreign fuels, a lack of investment in renewable energy, and inefficiencies in the production and delivery of energy. These issues all have an indirect impact on Karachi’s natural gas supply.
In Karachi natural gas shortage is a serious problem that needs to be addressed right away and calls for cooperation from stakeholders, regulators, and legislators. This problem involves a combination of improvements, techniques for demand-side management, diversification of energy sources, and alters to regulations. Through addressing the gas shortage and putting long-term solutions into place, Karachi can ease population pressure, encourage industrial growth, and clear the way for the construction of a more reliable and sustainable energy infrastructure. Sources recorded that natural gas is a main operational necessity for Karachi’s industrial sector, which is negatively impacted through disruptions and rising production costs that lower overall productivity and competitiveness.