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Oil & Gas Sector of Pakistan and Sustainable Development

Book · June 2015

DOI: 10.13140/RG.2.1.2415.7288

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 3|Page

About the Author

Absar Saleh is a young researcher and chemical engineering professional

with the expertise in renewable energy technologies. He is a sound
researcher in the field of Renewable & sustainable energy technologies.
He is affiliated with several research organizations and societies of the
world. This book is a combined work which he has conducted with the
affiliations of REAP (Renewable & Alternate Energy Resources of
Pakistan), RINP (Research Institute of Natural Resources of Pakistan),
PCRET (Pakistan Council for Renewable Energy Technologies).

Absar Saleh
www.absarsaleh.com
4|Page

Measures and Equivalents

1 Kilometer (km) = 1,000 meters = 0.6214 miles (mi)

1 Cubic Meter (m3) = 1,000 liter
1 Cubic Meter (m3) = 35.33 cubic feet
1 Thousand Cubic Feet (MCF) = 28.30 m3
1 Billion Cubic Feet (bcf) = 28.30 million m3
1 Million Cubic Feet (MMCF) = 1.081 GigaJoules (GJ)
1 Million Cubic Feet (MMCF) = 1. 025 billion British Thermal Unit (billion BTU)
1 Mega Joule (MJ) = 1 million Joules
1,000,000 Joules = 948 BTU
1 Kilocalorie (kcal) = 3.97 BTU
1 barrel (bbl) = 159 liter
1 Cubic Meter = 6.29 bbl
1 Ton = 1,000 Kilogram (kg)
1 Kilogram (kg) = 2.2046 pounds (lb)
1 MMT = 1 million ton

Abbreviations and Acronyms

AEDB Alternate Energy Development Board

BOPD Barrels of Oil per Day
BTU British Thermal Unit
CNG Compressed Natural Gas
EIA Energy Information Administration
EL Exploration License
EPA Environmental Protection Agency
EWT Existing Well Testing
FATA Federally Administered Tribal Areas
GDP Gross Domestic Production
GHPL Government Holdings Private Limited
IPIC International Petroleum Investment Company
IPP Independent Power Producers
IPR Improved Petroleum Recovery
KCR Khalifa Coastal Refinery
KESC Karachi Electric Supply Company
KW Kilo Watts
LPG Liquefied Petroleum Gas
MMCFD Millions of cubic feet per day
MW Mega Watts
NGL Natural Gas Liquids
NUST National University of Science & Technology
5|Page

OGDCL Oil & Gas Development Company

OGRA Oil & Gas regulatory Authority
PARCO Pak Arab Oil Refinery
PCRET Pakistan Council for Renewable Energy Technologies
PDDC Pakistan Dairy Development Company
PEPCO Pakistan Electric Supply Company
PMY Pipri Marshall Yard
POL Pakistan Oil Fields Ltd.
PPL Pakistan Petroleum Ltd.
PSO Pakistan State Oil Company.
RDF Refuse Derived Fuel
RFO Residual Furnace Oil
RSPN Rural Support Program Network
SEPL Spud Energy Petroleum Limited
SRF Solid Recovered Fuel
TCF Trillion Cubic Feet
TOE Tons of Oil Equivalent
WAPDA Water And Power Development Authority
WMP Waste Management Program
6|Page
 7|Page

FOREWARD
Pakistan is a country which is endowed with a multitude of natural resources.
Pakistan’s Economy is growing at a rate of 2.7% which consequently entails higher
energy consumption. Presently, three major energy sources have been identified (i)
Oil (ii) Gas (iii) Hydel which are being used to fulfill the energy needs of the growing
economy. The current figure of Pakistan’s energy resources stands at: oil (0.31
billion barrels), gas (30 TCF), coal (185 billion tons) and shale gas reserves (51
TCF). Pakistan is an agri economy which holds a large potential to produce energy
through biomass & agri waste. Moreover the country can produce energy from
biofuels using its own land and resources for cultivation. Additionally, Pakistan also
has the potential to produce solar energy of up to 2.3 million mega watts per annum.
Despite, all the resources & potential Pakistan is still facing problems of severe
energy shortages & is unable to fulfill its energy requirements.
With total reserves of 0.31 billion barrels of oil we are unable to fulfill the demand
of oil through home resources. The production of oil in the country is only 59.08
thousand bbl/day and the consumption is 426.72 thousands bbl/day where the
shortfall in demand is fulfilled by importing oil .We opt for importing oil due to less
production & exploration at home country. While the Country’s gas reserves stand
at 30 TCF reserves in the face of growing consumption of natural gas we are
experiencing serious shortages in this sector where the current supply natural gas is
not meeting the energy demand in gas sector.
Pakistan holds a strong potential to produce energy by several alternate means.
Besides the conventional energy resources Pakistan has the capability to produce
energy through different alternate energy resources. Pakistan produces two million
tons molasses per year that is a reasonable amount to produce ethanol fuels for
transport sector.
It also has the potential to produce a large amount of biodiesel for automotives by
the cultivation of Jatropha crucas plants. Also having the edge of sunlight country,
it has potential to produce solar energy. By utilizing local resources; using biomass
for energy production, allocating biogas units in rural areas and at grid levels and
adopting fuel cell technology we can overcome the energy crisis to a great extent.
 8|Page

Pakistan is undergoing the worst shortage of oil, gas and electricity. The reason
behind this is improper channelizing of energy, fewer exploration activities in oil
and gas sector, inappropriate distribution of resources, poor management, unstable
law and order situation and bad governance.
Since the oil & gas sector has a massive share in the country’s economic growth this
sector holds great significance. Development of oil and gas sector is the key to boost
up a country’s economic growth.
In order to fulfill the energy needs of the economy it is essential to improve law and
order situation in the country for the sake of attracting foreign investments, promote
& encourage proper optimization of the resources, inculcate improvement in the
government policy focus, focus on adequate rationalizing of oil and gas prices & opt
for effective management for utilization of resources.
This book contains a wide statistical data analysis with a complete study of prospect
for sustainable growth in pakistan
9|Page

CONTENTS

1. INTRODUCTION…………………………………………………....1
1.1. ENERGY OVERVIEW OF PAKISTAN
1.1.1. OIL
1.1.2. COAL
1.1.3. GAS
1.2. CURRENT STATUS OF OIL & GAS SECTOR
2. OIL SECTOR………………………………………………….………1
2.1. BACKGROUND
2.2. PAKISTAN’S OIL SECTOR OVERVIEW
2.3. CURRENT STATUS OF OIL SECTOR IN PAKISTAN
2.4. OIL CONSUMPTION BY USER SECTOR
3. GAS SECTOR………………………………………………………….1
3.1. BACKGROUND
3.2. PAKISTAN’S GAS SECTOR OVERVIEW
3.3. CURRENT STATUS OF GAS SECTOR IN PAKISTAN
3.4. GAS CONSUMPTION BY USER SECTOR
3.5. MAJOR CONSUMERS OF OIL & GAS PRODUCTS
4. SUSTAINABLE DEVELOPMENT IN OIL & GAS SECTOR….2
4.1. CRISIS
4.1.1. ELECTRICITY SHORT FALL
4.1.2. SHORTAGE IN OIL & GAS SECTOR
4.2. ALTERNATE ENERGY RESOURCES
4.2.1. ETHANOLFUELS
4.2.2. BIODIESEL(JATROPHA OIL
4.2.3. COAL GASIFICATION (THARCOAL PROJECT
4.2.4. SOLAR ENERGY
4.2.5. BIOGAS (BIOMASS DIGESTION
4.2.6. FUEL CELL TECHNOLOGY
4.2.7. RDF/SRF FUELS
4.2.8. SHALE GAS RESERVES
4.3. GOVERNMENT POLICY FOCUS
5. FUTURE PROJECTS IN OIL & GAS SECTOR………………….3
5.1. UCH-II DEVELOPMENT PROJECT
 10 | P a g e

