Local coal beats expectations with output of 21.15 million tonnes
Pakistan has failed to achieve the oil. gas production targets set for financial year 2025-26, where the fuel sector demonstrated a mixed performance in meeting its output and infrastructure goals.
According to the Annual Plan 2026-27. the indigenous crude oil production reached 23.85 million barrels against expectations of 25.18 million barrels, accounting for 95% of the annual target.
Natural gas production stood at 1.07 trillion cubic feet (tcf) against the target of 1.16 tcf. reflecting the continued depletion of mature gas fields. Local liquefied petroleum gas (LPG) production performed better than expected. touching 0.767 million tonnes against the target of 0.567 million tonnes.
Indigenous coal production exceeded expectations as it hit 21.147 million tonnes against the target of 20.47 million tonnes. representing 103% of the estimate.
Pakistan planned to import 6.5 million tonnes of liquefied natural gas (LNG) during FY 2025-26. However, only 5.26 million tonnes were estimated to be procured by June 2026 owing to the Middle East conflict. In contrast, LPG imports reached 1.5 million tonnes compared to the target of 1.05 million tonnes to supplement domestic supply. Exploration and drilling activity remained below target during the year under review. A total of 36 wells, including 12 exploratory. 24 development wells, were drilled compared to the target of 87 wells.
Despite lower drilling activity, 17 hydrocarbon discoveries were reported, comprising one oil discovery and 16 gas/condensate discoveries. Additionally, 16 prospecting licences were granted to exploration and production (E&P) companies.
On the infrastructure side, Sui Northern Gas Pipelines Limited (SNGPL). Sui Southern Gas Company Limited (SSGCL) collectively added 383,220 new consumers against the target of 429,220. Both companies met the goal of laying 3,707 km of transmission and distribution pipelines.
The Petroleum Division implemented one ongoing Public Sector Development Programme (PSDP)-funded project, namely the Expansion. Up-gradation of Pakistan Petroleum Corehouse (PETCORE), with an allocation of Rs245 million for sustainable operations to facilitate oil and gas exploration research.
The private sector continued to play a major role in making investments. During the year, E&P companies contributed investments of Rs446,082 million while the LPG sector made investments of Rs100 million.
In FY 2026-27, Pakistan's fuel sector strategy is focused on strengthening indigenous energy production, reducing import dependence. enhancing overall energy infrastructure resilience.
The sector has set ambitious production targets across key resources including crude oil (25.38 million barrels), natural gas (1.29 tcf), LPG (0.75 million tonnes). coal (24.53 million tonnes). It also plans to import 5.56 million tonnes of LNG. 1.55 million tonnes of LPG to meet fuel requirements of the country.
Alongside supply augmentation, the government is prioritising distribution network expansion through SNGPL. SSGCL, targeting 609,740 new gas connections and 2,560 km of additional pipeline infrastructure.
Strategic initiatives such as the TAPI Gas Pipeline Project are also being advanced to enhance long-term energy security. storage capacity. Furthermore, PSDP-funded projects have been proposed for FY27 to improve geological data, stimulate exploration activity. unlock the untapped hydrocarbon potential in frontier regions, thereby supporting a more secure and self-reliant energy future.
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