Pakistan Development Forum Islamabad November 15 2010 Oil
Pakistan Development Forum Islamabad: November 15, 2010 Oil and Gas Sector Reforms Syed Naveed Qamar Minister for Petroleum & Natural Resources Government of Pakistan
Energy Mix 63 Million TOE Oil 32% LPG 1% Nuclear 1% Gas 48% Hydro 11% Coal 7% Oil Import Bill: $10 billion
Oil and Gas Shortfall Year Oil (bpd) Gas (bcfd) 2010 350, 000 2 2015 550, 000 4 2020 700, 000 6
Oil and Gas Sector Highlights Investor friendly Exploration Policy introduced 2009 Independent Regulator for oil and gas – OGRA 27 E&P companies, 137 blocks, success ratio 1: 3. 3 68% electricity generation from oil and gas 100, 000 km natural gas transmission and distribution network Gas consumers increasing at 7% per year Crude oil local production only 15% of demand 5 refineries, 12 OMCs
Proven Reserves Oil (million barrels) Gas (trillion cubic feet) Coal (million tonnes) Discovered 965 54 15, 000 Produced 659 26 200 Remaining 306 28 14, 800 Annual Production 24 1. 5 3. 5 Reserves to Production (R/P) Ratio 13 19 4200
Gas Shortfall Mitigation Anticipated C mand e onstrained D TAPI (2015): 1. 35 Bcf d Conventi onal New Privat e LNG Discover ies Existing Gas Fields 6 SSGC LNG (2012 IP (2014): 0. 75 Bcfd (2012) : ): 0. 75 1. 0 Bc Bcfd fd
Gas Import Pipeline Projects TAPI HIGHLIGHTS IP HIGHLIGHTS § Pakistan Pipeline Segment 785 km § Gas Volume 0. 75 bcfd § First Gas Flow 2014 § Gas Source in Turkmenistan South Yolotan / Osman § Length: Turkmen to Indian Border 1, 680 km § Total Gas Volume 3. 20 bcfd § Gas Volume for Pakistan 1. 35 bcfd § First Gas Flow 2015
Exploration for New Resources • 39 exploration licenses granted in 2009 -10 • New bidding round to be done jointly with Provincial Governments • Policies for non-conventional gas resources: q Tight Gas (est. 4 tcf) q Shale Gas (est. 10 tcf) q Low Btu Gas (est. 4 tcf) q Stranded Gas through virtual pipeline (est. 0. 5 tcf)
Gas Sector Reforms • No government subsidies on natural gas • LPG being introduced as formal auto fuel • LPG-Air mix being used as town gas as an alternate to natural gas in towns and villages • Syngas to be used as natural gas substitute • Gas line losses to be controlled through capital investment in transmission and distribution systems
Oil Sector Reforms • Governmental and cross-subsidies on oil products removed • Pricing, import and movement of oil products deregulated • Barriers to new oil marketing companies minimized • New incentives for establishing oil storages • Product storage increased to 53 days cover • Ethanol (E 10) introduced as motor fuel
Coal Sector Reforms • Coal is a Provincial subject • Huge deposits of lignite coal discovered in Sindh at Thar • Several private companies interested in coal mining and power generation • Coal bed methane potential estimated as 2 tcf • Pilot project for coal gasification in hand
Thank You
- Slides: 12