Energy Sector in Pakistan

Pakistan Energy Crisis

Presented By:
- Shoaib Rehman
Worldwide Acknowledgment of the
Crisis
Unless we make decisions now our electricity will start to run out within ten years."
Professor Ian Fells, World Energy Council

"Britain's homes could be without light and heat for long periods by 2020
A vision of Britain in 2020, Guardian, 1 July 2003

the world's wealth may soon evaporate as we enter a technological and economic "Dark
Age.
London Times, October 2005

The Government has admitted that companies across Britain might be forced to close this
winter because of fuel shortages.
The Daily Telegraph, April 2007
Objective
Introduction of Energy
Sources of energy
Energy Crisis
Importance of energy
Energy and major global issues
Pakistan economy and Energy
Energy consumption
Energy supply sources in Pakistan
Impact of energy crisis in Pakistan
Conclusion/Recommendation
Steps for Survival
ENERGY: An Introduction
Energy facilitates all human activities
Oil was formed from the remains of animals and plants that
lived millions of years ago in a marine (water) environment
before the dinosaurs
The desire for energy has often exceeded the capacity of local
sources of supply.
At present, over a billion people in the industrialized countries
use some 60 percent of the worlds commercial energy supply,
while 5 billion people living in the developing countries consume
the remaining a large number of them are poor
Sources of Energy
In todays world energy have two many sources:
Renewable sources It can be refill in a short period of
time. The five renewable sources used most often
include hydropower (water), solar, wind, geothermal, and
biomass.
Nonrenewable energy sources It out of the ground

as liquids, gases and solids. The nonrenewable sources

used most often includes Crude oil, Natural gas, Coal,
and Nuclear.
Energy Crisis
An energy crisis is any great bottleneck (or price rise) in the
supply of energy resources to an economy
It usually refers to the shortage of oil and additionally to
electricity or other natural resources.
a situation marked by disruption in oil supplies resulting in
increases energy prices that threatens economic and national
security
Renewable sources Nonrenewable source
Importance of Energy
Energy is fundamental to the quality of our lives
Energy is a key ingredient in all sectors of modern economies
The US economy had the energy bill of 1 trillion in year 2007
Many Countries have considered the production and consumption of
sufficient energy to be one of their main challenges.
The magnitude of energy consumed per capita has become one of the
indicators of "modernization" and progress of a country.
Energy is, and will remain, an essential traded commodity in the international
economy.
Renewable sources of energy offer feasible and attractive alternatives to
conventional energy sources and their development has the potential to
generate large scale economic activities in regions which currently face energy
constraints
Pakistan had the oil import bill of $3.5 billion in the first 7 months of 2006.
65% greater than the last year
 Energy and Major Global Issues
Energy and Social Issues
-poverty, population
Energy and Environment
-Health, Acidifications, Climate Change, Land Degradation
Energy and the Economy
-Investment Requirements of Energy, Impact of foreign
exchange
Energy and Security
-Energy and National Security , Nuclear Energy and Nuclear
Weapons Proliferation
 ENERGY AND PAKISTAN ECONOMY

Pakistans economy is experiencing major structural changes

since 1999-2006. The real GDP growth is 8.35 percent in
2005-06. To sustain this growth Pakistan will demand equal rise
in energy use.
The per capita energy consumption in Pakistan is currently low
at 14 MBtu
Energy sector in Pakistan comprises power, gas, petroleum and
coal
Oil, natural gas, electricity, coal and LPG contribute 29.9
percent, 49.7 percent, 13.5 percent, 6.5 percent and 0.4
percent; respectively to primary energy supplies in 2005-06.
29 exploratory wells and 24 development wells were drilled in
2004-06
Contd.
Natural gas production increased to an annual average of 3,295
million cubic feet per day (21.2% increase)
Average oil production dropped to 61,817 barrels per day in
2004-05
The government is providing an investment friendly
environment for the energy sector to attract local and foreign
investors and as a result of these financial and structural
reforms, the energy sector has already emerged as one of the
most attractive sectors in the country.
Recently, Pakistan has signed six agreements for US$ 42 million
with various international companies to carry out exploration
activities in the oil and gas sector.
Energy Overview (Minister of Petroleum and
Natural Resources)

Proven Oil Reserves (January 1, 2006E)0.3 billion barrels

Oil Production (2006E) 61.5 thousand barrels per day, of which 98% was crude oil.
Oil Consumption (2006E)351.4 thousand barrels per day
Proven Natural Gas Reserves (January 1, 2006E)26.8 trillion cubic feet
Natural Gas Production (2006E)0.8 trillion cubic feet
Natural Gas Consumption (2006E)840.5 billion cubic feet
Recoverable Coal Reserves (2006E)3,362 million short tons
Coal Production (2006E)3.7 million short tons
Coal Consumption (2006E)5.4 million short tons
Electricity Production (2006E)76.9 billion kilowatt hours
Electricity Consumption (2006E)71.5 billion kilowatt hours
Total Energy Consumption (2006E) 1.9 quadrillion Btus*, of which Natural Gas
(44%), Oil (38%), Hydroelectricity (14%), Coal (6%), Nuclear (1%), Other Renewable
(0%)
Total Per Capita Energy Consumption (2006E)12.4 million Btus
Petroleum Products

