Chris Daniel QAU

1. Energy Sector of Pakistan: An Overview

2. Energy
• Key Determinant of Economic Development
• Uninterrupted and affordable supply of energy for
accelerated growth
• An important economic indicator
• Developing world and energy demand
• Pakistan’s energy demand

3. Global Energy Consumption Mix

4. Pakistan’s Energy Consumption Mix

5. Pakistan’s Energy Consumption Mix
• Pakistan’s total energy consumption stood at 63.1 MTOE
(Million Tons of Oil Equivalent) in FY2009-10
• Transformation from oil to natural gas
Increasing oil prices
Exploration of gas and coal
• Increase in foreign reserves

6. Annual Energy Consumption

7. Annual Energy Consumption 2009-10

8. Sector wise Consumption of Petroleum Products (000 Tons)

9. Sector wise Consumption of Gas (BCFT)

10. Natural Gas Consumption 2009-10

11. Consumption of Electricity by Sectors

12. Consumption of Electricity 2009-10

13. Sector wise Consumption of Coal (Percentage Share)

14. Sector wise Energy Consumption 2009-10

15. Increase in Consumption of Energy (Sector
wise)
• From period FY 2009-10 to FY 2010-11
• Petroleum Products: Industrial (22.5%)
Government (19.7%)
• Gas: Transportation (14.3%)
• Coal: Cement (3.1%)
• Electricity: Household (3.8%)
Commercial (1.9%)
Industrial (7.3%)
Government (4.1%)

16. Per Capita Energy Availability (TOE)

17. Annual Energy Supply

18. Crude Oil Supply
• The balance recoverable reserve of crude oil in Pakistan is
estimated at 280.647 million barrels.
• Oil producing fields: Dhullian, Joya Mir, Balkassar, Khaur,
Karsal, Tut, Mayal, Sarang etc.
Average Crude Oil
Production Per Day
Overall Production
(Million Barrels)
July-March
2009-10
65245.69 Barrels 17.88
July-March
2010-11
65,996.50 Barrels 18.08
1.15%

19. Oil Supply and Consumption 2009-10

20. Natural Gas Supply
• Energy Security Action Plan of Planning Commission
forecasted shortfall in gas supplies

21. Natural Gas Supply
• The balance recoverable reserve of natural gas is estimated at
26.62 Trillion Cubic Feet.
• Gas Fields: Sui, Uch, Khairpur, Khankot, Jaccobabad, Mehal,
Dhullian, etc.
Average Production
Per Day (MCF)
Overall Production
(Million Cubic Feet)
July-March
2009-10
4,048.76 1,109,360.24
July-March
2010-11
4050.84 1,109,930.16
0.05%

22. Liquefied Petroleum Gas (LPG)
• Contributes about 0.6% of the country’s total energy supply
mix
• To impede the deforestation process
• Use of LPG in Automotives under Safety Framework of
OGRA
• Increase in import of LPG by 37 % relative to last year (July-
March 2009-10)

23. Compressed Natural Gas (CNG)
• Promotion of CNG
Expensive imported fuel
Ambient air quality
• Pakistan: the largest CNG using country
• CNG Stations: 3,329
• CNG Vehicles: 2.5 million

24. Coal Supply
• Reserves estimated at 185 billion Tons
• Gas Fields: Thar, Makarwal, Khushab, Khewara, Dandot, Pidh
etc.
• Supply of Coal during July-March 2010-11 increased by
10.3% compared to corresponding period of last fiscal year.
• Approximately 67% coal is imported due to under exploitation
of indigenous coal resources and low quality coal issue (esp.
of salt mine ranges coal)

25. Electricity Supply
• Sources of Electricity: Hydel, Thermal (gas/ steam/ furnace
oil) and Nuclear
• Major Power Producers: WAPDA, KESC, IPPs, PAEC
• Power generation capacity of Pakistan (including all sources)
is 20,681 MW (March 2010).
• Total electricity demand is 15,500 – 16,000 MW roughly
• PEPCO (Pakistan Electric Power Company) is merely
producing 11,000 MW against the total installed capacity of
about twenty thousand MW.

