Comprehensive Energy Plan Crucial to Pakistan's Future

Since the middle of the 18th century, the Industrial Revolution has transformed the world. Energy-hungry machines are now doing more and more of the work at much higher levels of productivity than humans and animals who did it in pre-industrial era.  In recent years, the rapid growth in computers and mobile phones spawned by the Information  and Communications Technology (ICT) revolution has further increased demand for energy. Currently somewhere between 5-10% of 
electrical consumption is for ICT and it's likely to continue to grow rapidly.

Energy Consumption:

Energy consumption in this day and age generally indicates a nation's level of industrialization, productivity and standards of living. Going by this yardstick, Pakistan's 14 million BTUs per capita consumption in 2009 indicates that the country has a long way to go to achieve levels comparable with the world average productivity signified by 71 million BTUs per capita as estimated by US Energy Information Administration for 2009.

Regional Comparison:

Although Pakistan's 14 million BTUs per capita energy use is ahead of Bangladesh's 6 million BTUs and Sri Lanka's 10 million BTUs, it is less than India's 18 million BTUs, and far behind China's 68 million BTUs and Malaysia's 97 million BTUs.

 Energy Costs:

Fossil fuels are currently the primary source of the bulk of energy used. Cost of producing energy from various fossil fuels ranges from $2-4 per million BTUs for coal to $19-20 per million BTUs from oil. Costs of energy from natural gas vary widely depending on the source. Cost of shale gas in the United States has plummeted to about $2 per million BTU recently, while Pakistan has signed agreements to purchase gas from Iran and Turkmenistan in the range of $10 to $12 per million BTUs. Cost of production of domestic natural gas is in the range of $2 to $4 per million BTU.




Impact on Economy:

Energy costs have had a huge impact on Pakistan's economy. Its heavy dependence on imported oil has been a big contributor to balance of payments crises in the past. In 2008, for example, the oil prices jumped from less than $50 a barrel to $150 a barrel and forced the country to seek IMF bailout. Pakistan oil import bill has increased from about $7 billion in 2007 to over $12 billion in 2011. Energy shortages have also put a significant dent in Pakistan's GDP growth.



Pakistan's Fuel Options:

If Pakistan could generate all of the 14 million BTUs of energy per capita from coal, the cost would be $28 to $56 for each person. Alternatively, the cost of using oil for the entire production would add up to about $280 per person, a significant chunk of Pakistan's per capita income of $1372 in 2011-12. The costs therefore range from a low of $28 to a high of $280 per Pakistani.

Energy Policy Suggestions:

As the nation develops and the energy demand increases, the policy makers have to try and produce as much of the needed energy at costs closer to the low-end of the range from $2 to $20 per million BTUs. Here are some policy suggestions for Pakistan's energy policy going forward:

1.
Develop Pakistan's shale gas reserves estimated at 51 trillion cubic feet near Karachi in southern Sindh province. The US experience has shown that
investment in shale gas can increase production quite rapidly and prices
brought down from about $12 per mmBTU in 2008 to under $2 per mmBTU
recently. Pursuing this option requires US technical expertise and
significant foreign investment on an accelerated schedule.

2.
Increase production of gas from nearly 30 trillion cubic feet of
remaining conventional gas reserves. This, too, requires significant
investment on an accelerated schedule.

3. Convert
some of the idle power generation capacity  from oil and gas to imported
coal to make electricity more available and affordable.

4.
Utilize Pakistan's vast coal reserves in Sindh's Thar desert. The
problem here is that the World Bank, Asian Development Bank and other
international financial institutions (IFIs) are not lending for coal
development because of environmental concerns.And the Chinese who were
showing interest in the project have since pulled out.

5. Invest in hydroelectric and other renewables including wind and solar. Several of
these projects are funded and underway but it'll take a while to bring
them online to make a difference.

6. Curb widespread power theft, improve collection of electricity dues from consumers, and resolve spiraling circular debt to make Pakistan's energy sector attractive to domestic and foreign investors. 

