The country's storage cover is hardly sufficient for 2 weeks, and that too at 100% capacity.
This is an alarming situation at all times during abnormal exigencies, when the nation is faced with a critical decision. Hence, the likely hood of a major set back cannot be underestimated.
Moreover the government is very keen to enhance the storage cover to at least 45 days of the country's total consumption to avoid any eventuality.
Here it should be borne in mind that developing storage is a highly capital intensive venture.
It is in this ensuing scenario, that we have come up with a highly ambitions program of developing storage at various locations in the country.
The beginnings have already been made by developing storage terminal of 60,000 MT capacities at Port Qasim, which is operational for the last 2 years and has been providing excellent services.
The facility is fully equipped to receive store and dispatch both white & black oil.
Historically Pakistan's Petroleum industry has always been closely controlled and regulated by the government till the year 2000.
Although private investment, particularly foreign investment was encouraged in exploration, production, refining and marketing, the overall projectionist fiscal policies having short-term objectives could not attract the desired level of investment which was needed for healthy growth.
The controls and pricing policies had adverse effect on the multinationals, which were initially the main source of capital inflow but in the following decades were reluctant to bring in any capital.
Thus the industry was deprived of the progressive developments that normally lead to technological advancement, self-reliance and sophistication in standards. Today the country does not have the necessary infrastructure to handle efficiently the increasing petroleum requirements.
At the advent of the new century the consumers influenced by the information explosion will look more for higher standard of quality in POL products and services.
With the increased awareness and concern for environmental degradation, the technology and service standards in marketing activity will have to be changed to meet the new demands.
The current source of commercial energy in the country is Oil, Gas, Coal, LPG, Hydro, Thermal and Nuclear Power. Oil is the largest source, which constituted nearly 43% of the total consumption during 2002-03.
If the growth in other services like Gas, Hydro, Coal, and other renewable alternatives would not be maintained to meet the growing energy needs, the share of the oil in country's energy picture will continue to rise.
While efforts are being made towards economic growth self-reliance and building a strong indigenous base, oil is being imported. In 1976-77, the total import of crude oil and refined products was about 5.3 million tons, which rose to nearly 16.4 million tons in 2001-02.
In the last twenty-five years the consumption of oil increased by about 335%, which indicates that oil played a very significant role in Pakistan's growth, and will continue to play similar role in the years to come.
The latest "demand projections" indicate that by the year 2017-18 the consumption level would rise to nearly 19 million tons.
It is imperative therefore that the petroleum industry must be timely equipped with adequate facilities and infrastructure, sufficient to handle such an enormous increase in consumption.
Addition of new marketing companies at this stage will contribute towards this national objective by developing Storage capacity and Retail and Industrial outlets.
FUTURE PLANS: OOTCL has experience for vessel handling and discharging and has delivered to several customers including Government Sector and Multinational Company.
The company now has decided to introduce a Pakistani Oil Marketing Company after completion of existing facilities at Port Qasim and purchase of 81 acres of land.
BRIEFLY THE INFRASTRUCTURE PROGRAM COMPRISES OF THE FOLLOWING:
1. Development of new storage and expansion of existing capacity.
2. Developing a chain of retail outlets and CNG Stations.
3. OOTCL plans to introduce mobile outlets in order to cover a large portion of trading areas. This will enable OOTCL to reach places where establishment of retail outlets becomes non-feasible.
4. Setting up a Refinery.
DESCRIPTION OF EXISTING STORAGE FACILITY: Overseas Oil Trading Company (Pvt) Limited has a storage terminal at Port Qasim.
Presently the terminal consists of six tanks each having 10,000 M.Tons capacity of API 650 standard.
Calibration of tanks has been carried out as per API 2550 standard. Terminal is connected with FOTCO jetty via two dedicated pipelines for Black and white Oil having a diameter of 24" & 20" respectively.
The lines are capable of handling cargo discharging at a rate of more than 2500 M.Tons / hr.
Each tank has dedicated pipeline for loading and discharging, in order to avoid errors of commingling and cargo calculations. 05 Nos. cargo loading pumps are installed and equipped with 10 filling points with pipeline size of 12" diameter and approximate loading time for a 20 M.Tons Tank lorry is 9 Minutes.
Terminal is equipped with a 60 feet long, 80 tons capacity fully computerised weighing system. Heating coils are installed inside all the tanks and heated cargoes can also be provided.
Terminal construction is based on API & International Safety standard with most modern fire fighting system and compliance of Pakistan Petroleum Rules is ensured.