- OGRA granted 179 LPG licences, boosting investment, infrastructure and employment nationwide in FY25
Global natural gas demand continued to expand through the 2024/25 heating season, with growth primarily driven through Europe and North America. In 2025, growth in global gas demand is forecast to slow to around 1.5 percent. Asia’s natural gas demand is forecast to expand by just over 2 percent, showing a significant slowdown compared with 2024, when the region’s demand grew by 5.5 percent. Still, Asia is expected to remain the largest contributor to global demand growth, accounting for around one-third of incremental gas demand in this year.
| Pakistan: Gas Consumption (MMCFD) | ||||||
|---|---|---|---|---|---|---|
| Sector | July-March FY 2024 | July-March FY 2025 | ||||
| Gas Consumption | RLNG | Total | Gas Consumption | RLNG | Total | |
| Power | 461 | 433 | 894 | 477 | 496 | 973 |
| Domestic | 863 | 1 | 864 | 776 | 1 | 777 |
| Commercial | 43 | 6 | 49 | 33 | 5 | 38 |
| Transport (CNG) | 58 | 3 | 61 | 47 | 8 | 55 |
| Fertilizer | 721 | 43 | 764 | 690 | 74 | 764 |
| General Industry | 366 | 209 | 575 | 322 | 214 | 536 |
| Total | 2,512 | 695 | 3,207 | 2,345 | 798 | 3,143 |
No doubt, natural gas is a clean, safe, efficient and environmentally friendly fuel. In the developing countries like Pakistan, its indigenous supplies contribute about 29.3 percent (FY 2024) to the total primary energy supply mix. Our country has an extensive gas network of over 14,276 km Transmission, 162,031 km Mains and 41,577 km service gas pipelines to cater to the requirements of greater than 10.7 million consumers across the country.
The Government of Pakistan is pursuing its strategies for improving indigenous gas production also imported gas to meet the increasing demand for energy in Pakistan. Presently, the capacity of two FRSU to Re-gasified Liquefied Natural Gas (RLNG) is 1,200 million Cubic Feet per day (MMCFD), and accordingly, RLNG is being imported to mitigate the gas demand-supply shortfall. The average natural gas consumption was about 3,143 mmcfd, including 798 mmcfd volume of RLNG during July-March FY 2025.
During this period, 13,591 additional gas connections, counting 11,755 domestic, 1,786 commercial and 50 industrial, were provided in Pakistan. The maximum gas consumption is from the power sector, domestic, and fertilizers, with 973 mmcfd, 777 mmcfd, and 764 mmcfd, respectively. During the same period, two Gas utility companies (SNGPL & SSGCL) laid 1,221 Km Mains and 65 Km service lines and connected 84 villages/towns to gas network. In pursuance of the Oil & Gas Regulatory Authority (OGRA) Ordinance 2002, the objective of OGRA is to foster competition, increase private investment and ownership in the midstream and downstream petroleum industry, protect the public interest while respecting individual rights and provide effective and efficient regulations.
The Government of Pakistan recorded that LPG plays an important role in the energy mix of the country as it offers a cleaner alternative to biomass-based sources, mainly in locations where natural gas is not available. The total supply of LPG during July-March FY 2025 was 2,100,000 M. tons (approximately). Presently there are 11 LPG producers and 351 LPG marketing companies operating in Pakistan having almost 6000 authorized distributors. It is also recorded that OGRA has simplified the procedure for grant of LPG license and the same is granted on fast-track basis once the requirements are met/complied. During July-March FY 2025, 29 licenses for the operation of LPG Storage & Filling Plants, 100 licenses for construction of LPG Storage & Filling plants and 47 licenses for road bowsers for the transportation of LPG were issued.
In addition, OGRA has also issued 03 licenses for storage and refuelling of LPG/ Auto Refueling Stations and 17 licenses for the construction of LPG Auto Refueling Stations. Because of augmented investment and future expansion plans of the LPG marketing companies, significant investment in LPG supply and distribution infrastructure has been witnessed. OGRA has made a noteworthy contribution to national economic progress and created an environment for additional investment, which will not only result in the creation of infrastructure in the LPG sector all over the country but will also offer career opportunities for hundreds of unemployed people.
OGRA is playing its vital regulatory role to increase private investment in the midstream and downstream petroleum industry. Statistics showed that during July-March 2025, an investment of approximately Rs 10.8 billion has been made in LPG infrastructure. To date, 02 LNG terminals are operational with OGRA, licenses granted in 2016 and 2018 to M/s Engro Elengy Terminal Limited (EETL) and M/s Pakistan GasPort Consortium Limited (PGPCL), respectively. For the development of new LNG terminals, the government of Pakistan mentioned that OGRA has granted construction licenses to three private sector companies, Energas Terminal Private Limited (ETPL), Tabeer Energy (Private) Limited (TEPL) and Global Energy Infrastructure Pakistan Limited (GEIP). OGRA has granted four Provisional Licenses for virtual pipeline projects to facilitate completing formalities required for the application of a construction/ installation licence.
Moreover, M/s LNG Easy (Private) Limited has been granted a construction license for a duration of 02 years to develop the project. Statistics also showed that gas utility companies have planned to invest Rs 1,777 million on transmission projects, Rs 58,183 million on distribution projects and Rs 6,285 million on other projects, bringing the total investment of Rs 66,245 million during FY 2026. Different sources presently record that to address the shortfall in domestic gas supplies, Pakistan plans to import 7.5 million tons 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 km of transmission and distribution pipelines during the year.
Efforts will also be made to explore 14.8 million tons of local coal to reduce reliance on imports and lower the import bill. In line with these objectives, the Petroleum Division has prioritised major initiatives, counting the expansion of the Village Gasification project, which will extend gas access to 81 villages near gas fields through the installation of 2,770 km of new pipelines.