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Shell’s energy transition scenario for climate change impact

As the population around the world increases, along with the number of vehicles and industries, the demand for energy is also growing rapidly. According to research reports, Pakistan has over 23 million vehicles on the road, with the number growing significantly with each passing year. Approximately 7,500 new motorcycles are sold every day in Pakistan and that has increased the demand for cleaner, greener fuels. Moreover, newer engine-technologies are enabling significant conservation of energy.

Pakistan is the 6th most populous country in the world with more than 200 million citizens. According to United Nations’ projections, the country’s population is projected to exceed 340 million by the year 2050. These figures reflect that more than 30 percent of Pakistani citizens will be the youth.

If this vast segment is educated and trained, these youngsters can become a productive workforce over the next 5 to 10 years, to run the industries around the world. The growth of Pakistan’s economy in general and the energy industry in particular looks promising, as these young professionals will play a key role in national progress.

Latest research shows the complexity of the mindset of young millennial consumers, when it comes to buying luxury and premium products. The young generation is a discerning segment of consumers who seek increasingly higher quality of products to upgrade their standards of living. The evolving behavior of consumers is inspiring companies in every industry to enhance the quality and features of their products while offering more affordable prices.

In order to find more sustainable solutions to empower the next generation and to fuel the economy more sustainably, Shell Pakistan is exploring innovative ways to provide renewable energy and Green technologies, that promises to fulfill this need of the hour, in a cleaner and environment friendly manner.

Currently LNG is the fastest growing source of gas-supply across the world, as it promises a viable and sustainable supply of energy, being 600 times lighter in weight and much easier to transport. Global demand for energy is expected to grow at a compound annual growth rate of 1% a year between now and 2035. Pipeline gas can fulfill this demand as it is set to grow at twice that rate, while LNG can grow at 4% a year.

 

Pakistan is currently the ninth largest importer of LNG gas, and is continuously increasing its volume of gas-imports, increasing from four million tonnes to five million tonnes over the last one year. In Pakistan where Sui Southern Gas Company (SSGC) pipe-lines are already present, the delivery of LNG gas across the country is the most viable way to fuel the economy.

The world currently emits 32 billion tonnes of energy-related CO2 each year. In order to keep the earth’s environment sustainable for the future generations, we must restrict the rise in global temperature to 2°C. In this regard, the International Energy Agency (IEA) has calculated that energy related CO2 emissions need to fall to around 18 billion tonnes a year by 2040.

In this effort, Pakistan that is currently using coal as a major source of energy, which is polluting the environment with CO2. The country ranks 7th on the most adversely affected nations due to climate change. Hence there is a dire need to move towards multiple sources of energy. Recently, the Government of Pakistan has also started the ‘Plant for Pakistan’ plantation drive, to reduce the effects of climate change and environmental degradation.

According to International Energy Agency (IEA) data, gas emits between 45% and 55% lower greenhouse gas emissions, as compared to coal being used to generate electricity. In this scenario, LNG which is also 20% more dangerous to the environment if leaked. Therefore, the LNG based power plants must be built effectively and efficiently to cause least damage to the environment. Although it is less likely to happen in a well-built LNG power plant, the leakage of LNG is possible through poorly structured pipeline joints.

The Royal Dutch Shell Group is highly interested in expanding its imported ‘Liquefied Natural Gas’ business in Pakistan as well. For this purpose, Shell Pakistan, Engro Elengy Terminal, Pakarab Fertilizers and the Gunvor Group established a consortium in 2016, for setting up an LNG terminal at Port Qasim near Karachi, with a capacity of 600 million cubic feet per day (mmcfd).

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