Pakistan’s Oil Refineries Capacity To Increase 15% by 2027
Staff Report
Islamabad: Pakistan is likely to increase the refining capacity by 15 percent by 2027 through upgradation projects.
According to Annual Plan 2025-26, refinery upgrades projects were going under the Pakistan Oil Refining Policy 2023.
This initiative seeks to increase local refining capacity by 15 percent by 2027,” Annual plan revealed.
Outlook and Programme for FY2025-26
For the FY2025-26, the targets for crude oil and natural gas production are fixed as 24.24 million barrels and 1.24 TCF, respectively. The target for local LPG supplies is set to 0.75 million Tons.
The gap in indigenous gas will be supplemented through LNG imports, which are targeted at 7.5 million tons. Both SNGPL and SSGCL have a collective target of adding 116,270 new consumers and 2,770 KM transmission and distribution pipelines during FY2025- 26.FBR opposes incentives to oil refineries in budget
A target is to explore 14.8 million tons of local coal has been set to promote indigenous production aimed at reducing the country’s import bill.
Pakistan’s fuel sector plays a critical role in achieving energy security in line with the 5Es Framework and URAAN Pakistan. Natural gas accounts for 35 percent of the primary energy supplies, followed by (HDIP, 2024).
To reduce reliance on imported fuels, which currently meet 30 percent of gas demand, and address infrastructure gaps, the Petroleum Division has prioritized three key initiatives for FY2025- 26.
Village Gasification project will expand access to 81 villages near gas fields through 2,770 km of new pipelines (SSGCL/SNGPL).
Determined Contributions (NDCs) and adaptation/resilience strategies.
To achieve this, the energy efficiency projects shall kick start during FY2025-26. These projects included Machike – Thalian – Taru Jabba White Oil Pipeline (Environment Friendly).
Pakistan’s energy sector requires a transformative approach to address challenges of energy security, affordability, and sustainability.
The Integrated Energy Planning initiative, is led by the Ministry of PD&SI aims to reshape the energy landscape through data-driven and analysis-based decision making and policy formulation.
Review of Annual Plan 2024-25
During FY2024-25, the production of 23.55 million barrels of crude oil was achieved against a target of 26.55 million barrels. The domestic production of natural gas was 1.08 trillion cubic feet (TCF) against a target of 1.21 TCF.
The local LPG supply stood at 0.73 million tons against a target of 0.79 million tons. A total of 35 wells (14 exploratory and 21 development) were drilled against a target of 67 wells (27 exploratory and 40 development).
A target of 15.4 million tons was set for local coal exploration, with 13.82 million tons achieved, representing a 90 percent success rate as per Annex-11.2. Liquefied Natural Gas (LNG) Import.
To meet the gas demand supply gap, during FY2024-25 against the targeted import of 8.85 million tons of LNG, 7.0 million tons is estimated to be procured by June, 2025.
The target could not be met due to non-supply of LNG from international suppliers as per contractual agreement.
Gas Consumer Addition and Pipelines Construction
During the year FY2024-25, Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) collectively added 20,061 new consumers (including domestic, commercial and industrial) against the target of 68,990.
Moreover, both the Sui Companies added 2,254 km transmission and distribution pipelines against a target of 3,274 km.
PSDP Review FY2024-25
During FY2024-25, with proposed allocation of Rs. 2541.5 million, Petroleum Division implemented their four (04) on-going projects namely Expansion and Up-gradation of Pakistan Petroleum Corehouse (PETCORE) for its Sustainable Operations to Facilitate Oil & Gas Exploration Research in Pakistan, Strategic Underground Gas Storage (SUGS) Project and Supply of Gas to villages /Localities falling within 5-km radius of gas producing fields for SNGPL (Phase-I) and SSGCL projects.
