Pakistan has taken initiatives to ensure sustainable energy supplies in future

Jan 22 - 28, 2007

Pakistan's appetite for increased energy consumption, an essential benchmark for higher economic growth, was evident in all sectors.

The gas sector registered a 5 percent annual growth, further expanding its share to 52 percent in the total energy-mix.

The consumption of natural gas was growing at an alarming pace which has reached a 52 percent of the total energy mix which sounds a note of warning for balancing the use of gas either through alternative resources or reinforcing the gas supply through imports from gas rich countries like Iran and other Central Asian states.

As a spiraling increase was witnessed in demand from private power generation, textiles, general industry and transport sector, it was considered essential that a comprehensive analysis be carried out to plan for future energy supply and security needs of the country.

At the Pakistan-China Energy Forum, participants from China as well as Pakistan arrived at a consensus for setting up a task force, with a mandate to develop a Grand Plan for meeting the energy requirements of the two countries over the coming decades.

It is now increasingly evident that the proposed Energy Corridor is the most likely option for the long-term energy security of countries including China, Pakistan, India and others.

The SSGC on its part formulated a framework plan based on the concept of setting up Gwadar as an Asian Energy Hub and then charting major oil and gas pipeline routes from producing centers in the Middle East and CIS States to major consumption centers of China and India.

At present SSGC is getting natural gas from following gas fields.

SUI (PPL) 110mmcfd, Mazarani (PPL) 10 MMCFD, Zamzama 95 MMCFD, Bhit (Eni-Lasmo) 260MMCFD, Miano (OMV) 145MMCFD, Kadanwai (Eni-Lasmo) 40 MMCFD, Sawan (OMV) 90MMCFD, Khipro (OPI) 90MMCFD, Daru (OGDC) 10 MMCFD, Badin (BP) 200MMCFD.

It is interesting to note that SSGC hardly received 10th part of the total supplies from Balochistan while over 90 percent of gas is provided from the gas fields located in Sindh. It is heartening to note that POL has successfully completed a development well in Pariwali field named Pariwali VI, which is likely to add production flows at 800-1000bopd of oil, 7-10mmcfpd of gas and 10-20tpd of LPG.

Coming back to energy framework, Pakistan has taken initiatives to ensure sustainable energy supplies in future. In this connection, Pakistan has launched "Mashal" LNG Project at the 6th LNG World Conference in Rome in December 2005, followed by Middle East Gas conference in Qatar 2006.

Munawar Baseer, MD SSGC, at the Rome conference, explained its consumption by different sectors. The per capita availability of energy stands at 0.284 TOE with indigenous natural gas constituting about 50 percent of the energy mix. To sustain the rate of economic growth Pakistan needs to supplement its indigenous energy resources with additional sources of energy through imports for which LNG has been identified as selected alternate channel to provide strategic diversification of sources and modalities.

Pakistan has also invited international firms to bid for a project as the country's first terminal to import LNG as a part of the plan to boost supplies and meet burgeoning energy demands.

In the second APAC Energy conference in Beijing in March 2006 the concept of the Asian Energy Corridor was presented, which received overwhelming support. Later, Pakistan-China Energy Forum was held in Islamabad in 2006 where Pakistani and Chinese as well as international experts presented multiple papers on the further development of the Energy Corridor.

The National Energy plan recognizes that affordable energy is not only the key engine of economic growth, it is essential for all the betterment of the quality of life for the people.

In this connection, SSGCL is vigorously pursuing the Iran-Pakistan-India (IPI) pipeline, besides undertaking studies and furthering development work on the Turkmenistan-Afghanistan-Pakistan (TAP) pipeline line.

The "Mashal" LNG project with an estimated cost of about $400million is also being developed on a fast track. SSGC is anticipating and adapting to changes in the global energy and LNG markets and continued applications of technology to enhance and optimize business operations.

The new port of Gwadar, now at an advanced stage of completion, is destined to become the ideal point of convergence for major transnational oil and gas pipelines and serve as the nexus of shipping routes connecting energy resource-rich Middle East and Central Asia with high energy demand countries in South Asia, Far East and Europe.

Pakistan's rapidly growing demand for energy has to be adequately met to provide for the industrial and economic development as per the objectives of national development. SSGC continues to play a pivotal role in formulating new strategies and developing new projects to provide affordable and sustainable supply of energy to fuel national progress.