CONTENTS
5.3. JHAL MAGSI DEVELOPMENT PROJECT
5.4. SINJHORO DEVELOPMENT PROJECT
5.5. NASHPA/MELA DEVELOPMENT PROJECT
5.6. NUR/BAGLA DEVELOPMENT PROJECT
5.7. NUR/BAGLA GAS CONDENSATE FIELD
5.8. MARU & RETI GAS FIELD
5.9. JAKHRO GAS CONDENSATE FIELD
5.10. SARA WEST GAS FIELD
5.11. PAKIRAN GAS PIPE LINE PROJECT
5.12. KHALIFA COASTAL REFINERY PROJECT
5.13. BIODIESEL CULTIVATION PROJECT
6. THE OIL & GAS SECTOR AND THE ECONOMY………………3
6.1. ENERGY BALANCE
6.2. ECONOMIC IMPACT
7. CONCLUSION AND RECOMMENDATIONS…………………..4

A. LIST OF FIGURES
B. REFERENCES
 11 | P a g e

1. INTRODUCTION

Pakistan has considerable oil and gas resources that can help to accelerate growth on
the continent if used strategically. As new resources are being discovered
progressively, they are not equally distributed; indeed. Economy of Pakistan is
growing steadily. This growth demands higher energy consumption and
consequently exerting high pressure on country’s economy. Pakistan mainly
depends upon oil and gas resources to fulfill energy requirements. Home resources
of Oil are not enough to quench energy thirst of the growing economy. In the result
Pakistan has to import massive quantity of oil and oil based products from Middle
East countries. As natural gas is playing an important role in power sector, gas
reserves are also becoming energy deficient. Currently in oil upstream and
downstream sector there are some local and international companies are involved
and government is trying to establish such policies that it will be able to bring more
international and global investors in this sector but the rapid speed of change, high
degree of uncertainty and ambiguous political situation of the country acquaints
prominent challenges and risk to foreign investment .Purpose of writing this report
is to highlight the present position of petroleum industry in Pakistan and its
upcoming anticipations keeping in view the economical, geological and political
conditions of the region.

1.1- ENERGY OVERVIEW OF PAKISTAN

Pakistan’s economy is growing at very high rate & this growth rate demands high
energy consumption also, thus it is exerting pressure on the confined energy
resources of the country also. Pakistan has three primary energy resources of oil,
natural gas and hydel energy, which are as the back bone of country in energy sector.
And these resources are being exploited to fulfill the energy requirement of country.
But due to confined resources of oil and gas and political nature of hydel energy,
country has to import ample quantity of oil and petroleum products from Middle
East especially from Saudi Arabia. Contribution of the natural gas in country’s
 12 | P a g e

energy use is the major that is about 50 percent of the total energy consumption and
in the upcoming years without higher production and current critical situation of gas
reserves country has to look towards imported gas from some other countries to
fulfill its increasing gas requirements.

Although country is blessed with the huge potential of hydel energy but due to
political issues of the country they are not being utilized to their full extent.

Below is given a primary energy mix of Pakistan;

Figure-1 [1]

The figure represents the total supply and the consuming sectors of energy. So oil &
gas resources are the dominant sources for the energy as far as concern. As the
Pakistan has a large reservoir of coal but that has high content of sulfur hence, that
is being imported to produce energy.

Overall supply of the energy is 64 million tons of oil equivalent .In which following
is the detail of every resource. [1]

1.1-A COAL

Total proven reserves of coal are 185 billion tones. Production is 3.1 million tones.
Consumption is 7.8 million tones. Imports are 4.7 million tones.
 13 | P a g e

1.1-B OIL

Total resource potential is 27 billion barrels. Crude oil refining capacity is 13 million
tones.
Consumption is 19.6 million tones. Imports are 18.6 million tones.

1.1-C GAS

Total resource potential is 282 TCF. Production is 4 BCF/day.

40

35

30

25
production
20
consumption
15
imports
10

0
Anuual consumption,
Coal Productio &
oilimports of natural resources
Gas in million
TOE Figure-2
Source: U.S EIA 2011

1.2- CURRENT STATUS OF OIL & GAS SECTOR

Oil and gas sector is most dynamic, and one of the core industrial sectors all over
the world. Some countries are specially gifted by the nature in this regard that they
have raw forms of oil and gas present beneath the land they own. USA, Central Asia,
Arab world, some parts of Africa and the adjoining areas are some of the localities
where the crude oil and gas is found. When we come to Pakistan, we see that
Pakistan is blessed with enormous resources and Pakistan is also good at oil and gas
 14 | P a g e

wells. The Sui place, the Baluchistan region and some areas of Sindh contain bulk
amount of these resources.
But unfortunately the resources are not properly channelized in Pakistan rather
foreign companies are playing more part in exploration and production. The demand
is increasing rapidly and the local production is too low despite the fact that Pakistan
has the potential of oil and gas production itself.

OGDCL Pakistan is a governmental institution that is too involved in oil and gas
production, as well as services. The situation is not that good; some efforts should
be properly made in this to fill the demand supply gap. Local potential should be
used and Government should itself allocate funds for exploration, production while
for services local companies should be encourages.
 15 | P a g e

2. OIL SECTOR

According to EIA2012 (U.S Energy information Administration) the proved oil

reserves of Pakistan are 0.31 billion barrels. The major part of the oil production
comes from the proven reserves of country located in the southern half of the
country, with the three largest oil producing fields located in the Southern Indus
Basin. Additional producing fields are located in the Upper and Middle Indus
Basins.[2]

2.1. BACKGROUND

Oil and Gas sector of Pakistan has seen impressive growth since the independence
when petroleum products production was limited. There was no production at all at
that time. In national development the petroleum industry has played a key role over
the last 50years by making large indigenous gas discoveries. The gas is being
supplied to the consumers by the sources through transmission networks of 9,843
kilometers and 71,863 kilometers of natural gas distribution system.[3] Pakistan
meets about 15% of its oil demand from local sources. Pakistan has been considered
as a petroleum valley. In 1886 first well was drilled at Kundal in the upper region of
Indus valley. Then in the following years Shallow wells were drilled, at Khattan
(Balochistan) oil production at small scale was starts from 1886. In 1915, the first
commercial oil discovery was made at Potwar basin (Punjab) [4].

