Muhammad Azam Muhammad Azam DirectorDirector

Ministry of Petroleum and Natural ResourcesMinistry of Petroleum and Natural ResourcesGovernment of PakistanGovernment of Pakistan

Steps towards;Steps towards;

““Developing Fuel Quality Road Developing Fuel Quality Road Maps in Asia”Maps in Asia”

(May 22-23 2006, Manila)(May 22-23 2006, Manila)

Population Million 155

Area ‘000km2 796

Growth in Energy % 9.2

Real GDP Growth Rate % 8.4

Total Petroleum cons Mill ton 16

ECONOMIC INDICATORS

Year 2004-05

Pakistan Energy Supply Mix

Nuclear1.2%

Oil29.4%

Gas50.8%Hydel

11.0%

Coal7.6%

55.5 Million TOE (FY 2004-05)55.5 Million TOE (FY 2004-05)

Demand/Supply Pattern, 2004-05

8%

49%

18% 25%

Crude (L) Crude (I) HSD (I) FO (I)

Refining Capacity

(Million Tons)Refinery Location Capacity 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 PetrotecPort Qasim 0.13

Total 12.86

Specification in Pakistan 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

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.

Initiative for Clean Fuels Initiative for Clean Fuels

Initiatives for Clean FuelsInitiatives 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 FuelsInitiatives 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 FuelsInitiatives 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 FuelsInitiatives 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 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.

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

Future StrategyFuture Strategy

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