Energy Conservation:

In addition to significantly increasing energy production, Pakistan needs to take prudent steps to conserve by promoting the use of energy-saving electric bulbs and machines. Concerns about the environment have propelled many developed nations to cut energy consumption in recent years.  For example, serious conservation efforts have reduced  Japan's 172 million BTUs per capita in 2009 down from 178 in 2005, Germany is at 163 million BTUs in 2009 down from 175 in 2005, and the United States is down to 308 million BTUs in 2009 from 340 million BTUs per person per year in 2005.

Summary:

Instead of addressing different pieces of the energy puzzle in an ad hoc fashion under multiple ministries and bureaucracies fighting turf battles,  Pakistani policy makers need to look at the big picture for the sake of the nation's future. Nothing short of a holistic approach with a comprehensive energy policy formulated and implemented under a competent and powerful energy czar will do.

Related Links:

Haq's Musings

US EIA International Data on Per Capita Energy Consumption

Affordable Fuel for Pakistan's Electricity

Pakistan Needs Shale Gas Revolution

US Census Bureau's International Stats 

Pakistan's Vast Shale Gas Reserves

US AID Overview of Pakistan's Power Sector

US Can Help Pakistan Overcome Energy Crisis

Abundant and Cheap Coal Electricity

US Dept of Energy Report on Shale Gas

Pakistan's Twin Energy Crises

Pakistan's Electricity Crisis

Pakistan's Gas Pipeline and Distribution Network

Pakistan's Energy Statistics

US Department of Energy Data

Electrification Rates By Country

CO2 Emissions, Birth, Death Rates By Country

China Signs Power Plant Deals in Pakistan

Pakistan Pursues Hydroelectric Projects

Pakistan Energy Industry Overview

Energy from Thorium

Comparing US and Pakistani Tax Evasion

Pakistan's Oil and Gas Report 2010

Circular Electricity Debt Problem

International CNG Vehicles Association

Rare Earths at Reko Diq?

Lessons From IPP Experience in Pakistan

Correlation Between Human Development and Energy Consumption


Views: 1644

Comment by Riaz Haq on February 11, 2015 at 8:23pm

Pakistan’s Engro Vopak LNG terminal will receive its first cargo in March from Qatar, the terminal’s Chief Executive Imranul Haque, told a Singapore conference this week.
The terminal, near Karachi, plans to increase its capacity from 11 MMcm/d to 17 MMcm/d.
http://interfaxenergy.com/gasdaily/article/15243/pakistan-first-lng...

Comment by Riaz Haq on March 28, 2015 at 8:31am

The first shipment of LNG is scheduled to arrive in Pakistan on 26 March 2015, according to local reports.

Sources suggest that Qatargas has sold the LNG to Pakistan at approximately US$8 – 9/million Btu.

The government of Pakistan is keen to secure supplies of LNG from Qatar to help ease the energy crisis that is currently plaguing the country. Last year, Engro Corp.’s subsidiary, Elengy Terminal Pakistan Limited (ETPL), won the contract to develop Pakistan’s first LNG import infrastructure within a 335-day deadline.

Engro Corp. prepared an exclusive article discussing the regasification project for the March 2015 issue of LNG Industry. In the article, Engro explained the extent of the energy crisis in Pakistan:

Pakistan’s demand for gas [is] expected to double in the next 10 years and current gas production at 4 billion ft3/d was less than the required 6 billion ft3/d. At the current rate of growth, the demand could touch 13 billion ft3/d by 2020.

If this happens, the energy conundrum in the country could well become an energy catastrophe. Towns and rural areas will be in perpetual darkness, and a majority of the industrial units will be forced to shut down or remain uncompetitive. Consequently, unemployment will increase, a greater majority of Pakistanis will fall below the poverty line, food inflation will become rampant, and social indicators will be well below that of sub-Saharan countries.

By this time, Pakistan will only be able to meet 41% of its energy requirements and will have an energy import bill of US$52 billion. With no end in sight, the repercussions of Pakistan’s ongoing energy crisis are severe and go well beyond threats to the country’s economic well-being and stability.

