The pentose phosphate pathway occurs in the cytosol of cells and produces two molecules of NADPH for each glucose 6-phosphate molecule oxidized, without directly consuming or producing ATP. NADPH is important for processes like fatty acid synthesis in the liver and lactating mammary glands, and for maintaining glutathione levels in red blood cells. The pathway consists of oxidative and nonoxidative reactions, with the oxidative reactions producing pentose sugars and NADPH regulated by the enzyme G6PD.