July-March of FY2025: Significant cut in crude oil, gas extraction recorded

ISLAMABAD: A significant decrease in domestic crude oil and natural gas extraction has been recorded during the first nine months (July-March) of the current fiscal year 2025, according to the recently released Pakistan Economic Survey 2024-25.

The crude oil extraction dropped by 14.8 percent, while natural gas production declined by 6.8 percent on year to year basis. “With no significant new discoveries, the country relied heavily on Re-gasified LNG (RLNG), imports to meet domestic demand, especially for the power and industrial sectors,” the survey stated.

From July to March in current fiscal, the average natural gas consumption stood at approximately 3,143 million cubic feet per day (mmcfd). Around 798 mmcfd of this volume was RLNG, indicating a substantial portion of the supply is imported. Whereas, during the same period in fiscal year 2024, total gas consumption was slightly higher at 3,207 MMCFD, with RLNG accounting for a smaller share at 695 MMCFD.

Petroleum product imports fell 6.3 percent to USD 5.0 billion (USD 5.3 billion last year), reflecting demand management. LNG imports dropped 10.3 percent to USD 2.9 billion (USD 3.3 billion last year) due to higher prices.

The power sector has remained the primary consumer of RLNG during the first nine months of the current fiscal year, using of 496 mmcfd, an increase from the 433 mmcfd consumed in the same period last fiscal year. Domestic consumption of RLNG remained minimal at just 1 mmcfd. The fertilizer sector significantly increased its RLNG usage, from 43 mmcfd in the last fiscal year to 74 mmcfd in the current fiscal year

To date, two LNG terminals are operational with the Ogra, licenses granted in 2016 and 2018 to EngroElengy Terminal Limited (EETL) and Pakistan GasPort Consortium Limited (PGPCL), respectively. For the development of new LNG terminals, the 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).

Crude oil extraction has declined by 6.8 percent from 866.30 barrel in fiscal year 2024 to 807.30 barrel in first nine months of 2024-25.

Crude oil imports, however, registered a slight decline. Globally, crude oil fell by 4 percent from USD 90.1 per barrel in April 2024 to USD 67.7 in April 2025. Crude oil registered an 8.8 percent increase in volume, while the value remained almost flat at USD 4.11 billion, owing to softening crude prices in the global market.

Copyright Business Recorder, 2025