Hence, it is imperative to look for an alternative source of gas in Pakistan. Importing LNG will enable the government to save significant foreign exchange through import substitution of oil, and will alleviate the energy crisis plaguing the country.

http://www.lngindustry.com/regasification/23032015/Pakistan-set-for...

Comment by Riaz Haq on May 4, 2016 at 10:23pm

#Pakistan Seals Major Deal for 75,000 tons of #LPG with #Iran | http://OilPrice.com http://oilprice.com/Latest-Energy-News/World-News/Pakistan-Seals-Ma... … #oilprice


By Charles Kennedy
Posted on Wed, 04 May 2016 18:26 | 0
Pakistan and Iran have signed a deal under which the former will import 75,000 tons of liquefied petroleum gas within a year, months after a similar agreement was inked with Qatar.

According to the deal, signed by the All Pakistan Liquefied Petroleum Gas Distributors Association and a national Iranian company, at least 6,000 tons of LPG will be imported from Iran every month over the course of a year.

In February, Pakistan and Qatar signed a $16-billion liquefied natural gas (LNG) deal which provides imports for 16 years, throwing the authorities in energy-crisis ridden Pakistan a life-line for supplies.

Related: A 4.5-Million-Barrel Per Day Oil Shortage Looms: Wood Mackenzie

The deal signed in Doha by Pakistani Prime Minister Nawaz Sharif and Emir of Qatar Sheikh Tamim bin Hamad bin Khalifa will see Qatar export 3.75 million tons of LNG to Pakistan. This is significant for Pakistan, which faces a 50% supply gap in relation to demand.

As concerns the deal with Iran, the price of the imported LPG will be in line with local market prices, according to All Pakistan Liquefied Petroleum Gas Distributors Association president Irfan Khokhar.
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In the meantime, Pakistan’s only LNG terminal at Port Qasim has converted 1.7 million tons of imported LNG and pumped more than 77 billion cubic feet of gas into the national gas distribution network. Over the course of last 13 months, some 29 LNG shipments from Qatar, Australia, Nigeria and Spain have docked at this port.

Related: The Last Great Frontier For Cheap Oil And Gas?

“This terminal alone will save up to $600 million for Pakistan through fuel substitution and will generate up to 2,000MW of electricity. The step to set up LNG import infrastructure is in the right direction and the country needs another three to four LNG import terminals to curtail the ongoing crisis,” Pakistani media quoted terminal manager Amir Mahmud as saying.

Comment by Riaz Haq on June 28, 2016 at 4:13pm

Biogas Brings Heat, Light to #Pakistani Village. Saves Trees. Cuts Air #Pollution. Improves Health http://www.ipsnews.net/2016/06/biogas-brings-heat-and-light-to-paki... … via @sharethis

Nabela Zainab no longer chokes and coughs when she cooks a meal, thanks to the new biogas-fueled two-burner stove in her kitchen.

Zainab, 38, from Faisalabad, a town 360 kilometers from the Pakistani capital of Islamabad, is among the beneficiaries of a flagship pilot biogas project to free poor households and farmers of their dependence on wood, cattle dung and diesel fuel for cooking needs and running irrigation pumps.

She got the biogas unit, worth 400 dollars, at a 50 percent subsidised rate from the NGO Rural Support Programme Network under the latter’s five-year Pakistan Domestic Biogas Programme (PDBP).

In the past, Zainab had to collect wood from a distant forest three times a week and carry it home balanced on her head.

“Getting rid of that routine is a life-changing experience,” she told IPS.

The four-cubic-meter biogas plant requires the dung of three buffalos every day to meet the energy needs of a four-member family, including cooking, heating, washing and bathing for 24 hours.

It saves nearly 160 kg of fuelwood a day, worth 20 to 25 dollars every month for a four-member family.

The wife of a smallholder vegetable farmer, Zainab says she has suffered from a cough and sore eyes for the last 20 years. “We have no access to piped natural gas in our village. The rising cost of liquefied petroleum gas (LPG) was not feasible either for us poor. However, we had no choice but to continue burning buffalo dung cakes or fuelwood,” she said.

