260 likes | 814 Views
Oil Infrastructure Requirements Constraints & Solutions. Dr. S. N. A. Zaidi General Manager (Operations) Pakistan State Oil Company Limited. Pakistan Energy Mix. Natural Gas Sector-wise Consumption. 27.5 MTOE. Future Gas Shortfall. Pakistan Power Sector Capacity Breakdown.
E N D
Oil Infrastructure RequirementsConstraints & Solutions Dr. S. N. A. Zaidi General Manager (Operations) Pakistan State Oil Company Limited
Natural Gas Sector-wise Consumption 27.5 MTOE
Refinery Capacity & Crude Processing 13.2 MMT
Refined Product Sourcing & Import Handling Import Handling Sourcing 12.4 MMT 20.5 MMT
Ports in Pakistan (for Oil Imports) Source: OCAC
OMCs in Pakistan • Currently there are 12 OMCs operating in Pakistan • The 5 major OMCs* have combined market share of around 96% • APL, BYCO, TPPL have refinery backup • HSD & FO contribute 85% of country’s oil products demand * PSO, SPL, CPL, APL & TOTAL
OMCs Market Shares +8% 18.1 MMT Source: OCAC
Industry Deficit Product Imports 19.0 MMT
Port Utilization Unit: MMT Non-POL at Keamari 48% Utilization 110% Utilization
POL Forecast – Scenario-I Unit: MMT 25.0 24.3 23.7 23.1 21.3 Source: OCAC
POL Forecast – Scenario-II Unit: MMT 18.3 25.0 16.9 24.3 23.7 23.1 15.9 21.3 13.7 13.3
HSFO DEMAND / LOCAL AVAILABILITY STATUS TRL & BOPL full production & PRL partial reduction TRL & BOPL Partial production PRL reduced production
Challenges to Oil Industry Supply Chain Constraints • Port • Logistics • Storages
Supply Constraints • Limited average refinery production of max 250,000 MT/month • Increase reliance on imports • Jetty constraints at FOTCO (Existing capacity 750,000 M.Tons or15 Cargos • Expected Cargo arrival at FOTCO in future is as under:
Port Constraints • By 2016, POL demand expected to touch 25 MMT • Despite BYCO refinery project coming on-stream, deficit imports will be more than 14 MMT • With KPT OP-I planned maintenance in 2013, the port capacity will be reduced to 16 MMT for 2 years • With Crude, FO & HSD imports and Export prospects (in view of new refinery), following options will have to be explored: • SBM at HUB connecting the Bosicor refineries for crude imports • Pipeline link between strategic ports for effective utilization of KPT oil piers and also as a contingency measure in case of port shutdown • 2nd berth at FOTCO to handle probable FO demand surge in view of gas supplies depletion
Logistics • With increased product demand in future, there will be an imbalance in points-of-input and points-of-consumption • 70:30 is the FO demand in Southern and Central region (respectively) • Initially, Pakistan Railway (PR) moved more than 2.5 million tons of product nationwide. This has declined to <0.5 million last year • As railways is a more efficient and cost effective mode of transport, the PR infrastructure needs to be reinforced through local & foreign equity • Currently more than 10,000 Tank Lorries are being used to transport petroleum products • Road infrastructure be further developed to handle this movement in safe manner
Storages • At present no major investment is required in storage development. • 1.15 Million Mt storages at Power Sector is empty due lack of funds for purchase of Fuel Oil. • There is a serious need of strategic storage development to build up country reserves of crude and finished product. • The potential of Gwadar as a bunkering hub is huge due to proximity to strait of Hormez, the oil industry needs to develop oil depots at the point of consumption to cater for this demand