The Energy Sector

[Rkhan]

^ You're most welcome to join in or take over from my end! haha

[Marshal]

What's so "especial" about nuclear power?? :

And mind you, Pak's nuke power is india- specific otherwise the jhuggas wouldn't have had made so many U-turns on policies post 9/11!!

[farhan]

A cheap fuel producing pilot project will be initiated in Pakistan for which a formal approval has been obtained from the government.

According to Business Recorder on Thursday, the government would start Fuel-Ethanol Production and Marketing Project to produce cheap fuel from the waste produced in sugar-making process.

The Sugar Mills Owners Association has been assigned the task to conduct pre-feasibility report of the project and its cost, the report added.

Brazil was the first country to introduce the use of blended fuel, which was subsequently adopted and successfully used by China, America, Britain and France.

Fears were dismissed that the use of blended fuel would have any negative impact on the machinery of a vehicle or much affect on environment.

Experiments in this connection have proved that 10 percent use of blended fuel has increased the power engine significantly in addition to lesser impact on environment, the newspaper said.

Pakistan heavily relies on the import of petroleum products to meet its growing energy needs. It is considering the laying of three gas pipelines and Iran project is described by experts as the best option

[Aryan]

This will be "Gasohol", the same project Brazil launched a couple of decades ago. It was very successful and economical, lets hope its works here too...

[Intoxication]

Gr8 news this is gonna save pak a lot of bucks!

[Vengeance]

Isn't that the same kind of ethanol based fuel (or the same idea) that is in use in america today???

It can't affect too much since the cars can only run upto a certain ethanol or other fuels as they have to have some gasoline in them (otherwise the engine gets damaged).


The liquid gas cars are also there but there is the performance problem but I doubt drag-races are big issue in Pakistan (or are they??? )..

[Intoxication]

ADB voices concern over gas delivery: Turkmen reserves found short
By Khaleeq Kiani

ISLAMABAD, Sept 22: The Asian Development Bank (ADB) on Thursday said the delivery of gas to India and Pakistan from Turkmensitan’s Daulatabad field might not be possible through $3.3 billion trans-Afghanistan pipeline, owing to lower than expected gas production.

However, it said the two countries would require three pipeline projects for gas import to meet their rising energy demand. The ADB has also floated the idea of gas import from Oman besides Iran and Qatar and expressed optimism about $7 billion Iran-Pakistan-India (IPI) project.

The bank has been brokering the 1,700-km pipeline project since 2002, promoting it as a win-win example of regional cooperation— a pioneering effort to link gas-rich Central Asia with energy-deficient South Asia through Afghanistan.

The project, according to ADB’s original plan, was to bring clean fuel at competitive costs to India and Pakistan, much-needed transit fees to Afghanistan, and new markets for Turkmenistan.

A senior ADB energy specialist, Dan Millison, said: “Turkmenistan’s Daulatabad gas field has gross reserves of 1.4 trillion cubic meters of gas, but production forecasts are lower than expected, causing analysts to doubt that it can meet the proposed target of piping 30 billion cubic meters (BCM) of gas a year to South Asia”.

“The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing,” said Mr Millison.

He said Turkmenistan would need to find gas from other fields to meet pipeline design targets.

However, future demand for natural gas in South Asia is projected to be strong enough to require gas to be piped from both Turkmenistan and Iran, he said.

He said the reserves information released from Turkmenistan showed lower-than-expected gas deliverability for a proposed $3.3 billion pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan.

Meanwhile, a $7 billion scheme to pipe natural gas from offshore Iran to Pakistan and India is gaining momentum. This 2,700-km pipeline would cost more than double the Turkmen scheme, but leaves out Afghanistan, where security concerns remain, he said.

“However, with long term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline,” said Mr Millison.

India already imports gas and demand will soar in the next decade. Pakistan, with its own reserves declining, is expected to begin importing gas after late 2008. In fact, projected demand in South Asia is so strong that there might be a need for a third pipeline from Qatar or Oman, he noted.

With the new gas reserves data in hand, as well as a draft security analysis report, the next step is for the project’s steering committee to meet and discuss inviting an international consortium of investors to build the pipeline.

