In an alarming development, Sui Southern Gas Company (SSGC) has revealed that Pakistan’s indigenous gas reserves are projected to reduce to half of current production by fiscal year 2026-27.
“Replacement for indigenous gas is imported RLNG, which is getting expensive by the day whereas under current scenarios availability of RLNG is also a challenge,” SSGC noted.
The gas supply company highlighted the dwindling production of natural gas, necessitating reliance on import channels, which is impeded by a sharp increase in LNG prices. “This situation calls for judicious use of available gas reserves,” the company emphasized.
An economical alternative to natural gas is synthetic gas derived from Thar Coal gasification. Thar boasts the world’s 7th largest coal reserves, estimated at 175 billion tons, sufficient to generate 100,000 MW of electricity for over two centuries, according to SSGC.
“SSGC Alternate ENERGY (AE) is actively encouraging local and foreign entities to establish coal-to-gas (C2G) plants through multiple Memorandums of Understanding (MoUs),” the company stated.
“To set up a coal gasification plant producing 100 MMSCFD of SNG, an investment of $2 billion is required,” the company specified in its report.
SSGC also highlighted Pakistan’s significant potential for biogas production, exceeding 200 MMSCFD, which could reduce RLNG imports by tapping into renewable energy sources such as animal dung, municipal solid waste, energy crops, and slaughterhouse waste.
“Even with an initial potential of 10 MMSCFD, commercial-scale biogas has the capability to replace LNG imports, saving $40 – $48 million annually,” SSGC concluded.