Last January, cattle farmer Amir Nawaz installed a biogas plant of eight-cubic-meter capacity at a cost of 700 dollars under the PDBP. He got subsidy of nearly 300 dollars.

“I am now saving nearly 60 dollars a month that I used to spend on LPG,” he told IPS.

His plant is fueled by the dung of his six buffalos — enough to meet household gas needs for cooking and heating.

Nawaz also uses biogas to power wall-mounted lamps in his house at night, saving another 15 dollars a month.

“Above all, this has helped our children do schoolwork and for me to finish up the household chores in the evening hours,” Nawaz’s wife, Shaista Bano, said with a smile.

As many as 5,360 biogas plants of varying sizes have been installed in 12 districts of Punjab province over five years (2009-2015), ridding nearly 43,000 people of exposure to smoke from wood and kerosene.

Nearby, 500 large biogas plants of the 25-cubic-meter capacity each have also been introduced in all 12 districts of Punjab province under the PBDP, namely: Faisalabad, Sargodha, Khushab, Jhang, Chniot, Toba Tek Singh, Shekhapura, Gujranwala, Sahiwal, Pakpatan, Nankana Sahib and Okara.

Such plants provide gas for a family of 10 for cooking, heating and running irrigation pumps for six hours daily.

Rab Nawaz bought one of these large plants for 1,700 dollars. PBDP provided him a subsidy of 400 dollars as part of its biogas promotion in the area.

“I use the dung of 18 buffalos to produce nearly 40 cubic meters of gas every day to run my diesel-turned-biogas-run irrigation pump for six hours and cooking stove for three times a day,” he told IPS, while shoveling out his cattle pen in Sargodha.

The father of three says that after eliminating diesel — which is damaging to the environment and health, as well as expensive — he saves 10-12 dollars daily.

As a part of sustainability of the biogas programme, 50 local biogas construction companies have been set up. International technical experts trained nearly 450 people in construction, maintenance and repair of the biogas units.

Initiated in 2009 by the non-governmental organization National Rural Support Programme – Pakistan (NRSP-Pakistan), PBDP was financed by the Netherlands Embassy in Pakistan and technical support was extended by Winrock International and SNV (Netherlands-based nongovernmental development organisations).

Comment by Riaz Haq on July 24, 2016 at 8:00am

Increase in Pakistan’s energy consumption depicts higher economic activities

Pakistan's primary energy consumption increased by 5.9 percent to 78.2 million ton oil equivalent (MTOE) in 2015, compared with 73.2MTOE in 2014 depicting higher economic activities.

According to the statistical data of British Petroleum on energy use around the world, the primary energy consumption in China grew by 1.12 percent from 2014 to 2015 that has resulted in slowdown in China’s economy. India’s primary energy consumption increased by 5.1 percent during the same period which is lower than that of Pakistan. Indian GDP growth, though highest in the world remains much below the peaks it attained at the start of this decade.

The fuels consumed for producing primary energy show that in 2014, Pakistan consumed 22.8MTOE of oil that increased to 25.2MTOE in 2015. Its natural gas use also increased from 37.7MTOE in 2014 to 39.0MTOE in 2015. The consumption of coal remained the same at 4.7MTOE in both years.

According to the report, electricity consumption in Pakistan increased from 96.2 terawatt-h in 2008 110.0 terawatt-h in 2015. The increase was restricted to 99.3 terawatt-h till 2012; showing cumulative increase of 4 percent only, but in the next three years the consumption cumulatively increased by 10.7 percent of which 2.7 percent increase was in 2015 over 2014. Indian electricity consumption in comparison increased more robustly being 833.4 terawatt-h in 2008 that increased to 1,304.8 terawatt-h in 2015.