In 1960’s Government of Pakistan created Oil and Gas Development Company

Limited (OGDCL) , which accommodated a successful path in the discovery of oil
and gas reserves with in the country. In 1973 after the oil crisis, notable discoveries
were made by the private sector and OGDCL.
 16 | P a g e

2.2. PAKISTAN’S OIL SECTOR OVERVIEW

Total Proved

Total crude
oil

Up to 2012
consumption

Exploratory
production

production

Discovered
Reserves

Refinery
capacity
Imports

Wells
Total

Oil
oil

0.31
62.09 59.08 426.72 634.43 286
billio 69
thousand thousand thousand thousand thousand 78
n (OIL
barrels/da barrels/da barrels/da barrels/da barrels/da 5
barrel )
y y y y y
s
Figure:3
*Source: U.S EIA 2011
*Source: Energy year book of Pakistan 2012

2.3. CURRENT STATUS OF OIL SECTOR IN PAKISTAN

According to energy year book Pakistan 2012, 16 exploratory and 34 developmental

wells were drilled for oil exploration and the efforts resulted with two discoveries
for oil made by OGDCL. The average oil production during 2011 was 65,866
thousand barrels per day. [5]

The import of petroleum products was increased by 10.7% while crude oil import
decreased 3.3% as compared to the last year. This increase in POL was mainly due
to increase in the imports of motor spirit, aviation fuel and furnace oil by 96%, 19%
and 32% respectively. This year the refineries production was decreased by 1.3% as
compared to the previous years. [5]

Oil consumption was decreased by1.3% during the year 2011. In the list of oil
consumers the oil consumed by industry and govt. sectors are increased by 38% and
16% respectively while it is decreased in agriculture, power and domestic sectors by
 17 | P a g e

30%, 8% and 5% respectively. Consumption of oil in cement industry is also

decreased by 51% as compared to the last year. [6]

Currently in Pakistan the energy supply by the means of crude oil, petroleum
products and LPG is 21,014 thousands TOE and by the means of natural gas energy
supply is 30,683 thousands TOE from the indigenous sources and imports of
Pakistan. And the imports in oil sector are 22,320 thousands TOE. [7]

2.4. OIL CONSUMPTION BY USER SECTOR

In Pakistan Transport sector is the major consumer of petroleum products that

accounts 47.40% of the total oil consumptions. The second consumer of oil is power
sector which consumes 40% oil. Then comes the industrial sector that consumes
9.5% oil. The remaining oil is consumed by the agriculture and residential sector.

A pie chart of oil consumptions during year2011-2012 according to Energy year

book of Pakistan 2012 is given below.

Oil Consumption
1% 2%
0%
7% Transport
Power
47% agriculture
Industrial
43%
Domestic
Other govt.

Figure-4 Source: Energy year book 2012 Pakistan

 18 | P a g e

3. GAS SECTOR

According to EIA2012 (U.S Energy information Administration) the proved gas

reserves of Pakistan are 30 trillion cubic feet. Up to 50% requirement of country’s
energy is fulfilled from natural gas resources present in the country. Currently
Pakistan has no imports in gas industry total gas consumed by the consumer sector
is produced from the country’s oil fields.

3.1. BACKGROUND

The Sui gas field is the biggest gas field of Pakistan, located in Blauchistan near Sui.
The Sui gas field was discovered in 1952 and its exploration was started
commercially in 1955. This gas fields is responsible for the 26% gas production of
Pakistan. The remaining reserves of natural gas are about 800 billion cubic feet and
the daily production is 4032 million cubic feet per day.

The operating company for the Pakistan gas fields is Pakistan Petroleum Limited
(PPL).

3.2 PAKISTAN’S GAS SECTOR OVERVIEW

Total Proved

Gas
Total Natural
Gas production

Figure-
consumption

Net Imports

5
Reserves

Natural

1400 1400
30 Trillion Cubic feet 0.00
billion cubic feet billion cubic feet
*Source: U.S EIA 2011
 19 | P a g e

3.3 CURRENT STATUS OF GAS SECTOR

According to energy year book Pakistan 2012, 16 exploratory and 34 developmental

wells were drilled for oil exploration and the drilling efforts resulted with two
discoveries for natural gas made by OGDCL. There are no imports of oil are in
regulation till now, total production and consumption of natural gas is 1400 billion
cubic feet annually, during the year 2011-2012 the production of natural gas was
4,032 million cubic feet per day, Last year the daily production was 4,063 million
cubic feet per day. Hence production of natural gas is decreased by 0.007%.

3.4. GAS CONSUMPTION BY USER SECTOR

Gas production & consumption in Pakistan till 2010 was38.41 billion cu m, There
are no imports and exports are in regulation till now. [8] In natural gas industry the
major consumer is power sector which accounts for 27% of overall consumption,
other major consumers are general industry, fertilizer sector, transport sector and
domestic consumer which consume 24%, 14%, 9% and 19% respectively. A pie
chart of natural gas consumptions during the year 2010-2011 is given below
according to the Energy Year Book 2012.

Commercial Gas Consumers

3%

Gen.
Domestic Industry
19% 23%
Cement
Transport (CNG) 1%
9%
Fertilizer
(feedstock)
14%
power
27%
Fertilizer ( fuel)
4%

Figure-6
3.5 MAJOR CONSUMERS OF OIL & GAS PRODUCTS
 20 | P a g e

For oil sector major consumers are power industry and transport.43.1% consumption
is by power industry and 47.3% petroleum products are consumed for facilitating
the transport. [9]

While in the gas sector consumers chart is given above. As a whole the major
consumers of the oil and gas sector are transport, power and the industrial sector.
 21 | P a g e

4. SUSTAINABLE DEVELOPMENT IN OIL & GAS SECTOR

The world is moving towards energy crisis globally, the reason behind that is the
decline in the availability of economical and cheap oil. The main reason of current
energy crisis is the lack of power generation which is due to shortage of oil & gas
resources, and this can be optimized by properly utilizing our indigenous resources
and by adopting the new technology that is being exploited by the whole world.
Pakistan is a land of God gifted resources, if it properly utilize its own resources than
there is no need of imports for fulfilling its energy requirements. The transport sector
has become the major consumer of natural gas in last ten years due to CNG driven
vehicles that caused a forceful reason for the shortage of natural gas in the fertilizer,
textile and general industries sector. Also increasing demand of electricity forced the
economy to import oil and oil based products to fulfill its energy needs. By managing
our oil & gas resources and adopting renewable and sustainable energy technologies
we can do sustainable development in the oil and gas sector of Pakistan. Further on
the crisis being faced by Pakistan, their reasoning, alternate energy resources and the
government policy focus are discussed.

4.1. CRISIS

From about half a Decade Pakistan is suffering from energy crisis. The power crisis
has become unbearable nowadays. Despite of having a large amount of resources
Pakistan imports a heavy amount of hydrocarbon fuels to fulfill its energy needs. As
in 2001, the country had excess power capacity of 4,000 megawatts. But
unfortunately the situation has got worst. According to a research Pakistan lies in a
region from where the belt of high enthalpy geothermal resources passes. Hence
these energy resources can be exploited for the betterment in oil and gas sector and
to resolve the energy crisis which the country is facing.

The reason for the deficiency of energy in Pakistan seems due to lack of
accountability, crooked priorities and poor management. The current situation of
energy crises in the oil and gas sector and power sectors are as;
22 | P a g e

4.1.1. ELECTRICITY SHORTFALL

According to Pakistan electric supply company PEPCO current

requirement of electricity in the country is 18713MW, while the
generation of electrical power is only 13550MW and the capacity of
producing electricity in Pakistan is about 19661MW through private
and government power sector. Pakistan is facing a shortfall of 5163MW
which is a serious downfall. The oil stock position at RFO operable
power plants is critically low.[10] The reason for shortfall is due to
insufficient feeding of oil to power plants and shortage of gas. And that
is due to the delay in payments to oil suppliers and IPP’s.