Turkmenistan is one of the world’s largest gas exporters. However, although its 4.5 million people receive free gas, electricity and water, incomes are among the lowest in Central Asia and health and education services are declining.

[sher-e-lahore]

CNG to replace diesel use...

The federal cabinet on Wednesday decided to gradually replace diesel oil with CNG in the urban areas as part of the Energy Conservation Plan and to set up a five-member cabinet committee to work out a long-term strategy within 45 days.

The committee — comprising the ministers for industries, petroleum, environment, communications and finance — will coordinate with the provincial governments, transporters and manufacturers, said an official handout.

Utilisation of LPG in transport sector was also allowed in principle by the cabinet, which directed the Oil and Gas Regulatory Authority to ensure safety standards.

The cabinet meeting, presided over by Prime Minister Shaukat Aziz, also decided in principle to establish Islamabad High Court to deal with increasing number of cases in the federal territory, and directed the ministry of law to submit draft law to the cabinet for approval.

The meeting was informed about the Technical Committee on Water Resources’ report presented to the prime minister, which is being studied by the government in the context of building water reservoirs to meet water shortage for agriculture and energy requirements in future.

The cabinet also approved a food support programme which allows an increase in the subsidy up to Rs3,000 against present Rs2,400 per annum and an increase in number of the households receiving it.

An allocation of Rs120 million was approved for a pilot project on children support programme in five districts. The programme envisages assistance to the destitute, widows, orphans and the disabled through Baitul Mal schemes.

The cabinet, while reiterating government commitment to provide clean drinking water to the people by 2,007, decided to set up a cabinet committee, headed by the prime minister, to ensure implementation of the plan.

It expressed concern over the standards and quality of bottled water and directed the ministry of science and technology to conduct test of bottled water at source on quarterly basis and publish the results in the press.

The cabinet was briefed about progress in ‘informal’ negotiations among the finance ministers of the four provinces in which certain proposals were discussed to evolve a consensus on the National Finance Commission Award. The prime minister hoped the award would be finalized soon.

Briefing the cabinet on National Trade Corridor, the deputy chairman Planning Commission said the country’s logistic network was being modernised to meet requirements of growing economy.

He said the steps entailed modernization of ports, rail and road networks to ensure goods transportation from one destination to other within 24 hours. In that regard, an estimated investment of US$ 6 billion was expected over next four to five years, he added.

Foreign Secretary Riaz Ahmed Khan briefed the cabinet on current foreign policy issues and apprised it about just concluded visit of President Musharraf to the US, which, he said, would accrue diplomatic, political and economic dividends to Pakistan.

He said Pakistan’s engagement with Israel was solely for furtherance of the Palestine cause and added Pakistan would not recognize Israel unless an independent Palestinian state was established.

He described the president’s meeting with Indian Prime Minister Manmohan Singh in New York as productive in the perspective of ongoing composite dialogue process between the two countries.

The cabinet approved negotiations on a memorandum of understating on consular cooperation between Pakistan and the US in cases concerning parental access to children.

It also approved negotiations on scientific and technological cooperation between Pakistan and Algeria/ Saudi Arabia. An agreement between Pakistan and Sri Lanka on mutual legal assistance in criminal matters was also ratified by the cabinet which also approved an agreement between Pakistan and Uzbekistan on cooperation in fighting against international terrorism.

Ex-post-facto approval for the signing of an agreement between Pakistan and Netherlands on export and enforcement of social security benefits was also given approval.

The cabinet also accorded approval for the initiation of negotiations with Croatia to conclude an agreement for avoidance of double taxation.



Compressed Natural Gas (CNG)

Operation of CNG Stations: HDIP has pioneered the use of environment friendly Compressed Natural Gas (CNG) in road


transport as an economically viable inter-fuel import substitution in petroleum sector. The commercial application of CNG technology now forms an important element of Government’s petroleum policy. HDIP’s CNG stations at Karachi and Islamabad, besides converting vehicles on CNG and dispensing CNG fuel, are developing indigenous technology in the field and monitor the performance of CNG technology in the country. The CNG stations of HDIP at Lahore and Quetta are also operational. HDIP’s CNG stations also act as Advanced Fuel Resource Centres to advise the Government on safety and regulatory aspects and to conduct inspection, training and human resource development.

