In Pakistan whole energy sector is in a turmoil. Power, gas, (all forms viz CNG, LPG, LNG) and POL products are in short supply. One day there are lines for buying petrol, the next day, CNG stations seek respite from sale during daytime and inform customers about night time sales only.
In the wake of 1973 oil imbroglio wherein ques were observed to get the petrol , the US decided that no repeat of the situation should occur. National oil reserves were built, oil prospecting speeded up, gas brought into use instead of burning it, and an ambitious and stringent energy efficiency programme was launched.
What are the lessons to be learnt for Pakistan?Energy security is of utmost importance even if the existing world order had to be turned upside down. Understanding the dynamics of energy security, China and India prowl for fast track acquisition of energy resources outside their borders. China has acquired rights to future oil and gas finds in the horn of Africa to the delight of the countries there.
In Pakistan, the present power generation and industry are fired by furnace oil, diesel, petrol and gas. Hydro-generation also adds to the national power pool by anything between 400 MW to 6,500 MW depending upon the season and the prevalent hydrology.This, in turn, makes up to 22 per cent of the power needs, while the rest 78 per cent is met through expensive and mostly imported oil. That Pakistan needs 3,50,000 barrels of oil imports a day against 50-60,000 barrels per day of local production highlights the problem in its entirety.
The power sector alone needs 30,000 tones of furnace oil a day, which at today’s price needs an expenditure Rs1 billion per day. Local gas, which could have saved the day, is in perennial short supply.The present shortage of 0.192 bcfd of gas will balloon to more than double with the scarcity reaching the figure of 0.507 bcfd during 2010. Although the government has set a drilling target of 100 wells for the current year to increase local production of oil and gas, chances of any reduction in shortages soon are bleak.
Because Pakistan ranks at the 101 slot of the International Competitive Index (ICI) from the earlier position at 92 and that the national productivity is fast slipping, there is a need to reduce the cost of doing business. This is only possible through indigenisation of fuel on the fast track and as a national goal.
Similarly, though it may sound ambitious, the country should place full reliance on renewable energy sources like wind power. The solar power is expensive to harness and needs a multi-pronged strategy but the concerned departments other than AEDB too need to look into possibility of focusing on solar power generation. Wapda and the Pepco should be suitable organisations to take up solar power generation in a big way while the private is shy.
However, as quick addition of solar and wind power is a highly difficult preposition, we need to look at coal, sugar molasses (for ethanol production), naphtha and biomass to add on to the national oil and gas stocks. Consequently, the present oil fired power stations will have to be converted to coal under a national programme. It has to be on a sustainable basis unlike the earlier conversion of generating plants to gas between 2000 and 2002, only to be told in 2007 about the non-availability of the fuel.
Hubco is planning to switch over to coal fired generation soon. The huge expenditures to be made for the conversion would be recoverable within the first 1-3 years of coal fired operations, making the change-over an economical undertaking. The government can help by giving incentives to improve upon the viability of the conversion projects.
As the Thar coal deposits of 175 billion tons are of the lignite quality, a resource younger in age by 15,000 years in comparison to the bituminous coal deposits in Balochistan, NWFP and the Punjab, these can be tackled separately through the Thar Coal Energy Board. More so, because it would require new and specialised power generation located at the mine mouths.
Experts consider that with the help from authorities, the explored mineral can sustain the conversion of power projects to coal. Similarly, just 2-3 years in all are required for the completion of the job. As the conversion possesses extremely high return on investments, arranging finance for conversion would not be difficult.
A majority of captive power should also be converted to coal use. As a first step, no new captive generation should be allowed to be run through gas or oil. Additionally, the other processes should also be converted to coal fired/steam units as far as possible. Actually, the goal has to be indigenisation of fuel, led by coal use and followed by local gas and oil finds.
As indigenisation would spare gas from power generation, the same could thereafter be value added in the chemical, pharma and allied sectors.This is the way to assure energy security and sustainable growth.
In the wake of 1973 oil imbroglio wherein ques were observed to get the petrol , the US decided that no repeat of the situation should occur. National oil reserves were built, oil prospecting speeded up, gas brought into use instead of burning it, and an ambitious and stringent energy efficiency programme was launched.
What are the lessons to be learnt for Pakistan?Energy security is of utmost importance even if the existing world order had to be turned upside down. Understanding the dynamics of energy security, China and India prowl for fast track acquisition of energy resources outside their borders. China has acquired rights to future oil and gas finds in the horn of Africa to the delight of the countries there.
In Pakistan, the present power generation and industry are fired by furnace oil, diesel, petrol and gas. Hydro-generation also adds to the national power pool by anything between 400 MW to 6,500 MW depending upon the season and the prevalent hydrology.This, in turn, makes up to 22 per cent of the power needs, while the rest 78 per cent is met through expensive and mostly imported oil. That Pakistan needs 3,50,000 barrels of oil imports a day against 50-60,000 barrels per day of local production highlights the problem in its entirety.
The power sector alone needs 30,000 tones of furnace oil a day, which at today’s price needs an expenditure Rs1 billion per day. Local gas, which could have saved the day, is in perennial short supply.The present shortage of 0.192 bcfd of gas will balloon to more than double with the scarcity reaching the figure of 0.507 bcfd during 2010. Although the government has set a drilling target of 100 wells for the current year to increase local production of oil and gas, chances of any reduction in shortages soon are bleak.
Because Pakistan ranks at the 101 slot of the International Competitive Index (ICI) from the earlier position at 92 and that the national productivity is fast slipping, there is a need to reduce the cost of doing business. This is only possible through indigenisation of fuel on the fast track and as a national goal.
Similarly, though it may sound ambitious, the country should place full reliance on renewable energy sources like wind power. The solar power is expensive to harness and needs a multi-pronged strategy but the concerned departments other than AEDB too need to look into possibility of focusing on solar power generation. Wapda and the Pepco should be suitable organisations to take up solar power generation in a big way while the private is shy.
However, as quick addition of solar and wind power is a highly difficult preposition, we need to look at coal, sugar molasses (for ethanol production), naphtha and biomass to add on to the national oil and gas stocks. Consequently, the present oil fired power stations will have to be converted to coal under a national programme. It has to be on a sustainable basis unlike the earlier conversion of generating plants to gas between 2000 and 2002, only to be told in 2007 about the non-availability of the fuel.
Hubco is planning to switch over to coal fired generation soon. The huge expenditures to be made for the conversion would be recoverable within the first 1-3 years of coal fired operations, making the change-over an economical undertaking. The government can help by giving incentives to improve upon the viability of the conversion projects.
As the Thar coal deposits of 175 billion tons are of the lignite quality, a resource younger in age by 15,000 years in comparison to the bituminous coal deposits in Balochistan, NWFP and the Punjab, these can be tackled separately through the Thar Coal Energy Board. More so, because it would require new and specialised power generation located at the mine mouths.
Experts consider that with the help from authorities, the explored mineral can sustain the conversion of power projects to coal. Similarly, just 2-3 years in all are required for the completion of the job. As the conversion possesses extremely high return on investments, arranging finance for conversion would not be difficult.
A majority of captive power should also be converted to coal use. As a first step, no new captive generation should be allowed to be run through gas or oil. Additionally, the other processes should also be converted to coal fired/steam units as far as possible. Actually, the goal has to be indigenisation of fuel, led by coal use and followed by local gas and oil finds.
As indigenisation would spare gas from power generation, the same could thereafter be value added in the chemical, pharma and allied sectors.This is the way to assure energy security and sustainable growth.
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