Due to the payment disputes between WAPDA, PSO, Power companies

and oil refineries load shedding is increased. WAPDA has to pay PSO
and power companies about 56.91 billion rupees for oil and electricity
purchase respectively. And PSO has to pay the oil refineries about 39.8
billion rupees. And due to insufficient funds PSO is not able to pay oil
for insufficient funds. WAPDA has not received its payments by FATA
and many areas of Khyber Pakhtun Kha for electricity supply, thus it is
lacking in payments to PSO for oil purchase. By resolving the payment
issues facing by WAPDA and PSO, country can overcome the problems
in the power sector to generate electricity.

4.1.2. SHORTAGE IN OIL & GAS SECTOR

Currently the oil industry of Pakistan is not facing any type of

permanent shortage in public sector, however the artificial shortage of
oil is occasionally caused by some elements temporarily due to pricing
of petroleum products for the sake of profiting and blackmailing. While
in the power sector the situation is changed. As the stock of oil is at
critical level so, the power sector is facing a serious crisis due to the
disputes between PSO and WAPDA as discussed above.
23 | P a g e

On the other hand despite of having total gas reserves on 27th number
in the world, Pakistan is facing worst shortage of natural gas. The
reason behind this shortage is the depleting of old gas fields, no new
exploration and production, highest CNG consumption,
mismanagement and poor rationing of gas. The reserves of Sui and
Qadirpur are gas fields are depleting, negligible exploration and
production with respect to demand of natural gas, Pakistan as become
world’s largest country of having most CNG driven vehicles, these all
are the factors that collectively gave birth to the serious gas shortage in
the country. Along with managing all these factors government should
have to make decisions and revised policies for the sake of long term
solution of natural gas in the country.

Currently the demand of natural gas in Pakistan is 5190.5MMCFD out

of which 3895.5MMCFD is fulfilled by internal resources. Hence, a
shortfall of 1295MMCFD is facing by Pakistan. While in the oil sector
according to U.S EIA last year consumption of oil & oil based products
was 426.72 thousand barrels per day out of which only 62.09 thousand
barrel day was produced from the internal resources and 364.63
thousand barrel per day were the imports. [11]

Nowadays Pakistan is through a bad law and order situation which is

the main reason for the dearth in the development of exploration and
production of oil & gas reserves, Also reasonable pricing of gas, proper
rationalizing of gas in different consumer sectors and by adopting
renewable energy technology for the transport sector which is the major
consumer of natural gas we can overcome the gas shortage and crisis
which we are facing.
 24 | P a g e

4.2. ALTERNATE ENERGY RESOURCES

Alternate energy is the rising issue of current world’s economy. Being a

resourcefully enriched with alternate energy resources Pakistan gains the
opportunity to produce renewable energy up to maximum extent. There are different
projects that can be adopted to eradicate or minimize the current energy crisis.

x Ethanolfuels
x Biodiesel (Jatropha oil)
x Coal Gasification (Tharcoal project)
x Solar Energy
x Biogas (Biomass digestion)
x Fuel Cell Technology
x RDF/SRF Fuels
x Shale Gas reserves

4.2.1. ETAHNOLFUELS

Ethanolfuel is the most regular bio fuel worldwide specifically in Brazil and U.S.
Ethanolfuels are manufactured by the fermentation of sugars processed from wheat,
sugar canes, sugar beet, corn & molasses or from any sugar or starch that is used for
the production of alcoholic beverages. And the production of molasses in Pakistan
is two million tons annually that is reasonable quantity for producing alcohol fuels
in Pakistan. [12]

As a replacement of petrol the ethanol fuels can be easily used in gasoline engines,
and it can be blended with the gasoline to any ratio.[13] The energy density of
ethanol fuels is lesser than the gasoline, means it consumes more fuel in mass &
volume to produce the same amount of energy.

An advantage that the ethanolfuels have on the gasoline that they have high octane
ratings, so they produce no knocking in the engines, and increased thermal
 25 | P a g e

efficiency. By using only the 10% blend of ethanol with oil we can minimize 30-40
million barrels import of petrol. [14]

4.2.2. BIODIESEL (JATROPHA OIL)

Currently the oil extracted from the jatropha curcas seeds is used for producing
biodiesel in Philippines and Brazil. Jatropha curcas is an oil containing tree, which
can be easily farm in mild dry places. In Pakistan Punjab, Sindh, Baluchistan and
many areas of Khyber Pakhtunkhwah are ideal places for its farming. It can also be
farmed on already used land regions.

If jatropha is cultivated in bushes it can produce 0.8 to 1.0 Kg/meter of live fence.
For growing up to a mature tree jatropha requires 4-5 years. In the conditions of rain
fed it yields 0.35 to 0.375 gallons per tree and if 3-5 liters water is supplied
fortnightly than the production amount doubles [15]. One acre of jatropha plant is
enough to produce two tons of biodiesel. In Pakistan students of National University
of Science & Technology (NUST) have produced low price biodiesel produced from
jatropha plant.

The price to produce one liter is Rs 25 which is much cheaper than the current
petroleum rates. A model farm of jatropha cultivation of 15 acres has also maintained
by the NUST. They have a target to cultivate 4-5 million trees of jatropha this year,
Moreover, many of the vehicles and power generators of NUST are running on
biodiesel fuel. The government of Pakistan should pay attention to this project with
serious concern, So the country can cut down the heavy expenses of oil imports.

4.2.3. COAL GASIFICATION (THARCOAL PROJECT)

Natural Gas comprises 43% of the overall energy mix of Pakistan and coal comprises
only 5%[16]. While in the whole world coal contributes 39% to meet the power and
energy requirements [17]. Pakistan has coal reserves of 186 billion tones [18] out of
which 185 billion tones are present in the Thar Desert, Sindh Province. Thar coal is
the 5th largest coal field in the world. Currently the production of coal in Pakistan is
8 million tons annually.
 26 | P a g e

There are two options to utilize the Thar coal to meet the energy requirements either
by direct combustion or by gasification. Quality of Thar coal is B-grade and due to
environmental & pollution aspects it can’t be directly burned. So Coal gasification
is a better and relatively new technique commonly named as underground coal
gasification. By this method coal is gasified in the mines where it found and the
product gas is used to generate the electricity.

Pakistan’s leading nuclear scientist Dr Samar Mubarakmand chairman of the

governing board of Thar coal project said that by underground gasification technique
the generation of electricity will be 3-4 rupees per unit and the price of diesel will
become $40 per barrel [19]. By utilizing the Thar coal resources Pakistan can
overcome its energy crisis with in 10 years and eradicate its imports, the need is to
improve the government policy focus so that it should provide increasing investment
opportunities to the foreign companies for the development & production.