26. Supply Sources of Electricity (March 2010)
• Total installed capacity of PEPCO: 20681 MW
• Hydro Production: 6555 MW
• Thermal Production: 14126 MW
WAPDA GENCOs: 4829 MW
Rental Power Plants: 323 MW
PAEC: 665 MW
IPPs: 8309 MW

27. Electricity Demand & Supply Gap (Source : PEPCO)

28. Reasons for Power Shortages
• Circular Debt
• High Power losses
• Shortfall in Gas Supply
• Seasonality of Hydel Power
• Lack of Demand Side Management
• Poor Governance & Regulation

29. Circular Debt

30. WAPDA Power losses

31. Power Generation 2009-10

32. Lack of Demand Side Management
• Village Electrification
• Growth in Consumers

33. Village Electrification (In Number)

34. Growth in Consumers

35. Economic Impact of Power Crises

36. Energy Crises: Issues & Recommendations
• Growing Energy Demand
• Imbalanced Energy Consumption Mix
• Under exploitation of indigenous resources
• Poor Governance & Lack of Integrated Planning

37. Growing Energy Demand
• Increase in Population
“Every year Pakistan adds the equivalent of a New Zealand to its
population; every two years, a Switzerland; every three years, a Greece;
every four years, a Chile or a Netherlands; and every five, an Australia.”
• Industrial and Agricultural Growth
• Urbanization

38. Imbalanced Energy Consumption Mix
• Greater share (more than 70%) of non-renewable energy
resources (oil & gas) in energy consumption mix.
• Any shock in these resources affects significantly the overall
economy.
• Need of a greater share of renewable, indigenous and
affordable energy mix.

39. Energy Mix Comparison 2008-09

40. Under exploitation of indigenous resources
• Thar Coal
• Hydel
• Nuclear
• Solar, Wind & Biodiesel

41. Hydel Power

42. Nuclear Power

43. Alternative Energy Resources
• Alternative Energy Development Board (AEDB) is serving as
the executing agency at the federal level to consolidate the
project proposals from federal, provincial and other public
entities for submission to ADB for subsequent loan tranches.
• AEDB under its mandate serves as a One-window facility to
process all Alternative and Renewable Energy (ARE) projects
both in Public and the Private Sectors.

44. Solar, Wind, Biodiesel
• AEDB issued seven (7) letters of Intent (LOI) for wind power
projects.
• AEDB has engaged Pakistan State Oil (PSO) for furthering the
National Biodiesel Programme and provided a production
plant of biodiesel to PSO for the optimization of processing
techniques for Biodiesel.
• Pakistan’s first ever commercial Biodiesel production facility
with the capacity of producing 18,000 tons of Biodiesel per
annum has been setup in Karachi by the private sector.

45. Solar, Wind, Biodiesel
• Pakistan is blessed with a huge solar potential of more than 5-
6 KWH/m²/day of irradiation the province of Baluchistan
followed by Eastern Sindh and Southern Punjab promising
technical and financially viable solar energy projects.
• Street lights and billboards consume around 400 MW of power
which can be taken off from the grid by converting these loads
to solar.
• AEDB plans to electrify 400 villages, 100 in Sindh and 400 in
Baluchistan. 49 villages in Sindh have already been electrified
where 3000 Solar Home Systems are installed.

46. Conclusion
• Energy Sector is the lifeline of an economy.
• Energy demand is growing over the time specially in
Developing World.
• “Energy crisis in Pakistan is a management and not a capacity
issue” (Framework for Economic Growth Pakistan May 2011:
Planning Commission)
• Integrated Energy Planning is the need of the hour.
• Develop indigenous energy resources (Thar Coal)
• Research for New Uninterrupted and Affordable energy
sources.
• Improve Governance and Demand Side Management

47. Thank You