The total investment requirements in the energy sector during the next 25 years were estimated at $150 billion ($50 billion in the public sector and $100 billion in the private sector).
This works out to an annual average of $6 billion ($2 billion in the public sector and $4 billion in the private sector) and calls for a doubling of the current investment levels, said official sources.
Energy was the lifeline of economic development. An Energy Security Action Plan (2005-30) had been developed to meet the requirements of Pakistan's Vision 2030 for reliable and quality energy supplies and to ensure that energy deficiency does not become a constraint in development.
The main objective of the energy sector development was to enhance energy supply through an optimal mix of all resources including hydropower, oil, gas, coal, nuclear and renewable energy such as wind and solar. It was planned to optimise utilisation of the country's indigenous resource to reduce dependence on imported fuel. In view of the public sector resource constraints, an important focus was also creating an environment conducive to the participation of the private sector, both international and domestic.
The total primary energy consumption was expected to rise 7 fold from 55 million tonnes of oil equivalent (MTOE) to 360 MTOE by 2030. The requirement for power generation would increase more over eight fold from 19,540 MW in 2005 to 162,590 MW in 2030. It was recognised that Pakistan was running out of useable and affordable energy and more efficient use of energy was absolutely vital. While improving efficiency, a major shift was planned towards coal, nuclear and renewable over the long-term period.
The share of coal in the energy mix was planned to be increased from the current about 6 percent to 19 percent by 2030. However, the energy mix can only be changed gradually over a longer period of time. In the mean time, there was an urgent need for import of gas, both through pipeline as well as Liquefied Natural Gas (LNG).
In the oil sector, it was planned that the number of exploratory and development wells to be drilled would be increased from at least 100 wells per year during 2005-10 to 330 wells per year during 2025-30. Plans were also being made to accelerate the exploration of indigenous coal. The import of coal was also being encouraged in the short term for use along with local coal for industrial purposes and for power generation. Based on energy demand supply gap, there was also an urgent need for import of gas.
Accordingly, various alternatives for import of gas (particularly from Iran and Turkmenistan) were under active consideration at the highest level for finalisation of an option to ensure that the 1st pipeline gas was available by 2010. Establishment of refineries and petrochemical plants in the private sector was also being emphasised.
For rapid economic growth, official sources stated, developing countries like Pakistan need cheap, abundant and an environment-friendly source of energy. Previously, Pakistan's economy has in fact, witnessed a visible and crucial structural shift since 1999-2000.
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