4.2.4. SOLAR ENERGY

Solar energy is produced by gathering sunlight and converting it into the form of
electrical energy. The energy collected from sunlight can be converted into
electricity either by using photovoltaics or by concentrated solar power. According
to a study Pakistan has capacity to generate 2.3 million mega watts energy per annum
through solar systems. [20]

This is also an impressive alternative way for the country to overcome its energy
crisis. In Pakistan recently a Korean Company has started a project of generating
300MW based on solar energy, the project requires 4 acre land per MW electricity
generation. PCRET has also installed 300 solar photovoltaic systems with overall
capacity of 100KW which is enough for lightening 500 houses, mosques streets &
parks. AEDB is also working for the propagation of the solar energy; in this regard
they have exempted the solar panels from taxation.
 27 | P a g e

4.2.5. BIOGAS (BIOMASS DIGESTION)

Biogas is a gas mixture which is produced by the anaerobic fermentation of organic

waste. The key components of biogas are methane gas (CH4) and carbon dioxide
(CO2). Methane gas is combustible gas and can be used for the heating purposes.
The raw material for producing biogas is agriwaste, animals waste and all types of
organic wastes. In the economy of Pakistan agriculture has key importance.

Hence for Pakistan biogas is a very valuable alternate renewable energy source.
Pakistan has a large amount of animals that produce 652 million Kg manure daily
only from cattle & buffalo. This amount of manure can be used to produce 16.3
millionm3 gas daily and 21 million tons biofertilizer annually. [21] Government of
Pakistan is working on different small scale as well as large scale biogas production
plants projects. Currently different agencies like PDDC Pakistan Dairy
Development Company, PCRET Pakistan Council For Renewable Energy
Technology, RSPN Rural Support Program Network are working for the
propagation of this renewable energy technology. Recently PCRET has installed 368
biogas plants in rural areas of country, KESC Karachi Electric Supply Company is
rapidly working on one of the largest biogas project of the world, which will produce
25-30 MW electricity on the basis of digesting 300 tons manure daily. [22]

Due to significant economical, social and environmental benefits of biogas

technology it should be implemented on large scale. Government should take
initiative through PCRET and AEDB for the propagation and funding of biogas
technology.

4.2.6. FUEL CELL TECHNOLOGY

Fuel cell is an electrochemical device which converts the chemical energy of

hydrogen oxygen reaction in to electrical energy. The reaction of the process is
exothermal hence produces some heat and the only byproduct of the fuel cell is non
toxic water which drinkable. It requires steady supply of oxygen and hydrogen for
continuous production of electricity. Atmosphere oxygen is acceptable for the fuel
 28 | P a g e

cell operation, but the supply of hydrogen is needed which does not freely exists in
nature. Thus hydrogen can be retrieved from a large variety of different sources we
have in our country such as biogas, natural gas, reformed liquid fuels, alcohols and
landfill gas. On the other hand there are some types of fuel cells that can be directly
fed these types of fuels.

The hurdle towards its large scale production is the initial cost, that is 4000 US$/KW.
[23] And due to lack of infrastructure for providing hydrogen is the other problem
which is facing by the acceptance of fuel cell. On fuel cell technologies in Pakistan
Clean Power (Pvt) Limited is working with (AEDB) Alternate Energy Development
Board Since 2001.As a resulting effort two fuel cells have been imported in Pakistan
and three fuel cell labs are under the development process. As compared to other
renewable energy technologies fuel cell technology is not so cost effective but it has
no environmental hazards, it is the technology that is 100% environment friendly.

4.2.7. RDF FUEL/SRF FUEL

RDF (Refuse Derived Fuel) or SRF (Solid Recovered Fuel) is a fuel that is produced
by crushing and then de moisturizing of municipal solid waste using waste
conversion technology. Major part of RDF fuel is consisting of combustible
components present within the solid municipal waste such as biodegradable waste
and plastics. RDF fuel processing plants can be planted at the municipal solid waste
storages; also they may be located at remote locations. It is being commercially
utilizing in England, U.S and Sweden on full scale. They run their local power plants
on RDF fuel. In Pakistan there is not any utilizing of waste for energy purposes. In
Pakistan solid waste generation is 23,171,463 tons per year (estimated according to
EPA Pakistan) [24] and the growth rate per year is 2.61%.

In Pakistan a private company has started the project of refuse derived fuel
generation at Rawalpindi with the help of waste management of Pakistan (WMP) at
daily basis by purchasing the solid waste from the Rawalpindi’s administration. The
RDF fuel is not only a source of revenue and energy but also helps in the cleanliness
of the country. This technology will help in both ways, as an energy sources as well
as for the cleanliness of the land due to lifting of garbage on daily basis. Government
 29 | P a g e

should stress on the local waste management companies to initiate the waste to
energy projects for the betterment of energy downfall of the country.

4.2.8. SHALE GAS RESERVES

Shale gas or tight gas is actually the natural gas formed from being trapped within
shale formations. Pakistan has a large reservoir of shale gas which is an alternate
energy source and addition to the current natural gas reserves.

According to U.S Energy information Administration assessment Pakistan has the

reserves of 51 trillion cubic feet of shale gas. [25] Shale gas was discovered in
Pakistan in about 2008 by an American George Mitchell, since then Pakistan has
failed to explore the shale gas reserves because none of any local or foreign is agreed
yet for the shale gas exploration. Government is still working for the exploration of
shale gas, in this gas government has formed a policy for the exploration and
production of shale gas in Pakistan to attract local as well as foreign investment.

The reason behind no investment is the gas pricing in Pakistan and the law and order
situation on the country. The gas price in Pakistan is lower than the other petroleum
products and fuels also the law and order situation in Pakistan is very poor which
repels the interest of local and foreign investors. The exploration of shale gas will
help the country greatly in producing cheap domestic gas, saving the foreign
exchange spent on imports of hydrocarbon fuels, reducing electricity crisis and in
elevating the economy of the country.

4.3. GOVERNMENT POLICY FOCUS

Oil & gas sector is the major part of the Pakistan’s overall energy mix and meets
over 79% of the energy needs. Hence a high priority should be given to this sector.
The governments have followed up consistent policies aimed to promote foreign
investments in exploration and production sector to exploit the indigenous fossil fuel
sources of country for the benefit of the nation.

The reason for improvement in government policy focus is to cut down the heavy
imports. Pakistan’s commercial resources for exploitable energy are oil, natural gas,
 30 | P a g e

coal and hydropower. The current annual energy supply is about 65.01 million TOE,
and oil & gas sector meets 78% of these requirements [26]. The remaining
requirements are fulfilled by coal, hydropower, liquefied petroleum gas, nuclear and
imported power.

Government should provide the policy package with competitive incentives to attract
the foreign investment also government should provide complete safeguard and
ensure the safety of the investors. In order to incentivize the previous policy
government has revised its policy for the enhancement of exploration and production
activities in the country. In the production and exploration policy of 2012
government has focused the following objectives for the development in oil and gas
sector of Pakistan.

a) To expedite the exploration and production activities for the sake of

being self dependent in energy by increasing oil and gas production.

b) To improve the direct foreign investment by improving its terms of

investments in the upstream sector.

c) To attract the involvement of Pakistani oil and gas companies in the

upstream investments opportunities of the country.

d) To train the local professionals in exploration and production sector up

to international standards and providing friendly conditions for their
retaining in the country.

e) To enhance the exploration and production activities in the onshore

frontier areas by offering internationally competitive packages.

f) To ensure a perfect management of resources.

