Energy Sector of PakistanPresented by

Shankal LalSaeed HussainMemoona Naz

Rabail Aisha

AgendaIntroduction to Energy Sector

◦Sources of Energy Thermal Electricity Resources Hydel Power Nuclear Energy Non-conventional Sources of Energy

◦Development Wapda Hydro power Thermo power Nuclear Oil and gas

Energy Crises Origin Current Situation

◦Electricity Shortfall◦Gas Shortfall◦Water Shortfall◦Current Events

Causes and Effects of Energy CrisisProjects by governmentRecommendations

Energy Sector Life line of an economyCompanies.

◦Exploration◦Development ◦Drilling

Performance

Sources of Energy Thermal Electricity Resources

Coal Oil Natural Gas

Non conventional sources of energy (renewable)• Biogas (Animals)• Solar• Wind

Nuclear Energy Other sources

Water

Development of National Energy Base on Pakistan

WapdaHydro powerThermo powerNuclearOil and gas

Energy CrisesOrigin

Electricity shortfall

Current demand nearly 24,000MWProduction capacity of 19500 MWGap of 4500 MWAs a result, 10-12 hours of load-

shedding per day across the country.

Gas shortfallGas consumption in July-March 2012-13

negative growthDemand and supply gap

◦ 1 billion cubic feet per dayPunjab’s industrial sectorSindh’s CNG sector

Years Demand Supply Net difference

2004-2005 3173 Mcf/day

4033 860

2009-2010 4565 Mcf/day

4424 -141

2019-2020 9114 Mcf/day

3001 -6113

2029-2030 19035 Mcf/day

2299 -16736

Water ShortfallMost important resourceFierce competition for fresh water Pakistan’s fresh water, under pressure

◦30 million acre-feet of water is thrown in to the sea

◦electricity generation, irrigation and dinking.

Current eventsChina project (Geo News)

March 3, 2014 (Dawn News)

CausesCircular debt

poor revenue collectiondelayed payment by ministry of finance

Lot of receivables More than Rs 360 billion.. See detail in article

Causes continuedTheft of

Electricity

LossLast five years

Billion (pkr)

GEPCO 0.6LESCO 0.306MEPCO 2.35SEPCO 0.280HESCO 3.6PEPCO 7.47KESCO 16.17FESCO 59

Causes continuedWastage of electricityHigh cost of fuelMonopoly in the businessExploring CoalGrowing energy demandCorruption

ConsequencesEconomic factor

GDPFDI

Agriculture SectorIndustrial sectorUn employmentSocial issues

frustration

Consequences continuedPovertyEducationHigher price of electricity

AlternativesThe Local Gas Reserves are of Strategic

Important for Pakistan.In 2008 34742 GWH Electricity

Produced from Gas.On the other Side Pakistan has been

Exploring option for Gas Import.In this regard Three Different options

have been brought under Consideration.

Three Different options

Natural gas pipeline from Qatar to Pakistan through Oman.

Natural Gas pipeline from Turkmenistan to Pakistan through Afghanistan TAP.

Natural Gas pipeline from Iran to Pakistan(Ipi)

Qatar Pakistan Gas Pipe LineOn 17th july 2007 Govt of pak Joined

MOU,Plan was to Build UnderSea Pipeline from Qatar(World third largest Proved Gas Reserve).

aimed to create a Gas pipeline network.connecting the three Gulf Countries) and

would run 1,225 km under the sea to Pakistan.

TAP(Turkumanistan Afaghanistan Pakistan) Project

was signed in 2006 for Turkmenistan to supply 32.7bcm per year of Gas to Pakistan over 30 years

TAP Project which would terminate at Gawader and link to Heart in Afghanistan.

The greatest obstacle to the pipeline from Turkmenistan is the unstable geo political situation in Afghanistan & also Gas Price Issue.

The Iran-Pakistan-India PipelineProposal was matured in 2005.Idea was Originally conceived in 1995 as

IPI.After 13 years India decided to Quit

project in 2008 .aims to capitalize the gas imported

through these pipelines for the usage of power generation and heavy industries.

This is a very beneficial development but the project may not be completed successfully for a number of reason such as volatile geo-political situation in the region.

Hydropower ProjectsHydropower is one of the most important

sources of energy in Pakistan.It is the more economical source of

electricity.Indigenous and renewable source of

energyThe future of Hydropower project

depends upon the secure supply of water from the river that flows in Pakistan.

Recommendations Continuous updating of equipments Proper utilization of Natural resourcesUsing energy saving devicesAwareness campaign for energy sectorGovernment should work on IPI, TAPI,

LNGGovernment should promote alternate

sources of energy (solar and wind)

CONTINUEDGovernment should reduce circular debt