47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Pakistan Economic Survey 2011-12electricity as there is still significant share of oil(furnace) in electricity generation (about 35.1percent) which is vulnerable to the internationalprices. Further the oil refineries have also beenrunning below capacity, thus constraining the supplyof oil and other fuels. Likewise, in the gas sector,Pakistan faced severe shortages that exceededapproximately 2 billion cubic feet per day as localproduction was unable to keep pace with therequirements of the country. This was due mainly tothe depletion of existing resources, unfavorable lawand order situation and lukewarm interest ofexploration and production companies etc. However,the geographical location of the country makes it afavourable potential market for the import of naturalgas from its neighboring countries like Iran, India andTurkmenistan. The government has, therefore, takenthe initiative to import gas from these countries. Theinitial projects in this regard are Iran-PakistanPipeline and Turkmenistan-Afghanistan-Pakistan-India gas pipeline. To mitigate the energy crisis, thegovernment has notified the Liquefied Natural Gas(LNG) Policy 2011 which encourages private partiesto develop LNG projects and sets them free toparticipate in any segment of the LNG value chain. Inorder to solve issues in power sector, the governmenthas decided to construct five multi-purpose waterPakistan’s Energy Sector 1storages in the country during the next 10 -12 years.The Diamer Basha Dam Project - the world's highestRoller Compacted Concrete Dam - is the mostmentionable achievement. Also Pakistan is one of thebeneficiaries of Tetra-partner power import projectunder the head of Central Asia-South Asia (CASA-1000) electricity trade.To ensure energy security and sustainabledevelopment in the country, the government is alsotaking all possible measures to diversify its energymix. In this the regard government has given dueattention to fast track the development of Alternative/ Renewable Energy (ARE) resources in the country.The Alternative Energy Development Board (AEDB)has updated the Renewable Energy (RE) Policy,2006, in consultation with the provinces and otherstakeholders. The policy includes all (AlternativeRenewable Energy (ARE) technologies includingWind, Solar, Hydro, Biogas, Cogeneration, Waste-to-Energy, and Geothermal; providing extremelyattractive financial and fiscal incentives to both localand foreign investors while offering them a levelplaying field. It is expected that with the approval ofthe policy and government’s keen interest in energysector, the situation will improve significantly in nearfuture.Figure 14.2: Pakistan’s Energy Sector Consumption and Supply 2010-11 2Energy Consumption (38.8 million TOE) by Share of SourcesOil Products(29 %)Gas(43.2 %)LPG(1.3%)Electricity(16.2 %)Coal(10.4 %)Energy Consumption (38.8million TOE) by Share ofSectorsTransformation (−17.8 million TOE)Diversions (−7.4 million TOE)Statistical Differ (−0.5 million TOE)Energy Supply (64.5million TOE) by Share ofSourcesNatural Gas(47.6%)LPG(0.5%)Oil(32.0%)Coal(6.7%)Electricity(13.1%)Crude Oil(15.7%)PetroleumProducts (16.3%)1Data on variables of energy is given on calendar year instead of fiscal year2 TOE (tonne of oil equivalent) is a unit of energy. It is considered as an amount of energy released by burning one tonne of crudeoil approximately equal to 42 GJ. [1 TOE = 41.868 GJ = 11, 630 Kilowatt Hours =39.683 million Btu]196