---
India produces 45.5MTOE from natural gas, 407.2MTOE from coal that is 100 times more than the primary energy that Pakistan derives from coal. Its hydro electric generation is 8.6MTOE. It derives 15.5MTOE from renewable that is 30 times more than what Pakistan obtains from renewable. The primary energy obtained by China from natural gas is 177.6MTOE, from coal it is a whopping 19,203MTOE. Its hydro electric energy amounts to 254.9MTOE, nuclear 38.6MTOE and renewable 62.7MTOE. The renewable energy extracted by China is equivalent to 60 percent of the total energy produced in Pakistan.

Bangladesh in 2008 consumed only 34.2 terawatt-h electricity that was almost 1/3rd of the power consumption in Pakistan. In 2015 the gap was reduced to 60 percent of the power consumed in Pakistan. Bangladesh is exporting much more than Pakistan despite low power use because it adds high value to its apparel. The power requirement of the garment industry is nominal when compared with spinning, weaving and processing that produce low value-added textiles exported by Pakistan. The electricity consumption in China increased to 5,810 terawatt-h in 2015 compared with 3495 terawatt-h in 2008.

Coal, wind and solar energy are the cheapest source of energy around the world. Wind and solar along with hydro electricity are the cleanest energy fuels. China fulfilled 1,920MTOE of its energy needs from coal, India 388.7MTOE, and Pakistan only 4.7MTOE. Coal use for energy production is confined only to the private sector in Pakistan. Around 3,000MW coal based power plants are expected to be commissioned by 2019 after which share of coal in the energy mix would substantially increase. Wind power consumption in China was 41MTOE in 2015, it was 9.4MTOE in India and only 0.1MTOE in Pakistan. Solar power production in 2015 was 8.9MTOE in China, 1.5MTOE in India and only 0.3MTOE in Pakistan. Pakistan is also on the course to double its hydro electric production to over 16,000MW by the end of 2021.

https://www.thenews.com.pk/print/131885-Increase-in-Pakistans-energ...

http://www.bp.com/content/dam/bp/pdf/energy-economics/statistical-r...

Comment by Riaz Haq on July 24, 2016 at 8:00am

Increase in Pakistan’s energy consumption depicts higher economic activities

Pakistan's primary energy consumption increased by 5.9 percent to 78.2 million ton oil equivalent (MTOE) in 2015, compared with 73.2MTOE in 2014 depicting higher economic activities.

According to the statistical data of British Petroleum on energy use around the world, the primary energy consumption in China grew by 1.12 percent from 2014 to 2015 that has resulted in slowdown in China’s economy. India’s primary energy consumption increased by 5.1 percent during the same period which is lower than that of Pakistan. Indian GDP growth, though highest in the world remains much below the peaks it attained at the start of this decade.

The fuels consumed for producing primary energy show that in 2014, Pakistan consumed 22.8MTOE of oil that increased to 25.2MTOE in 2015. Its natural gas use also increased from 37.7MTOE in 2014 to 39.0MTOE in 2015. The consumption of coal remained the same at 4.7MTOE in both years.

According to the report, electricity consumption in Pakistan increased from 96.2 terawatt-h in 2008 110.0 terawatt-h in 2015. The increase was restricted to 99.3 terawatt-h till 2012; showing cumulative increase of 4 percent only, but in the next three years the consumption cumulatively increased by 10.7 percent of which 2.7 percent increase was in 2015 over 2014. Indian electricity consumption in comparison increased more robustly being 833.4 terawatt-h in 2008 that increased to 1,304.8 terawatt-h in 2015.

---
India produces 45.5MTOE from natural gas, 407.2MTOE from coal that is 100 times more than the primary energy that Pakistan derives from coal. Its hydro electric generation is 8.6MTOE. It derives 15.5MTOE from renewable that is 30 times more than what Pakistan obtains from renewable. The primary energy obtained by China from natural gas is 177.6MTOE, from coal it is a whopping 19,203MTOE. Its hydro electric energy amounts to 254.9MTOE, nuclear 38.6MTOE and renewable 62.7MTOE. The renewable energy extracted by China is equivalent to 60 percent of the total energy produced in Pakistan.