31 | P a g e

g) To conduct the exploration of oil and gas resources in a socially,

environmentally and economically sustainable and responsible manner.

h) To provide the energy secure by improving the domestic exploration.

i) To ensure the security of the investors and providing them a complete

a safeguard.
 32 | P a g e

5. FUTURE PROJECTS OF OIL & GAS SECTOR

5.1. UCH-II DEVELOPMENT PROJECT

The UCH gas field is situated in Blauchistan

about 67km in southeast of Dera Bugti. This
field was discovered by Pakistan Petroleum
Ltd in 1955, but due to its low BTU content,
it was not developed. The field was
reactivated by OGDCL in 1980s. Till now
OGDCL has drilled 15 wells and currently
they are supplying 220-225 MMcfd per day to
the UCH power plant via a pipeline of 47 km,
Figure-7 which is the first mega lower heating value gas
fired power plant of 586MW.

After a detailed study on the UCH gas field, OGDCL has formed a development
plan to increase the gas production from 220 to 380 MMcfd per day. This project
contains the drilling of additional 15 development wells, assembling of a gas
gathering plant and the installation of dehydration and hydrogen sulphide (H2S)
plant along with gas delivery station. So far about 14 development wells have been
drilled. Engineers and consultants are preparing Design documents. By February,
2014 gas supply from UCH-II is expected. [27]

5.2. KPD-TAY INTEGRATED DEVELOPMENT PROJECT

KPD-TAY Plant is located in Sindh, about 25 km
from Hyderabad city. OGDCL has decided to
setup this project by itself in two phases. Under
the phase-I, 100 MMcfd dehydrated gas will be
supplied to SSGL’s network, without extracting
LPG from it and with 8% carbon dioxide content.
A gas transport line from Kunnar plant to
Figure-8
 33 | P a g e

Jamshoro of 30 km and of Dia 24” has been laid by SSGL. OGDCL has completed
its phase-1 project in October, 2011.

The supply of gas from the field has been started from the field on January 12, 212.
In phase-II full processing of raw gas is included which involves extraction of LPG
and removal of CO2 content from the gas and supply to SSGL’s network. Activities
of the phase-II project are fully in the progress. Deadline for the phase-II project is
24-26 months. For the engagement of a consultant LOI has been issued. The
expected production by the completion of the project is Oil: 4,400 BOPD, Gas:
284MMcfd, LPG: 387 M.Tons/day and NGL: 400 BOPD. [27]

5.3. JHAL MAGSI DEVELOPMENT PROJECT

Jhal Magsi is situated in Jhal Magsi district, Blauchistan. This is a joint development
project of OGDCL (56%), GHPL (20%) and POL (24%), and OGDCL is working
as an operator. The project is currently under implementation, in which compression,
dehydration H2S removal plant is required. On the completion of this project
expected production is 15 MMcfd by February, 2013. [27]

5.4. SINJHORO DEVELOPMENT PROJECT

The Sinjhoro field is situated in the Sanghar district of Sindh province, and is a joint
development project of OGDCL (62.5%), OPI (15%) and GHPL (22.5%), and
OGDCL is serving as an operator. This project involves the relocation of Ex-
Dhodak plant, planting of feed gas compressors at Sinjhoro, gathering facilities
construction and an amine plant.The expected production on the completion of the
project is OIL: 3000-3500 BOPD, GAS: 25-31 MMcfd, LPG: 120-140 M.tons per
day. The is to be completed in two phases and estimation for its completion is
December, 2012. [27]

5.5. NASHPA/ MELA DEVELOPMENT PROJECT

Nashpa/Mela field is situated in District Kohat, and is a joint development project

of OGDCL (65%), PPL (30%), GHPL (5%) and OGDCL is serving as an operator.
The project is currently under implementation, in which installation full processing
 34 | P a g e

utilities including LPG plant and compression of gas. LOI has been issued for the
engagement of a consultant. [27]

5.6. NUR/BAGLA DEVELOPMENT PROJECT

Nur / Bagla fields will be developed based on the track without problems by the
construction and installation of production facilities. Gas from Nur gas / Bagla will
be processed through the membrane plant and the dehydrated gas will be supplied
by SSGCL till 2012.[27]

5.7. NUR & BAGLA GAS CONDENSATE FIELD

Bagla Field is situated about 150 Km in East of Karachi at Thatta Exploration Block
of Sindh Province. The nearest city from Bagla is Golarchi that is about 28 Km.

The Field was discovered by Phillips Petroleum Exploration Limited in December

1998. On production testing gas / condensate was discovered in lower Goru
Formation. Later on the Bagla well# 01 was Plug and Abandoned due to oozing of
gas in the nearby area from the well. Drilling of the Bagla # 02 was started on 7th
June, 2008 and completed on 8th Nov, 2008. The well produced gas / condensate
from lower Goru Formation. [27]

5.8. MARU AND RETI GAS FIELD

The field is located in District Ghotki in Sindh province. OGDCL is the working
interest owner and operator of Guddu Exploration License (EL). The working
interest of various JV partners in Guddu EL is OGDCL 70%, Spud Energy
Petroleum Limited (SEPL) 13.5%, Improve Petroleum Recovery (IPR) 11.5% and
Government Holdings Private Ltd (GHPL) 05%. The discovery of the field was
made in August 2009. Four wells have been drilled. Total reserves of these fields are
45.5 BCF. In order to appraise the field, the field will be put on Extended Well
Testing (EWT). About 12 MMSCFD untreated gas will be allocated to M/s Engro
for their fertilizer plant at Daharki. OGDCL will complete its in-field facilities in
January 2012. Gas supply to Engro will be after completion of pipeline from Maru-
 35 | P a g e

1 to M/s Engro Plant at Daharki. This pipeline will be constructed and maintained
by Engro. [27]

5.9. JAKHRO GAS CONDENSATE FIELD

The Jakhro field is located in District Sanghar in Sindh province. It is Joint venture
field of OGDCL (77.5%) and Government Holding Private Limited (22.5%).
OGDCL has planned to develop the field on standalone bases. About 6 MMSCFD
dehydrated gas will be supplied to M/S SSGCL and 238 barrels condensate per day
to refinery. The first sale gas from the field will be available in first week of April,
2012. [27]

5.10. SARA WEST GAS FIELD

The Sara West field is situated in District Sukhur of Sindh province. Anciently the
field was discovered by M/s Tullow in 1996. Later the ownership of the field was
handed over to OGDCL in 2007. OGDCL has drilled two development wells. The
gas from this field contains high CO2 contents and low heating value (85-120
BTU/SCF). Govt is planning to allocate gas from this field to M/s Engro. About 120
MMSCFD gas from this field will be processed to a heating value of 300 BTU/SCF
@ 40 MMSCFD and supplied to M/s Engro. After gas allocation by the Govt,
OGDCL will supply gas to Engro within 02 years. [27]

5.11. PAK-IRAN GAS PIPE LINE PROJECT

The Pak-Iran gas pipeline also known as the peace pipe line or IP pipeline is a pipe
line to deliver gas from Iran to Pakistan. [28] Total length of the whole pipeline is
2775 Km which starts from Asalouyeh and by passing through Blaouchistan and
Sindh it will end up in the Multan area. The estimated completing time for this
project is December 2014. The major length of the pipeline passes through Iran
which is of 1172 kilo meters, out of which Iran has already completed 900 km
portion of 56 inch diameter pipeline from Asalouyeh to Iran Shehr. [29]
 36 | P a g e

This pipeline has the capacity to conduct 750mmcfd gas volume which will help in
generating 4000 MW electricity, along with providing more job opportunities in the
backward areas of Sindh and Blauchistan. Pakistan has issued a tender for laying gas
pipeline in its territory to a German company rejecting the U.S pressure for the Pak
Iran gas pipeline project. Pak Iran gas pipeline project was started to overcome the
energy crisis which we are facing currently. But according to the increasing demand
of natural gas and the power consumption rate the full capacity of the pipeline will
barely meet the requirements by 2015. Government should focus on the
implementation of the long term projects to meet its energy requirements.

