Natural gas is playing an increasingly important role as fuel for the economy. It is the fuel of choice for thermal power generation, as well as a means of diversifying away from expensive imported oil. Natural gas usage has increased rapidly at an average of about 9% in the last six years, providing nearly 50% of Pakistan’s energy supplies.

To reliably forecast the demand for natural gas, fresh supply-demand studies were undertaken through PricewaterhouseCoopers (PwC), leading international consultants, in 2007. As per PwC forecast, at the current pace of economic development, Pakistan will be facing gas supplies shortfall of around 2.7 Bcfd in 2015 rising to 5.8 Bcfd in 2020 and upto 10.3 Bcfd in 2025. The following Exhibit-II indicates that PwC forecast compares well with Planning Commission’s MTDF forecast, and other similar studies in Medium to Long-term period.