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Steps towards; “Developing Fuel Quality Road Maps in Asia” (May 22-23 2006, Manila). Muhammad Azam Director Ministry of Petroleum and Natural Resources Government of Pakistan. ECONOMIC INDICATORS. Year 2004-05. Pakistan Energy Supply Mix. 55.5 Million TOE (FY 2004-05).
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Steps towards; “Developing Fuel Quality Road Maps in Asia” (May 22-23 2006, Manila) Muhammad Azam Director Ministry of Petroleum and Natural Resources Government of Pakistan
ECONOMIC INDICATORS Year 2004-05
Pakistan Energy Supply Mix 55.5 Million TOE (FY 2004-05)
Refining Capacity (Million Tons) RefineryLocationCapacity p.a • Pak Arab Kot Addu 4.50 • NRL Karachi 2.80 • PRL Karachi 2.15 • ARL Rawalpindi 1.66 • Dhodak D.I.Khan 0.12 • Bosicar Hub,Balochistan 1.50 • Enar Petrotec Port Qasim 0.13 Total 12.86
Specification in Pakistan • Motor gasoline • Research octane number (RON)= 90 • Lead content gm per ltr = zero • Sulfur content wt % = 0.1 • HSD • Sulfur content wt % = 1.0 • Furnace oil • Sulfur content wt % = 3.0
Initiative for Clean Fuels • various steps have been taken gradually to improve the specification of petroleum products . • Mono grade 87 RON Gasoline was introduced in the country with effect from 1st October 2000.
Initiatives for Clean Fuels • Unleaded gasoline was introduced in the country with effect from 1st July 2002, which has brought tremendous benefits to public, as lead was highly injurious to health especially to children. • 90 RON, unleaded gasoline is being produced and marketed in the country w.e.f. March, 2003 which is three year ahead than the targets given by the world bank,
Initiatives for Clean Fuels • A pilot project is being conducted to introduce 10 % ethanol in Motor gasoline which is more environment friendly • Renewable Energy sources are developed • Alternative energy Board has been set up
Initiatives for Clean Fuels • Gas oil/HSD of 0.5 wt % sulfur is being imported w.e.f. July 2002. • Attock Refinery limited, Rawalpindi is producing 0.25 wt% sulfur HSD. • Attock refinery limited is producing low sulfur fuel oil (less than 1 wt %) which is being supplied to KAPCO, resulting saving of foreign exchange about US$ 1.5 million per annum.
Initiatives for Clean Fuels • Adultration has been eliminated by rationalizing Kerosene prices • OMCs/ Dealers margins increased to 3.5 and 4% respectively • Introducing CNG Buses in major Cities to reduce HSD consumption
Incentives for New Oil Refinery • 0ffering free of cost land and EPZ status. • Pricing formula for new refineries linked with Singapore Mean FOB spot price. • Import of Crude Oil from any Source after lifting local crude if allocated • Refineries are free to sell their product to any marketing company or market the product through their own marketing network.
Future Strategy • Refineries have been given target to start production of 0.20 wt% sulfur content HSD from 2008 • Refineries up grading their existing facilities to meet the targets of Clean Fuels • New Coastal Oil Refinery to be set up by 2010, will produce Euro III spec products