Bangladesh in 2008 consumed only 34.2 terawatt-h electricity that was almost 1/3rd of the power consumption in Pakistan. In 2015 the gap was reduced to 60 percent of the power consumed in Pakistan. Bangladesh is exporting much more than Pakistan despite low power use because it adds high value to its apparel. The power requirement of the garment industry is nominal when compared with spinning, weaving and processing that produce low value-added textiles exported by Pakistan. The electricity consumption in China increased to 5,810 terawatt-h in 2015 compared with 3495 terawatt-h in 2008.

Coal, wind and solar energy are the cheapest source of energy around the world. Wind and solar along with hydro electricity are the cleanest energy fuels. China fulfilled 1,920MTOE of its energy needs from coal, India 388.7MTOE, and Pakistan only 4.7MTOE. Coal use for energy production is confined only to the private sector in Pakistan. Around 3,000MW coal based power plants are expected to be commissioned by 2019 after which share of coal in the energy mix would substantially increase. Wind power consumption in China was 41MTOE in 2015, it was 9.4MTOE in India and only 0.1MTOE in Pakistan. Solar power production in 2015 was 8.9MTOE in China, 1.5MTOE in India and only 0.3MTOE in Pakistan. Pakistan is also on the course to double its hydro electric production to over 16,000MW by the end of 2021.

https://www.thenews.com.pk/print/131885-Increase-in-Pakistans-energ...

http://www.bp.com/content/dam/bp/pdf/energy-economics/statistical-r...

Comment by Riaz Haq on October 3, 2016 at 5:13pm

#Pakistan to soon switch on 350 MW of #wind #energy farms - report - SeeNews #Renewables https://shar.es/1E1Ir0 

The Pakistani province of Sindh is expected to soon become home to 350 MW of operational wind power capacity.

An official of the Alternative Energy Development Board (AEDB) told the Associated Press of Pakistan (APP) on Sunday that seven 50-MW wind parks along the coastline should be completed by next month. The projects include developments by Yunus Energy, Metro Power Company, Gul Wind Energy and Master Energy.

Meanwhile, Sachal Energy Development Pvt Ltd (SEDL) is building another 50-MW wind farm in Jhimpir, Sindh. It is expected to be finalised by mid-2017, the official has added.

All of the projects are financed by the private sector, he said as quoted by the news agency.

Comment by Riaz Haq on October 9, 2018 at 10:23pm

Dome installed at #Karachi unit 3 - first export of #China's Hualong One #nuclear reactor design, with construction of unit 2 beginning in 2015 and unit 3 in 2016. The units are scheduled for commercial operation in 2021 and 2022. #Pakistan http://www.world-nuclear-news.org/Articles/Dome-installed-at-Pakist...

Karachi 2 and 3 are the first export of China's Hualong One pressurised water reactor design, with construction of unit 2 beginning in 2015 and unit 3 in 2016. The units are scheduled for commercial operation in 2021 and 2022, respectively.

Karachi 3's dome - 23.4 metres high, with a diameter of 46.8 metres and weighing about 388 tonnes - was hoisted into place in the morning of 29 September, China National Nuclear Corporation (CNNC) said. The unit's nuclear island was completed in June, and "pre-introduction" of major components, including the reactor pressure vessel and steam generators, was completed earlier in September. Unit 3's nuclear island was completed in a shorter time than it took to complete the same work for unit 2.

In addition to the two units under construction at Karachi, four Hualong One units - also known as HPR1000 - are being built in China. Fanchenggang 3 and 4 and Fuqing 5 and 6 are all expected to enter commercial operation in 2019-2020.

Pakistan currently has 1355 MWe of nuclear generating capacity from five operating units: a small pressurised heavy water reactor at Karachi, and four Chinese-designed pressurised water reactors at Chashma. A third 1161 MWe Hualong One unit is planned for construction at Chashma.

