Pakistan faces a looming challenge in its gas reserves, with projections indicating a significant reduction by fiscal year 2026-27, as highlighted by Sui Southern Gas Company (SSGC) in its recent report. The company warns of a potential halving of current production levels, necessitating proactive measures to address the impending shortfall.
SSGC underscores the escalating costs of imported RLNG (Regasified Liquefied Natural Gas) as a replacement for indigenous gas, exacerbated by challenges in availability. This situation underscores the urgent need for efficient management of existing gas resources.
In response to the dwindling natural gas production, SSGC advocates for diversifying the energy mix, citing synthetic gas derived from Thar Coal as a viable alternative. Thar Coal, boasting the world’s 7th largest reserves, offers a substantial opportunity to generate synthetic gas, potentially mitigating the reliance on costly imports.
SSGC’s subsidiary, SSGC Alternate ENERGY (AE), is actively promoting investment in coal to gas (C2G) plants through various Memoranda of Understanding (MoUs), aiming to harness Thar Coal’s potential for gasification.
However, the transition to alternative energy sources necessitates substantial capital investment. SSGC estimates that $2 billion is required for the construction of a coal gasification plant producing 100 MMSCFD (Million Standard Cubic Feet per Day) of Synthetic Natural Gas (SNG).
In addition to Thar Coal, SSGC identifies the significant potential of biogas production in Pakistan, emphasizing the utilization of untapped renewable energy sources such as animal dung, municipal solid waste, and energy crops. The company asserts that even a modest initial biogas production of 10 MMSCFD has the potential to significantly reduce LNG import costs, offering a sustainable solution to Pakistan’s energy needs.
As Pakistan grapples with the challenge of declining gas reserves, SSGC advocates for a strategic shift towards diversified energy sources, leveraging indigenous resources like Thar Coal and renewable energy options such as biogas production to ensure energy security and mitigate import dependence.
