Pakistan Energy 2035-FINAL 20th October 2014

Pakistan Energy Vision - 20354. TransportGasPromote the use of public transport for optimizing the use of fuel in transport sector.OilIn addition to this, the hybrid cars should be introduced on gradual basis in this sector toreduce the expensive oil consumption and relieve the burden on national exchequer.5. PowerGasAllocation of gas to the most efficient thermal power plants on immediate basis to optimize theutilization of this resource and spare the gas for industrial use.Re-negotiate the price of LNG with Qatar as the current price of imported gas is estimatedaround $19/mmbtu (incl. CIF, shipping costs etc.). Moreover, Pakistan will have to look intoimport options with other natural-gas rich countries, to have a better bargaining position. Inlight of the Shale Gas revolution’s impact on natural gas pricing, the trend is of lower prices inLNG deals. For example, Cheniere made a deal with Gail India from 10.5/mmbtu. There is alsothe phenomenon of the divorce or delinking of oil and gas prices, and countries will have torethink linking LNG prices to oil-indices.1. Energy Renovation and Modernization of thermal power plants to enhance the fuelefficiency and optimize the gas usage.2. Gradual shift of power generation from thermal to hydro resourcesOil1. Real time monitoring of quality and quantity of imported fuel oil through web basedprocurement systemInclusion of contract performance clauses addressing the specification i.e. sulphur content, basicsediment and water and specific gravity, of procured fuel oils in sales/purchase agreement.These clauses, if present in contract would help to monitor the quality and quantity of procuredfuel oil. As any deviation in the aforementioned specification would be subjected to the pricevariation accordingly.9 | P a g e