Key Points
- Discovery made during exploratory drilling in KP province
- The state-owned explorer confirms the presence of gas through initial testing
- Pakistan faces a persistent gap between gas demand and domestic output
- New finds seen as critical to slowing import dependence
ISLAMABAD: Pakistan has reported a new gas discovery in northwestern Khyber Pakhtunkhwa province, offering a modest but timely addition to domestic energy supplies amid consumption outpacing local production, and increasing reliance on imported fuel.
According to a statement issued by Pakistan Petroleum Limited (PPL), the country’s state-owned exploration and production company, the discovery was made following successful drilling and initial testing at an exploratory well located in one of its operated blocks in the province.
Test results confirmed the presence of gas, indicating potential commercial viability.
The company stated that the well was drilled as part of its ongoing exploration programme aimed at arresting the long-term decline in indigenous gas production.
Further appraisal and extended testing will be carried out to determine the size of recoverable reserves and the well’s sustainable production capacity.
Pakistan’s gas sector continues to face structural stress. Daily gas demand exceeds 6 billion cubic feet, driven by household consumption, power generation, fertiliser production and industry.
In contrast, domestic gas production has steadily declined due to depletion of mature fields, falling to nearly half of peak levels recorded a decade ago.
To bridge the widening gap, Pakistan has increasingly relied on imported liquefied natural gas, which now accounts for a significant share of total supply.
Liquified Natural Gas (LNG) imports, priced in dollars and linked to volatile global markets, have added pressure to the country’s foreign exchange reserves and contributed to higher energy costs across the economy.
In this context, even incremental domestic discoveries are considered strategically important.
A single well discovery does not fundamentally alter the supply-demand imbalance; it helps slow the pace of decline, reduce marginal import requirements, and extend the life of existing gas infrastructure.
Pakistan’s northwestern province, Khyber Pakhtunkhwa, has emerged as a key area for upstream activity over the past decade, with several oil and gas discoveries contributing to local production.
PPL said sustained exploration in the province remains central to its strategy of enhancing indigenous energy supply.
PPL is one of Pakistan’s largest exploration and production companies and a major supplier of natural gas to the national system.
The company plays a critical role in supporting energy security at a time when policymakers are seeking to maximise domestic resources and manage the transition toward a more diversified energy mix.
