Gas network expands as Pakistan adds 149,908 new consumers in FY2026: Economic Survey

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 11th Jun, 2026) Pakistan’s gas distribution network continued to expand during FY2026, with the country adding 149,908 new gas connections and extending supply infrastructure across several areas,

According to the Economic Survey of Pakistan 2025-26 unveiled by Finance Minister Muhammad Aurangzeb, the two gas utility companies, Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited, laid 729 kilometres of mains and 403 kilometres of service lines during July 2025-March 2026, connecting 95 villages and towns to the gas network.

During the period, 149,908 new gas connections were provided across the country, including 148,225 domestic, 1,578 commercial and 105 industrial connections.

The survey projected that around 708,245 additional consumers would receive gas supply during FY2027.

To support this expansion, gas utility companies plan to invest Rs102.76 billion, including Rs4.49 billion in transmission projects, Rs87.46 billion in distribution projects and Rs10.81 billion in other initiatives.

Natural gas continued to play a major role in Pakistan’s energy mix, contributing 29.3 per cent to the country’s total Primary energy supply during FY2026.

Pakistan currently has a gas pipeline network comprising more than 13,729 kilometres of transmission lines, 124,382 kilometres of mains and 30,661 kilometres of service lines, serving over 10.9 million consumers nationwide.

The survey added that the government is pursuing policies aimed at increasing both indigenous gas production and imported gas supplies to meet growing energy demand.

Pakistan’s two Floating Storage and Regasification Units (FSRUs) currently have a combined Regasified Liquefied Natural Gas (RLNG) capacity of 1,200 million cubic feet per day (MMCFD), helping bridge the gap between gas demand and supply.

Average natural gas consumption stood at about 2,929 MMCFD during July 2025-March 2026, including 613 MMCFD of RLNG.

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The survey also highlighted the growing importance of coal in the country’s energy sector. It said domestic coal production is expected to rise in the coming years through mining operations at the Thar Coalfield Block-I and the expansion of Block-II.

Most indigenous coal production is consumed by power plants located in the Thar coal region, while coal from other coalfields is mainly used by brick kilns. Imported coal continues to be used by power plants and industrial units.

During July-March FY2026, the power sector accounted for 59.6 per cent of total coal consumption, using 12.76 million tonnes. Brick kilns consumed 4.45 million tonnes, representing 20.8 per cent of total usage, while the cement and other industrial sectors consumed 4.2 million tonnes, or 19.6 per cent.

The survey further showed that total petroleum product consumption increased by 3.5 per cent year-on-year to 13.64 million metric tonnes during July-March FY2026, compared to 13.17 million metric tonnes in the corresponding period of FY2025.

The transport sector remained the largest consumer, accounting for 82.5 per cent of total petroleum demand. Fuel consumption in the sector rose by 6.7 per cent, increasing from 10.5 million metric tonnes to 11.2 million metric tonnes, reflecting higher mobility, increased trade activity and growing demand from commercial and road transport.

Pakistan also imported 13.8 million metric tonnes of petroleum products during the period, up from 12.5 million metric tonnes a year earlier, representing an increase of 10.5 per cent.

The petroleum import bill rose to $8.9 billion from $8.4 billion in the same period last year, an increase of 6.3 per cent, driven by higher import volumes and fluctuations in international oil prices.