LPG SHOULD NOT BE USED IN TRANSPORT
INTERVIEW: MOHAMMAD WASI KHAN-PRESIDENT & CEO BOSICOR
Feb 11 - 17, 2008
Mohammad Wasi Khan, President & CEO BOSICOR Pakistan Limited, who carries a vast experience in petrochemical business and currently leading Bosicor, one of the most active refineries in the country, has strongly recommended that LPG, being he highly inflammable fuel should not be used as a transport fuel under the given circumstance of poor infrastructure.
Talking to Pakistan & Gulf Economist, Wasi Khan revealed that Bosicor currently producing some 20 tons of LPG per day and bulk of its production supplied to PSO for marketing purposes, however, he was of the view that in the manner it is being used as transport fuel in urban areas of the country is highly dangerous because the system of bottling gadgets and its use in vehicles especially in auto rickshaws is a safety risk because the required standards of safety are not applied in our society.
Originally, a Chemical Engineer Wasi Khan has an insight of his professional responsibilities on the back of his extensive experience spanning over 25 years in petroleum industry. In fact, Wasi Khan had a long association with national refinery Limited where he was in charge of technical and operational matters. He takes a sense of satisfaction and achievement in revamping and upgrading at the Fuel and Lube refineries. Later on he joined BPL as President and Chief Executive Officer on October 03, 2005.
He said in our environment, LPG is the best cooking fuel especially where supply network of the natural gas is not available like Northern areas and other hilly areas of the country. This also helps in securing our environment and deforestation in the country as its availability saves tree wood to be used as fuel alternative in the countryside.
He agreed that the natural gas consumption has increased at a faster rate in Pakistan as the natural gas constitutes around 51 percent of the energy mix in Pakistan; however, he has his own version about using LPG to ease the burden on natural gas.
When his attention was drawn towards the forthcoming LNG project at Port Qasim, which is also a form of gas, he said yes but LNG in fact is a transformed shape of natural gas and it is liquefied only for transportation purposes, otherwise it would be retransformed into natural gas for transmission to the end users.
He declined to agree that LPG is a workable alternative fuel for transportation especially in our country unless we developed the required standards at all levels. Those who are using it, as transport fuel in the present form is highly dangerous as the people have no idea that they are sitting on a moving explosive material.
Commenting over the current situation where LPG sector is confronted with pricing issue, he said that pricing mechanism is artificially designed which does not match to the international price level.
In fact, LPG was not a prime product of the refining sector so far, but in view of its demand growth in the country it is positioning well and inviting attention of the producers.
Wasi Khan while discussing the expansion in Bosicor said that the refinery was in the process of dismantling the plant with a capacity of 115000 barrel a day, it has acquired from the United Kingdom and expressed his confidence that the new plant would go into production by 2010.
The total capacity of the refinery after putting the new one into operation would go up by 150,000 barrels a day with the addition of extended capacity to the existing 30,000 barrels a day making Bosicor one of the largest refinery projects in the country.
When asked to comment on funding arrangement for expansion of the project, Wasi Khan said with a sense of achievement that all funding arrangements have already been finalized hence the management has no worry about financial aspect of the capacity expansion of the project.
Actually, the company had acquired a 30,000-barrel per day oil refinery, which originally owned by Tesoro Petroleum Corporation inc. at Carrizo Springs, Texas USA. Bosicor acquired the refinery and shifted at district Hub in Balochistan.
The commercial production was started in august 2005 at optimum production capacity of 18,000 barrels a day, with a complete range of its petroleum products after completion of trial run of the plant in November 2003 and continued till June 2004 with 8000 barrels per day.
The maximum capacity was 30,000 barrels per day however due to certain teething problems it took time to attain the capacity production after attaining the level of 18000 barrels. In order to enhance production capacity and improve its operational efficiency, Bosicor had undertaken an expansion and revamp program under which it carried out a revamp study with the consultation of United Oil products to enhance crude oil processing capacity up to 30,000 barrels a day. The process design was completed by United Oil Products, which cleared the existing plant's capability for the desired revamp capacity with certain modifications. Actually, it is the determination and dynamic leadership of Bosicor, which has carved a respectable place not only in the refining business but emerged as strong scrip in the capital market of the country.