Natural Gas
Pakistan’s indigenous natural gas reserves are declining and a low gas price has become a
significant disincentive in attracting new gas supplies, either through increased domestic
exploration activities or via imports of liquefied natural gas (LNG) or regional gas pipeline
imports. If current gas policies persist, Pakistan’s natural gas supply is expected to decline from
4 billion cubic feet per day (bcfd) in 2010/11 to less than 1 bcfd by 2025/26. This will lead to a
growing gas/energy shortfall reaching 8 bcfd (over 50 million TOEs) by 2025/26 and wi ll
depress Pakistan’s average GDP growth rate over the next 15 years.
Petroleum
Petroleum production is heavily dependant on refining capacity, efficiency, and a stable crude oil
supply. Over the years Pakistan has increased its refining capacity, with newer and more efficient
refineries set up, but is largely dependant on imports for its crude oil supplies. Imported crude oil
would lead to higher prices for petroleum and related products, but the addition of value added
taxes, like GST and the petrol eum development levy, push prices even higher. Petroleum
products provide highest indirect source of revenue for the government. The collection on
petroleum products in 2010- 11 was Rs153.3 billion or 47.2 per cent of the total collection.
Unless the government shifts its revenue dependence away from taxing petroleum products, it is
highly unlikely that fuel prices will be brought down, pushing us further into the energy crisis.
Coal.
Pakistan’s coal resources are estimated to be very vast, but very little progress is made in its use
for energy. While total reserves are estimated to be 185 billion tones, with the majority stated to
be in Sindh, the use of coal in Pakistan’s energy mix stands at less than 0.1 per cent, which is
much lower than the global average of 40 per cent. The Thar Desert in Sindh is claimed to
contain the seventh largest oil reserves in the world, estimated at 175 billion tones. The
government at this point claims to be developing the area’s infrastructure to generate investment,
with road networks, electricity, communication, and other necessary facilities. However, the
progress so far with regards to extraction is very minimal. It is essential for Pakistan to tap its
coal reserves to efficiently solve its energy crisis to avoid depletion of other limited resources.
Oil.
Pakistan is considered as an oil - rich nation, although untapped, with high estimates of proven
and non - proven reserves. OGDCL, as well as other private- sector corporations had made a series
of oil discoveries up till the 80’s, however overall production has largely remained flat, at
approximately 60,000 barrels per day. The government has now aimed at increasing output to
100,000 bbl/day, however that has still not materialized, with average production for 2011
standing at 59,000 bbl/day. Pakistan’s oil consumption stands at 410,000 barrels per day,
therefore even if the stated target was to be achieved, the bulk requirement would still be
fulfilled through imports, increasing energy costs higher and harming the overall trade balance.
Alternative Energy
World over, governments are now promoting the use of alternate and renewable energy resources
in the energy mix, in consideration of climate change and higher fossil fuel costs. Surprisingly,
Pakistan holds a high share of renewable energy in its energy mix, of approximately 32 per cent,
primarily on its hydel power generation. However, Pakistan has now focused on other renewable
resources at varying degrees, with more than 400 to 500 MW of power generation being pursued
through wind farms. While major solar projects are still to be implemented, subsidies and other
initiatives have been used by the government for its use on the micro - level such as powering
tube- wells, water geysers, and household lighting. Pakistan’s renewable resources are estimated
to be m assive, with just solar and wind potential estimated at cumulatively 300,000 megawatts.
TIMELINE OF PAKISTAN'S ENERGY CRISIS
2007
Pakistan faced one of its biggest power failures after Bhutto’s assassination in which
production fell by 6,000 MW.
2008
The demand and supply gap pertaining to electricity in Pakistan increased by 15 per cent. The major load
shedding crisis also commenced in the same year with power outages extending up to 16 hours a day in
many cities of the country.
2009
NASHPA oil fields were discovered in Karak district of Kyber Pakhtunkhwa. In the same
year, Karachi faced one of its most crucial power breakdowns on June 17 in which the entire city
was without power for 21 hours and more. Moreover, the country faced a power sh ortfall of
4,500 MW in the same year with the domestic demand rising up to 11,000 MW. However only
6,500 MW of generated power was catering to the entire demand.
2010
Sheikhan gas field, which is located in Kohat, Kyber Pakhtunkhwa, was discovered.
Moreover, the torrential rainfall in the year resulted in floods which caused much damage to the
existing infrastructure transmitting/transferring energy and fuel. Towards the end of the year,
country’s first rental power plant (RPP), with the capacity of 232 MW was inaugurated in
Karachi.
