Pakistan energy deficit will increase to 53 million TOE (tons oil equivalent) in 2015 and 136 million TOE in 2025, against a projected total energy requirements of 114 million TOE and 211 million TOE for the year 2015 and 2025 respectively.
This was stated by Abbas Bilgrami, Managing Director of Progas Pakistan Limited, while talking to a group of journalists during their visit of the Progas Terminal here on Monday. Abbas Bilgrami said that Pakistan's current energy requirements are around 60.4 million TOE against an indigenous supply of 41 million TOE.
He said that since oil and gas will continue to form the bulk of the energy mix, large imports will be needed to bridge the supply and demand gap. He said that Progas Pakistan Limited's import terminal has the necessary infrastructure and large capacity to supply the country's growing needs for future import of fuel oil, LPG, CNG and LNG. It is poised to be the regional bulk breaking centre for distributing hydrocarbons into the Indian Ocean Rim countries.
Progas Pakistan Limited has successfully completed its first year of full operations of the Progas Bin Qasim LPG Terminal. The terminal has operated under world class Health, Safety and Environmental standards. The terminal is an infrastructure of national importance, which has added significantly to Pakistan's energy security. "Progas is committed to developing this terminal into Pakistan's Energy Hub", he added.
He said that the Progas Terminal is a common user facility, which is available to all importers and marketing companies on a hospitality basis. The rates of this service are competitive and with the capacity that this facility has it obviates the need for further investment in LPG storage and import infrastructure for the next decade.
He pointed out that Progas is Pakistan's first company to have developed a fully dedicated multi-user LPG Import Terminal at Port Qasim, Karachi. Its dedicated jetty can currently undertake ships up to 15,000 DWT but designed to be able to handle VLGC with minor modifications. The terminal has a current capacity to handle upto 2 million MT of LPG imports annually. Total LPG imports in 2006-7 have grown to the highest ever in Pakistan's history of over 65,000 MT. The company imported over 30,000 MT of LPG during 2007, making it the single largest LPG importer in the country.
These figures are 80 percent higher than the previous year. The company imported about 15,000 MT of LPG in 2006. Through the importation of this extra LPG the country has been able to meet part of the large existing latent demand for this vital commodity thereby providing greater pricing stability until the current caretaker government's decision to cap local producer prices.
The LPG market growth has been increasing at an average rate of 19 percent annually. The LPG consumption during 2006-7 in Pakistan was more than 628,000 MT the highest it's been ever.
Progas Pakistan Limited imported another shipment of 2,500 Metric Tons of LPG on Sunday February 24, 2008. According to the Hydrocarbon Development Institute of Pakistan (HDIP) Pakistan Energy Yearbook-2007, the Annual Compounded Growth Rate (ACGR) for imported LPG has grown at 48.8 percent between 1999 - 2006.
This demand for imported LPG is expected to remain high for the foreseeable future, with increasing gas shortages, power outages coupled with the expected removal of the cap on the prices of other liquid hydrocarbons. LPG will act as the bridge fuel for those industries and consumers who will be unable to get sufficient quantities of Natural Gas or other liquid hydrocarbons.
Progas Pakistan Limited is a joint venture of KUB Malaysia Berhad, KGL Petroleum Kuwait, Progas Energy Limited and the National Logistics Corporation. Progas's infrastructure also includes Pakistan's largest LPG storage facility with a capacity to store 6,750 MT of LPG or approximately 250,000 Mt per annum of throughput. Apart from this facility there is a state of the art LPG bottling plant with a capacity to fill 5,000 MT of LPG per shift per month. Progas' management believes that imports will contribute a significant part of the energy balance in the coming years.
In addition, Progas Pakistan Limited also has regional distribution centres with bottling and storage facilities at Haripur near Islamabad, Rajpura near Lahore with a total capacity to handle 300 MT of LPG and Mobile storage base consisting of LPG carriers and ISO Containers with a capacity to move around 1000 Metric Tons. "Progas is ready to work with all stakeholders in the industry to better serve the Pakistani consumer and the nation", Abbas Bilgrami said. Muhammad Akhtar, General Manager Finance & Admin gave a detailed presentation on existing supply, demand and other issues of LPG Sector in the country.