U.S. Energy Information Administration - EIA - Independent Statistics and Analysis
Country Analysis Note
- Pakistan's economy has continued to struggle with underemployment, slow economic growth, and high inflation. Expensive energy sources, circular debt, and insufficient transmission and distribution systems have caused a major energy crisis. According to the Asian Development Bank, prolonged power shortages have cut GDP by about 2%. Pakistan’s government has indicated that addressing the energy crisis is a top priority.
- Pakistan is a net importer of crude oil and refined products, which accounted for 31% of Pakistan’s primary energy supply in 2012, according to a report by the Sustainable Development Policy Institute. Crude oil and other liquids production in Pakistan has fluctuated between 55,000 and 70,000 barrels per day (bbl/d) since the 1990s. In 2013, the country produced 64,000 bbl/d. Oil consumption has grown over time and averaged 437,000 bbl/d in 2013. Pakistan currently has six oil refineries, running mostly on imported crude oil, and a total crude oil distillation capacity of 186,000 bbl/d.
- The Oil and Gas Development Company Limited (OGDCL) dominates Pakistan's oil industry. The Pakistani government owns a majority share in OGDCL, with the remainder owned by the public. BP and Eni are the leading foreign oil firms operating in Pakistan.
- Natural gas accounted for 49% of Pakistan’s primary energy supply in 2012. Dry natural gas production has grown by more than 80% over the past decade, from 809 billion cubic feet (Bcf) in 2002 to 1,462 Bcf in 2012. However, according to a report by the Pakistan government, Pakistan faced a natural gas shortfall of 912 Bcf in 2013. Pakistan’s domestic natural gas reserves are declining, and Pakistan currently lacks the infrastructure to import more gas. Pakistan holds sizeable shale gas reserves of 105 trillion cubic feet, according to the according to EIA's 2013 report Technically Recoverable Shale Oil and Shale Gas Resources from 2013, and the Pakistani government has provided investment incentives for shale gas development. However, companies face many challenges to develop such resources because of complex geography, environmental constraints, and low natural gas prices in Pakistan.
- Pakistan's main natural gas producers include Pakistan Petroleum Ltd. (PPL) and OGDCL, as well as international companies such as BP, ENI, OMV, and BHP. The leading gas distributors are Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines (SNGP).
- Electricity net generation increased from 69 billion kilowatthours (kWh) in 2001 to 90 billion kWh in 2011. However, according to the Pakistani government, available capacity was only 85% of installed capacity in 2012, and utilization rates for power plants were less than 60%. As a result, according to the latest International Energy Agency estimates, less than 70% of the Pakistani population had access to electricity in 2013.
- The electricity industry faces problems with power generation theft, insufficient collection rates, line losses, high natural gas subsidies, the high cost of furnace oil used in place of natural gas, and insufficient natural gas supply. These problems have resulted in the poor financial position of generation companies and power shortages. Load-shedding, the temporary shut-down of electric lines when demand is greater than supply, has at times lasted for 12 to 16 hours.
- According to the Pakistani government, in 2013 Pakistan produced 36% of its electricity from oil, 29% from natural gas, 29% from hydroelectricity, and 5% from nuclear. Recently, Pakistan achieved the funding necessary to complete construction of a 1-gigawatt hydroelectric generation project.
- The Pakistani government has proposed plans to increase domestic production and exploration of hydrocarbons, increase natural gas imports, diversify the installed capacity mix of electricity generation, improve domestic energy efficiency standards, phase out natural gas subsidies, and resolve the circular debt issue in the energy industry.
- The Pakistani government supports the construction of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) and Iran-Pakistan (IP) natural gas pipelines. The TAPI pipeline has the multilateral agreements and financial support necessary to move forward. However, both the TAPI and IP pipelines face serious geopolitical and security concerns and the construction of each is uncertain.
- In July 2014, the Pakistani government approved the construction of three LNG terminals. According to Platts, the construction of these three terminals will allow Pakistan to import, store, and regasify up to 620 Bcf of LNG by 2018. The first LNG terminal is scheduled to be completed in December 2014.
Analysis Last Updated: August 2014
Overview data for Pakistan+ EXPAND ALL
-- = Not applicable; NA = Not available; E = Estimate value
Sources: EIA. For more detailed data, see International Energy Statistics.
Data last updated: May 30, 2013
Related International Information
International Energy Outlook yearly energy projections through 2040
Short Term Energy Outlook monthly energy projections through 2014
Annual Energy Outlook yearly US energy projections through 2040
Other International Information
International Energy Agency statistics
United Nations energy statistics
World Bank energy and mining data
International Monetary Fund data and statistics
Eurostat European statisticsSign Up for Email Updates