5.12. KHALIFA COASTAL REFINERY

Khalifa coastal refinery is a project of oil refinery at Khalifa point, near Lasbela
district in Blauchistan. The capacity of this refinery is 250,000bbl/day which is
equivalent to the 13 millions petroleum products in a year. It will be the biggest
refinery of Pakistan. [30] The estimated cost of this project is 6 billion US$. In
addition to refinery, this project also includes a 250 MW natural gas fired power
plant, a grid station, a small city to accommodate the refinery workers and a sea port
jetty. This project was approved by the government in October 2007.The owners of
this refinery are IPIC International Petroleum Investment Company of Abu Dhabi
(76%) and PARCO Pak Arab Oil Refinery (24%). This project was suspended
several times and continued, but recently as of January 2012, due to various issues
this project put on hold. The reasons behind the delay of this project are lack of gas
supply, lack of security and issues related to the governance and economy, such as
circular debt which has stopped the further investments if IPIC in Pakistan.[31]. First
time the project was suspended by the IPIC due to the hurdles between the
government of Pakistan and the IPIC on the extension of service contract of
managing director of PARCO Rasheed Jung in 2008. Then for the second time the
project was suspended due to the unclear dues of PARCO under the circular debt.
According to the news sources in the finance ministry said that the President Asif
Ali Zardari has appointed interior minister Rehman Malik to resolve the issue of
circular debt facing by PARCO. If the government of Pakistan succeed in
accomplishing this project and then it will be the biggest project in oil & gas sector
having the largest foreign investment on the country. The current capacity of refining
of Pakistan is 17.395 million tons per year and by adding the capacity of Khalifa
Coastal refinery this capacity will boost to 30 million per year [32]. Thus it will
 37 | P a g e

provide a better edge to the oil and gas sector of Pakistan in a way to overcome the
energy needs.

5.13. BIODIESEL CULTIVATION PROJECT

The Pakistan State Oil company has signed memorandum of understanding

with the forest and wildlife department of government of Blauchistan for the
establishment of a 5000 acres agricultural estate at Uthal for the cultivation of
biodiesel. New business department of PSO had established a agricultural area
at Pipri Marshalling Yard (PMY) in order to conduct a feasibility study
regarding the cultivation of the Jatropha crucas plants and extraction of
biodiesel from the seed s of that plant. Basing on the completion of plant life
cycle and the extraction of biodiesel, after testing the fuel into the vehicles the
company has stepped towards mass cultivation. [33]
 38 | P a g e

6. THE OIL & GAS SECTOR AND THE ECONOMY

6.1. ENERGY BALANCE

Oil & Gas sector of Pakistan accounts for the 79% of commercial energy usage
hydroelectricity for about 11.8%, and coal and liquefied petroleum gas (LPG) for
the balance. Proven oil reserves are relatively very small (0.31 billion barrels
according to U.S EIA).And the imports of oil over the past year is 364.63 thousand
barrels per day which results an import bill of 9.936 billion U.S$ [34]. On the other
hand the reserves of natural gas are at 30 trillion cubic feet (TCF) and there is a scope
for a forceful increase in gas production and consumption and hence in the share of
gas in commercial energy mix that is currently 47.6% [35].

The contributions of hydro electricity and coal in the overall energy production are
very low, although the country’s ample hydro power potential and massive coal
reserves in Sindh province. Under this scenario, it is become a need to variegate the
sources of energy supply, apart from the petroleum products on the basis of strategic
as well as financial considerations.

The transport sector is largest consumer of petroleum products 47.1 % [36] followed
by power generation 43.1% and general industry 7.2%.

6.2. ECONOMIC IMPACT

Oil and gas sector of a country impacts on a
Share of oil & gas sector in
country’s economy in four ways; share in GDP, total exports
share in state revenues, share in total investments
and share in total exports. According to a report
Oil &
publish by World Bank, in Pakistan GDP was Gas
worth 174.80 billion U.S dollars in 2010. The Sector
25%
GDP value off Pakistan is roughly 0.29 % Total
equivalent to the world’s economy. exports
75%
Exports of Pakistan during last year were 25.35
billion U.S$ and share of petroleum sector is 6.43 Figure-9
billion dollars.
 39 | P a g e

Currently imports of Pakistan are 37.57

Share of oil & gas sector in total
billion U.S$ [37] out of which 9.936 billion imports
U.S$ spent on the imports of petroleum
products which is a negative impact on the
Oil &
economy of the country. Gas
Sector
26%
Total
Imports
74%

Figure-10

Total foreign investments in Pakistan during last Share of oil & gas sector in
year were 1739 million U.S dollars. And the total investments
share of oil & gas sector in the total investments
were 605 million US$. [38]
Oil &
Gas
Sector
Total
34%
invest
ments
66%

Figure-11
 40 | P a g e

Share of oil & gas sector in total

revenue
And the revenue of Pakistan during last year
was 19.8 billion US$ and the share of oil and
gas sector was 9.5 billion US$.[39]
Oil &
Gas Total
Sector Revenue
48% 52%

Figure-12

These are the major indicators of the oil and gas sector on the economy of Pakistan.
The oil and gas sector of Pakistan has a significant share in the revenues of the
country. Sustainable development in the sector will aid the country’s economy lift.
 41 | P a g e

7. CONCLUSION AND RECOMMENDATIONS

Pakistan is a country which is blessed up with the enormous reservoirs of natural

resources. But the country is still surrounded by the various energy problems. There
are several reasons behind the current energy scenario that has been created in last
6-7 years. Pakistan is facing worst shortage of oil, gas and electricity that directly
effect on the country’s economy. The main reasons behind this scenario are lack of
development with the increasing demands, bad governance, poor management of
current resources, less exploration of new resources, political controversies, no
adoption of new technologies and lack of local professionals.

Pakistan has enough resources of oil and gas to overcome the energy shortage which
it is currently facing, the major reason of shortage in gas sector is improper
distribution of gas in to consumer sector. The sudden rise in the consumption of
natural gas in the transport sector affected the gas sector and resulted to the shortage
of gas in the industrial sector and caused economy downfall. And due to no new
exploration and production in oil sector country is facing shortage of oil too.

There are large reserves of coal in the Thar region Blaouchistan which are not been
exploited yet due to lack of professionals, political issues and lack of investments.
Also the shale gas reserves are in large amount but still not exploited yet due to no
investments. Khalifa Coastal Refinery project is also surrounded by the management
problems.

Recommendations:

The basic need for the sustainable development in the oil and gas sector is better
government policy with competitive incentives for the investors to grab the foreign
investments for the development in the upstream sector.