The consumption of petroleum product during the first nine

months (July-March 2005-06) of the current fiscal year increased
by 17 %.
During the first three quarters of the current fiscal year the
consumption of petroleum products in household and
agriculture exhibited sharp declines to the extent of 16.8 % and
16.2 %.
The consumption of petroleum products, however, has
increased in industrial, transport, power and other government
sectors.
During 1990-2006 transport sector was the largest user of
petroleum products accounting for 48.7 percent, followed by the
power sector (31 percent), industry (12.1 percent), households
(3.8 percent), other Govt. (2.5 percent) and agriculture (1.8
percent).
Consumption of Gas

Natural gas for cleaner fuel than coal/oil has been gaining
importance around world.
The consumption of gas in cement industry increased by 100
percent during July-March
industrial consumption grew by 15.5 percent followed by the
power sector (12.3 percent), commercial sector (10.5 percent)
and household sector (3.5 percent)
The Power sector has emerged as the largest consumer of gas
(35.4 percent), followed by fertilizer (23.4 percent), industrial
(18.9 percent), households (17.6 percent), commercial (2.8
percent) and cement (1.5 percent).
Electricity Consumption

The household sector has been the largest consumer of

electricity, accounting for 41.4 percent of total electricity
consumption, followed by industrial (31.1 percent), agriculture
(14.1 percent), other government sector (7 percent), commercial
(6 percent), and street lights (0.7 percent).
Substantial increase in the consumption of electricity has also
been witnessed during the first 9 months of the current fiscal
year.
Consumption of Electricity (Sectored
Shares) (06-07)

Ot her Govt .
St reet Light
9.30%
Households 0.50% A gricult ure
42.90% 11.20%

Commercial Indust rial

6.40% 29.70%
Sources of Energy supply in Pakistan

Hydro
Coal Electricity Nuclear
6.50% 12.70% Electricity
LPG 0.80%
0.40%

Oil
29.90%
Gas
49.70%
Energy Supply

The supply of primary energy increased by 78.5 % in the last 14

years.
The per capita availability increased by 34.4 % in the last 14
years.
The energy supplies during the first 9 months of the current
fiscal year increased by 12 %.
Major Public Sector companies for energy
supply
Oil and Gas Companies
Oil and Gas Development Company Limited (OGDCL)

Sui Northern Gas Pipelines Limited (SNGPL)

Sui Southern Gas Pipelines Limited

Power Sector
The Water and Power Development Authority (WAPDA)

Karachi Electric Supply Corporation (KESC)

Karachi Nuclear Power Plant (KANUPP)

Chashma Nuclear Power Plant

DEMAND SIDE: ENERGY AND
MATERIALS EFFICIENCY

Industry
Agriculture
Commercial and Residential Buildings
Transportation
SUPPLY SIDE: RENEWABLE AND CLEAN
FOSSIL FUEL TECHNOLOGIES
The growing role of Natural Gas
Advanced Technologies for Electric Power Generation
Thermal Power Generation

Fuel cell

Hydroelectric power

Wind power

Solar Thermal Electric Power

Solar Heating, Cooling and Lighting for Buildings

Clean Fuels for Transportation
Reformulated gasoline

Compressed natural gas

Hydrogen: its importance as an energy carrier for transportation in the

long term
Impact of Energy Crisis on Pakistan
A Pakistan with serious energy shortages will not be a pleasant Pakistan
Governmental figures:
By 2015 energy demand in Pakistan will be nearly 22 percent greater than projected
supply
By 2030, this energy shortfall will be 64 percent.

Today, oil and natural gas supply nearly 80 percent of Pakistans energy needs.
Pakistan currently produces less than 20 percent of the oil it consumes. This fosters a
dependency on imported oil that places considerable strain on the countrys finances.
Gas needs not nearly as critical, Pakistans projected natural gas needs are expected
almost to double (from 2004 levels) by 2010.

Provincial rivalries and widespread public opposition have significantly slowed the
governments plans to build dams capable of generating electricity.
Hydropower and coal are under-utilized
Contd.
Nuclear power at this point accounts for barely one percent of Pakistans energy
consumption.

Pakistans renewable energy potential hydro, wind, and solar is substantial,

although presently this potential remains largely untapped.
Conclusions

It may be concluded that energy systems can be practice that are

not only friendly with, but are vital force for achieving social,
economic, and environmental and security goals.
Energy can be an instrument for sustainable development.
Renewable sources of energy are now reaching commercial
viability due to technology improvements and decreasing prices.
Higher consumption of energy simply reflected the rising level
of economic activity in the country.
Recommendation

In order to sustain growth momentum, rise in levels of income,

and increased availability of goods and services Pakistan needs
an integrated National Energy Plan to not only increase the
supply but also to preserve energy with efficient technologies.
Govt. of Pakistan should encourage economical, clean and
environmental friendly fuels.
There is a strong need for replacing diesel oil to the extent it is
possible with CNG for reducing the level of air pollution.
Govt. must pay attention to the development of Renewable
sources of energy as development of these resources has the
potential to generate large scale economic activities in regions
and attractive alternative to the conventional sources.
Five Steps to Survival

Vastly expand public transportation

Convert to non-polluting, renewable energy sources
Convert to organic agriculture and grow as much of our food
locally as possible
Seek to stabilize and then gradually reduce world population
growth rate
Vastly increase the efficiency of industry