CNG Policy: The Government of Pakistan has offered number of incentives for encouraging the use of CNG in the country. Some of these are summarized below:

Strong Government commitment to promote CNG use

Liberal policy to provide license for CNG retailing

Deregulated market consumer price of CNG

Natural gas tariff for CNG linked to petrol

Priority of natural gas connection to CNG stations

Exemption of import duty and sales tax till the year 2002 on import of machinery and equipment, CNG kits and cylinders.

This has provided a boost to the industry and so far, more than 800,000 vehicles have been converted to CNG and 750 CNG stations are operational while another 200 are under construction in different parts of the country (As on August, 2005). According to International Association for Natural GAS vehicles (IANGV) statistics, Pakistan is ranked at no.3 in the CNG using countries after Argentina and Brazil.

CNG Consultancy Services: HDIP is promoting and offering consultancy services to the private sector which include the whole range of activities like formation of company, selection of sites, legal formalities, design of stations, specifications and sizing of equipment, selection of equipment, selection of contractor, training of manpower, commissioning and supervision, etc., depending upon the clients needs. HDIP with approval of the Ministry has developed the following procedure for establishment of CNG Stations.

PROCEDURE FOR ESTABLISHMENT OF CNG STATION

1. Formation of a company and its registrtion as joint stock / private limited / partnership or proprietorship entity.

2. Select a consultant for project assistance if required

3. Registration of CNG Company with Oil and Gas Regulatory Authority (OGRA)

4. Selection of location for suitable site for CNG Station;

in close vicinity to natural gas pipeline

access to petrol vehicles in reasonable numbers

5. Selection of CNG Station equipment.

6. Completion of legal formalities for establishment of CNG Station with under mentioned departments:

District Authority for Civil construction approval.

Department of Explosive in the Ministry of Industries for location of CNG equipment

Approval for utilities, natural gas / electricity and water from relevant authorities.

7. Award of contract for :

Civil Construction

Purchase of CNG Station & Vehicle conversion equipment

8. Hiring of technical manpower and providing on the job training at some established CNG entity / HDIP

9. Installation of CNG Station equipment

10. Purchase of tools for CNG kit installation

11. Start-up of CNG Station and installation of CNG kits in vehicles.



Introduction | Organizational Set-Up | Charter & Objectives
Range of Facilities & Services Offered | Inter Fuel Substituation | Information Dissemination Achievements | HDIP Board of Governors | Contacts | Home



Head Office
Hydrocarbon Development Institute of Pakistan
230 Nazimuddin Road, F-7/4, P.O. Box 1308, Islamabad.
Ph#: +(92-51) 9203588, 9203958, Fax #: +(92-51) 9204902

Email: info@hdip.com.pk

http://www.hdip.com.pk/hydrocarFSUB.htm

[cntower]

CNG is really big here; every petrol station now has at least one portion of it dedicated to CNG. I heard we were the 2nd largest user of CNG after Brasil is that true?

[zees]

Nopes, Pakistan is 3rd largest user of CNG after Argentina and Brazil
according 2 http://www.dailytimes.com.pk/default...5-6-2005_pg5_4

[zees]

I think now we r are realizing the importance of reducing our dependance on foreign oil & diesel and bettering the environment

[swerveut]

I think its largely being motivated by the petrol prices being too high. Especially the switch to CNG from petrol in the major cities was largely driven by economy.

Yeah, the best side of it is that the air in major cities like Karachi and Lahore has GREATLY improved. Especially in Karachi where a lot of smog has vanished.

[zees]

But still we r a lot of dependent on Oil

[Tagga]

^Yeah because most of the industries still use Diesel,

I still have doubts about CNG Buses, US started to use cng in buses in late 80's and found out that overall CNG proved to be more expensive than Diesel buses, but CNG is cheaper in Pakistan so I hope it works out well.

[Intoxication]

Many ppl have switched to CNG. At every petrol station there r long queues of cars waiting to get CNG.

[Intoxication]

Pakistan plans to cut oil consumption

LONDON: Pakistan is close to launching an ambitious plan to reduce its oil consumption amid warnings that economic growth may slow this year because of high energy prices, a British newspaper reported here.

