{
  "id": 4813884,
  "title": "Pakistan’s Domestic Gas Production to Halve by 2034",
  "url": "https://urgent.news/2026/09/01/pakistans-domestic-gas-production-to-halve-by-2034",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-09-01T07:08:54.000Z",
  "source": {
    "name": "ProPakistani",
    "slug": "propakistani",
    "url": "https://propakistani.pk/2026/09/01/pakistans-domestic-gas-production-to-halve-by-2034/"
  },
  "original_language": "en",
  "account": "Pakistan's gas sector is grappling with declining domestic production, weak LNG demand and liquidity issues, as highlighted in a new study by Pakistan's Credit Rating Agency (PACRA). Production is expected to decrease from 2,634 million cubic feet per day in fiscal year 2024 to 1,266 million cubic feet per day in 2034, reducing domestic gas's share in total supply from 73 percent to 25 percent over the same period. This shift would heighten the sector's dependence on imported energy. Despite proposed structural reforms aimed at boosting long-term efficiency, financial problems are unlikely to be resolved in the near term. LNG imports have dwindled from around 6 million tonnes to approximately 3.7 million tonnes in the first nine months of fiscal year 2026 due to a shift towards alternative energy sources. This decline in demand, even as domestic production declines, highlights the volatility of the sector. The financial stability of two major gas distribution companies, Sui Northern Gas Pipelines Ltd. and Sui Southern Gas Company Ltd., remains a significant concern, with their liquidity under pressure due to delays in tariff adjustments, weak recoveries and rising working capital needs. The LPG market, however, shows a more favorable outlook, with local production increasing by 15.5 percent in fiscal year 2026 and imports declining by 12 percent year-over-year. Despite this, Pakistan will continue to heavily rely on imported LPG, with the government targeting around 1.6 million tonnes for fiscal year 2027. The government, supported by the World Bank, is contemplating a significant restructuring of SNGPL and SSGCL, with the aim of separating transmission and distribution operations, creating a National Gas Transmission Company and four provincial distribution companies, and implementing a new tariff mechanism. This reform could address the sector's Rs. 3.4 trillion circular debt by improving cost transparency and reducing unaccounted for gas losses. However, the benefits may take time to materialize, and resistance from existing companies and delays in implementation could hinder progress.",
  "summary": "Pakistan’s gas sector is facing growing financial and supply pressures as domestic gas production continues to decline, LNG demand remains … Read More The post Pakistan’s Domestic Gas Production to Halve by 2034 appeared first on ProPakistani .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}