Oil
From exploration to marketing, we cover every segment of the oil industry, providing expertise in upstream, midstream, and downstream sectors.
Pakistan Oil Sector Overview
The oil sector in Pakistan is a vital component of the country’s energy infrastructure, encompassing exploration, production, refining, and distribution. The sector operates through a well-coordinated supply chain involving multiple players, including local refineries and international imports, to meet the national demand for petroleum products.
Key Infrastructure
Ports
Pakistan has two key ports for handling oil imports and exports: Kemari and Port Qasim.
Pipeline Network
An 800 km pipeline network facilitates the transfer of crude and white oil products from southern ports to mid-country, ensuring efficient transportation.
Storage Capacity
The country boasts a total of 4.2 million MT of storage for crude and finished oil products,
Refining Capacity
Pakistan’s total refining capacity stands at 440,000 barrels per day (KBbls/day), ensuring a robust output for domestic consumption and export.
Exploration and Production (E&P)
E&P Companies
There are 35 active exploration and production companies in Pakistan, fulfilling about 15% of local crude oil demand, with the rest managed through imports.
Natural Gas Production
2.773 billion cubic feet per day (BCFD).
Crude Oil
94,679 barrels per day (BPD).
Local Consumption
All natural gas produced is consumed domestically, while crude oil and condensates are first allocated to local refineries. Any surplus is exported depending on market demand.
Refining Sector at a Glance
Total Capacity of 5 Operating Refineries
440 KBbls/day.
Export Products
Refineries also export surplus production of naphtha, fuel oil, base oils, and asphalt.
Production
Pakistan’s refineries produce approximately 9.8 million metric tons (MT) of petroleum products annually, meeting 30% of the country’s total demand.
Crude Oil Consumption
Pakistan consumes 9.3 million MT of imported crude and 3.0 million MT of indigenous crude annually.
Oil Marketing Companies (OMCs)
Retail Network
There are approximately 10,000+ retail outlets across Pakistan managed by OMCs, ensuring widespread access to petroleum products.
Sales and Imports
OMCs collectively handle sales of around 19.39 million MT of petroleum products, including 12.89 million MT of imported finished products.
Product Distribution
OMCs procure products from local refineries and the international market, addressing consumer demand through retail, B2B, and B2C channels.
Pricing Structure
The downstream petroleum industry in Pakistan operates under a regulated pricing regime for key products like motor gasoline (Mogas), gasoil, kerosene, and light diesel oil (LDO).
Gas
Our experience in the LNG and LPG sectors helps clients navigate this complex market, offering solutions for import operations.
Overview of the Pakistan LPG Industry
The Liquefied Petroleum Gas (LPG) industry in Pakistan is growing for meeting the country’s energy demands, especially as natural gas reserves continue to deplete. With the increasing challenges in natural gas supply, LPG has emerged as a vital alternative, driving consistent growth in its demand.
Demand
LPG demand in Pakistan has been steadily rising, driven by seasonal factors and declining natural gas reserves. From 2020 to 2023, demand grew by 14% during the fiscal year 2022-23
SuPPLY
Local production meets 57% to 67% of total LPG demand, with the remainder covered by imports, mainly via sea. However, storage limitations and reliance on daily supply quotas from local producers pose supply chain challenges.
Storage and Distribution Challenges
Storage capacity remains a critical challenge in Pakistan’s LPG market. The limited shore storage at key hubs like Port Qasim and Gwadar creates logistical hurdles for both local producers and importers. Marketing companies often depend on smaller storage facilities at their bottling plants, which can restrict operational efficiency and their ability to respond swiftly to market demand
Future Outlook
As Pakistan’s natural gas reserves continue to deplete without the discovery of new fields, the reliance on LPG is expected to increase further. This will likely lead to a greater emphasis on expanding import capacities and improving storage infrastructure to meet the growing demand. For businesses looking to enter or expand in the Pakistani LPG market, understanding these dynamics is essential for strategic planning and operational success.
Coal
We manage the local and international trading of coal and minerals, ensuring a seamless supply chain from extraction to distribution.
Overview of Pakistan’s Coal Market
Pakistan’s coal market is characterized by substantial untapped reserves and an increasing demand for energy, particularly in the power generation sector. The country is focusing on coal to diversify its energy mix and reduce reliance on imported fuels. Pakistan holds an estimated 185 billion tonnes of coal reserves, primarily located in the Thar Desert, Sindh province.
Domestic Production
In 2023, Pakistan produced approximately 10 million tonnes of coal, mainly from Sindh, Balochistan, and Punjab provinces.
Thar Coal Project
This project is central to Pakistan’s strategy to boost coal production, with ongoing developments in mining infrastructure and associated power plants.
Demand
The power sector is the largest consumer of coal in Pakistan, with significant usage also in the cement and brick-making industries. The country’s coal demand is projected to reach 20 million tonnes annually by 2025.
Supply Chain and Imports
In 2023, Pakistan imported around 16 million tonnes of coal, primarily from Indonesia and South Africa, due to challenges in fully exploiting domestic reserves. The total coal consumption in the country was approximately 26 million tonnes, combining both domestic production and imports. However, the coal supply chain in Pakistan faces logistical challenges, particularly in transportation infrastructure.
Challenges and Opportunities
Environmental Concerns
The growing reliance on coal in Pakistan raises environmental concerns, particularly related to air pollution and carbon emissions. Addressing these issues is critical for sustainable development.
Energy Security
Coal presents an opportunity for Pakistan to enhance its energy security by reducing dependence on imported fuels and utilizing its domestic reserves more effectively.
Infrastructure Investment
Significant investments are needed in mining infrastructure and technology to fully exploit Pakistan’s coal reserves, with the success of projects like the Thar Coal Project being crucial.