Pakistan Energy Outlook

1740 Words Oct 1st, 2012 7 Pages
Pakistan Energy Outlook (2010/11 to 2025/26)
Executive Summary
Pakistan’s energy sector is in a state of crisis and over the past few years has negatively impacted the social and economic development of the country.
Primary energy consumption in Pakistan has grown by almost 80% over the past 15 years, from 34 million tons oil equivalent (TOEs) in
1994/95 to 61 million TOEs in 2009/10 and has supported an average GDP growth rate in the country of about 4.5% per annum.
However since 2006/07 energy supply has been unable to meet the country’s demand leading to shortages. Meanwhile per capita energy consumption in Pakistan at under 0.5 TOEs/capita remains only one-third of world average.
Indigenous natural gas is
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hed, with a single natural gas price for all volumes Blueprint # 2 – Restructuring of the Natural Gas Sector
• The state-controlled natural gas sector is being used for political leverage, resulting in over-commitment of gas supply leading to natural gas shortages
• Increasing natural gas theft is reaching alarming proportions
• The existing gas utilities be unbundled and a single statecontrolled natural gas transmission company be created for transmitting gas on an open-access basis
• Natural gas distribution & marketing be privatized to multiple gas companies to provide improved business discipline and customer management
• A competitive gas market be created with de-regulated prices and open-access to the gas distribution grids for third-party gas suppliers • Natural gas theft be declared a “non-bailable offence” with a high penalty Blueprint # 3 – Dynamic Exploration & Production (E&P)
• Gas price incentives for the E&P sector in Pakistan are not attractive enough for major new investments to be undertaken
• Security issues & uncertainty in continuity of E&P policies by successive governments are barriers for major E&P investments Recommendations
• E&P sector be progressively de-regulated and, as a first step, be allowed to sell new natural gas discoveries at market-based pricing • E&P sector be able to sell natural gas directly to consumers
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