As the world moves toward clean energy, Pakistan must not be left behind. The government’s energy policies must embrace the potential of renewables, ensuring a just transition that benefits both the environment and local communities. You! takes a look...
Pakistan’s reliance on natural gas as a primary energy source has created a complex web of challenges, ranging from environmental degradation to socio-economic hardships for local communities. Ranking 29th globally in natural gas reserves, the country’s gas production, managed by the Ministry of Petroleum and Natural Resources and regulated by OGRA, stands at 4 billion cubic feet per day. It has 24,700,000 million cubic feet (mmcf) of natural gas reserves. It ranks 19th in the world for natural gas production, accounting for 0.77 per cent of global production, while it ranks 21st in the world for natural gas consumption. Sui Southern Gas Company and Sui Northern Gas Pipeline Limited oversee distribution in the western and northern regions, respectively. However, this system is under severe strain due to growing domestic demand and dwindling reserves.
Asia, as the largest market for natural gas, is witnessing an unprecedented $380 billion investment in gas terminals, pipelines, and power plants over the next decade. For Pakistan, gas was initially introduced as a cheaper alternative to furnace oil, powering over 50 per cent of its electricity generation in 2011. As reserves diminished, LNG (liquefied natural gas) was imported as a substitute, but the soaring prices of LNG have now exacerbated the country’s energy crisis.
The myths of LNG as a clean fuel
The global narrative promoting LNG as a clean energy source has been debunked by experts who highlight the environmental risks associated with its lifecycle. Methane, the primary component of LNG, is 80 times more potent than carbon dioxide in trapping heat over a 20-year period. From extraction to storage and transportation, methane leaks are inevitable, significantly contributing to greenhouse gas emissions. Reports indicate a 30 per cent rise in methane emissions between 2000 and 2019. Moreover, the energy-intensive process of liquefying, transporting, and re-gasifying LNG further compounds its environmental footprint.
The recent developments in the LNG sector underscore the looming crisis. Pakistan is now facing a surplus of LNG cargoes. The Petroleum Division informed the Special Investment Facilitation Council (SIFC) that, due to a decrease in gas consumption and the disconnection of Captive Power Plants (CPPs) by January 31 under the IMF agreement, the number of surplus LNG cargoes could rise from 13 to 36.
The oversupply of LNG is creating further problems for Pakistan’s energy system. The national pipeline network is under pressure due to the reduced gas consumption, with the line pack pressure dropping to 4.4bcf from over 5 bcf. Meanwhile, LNG-based power plants are consuming more imported gas to meet the increased demand for electricity due to the peak winter season. This only exacerbates the energy crisis, as Pakistan struggles to balance its energy needs with the glut of LNG.
Environmental and social costs
In coastal villages like Rehri, locals recount the devastating impact of LNG infrastructure and associated industries. “Fish production has plummeted, and the mangroves - our natural barrier against climate change - are nearly wiped out. The factories in the government established industrial zone near our village pollute the environment with their smoke and indiscriminately dump waste into the sea. LNG silage, cattle farm filth from the buffalo colony, and chemical waste from the textile industry in Qaidabad are all discarded here, turning our home into a garbage dump. Even medical and hospital waste, including syringes, washes up on our shores, endangering our children,” laments Hussain Shaikh, a local resident, painting a grim picture of the environmental degradation.
Sattar Shaikh, another local resident, shares the dire struggles faced by the community since the arrival of LNG ships. “Our ‘hoda’ (wooden boat) which used to last twenty years, now barely survives six or seven years because of the sea pollution. The wood rots too quickly, and our livelihoods are at stake,” he says, describing the collapse of traditional fishing practices. “These companies have promised development, but there has been no job creation or compensation for our losses. Instead, we are facing increased costs as we take longer detours to find fish, and our ‘hodas’ are now unusable,” expresses Sattar in a sad tone.
The situation worsens with mistreatment by security personnel. “The guards of these companies and the concerned authorities insult us regularly. False FIRs are filed against us, and we are detained without reason, as though we don’t belong on our own land,” elucidates Sattar, his voice tinged with frustration. “If anyone doesn’t have an ID card, they are humiliated, stripped of their shirt, and forced to lie on the cold ground or ice slabs. We, who have lived here with our ancestors, are treated like terrorists. Whenever there is a terrorist attack or bomb blast, they look at us with suspicious eyes; they file false FIRs against us and lock us up in fake cases, all because we live here. This is how we are treated - our dignity is taken away, and we are unjustly labelled,” adds Sattar.
His words reflect a community caught between the destructive forces of environmental degradation and systemic social injustice, compounded by the harsh reality of being wrongfully accused and mistreated by authorities.
Renewable energy: A missed opportunity
Despite the pressing need for a transition to cleaner energy, Pakistan’s power generation strategy remains entrenched in environmentally harmful projects. NEPRA’s ten-year plan heavily leans on coal and gas, with renewable energy projects receiving minimal attention. The plan surprisingly emphasises hydropower as a renewable energy source, despite the well-documented fact that large hydro dams have caused significant destruction to our land, our Indus Delta and communities while offering limited benefits. This underscores the urgent need to shift focus toward more sustainable and truly renewable energy options, such as wind and solar power. The Gharo-Jhimpir wind corridor alone has the potential to generate 60,000 MW - more than double the country’s current electricity demand of 25,000-27,000 MW - but remains underutilised.
Global trends show a decisive shift away from fossil fuels. The COP28 outcome highlighted a growing recognition of the urgency to address energy issues. The final agreement included commitments to phase out fossil fuels, triple renewable energy capacity by 2030, and double energy efficiency. The key challenge now lies in ensuring these goals are achieved in a just and equitable manner. Pakistan, however, continues to lag behind, failing to align its energy policies with international commitments under the Paris Agreement and Sustainable Development Goals (SDGs).
Just 15 minutes away from DHA, the affluent area of Karachi, lies the real, historical Karachi - communities like Ibrahim Haidri, Rehri, Lath Basti, and Chashma villages. These areas are often overlooked and forgotten. For the people of Rehri and Lath Basti, the challenges they face are deeply personal and immediate, impacting their lives every day. Fishermen demand that the government prioritise sustainable development and address the environmental and economic damages inflicted by LNG and coal projects. They call for an end to industrial pollution and for clean energy solutions that respect local livelihoods.
When our Prime Minister took charge, his briefing revealed that 27 power plants with a combined capacity of 7,000 MW are non-operational due to fuel shortages and technical issues. Recently, the Pakistani government has terminated power purchase agreements (PPAs) with five Independent Power Producers (IPPs) to reduce costs and alleviate the financial burden on consumers. These power plants are primarily oil-based or other conventional thermal power plants utilising natural gas also. This is a positive step, but it calls for more proactive and decisive actions to ensure lasting impact. This also highlights the urgent need to pivot toward renewable energy sources, such as solar and wind. If solar panels were made affordable, entire villages could become self-sufficient in electricity, echoing grassroots efforts already underway.
As the world moves toward clean energy, Pakistan must not be left behind. The government’s energy policies must embrace the potential of renewables, ensuring a just transition that benefits both the environment and local communities. The path to a sustainable future lies in abandoning short-sighted fossil fuel projects and investing in a green economy that prioritises people over profits.
Fiza Naz Qureshi is a Gas Campaigner with Big Shift Global. She can be reached at fizaqureshi044@gmail.com