“We are looking to improve our efficiencies as soon as possible while also switching over to alternative fuels such as gas,” Dr Salman Shah, prime minister’s adviser on finance and economic affairs, said in an interview with the Financial Times.

According to petroleum ministry officials in Islamabad, one element of the plan is to expedite imports of liquefied natural gas from Qatar. Another is to ensure a planned new gas pipeline from Iran to Pakistan and onwards to India goes ahead, with a formal agreement signed by end of this year. Dr Shah said he did not expect to see escalating pressure on the balance of payments as a result of high oil prices. “Our reserves are holding stable and our economy otherwise is looking promising,” he said.

“If [international oil prices] remain at current levels, or go higher, projections for imports, the fiscal deficit and inflation may have to be revised upward, while any negative impact on the global economy could lead to lower growth of exports,” the ADB said.

Some analysts say Pakistan could position itself as a destination for oil-rich Arab investors following the privatization in June last of PTCL

[Intoxication]

CNG price rises by 65 per cent: April 2003-Sept 2005

ISLAMABAD Sept: The average price of Compressed Natural Gas (CNG) rose by 65.36 per cent during the last two-and-a-half years (2003-05) and is expected to escalate further following the government decision to promote it as alternative source of fuel in transport and industrial sectors.

Official data available with Dawn indicate that the average price of CNG across the country increased to Rs28.38 per kg in September 2005 from Rs17.15 per kg in April 2003.

Finance ministry sources said that rising prices of gasoline in the international market had made CNG an affordable fuel for a majority of vehicle owners. However, the sources did not rule out the possibility of further increase in CNG prices following the cabinet decision to replace diesel with CNG in the urban areas as part of the Energy Conservation Plan.

The sources said that with the increase in consumption of CNG, the price also recorded a growth.

The government had started with a modest beginning of two refuelling stations in 1994, which now increased to around 736 stations across the country.

There are more than 750,000 CNG-fitted vehicles plying the roads, which ranked Pakistan as the third largest country operating CNG vehicles after Argentina and Brazil, the sources added.

Pakistan has 26.8 trillion cubic feet (tcf) of proven gas reserves and currently produces around 0.8 tcf of natural gas per year, which is consumed domestically. The sources said that Pakistan’s demand for natural gas was expected to rise substantially in the next few years, with an increase of around 50 per cent by 2006.

The statistics showed that turbines of thermal power plants consumed about 44 per cent of Pakistan’s gross production of natural gas, while the transport sector used only two per cent where at present more than 750,000 vehicles are operating on CNG out of total of 1,400,000 vehicles.

“Even if we convert all gasoline vehicles to CNG, only 3.5 per cent of our gas production will be consumed in the transport sector,” the sources added.

Commenting on the cabinet decision, the sources said that even if the government converted all diesel vehicles to CNG, it would result in consumption of around five per cent of the total production of natural gas in the country. At present around 1,300,000 vehicles operate on diesel across the country.

The sources said that almost 80 to 85 per cent of natural gas was consumed by the industry and power sector. The sources propose that to arrest the constant rise in the CNG price, the government should think about importing natural gas from neighbouring countries like Iran, Turkmenistan and Qatar, which have sufficient reserves.

[pakboy]

India mulling over oil exploration with Pakistan

LAHORE: Indian Petroleum Secretary Sushil Chand Tripathy Saturday said India was deliberating on oil exploration with Pakistan in the sea.

He was talking to Geo TV at Lahore airport after completing four-day Pakistan visit.

Sushil Chand Tripathy informed that India had modern technology and geologists and can assist Pakistan oil exploration in the sea. He further said India was ready to sell diesel to Pakistan on cheaper rates.

About his visit on gas pipe line project, he said recent Pakistan visit was successful and after signature on it in December, the work on the project would start next year.

--------------

well what do you think about this, its no secret pakistan has soo much undiscovered oil, do you think we should work with india here.

[swerveut]

NOOOOOOOOO FREAKING WAAAAYYYYYY!

oil interests are strategic and its best we keep them apart. Especially as far as India is concerned.
I dont think India has as much technology it has to offer us in terms of oil exploration. We should consider partners like Brazil, Malaysia (petronas), US, Canada.

[Intoxication]

USA? no no no. I dont trust them. They are better at stealing oil then
exploring it.