In the gas sector the first priority in the consumers sector should be given to the
fertilizer, textile and general industries sector, as they have significant share in the
country’s economy. While for the transport sector the government should adopt new
technologies such as biodiesel, ethanolfuels, fuelcell technology, solar energy etc.
 42 | P a g e

Being an agri country government should encourage the planting of biogas units and
the use of biogas for the cooking and heating purposes also the waste to energy
technology in the urban area for the energy production
Use of solar energy should be maximized at the grid stations level to meet the energy
demands, as the country has the sound climate for the solar energy production.

Thar coal reserves should be exploited either by the coal gasification technology or
by the coal liquefaction technology.
The indigenous resources should be utilized properly for the sake of power
generation. And the resources should be forced to reduce the dependence on
imported crude oil by adopting renewable energy technologies.
Local waste management companies should adopt waste to energy techniques to
reduce the burden on the oil and gas sector.
 43 | P a g e

A. LIST OF FIGURES

1. Composition of Overall Energy Mix of Pakistan 2012

2. Annual consumption Production and imports of natural resources of Pakistan
during 2012
3. Pakistan’s Oil Sector overview
4. Consumption Of Oil by user sector in Pakistan
5. Pakistan’s Gas sector overview
6. Consumption of Gas by user sector in Pakistan
7. UCH-II Development project by OGDCL Pakistan
8. KPD-TAY Integrated development project by OGDCL Pakistan
9. Share of Oil and Gas sector in total imports of Pakistan
10.Share of Oil and Gas sector in total exports of Pakistan
11.Share of Oil and Gas sector in total investments of Pakistan
12.Share of Oil and Gas sector in total revenue of Pakistan
 44 | P a g e

B. REFERENCES

1. 10th International Pakistan Oil & Gas energy exhibition 8-10 May 2012
http://www.pogeepakistan.com/OIL%20&%20GAS.pdf
2. U.s ENERGY Information administration
http://www.eia.gov/countries/country-data.cfm?fips=PK&trk=p1
3. DEVELOPMENT OF UNCONVENTIONAL RESERVOIRS IN
PAKISTAN Dr. M. Saeed Khan Jadoon
OGDCL, Islamabad Presentation on Pakistan energy conference
http://www.pakistanenergyconference.com/papers.html
4. STATUS OF PETROLEUM SECTOR IN PAKISTAN - A REVIEW Adeel
Ahmad, Mithilesh Kumar Jha, Energy Field of Study, School of
Environment, Resources and Development http://www.ogbus.ru/eng/
5. Energy year book of Pakistan 2012
6. Hydrocarbon Development Institute of Pakistan http://www.hdip.com.pk/
7. Energy year book of Pakistan 2012
8. Pakistan economy profile 2012 oil production & consumption
http://www.indexmundi.com/pakistan/economy_profile.html
9. Energy year book of Pakistan 2012
10.Daily power situation by Pakistan Electric Power Company PEPCO
http://www.pepco.gov.pk/pow_situation.php
11.Gas Shortfall by Pakistan Times
http://pakistantimes.net/pt/detail.php?newsId=8007
12.Production of molasses in Pakistan by Pakistan defence.
http://www.defence.pk/forums/economy-development/10237-bio-fuel-
pakistan.html
13.Ethanol Blends http://www.afdc.energy.gov/fuels/ethanol_blends.html
14.http://en.wikipedia.org/wiki/Biofuel#Issues_with_biofuel_productionand_us
e
 45 | P a g e

15.Biofuel in Pakistan by Pakistan defence.

http://www.defence.pk/forums/economy-development/10237-bio-fuel-
pakistan.html
16.Biodiesel production NUST students
http://www.apnatime.com/9125/2011/05/04/general/nust-inroduces-cheap-
biodiesel-alternate-energy/
17.OPPORTUNITIES IN THE DEVELOPMENT OF THE OIL & GAS
a. SECTOR IN SOUTH ASIAN REGION By Usman Aminuddin
b. http://www.issi.org.pk/publication-files/1295853056_7620963.pdf
18. Importance of Coal In Pakistan’s Development by Ghazanfar Javid
http://www.powerasia.com.pk/icaep2011/presentations/Session2/Ghazanfar_
Jawaid_Importance_of_Coal.pdf
19.U.S Energy Information Administration
http://www.eia.gov/countries/country-data.cfm?fips=PK&trk=p1
20.Press release by Dr Samar Mubarakmand
http://www.geo.tv/GeoDetail.aspx?ID=48874
21.Solar energy potential in Pakistan
http://www.dailytimes.com.pk/default.asp?page=2012\05\10\story_10-5-
2012_pg5_5
22.Ministry of Finance, Government of Pakistan. Pakistan economic survey
2010-11; n.d..Available:http://finance.gov.pk/survey0910.html
23.KESC biogas project
http://www.kesc.com.pk/en/article/mediacenter/current-news/kesc-fast-
working-on-one-of-the-worlds-largest-biogas-projects.html
24.Fuel cell technology in Pakistan
http://www.cleanpower.com.pk/pro_fuel_cell.php
25.Annual waste production; Pakistan Environmental Protection Agency
http://www.environment.gov.pk/info.htm
26.Shale Gas Revolution For Abundant & Cheap Energy in Pakistan By: Riaz
Haq http://www.pakalumni.com/profiles/blogs/shale-gas-revolution-for-
abundant-cheap-energy-in-pakistan
27.Pakistan Exploration &Production policy 2012 http://www.mpnr.gov.pk/
28.Future development projects of OGDCL
http://www.ogdcl.com/projects/Future-Project.htm
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29.Pak Iran Gas Pipeline project en.wikipedia.org/wiki/Iran–

Pakistan_gas_pipeline
30.Pak-Iran Gas Pipeline Project By:Zaheerul Hassan
http://paktribune.com/articles/US-Dirty-Tricks-%5E-Pak-Iran-Gas-Pipeline-
242879.html
31.Khalifa Coastal Refinery Project By: Zafar Bhutta
http://tribune.com.pk/story/244842/increasing-capacity-parco-set-to-
approve-investment-in-6b-refinery/
32.Problems to Khalifa coastal refiney project by Business recorder
http://finance.kalpoint.com/highlights/todays-pick/khalifa-refinery-project-
again-in-doldrums.html
33.U.s ENERGY Information administration
http://www.eia.gov/countries/country-data.cfm?fips=PK&trk=p1
34.Biodiesel cultivation project by: Pakistan State Oil Company
http://www.psopk.com/media/news_detail.php?nid=195
35.Oil imports swell by Imran Ali Kundi http://www.nation.com.pk/pakistan-
news-newspaper-daily-english-online/business/29-Mar-2012/oil-import-bill-
swells-by-38pc-to-9-93b
36.Pakistan energy year book 2011
37.Pakistan Exports http://www.tradingeconomics.com/pakistan/exports
38.Pakistan Premier Energy Exhibition ,EGO Pakistan 2012
http://events.hamariweb.com/exhibitions/detail.aspx?id=46
39.http://tribune.com.pk/story/387076/budget-govt-hopes-to-fetch-revenues-of-
rs300b-from-oil-gas-industry/
40.PSO (Pakistan State Oil Company) Revenues http://www.psopk.com/
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