There was a time when natural gas was available in such abundance in our country that little attention was paid to its efficient use. Households and industries enjoyed a relatively uninterrupted supply, and the need to utilise this precious resource carefully was rarely appreciated. Today, however, the situation has changed considerably as indigenous gas reserves continue to decline, forcing the country to restrict supplies and increasingly rely on imported fuel.
The latest decision by Sui Southern Gas Company (SSGC) to provide gas to domestic consumers only during breakfast, lunch and dinner hours reflects seriousness of the situation. According to company’s managing director, Pakistan’s gas production has declined by around 50 per cent over the past decade. SSGC’s available gas supply has fallen to approximately 605 million cubic feet per day from 695mmcfd last year. We have also failed to discover sufficient new reserves to replace depleting fields. Consequently, the country has increasingly turned towards imported liquefied natural gas to bridge widening gap between demand and supply. Dependence on imported fuel exposes economy to international price fluctuations and geopolitical disruptions, as recent difficulties in LNG supplies have demonstrated. We must therefore rethink our energy strategy. While conservation and efficient utilisation of existing resources are essential, greater attention must be given to exploring new oil and gas reserves. Exploration and production companies should be encouraged through investor-friendly policies, attractive incentives, transparent licensing and a stable regulatory framework. There is considerable potential to improve domestic production if exploration receives attention and investment it deserves. Reducing dependence on imported fuel will not only ease pressure on foreign exchange reserves but also improve long-term energy security. Pakistan can no longer afford to neglect its indigenous resources. Conservation, coupled with sustained exploration, is essential to securing country’s energy future.
