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Engro’s proposals on energy crisis

The Engro Energy Research Group has suggested the new government to take tough calls to avoid energy crisis in the years to come and increase gas tariffs, develop indigenous resources, institute reforms in the power sector and exhibit the political will to take unpopular decisions on an immediate basis.

Engro Research Group headed by Syed Mohammad Ali, CEO of Engro Powergen, emphasised that Pakistan’s existing power generation mix with 40 percent reliance on imported furnace oil is not sustainable as reflected in the country’s inability to utilise 100 percent of its power generation capacity due to the lack of funds to purchase furnace oil. Therefore, the political leadership must develop Thar coal reserves, which has approximately 200 billion tons of coal that are dormant since their discovery two decades ago.

Thar coal reserves is a project of national security as it can bring the much-needed energy security by curbing reliance on imported energy resources and providing indigenous fuel resources for Pakistan’s present and future energy needs.

The presentation by Syed Mohammad Ali truly portrayed a grim picture of the country’s energy situation as the current power generation is around 9,000MW against the demand of 15,500MW, excluding Karachi Electric Supply Company (KESC), a shortfall of 6,500MW.

Severe shortfall in indigenous gas production is imminent as growth in production since 2006-07 is negative, Ali said, adding that for 2014, the gas demand is expected to be 6.3BCFD against a supply of 4BCFD.

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