Comment by Riaz Haq on June 19, 2019 at 7:12am

#China completes outer dome on first overseas Hualong One (1170 MWe gross, 1090 MWe net) #nuclear #reactor in #Karachi, #Pakistan. The firm is building two Hualong One units at the site. https://reut.rs/2RncyBP

SHANGHAI (Reuters) - China has finished building the outer safety dome at its first overseas “Hualong One” nuclear reactor in Pakistan, with the project scheduled to be finished by the end of 2020, the China National Nuclear Corp (CNNC) said late Tuesday.

China is hoping to use its third-generation Hualong One design to boost its presence in the overseas nuclear power sector and it is already making plans to build projects in Argentina and Britain.

CNNC described the completion of the double-layered steel dome on the containment building of the Karachi 2 nuclear power plant in Pakistan as a milestone that would help demonstrate China’s Hualong One technology worldwide. The firm is building two Hualong One units at the site.

China developed the Hualong One reactor as a rival to the Westinghouse-developed AP1000 and Europe’s “Evolutionary Pressurised Reactor”, with both models beset by cost overruns and construction delays.

The world’s first Hualong One reactor is set to go into operation ahead of schedule in the southeast Chinese province of Fujian late next year.

CNNC said its four demonstration projects in China and Pakistan are progressing in an orderly manner, noting that they “are the only third-generation pressurized water reactor projects in the world that are being constructed on schedule.”

Comment by Riaz Haq on January 11, 2020 at 7:23am

Pakistan Energy Mix: Overview of Gas Sector (Upstream)
Pakistan imports almost 80% of its energy sources (oil, gas and LNG). GVS brings out a detailed report on Pakistan’s upstream sector to analyze country’s mammoth challenges. It examines how innovative policy making, better management and vision can still make a difference.


https://www.globalvillagespace.com/pakistan-energy-mix-overview-of-...


The country used 28.1 million TOE of petroleum products in FY18, with 85 percent imported. Currently, Pakistan has a total of 9 million gas consumers in the country, with an annual addition of 0.5 million consumers. Sindh by far has the country’s largest gas production at 943,644 MCFt (65%), Balochistan at 310,535 MCFt (22%), KPK at 151,178 MCFt (10%), and Punjab 53,580 MCFt (3%).

Sindh also has three of the current largest fields producing gas, Mari, Qadirpur, and Kandhkot. Sui gas field in Balochistan, discovered in 1952, was Pakistan’s first and largest gas field found so far, had around 13 TCF of gas. It currently only has one TCF remaining and is nearing the completion of its life. These five fields represent over 50 percent of Pakistan’s recoverable reserves.

Gas Consumption
Pakistan has experienced major energy crises in the past decade as a result of expensive fuel sources, suffering from chronic natural gas shortages in the winter and electricity shortages in the summer, all exacerbated by the circular debt, and insufficient transmission and distribution systems over the past several years.

Roughly, 50 percent (about 105 million people) of Pakistan’s population still use biomass for cooking because of low electricity and gas supply. Natural gas plays a significant role in the energy matrix of Pakistan. In 2018, natural gas accounted for an estimated 30 percent of Pakistan’s primary energy consumption, petroleum at 35 percent, and coal at 16 percent.

Pakistan is the 20th largest gas consumer of the world, with an established natural gas industry since the 1950s. However, ironically Pakistan’s gas consumption is nearly the same as in France, which is a developed and industrialized country [with a GDP ten times bigger than Pakistan].

Natural gas consumption has increased from 1,377,307 MMCFt to 1,454,697 MMCFt. RLNG imports have increased to 313,902,345 MMBtu. There was a time when Pakistan was self-sufficient in gas. However, increased domestic demand over time, fueled by cheap mispricing of the natural resource, creation of the CNG motor vehicle industry, lack of alternative fuels, and diminishing production have resulted in increased amounts of imported gas.

In FY18, approximately 7.7 million TOE LNG gas was imported. Currently, Pakistan has over 9 million domestic consumers of gas, and these are growing by over 8% each year. The majority of domestic consumers, around 5.4 million, are based in Punjab; that account for 60 percent of the total domestic gas consumers, Sindh has 35 percent of the country’s domestic consumers at 2.6 million.

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