Gas-addicted Pakistanis feel the pinch

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Gas-addicted Pakistanis feel the pinch
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How did a self-sufficient Pakistan end up wasting its gas reserves?

Pakistanis love to cook. Until a few years ago, it wasn’t uncommon to see a constant, flickering flame on a gas burner in the average home — even when no meal was being prepared.

Household consumers who use gas to run stoves and water heaters have also seen a sharp increase in their monthly bills. To put this in perspective, consider that Pakistan’s total pipeline length is around 150,000 km. Nigeria, which sits on top of larger proven gas reserves, has a network not exceeding 6,000 km. Over the years, successive Pakistani governments vigorously promoted gas connections in towns and villages to win votes. They did this without realising that new gas reserves were not easy to find, says G A Sabri, a retired petroleum ministry official.

“And you have everybody addicted to gas. Pakistan has one of the world’s most extensive spaghetti-like pipeline networks for individual customers.” The global lender had given loans to Pakistan’s two state-run distribution companies — Sui Southern and Sui Northern — on the condition of pegging the profit to a return on their capital investment.

Plans to import gas from Iran via a pipeline never materialised, something which has worsened the shortages. This week the government banned CNG use for two months in a bid to manage a gas shortfall, which is now twice as much as what’s produced by the local fields. “Problem is that our gas production was not able to keep up with the demand and the output from existing fields was declining fast,” he says.

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