Welcome to official website of PRES

Energy Scenario

The economic stability of developing countries like Pakistan depends upon the growth of the energy sector to influence social prosperity and long-term planning for utilization of domestic energy resources. Pakistan has been facing an unprecedented energy crisis since last few years. Its current energy demand far exceeds its indigenous supplies, fostering dependency on imported oil that places substantial burden on economy of the country.

In order to ensure security of country’s energy supplies, the Government of Pakistan is pursuing policies of increasing our domestic supplies, attracting foreign investment, diversifying imports to include natural gas, coal and electricity, encouraging economic inter-fuel substitution, promoting energy efficiency and renewable energy, and supporting regional and interregional cooperation. Pakistan is an ideal location for foreign private investment in the upstream and downstream hydrocarbon sectors as it provides a deregulated transparent and level playing field to all.

During financial year 2009-10, primary commercial energy supplies witnessed an increase by 0.8% (from 62.6 million tonnes of oil equivalent (mtoe) in 2008-09 to 63.1 mtoe in 2009-10). Increase in the supplies came from natural gas (0.6 mtoe), nuclear electricity (0.3 mtoe), hydel electricity (0.1 mtoe) and imported electricity (0.01 mtoe). Supplies from oil, coal and LPG showed decrease as compared to the last year. The share of natural gas in primary energy supplies during 2009-10 was 48.8% followed by oil 31.4%, hydro electricity 10.6%, coal 7.3%, nuclear electricity 1.1%, LPG 0.6% and imported electricity 0.1%.

Natural gas production during this year increased from 4,002 to 4,063 million cubic feet per day (1.5% increase) while oil production decreased to 64,948 from 65,845 barrels per day (1.4%). The drilling activity showed slow progress as compared to the preceding two years. During 2009-10, 26 exploratory wells were drilled as compared to 27 in 2008-09 and 2007-08. The number of development wells drilled during 2009-10 was 42 as against 59 during 2008-09 and 53 during 2007-08. The drilling efforts resulted in 15 discoveries mostly of gas/condensate, out of which 7 were by OGDCL and 8 by the private sector companies.

Oil consumption increased by 7% during 2009-10 over the preceding year. This increase was due to 27% increase in motor spirit consumption in transport sector and 16% increase in furnace oil consumption in power sector over the last year. The consumption of E-10 fuel was also added in the transport sector this year. The consumption declined in domestic, agriculture and other government sectors by 7%, 17% and 12% respectively. Consumption of furnace oil in cement industry dropped by 41% from 105,424 tonnes in 2008-09 to 61,787 tonnes in 2009-10.

Import of petroleum products increased by 12% while the crude oil decreased by 15% as compared to the previous year. This increase in POL import was mainly due to increase in imports of furnace oil, motor spirit and aviation fuel by 10%, 132% and 140% respectively during 2009-10. The refineries production was down by 8% resulting in production of 21%, 29%, 19% and 11% less quantities of Kero, diesel furnace oil and naphtha respectively, during 2009-10 as compared to the preceding year.

Natural gas consumption increased slightly by 1% during 2009-10 as compared to the previous year. This increase in consumption was due to fertilizer 22%, transport 12%, industry 5%, commercial 4% and domestic 3%. Natural gas consumption decreased during 2009-10 in cement industry by 73%, Pakistan Steel Mills by 7% and power sector by 9% over the previous year.

Coal production decreased by 7% in 2009-10 over the previous year due to lesser production from Balochistan and KPK coalfields. Coal imports have increased slightly by 0.13% resulting in overall decrease in coal supplies/consumption by 3% over the last year. Consumption of coal in power generation increased by 12% from 112,520 tonnes in 2008-09 to 125,482 tonnes in 2009-10.

In the power sector five new IPPs (Atlas, Engro, Orient, Nishat and Saif power) were commissioned during 2009-10. This helped increase the installed capacity of thermal power plants by 1,089 MW during 2009-10.

Electricity generation during 2009-10 increased by 4.1% (with major increase of 79% in nuclear generation) over the last year and reached 95,608 GWh (including 249 GWh of electricity imported from Iran). Electricity generation included 67.3% thermal, 29.4% hydel, 3.0% nuclear, while 0.3% of the electricity was imported this year. Electricity consumption increased by 5.7% to 74,348 GWh during 2009-10 as compared to 70,371 GWh last year. Major increases in consumption were in the domestic sector (1990 GWh), agriculture (894 GWh), industry (494 GWh), commercial (354 GWh) and bulk supplies (241 GWh). T&D losses of public sector power system were reduced from 21.6% to 20.6% during 2009-10.