2011
The year started with the shut down of Uch power plant producing 585MW of electricity, as one of the
pipelines providing fuel was blown up in the district of Jaffarabad. Pakistan faced one of its most crucial
gas crises, with the shortfall rising up to 1.8 billion cubic feet (bcf). The year also experienced the worst
CNG load shedding resulting in losses and problems for the consumers. However OGRA increased the
gas tariff by 14 per cent in the beginning of the year whi ch was one of the biggest tariff hikes in the
history of Pakistan. Moreover, the energy shortfall reached up to 2,700 MW.
2012
PAKISTAN’S energy crisis has reached sky-high proportions. Unfortunately, our
politicians are not addressing the issue seriously. Most of them are running away from
reality or are pretending not to know what the reality is.
The reality is that no country can survive without water, especially an agricultural country like
Pakistan. Our water reservoirs are decreasing badly and our la nd is being converted into deserts.
Most of our development purely depends upon
water reservoirs and we have been unable to increase our water reservoirs for more than the last
two decades.
On the other hand, India is continuously making dams over rivers e ntering Pakistan, thus
snatching our water.
So in this scenario, we have to increase our water reservoirs as soon as possible to irrigate more
and more land and increase
production which is necessary for an agricultural country.
By doing this, we will also be able to cope with the energy crisis and save our dying industries.
Besides, we can save hundreds of billions of rupees spent on importing oil every year.
You can’t run the country by just printing currency notes and arranging so- called energy
conferences. You have to control inflation, energy crisis and food shortage as soon as possible.
Now it is time the government and all politicians ‘extended the vision’ through a comprehensive
strategy and made wise and courageous decisions. They should sit togethe r and forget which
party and province they belong to, and understand what national interest actually is.
This is a serious and sensitive issue and obviously it needs immediate attention. Instead of just
giving statements, they should take serious and sincere steps to resolve the issue by producing
electricity from different thermal power plants and other natural resources like coal, solar energy,
wind energy, and tidal energy to produce megawatts of electricity. Give a developed and green
Pakistan to our future generations; otherwise they will never forgive us.
By controlling corruption and theft of electricity, load shedding can be reduced in Wapda.
However, it is a pity that the government is not capable of working out a solution to the energy
crisis by re installing old power plant units due to is management.
Electricity is being bought from neighboring countries like India, Turkey and Iran for fulfilling
the shortage.
The solution to the energy crisis is the key to resolving every problem in Pakistan because all are
inter- connected with the energy crisis.
Some solutions
EVERYONE talks about energy crisis. In fact, we have an efficiency crisis. It is the same as we
have been crying for years that we have a water crisis.
In fact, with just fixing our leaks, making our taps, pipes, showerheads and most importantly, our
water- guzzling flushes efficient, we could save over 60 litres per household which will be
enough to provide essential water to the poor and needy.
All this is possible within three months. The water board gives employment to thousands and
charges the consumer for services rendered on their next water bill.
Coming to the electricity crisis, the government at its recent meeting in Islamabad came to the
conclusion that inefficiency is the major cause for our energy crisis.
Nanotechnology is used by Nasa and is the science of the future, making the impossible possible.
In the case of energy savings, it produces materials that work for you, increasing productivity
and efficiency.
The product that is now available is a transparent paint that coats all manufacturing industries
like textiles, plastics, oil and gas, commercial and residential homes and creates a saving of 10 to
30 per cent in energy costs alone.
Add to this, the efficiency savings that are created by fixing/replacing old rusted equipment,
pipes, etc., and the entire concept of energy crisis disappears.
For example, any industry, such as textiles, requiring gas has to get fully efficient first in the
shortest time. Funding of getting effici ent can be paid from the monthly savings on energy.
The KESC has asked larger users of energy to install power factor savers to improve efficiency
in a fixed timeframe. We all have to learn to live with less and stop the wastage.
Finally, a few things on how California does it after leading the country in comprehensive
efficiency efforts that have kept per capita electricity demand flat for three decades.
Further, it believes that energy efficiency is the core climate solution as it is by far the biggest,
cheapest, and fastest to deploy, and renewable energy potential never runs out.
Let us stop playing politics with this fire or it will burn us out.
Just like coal will, if we bring it out. Coal fires have been known to go on for 100 years. Coal
damages the US economy more than the electricity it generates is worth.
