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Pakistan Depletes Half of Its Gas Reserves

Pakistan is left with only 50 percent natural gasreserves as high consumption in different

sectors has exhausted 50 percent of the overall reserves of 54 trillion cubic feet (tcf) by financial

year of 2011-12, said State Bank of Pakistanin its annual report.

The country now has sufficient reserves to last just over 20 years, under the increasingly

unlikely scenario that current production rates are maintained throughout. The country

experienced some of the worst gas shortages in its history in 2011 as supply to the industrial,

compressed natural gas (CNG) and power sectors was significantly curtailed, resulting in

closure of hundreds of units and losses to business and productions.

The shortfall peaked during the winter season, when gas consumptionfor domestic heating

increased, and demand reached 4,580 million cubic feetper day (mmcfd) versus supply of

3,878 mmcfd. Throughout the remainder of the year, shortfall in the system varied between 10

to 15 percent of demand (400-700 mmcfd), depending on supply availability from key fields.

The impact on textile production was particularly damaging and supply to fertilizer producers

was curtailed by up to 20 percent vis--vis their allocation.

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The natural gas availability to the power sector also remained below requirement. In particular,

gas availability to Karachi Electric Supply Company(KESC) averaged around 55 percent of

official allocation (276 mmcfd) whereas independent power producers based on gas were

forced to remain idle or operate below capacity.

The factors contributing to prevailing shortages of natural gas exploration in Pakistan have notbeen undertaken aggressively, hence production has historically remained undiversified. As of

fiscal year 2010, natural gas was being produced from 98 fields, of which nine fields accounted

for 80 percent of total daily supply.

Exploration and production activity has been largely concentrated in Sindh with 71 percent of

total production and the most recent significant gas discovery dates back to 1998.

In effect, Pakistan must aggressively explore alternatives to diversify supply of this precious

commodity. Part of the explanation for why gas exploration has remained subdued may befound in the pricing structure of the commodity. Exploratory prices of gas are linked to crude oil,

but impact of changes in reference crude pricesis not fully passed on to investors, as

benchmark prices for compensation are computed on a bi-annual basis only.

Furthermore, exploration and production companies accrue only 50 percent of any upside price

movements in the price of gas with the remainder collected by the government in the form of a

windfall levy. Producer (well-head) prices of gas therefore do not particularly incentivise

exploration of the commodity, and production companies receive prices below import parity

levels.

These features of domestic gas pricing may come across as peculiar at first, but are justifiable

so long as the benefits accrue squarely to the countrys industrial base.

For these reasons, the supply-demand position of natural gas has deteriorated significantly, and

shortages of the commodity with reference to indigenous supply are projected to increase to

3,021 mmcfd by FY16 or 48 percent of projected demand.

Nearly half of this deficit may be bridged by imports, if arrangements presently under

consideration are implemented as scheduled.

Demand growth is expected to outpace increase in supply, and gas shortages may intensify in

the near future. Based on supply projections, domestic production of gas is likely to peak by

FY14 at 3,860 mmcfd and is set to decline thereafter.

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Natural depletion in gas fields will ensure that committed supplies fall considerably short of

demand, which is projected to reach 5,970 mmcfd by FY16. Production from fields presently

identified for development will therefore become critical in managing the demand-supply gap.

Key projects scheduled to come online by FY14 will contribute 460 mmcfd to gas supplies.Furthermore, since domestic production of gas will no longer be sufficient to meet consumption

requirements, reliance on imports will increase. Between FY12 and FY16, the domestic gas

shortfall is projected to increase from 2,458 mmcfd to 3,021 mmcfd, which may be reduced by

40 percent via imports.

Source:Daily Times

Oil has been produced in what is now the republic of Pakistan from the early 1920's.According to Oil and Gas Journal (OGJ), Pakistan had proven oil reserves of 300 million

barrels in January 2006. A number of fields were discovered in the upper Indus basin inthe 1930's and 1940's. Since around 1980 a large number of hydrocarbon discoverieshave been made in the central and southern parts of the country. In 1999 there were atleast 70 oil and condensate fields in production, although none of them was of any greatsize. Total output has fluctuated within a range of about 55 000-65 000 b/d since 1989.In 2006, Pakistan produced an average of 58,000 bbl/d of crude oil, but has ambitiousplans to increase its current output to 100,000 bbl/d by 2010. According to the 2008 BPStatistical Energy Survey, Pakistan consumed an average of 362.38 thousand barrels aday of oil in 2007.

The countrys oil sector is regulated by the Ministry of Petroleum and Natural

Resources. The Ministry grants oil concessions by open tender and by privatenegotiation. BP is currently the largest oil producer in Pakistan.

Although the level of proved reserves reported by the Pakistan WEC MemberCommittee has tended to drift downwards in recent years, natural gas remains a majorenergy asset for Pakistan. According to the 2008 BP Statistical Energy Survey, Pakistanhad 2007 proved natural gas reserves of 0.85 trillion cubic metres, with the major gas-producing fields being Sui in Balochistan and Mari in Sindh. According to the 2008 BP

http://www.dailytimes.com.pk/default.asp?page=2011%5C12%5C28%5Cstory_28-12-2011_pg5_10http://www.dailytimes.com.pk/default.asp?page=2011%5C12%5C28%5Cstory_28-12-2011_pg5_10http://www.dailytimes.com.pk/default.asp?page=2011%5C12%5C28%5Cstory_28-12-2011_pg5_10http://www.dailytimes.com.pk/default.asp?page=2011%5C12%5C28%5Cstory_28-12-2011_pg5_10

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Statistical Energy Survey, Pakistan had 2007 natural gas production of 30.8 billion cubicmetres and consumption of 30.8 billion cubic metres.Pakistans government has plans to build a pipeline from Irans massive natural gasreserves to Indian markets across Pakistani territory.

Natural gas - proved reserves (cubic meters)

Country 2002 2003 2004 2005 2008 2010 2011

Pakistan 695,600,000,000695,600,00

0,000695,600,000,0

00759,700,000,0

00792,800,000,0

00840,200,000,0

00840,200,000,0

00

Definition of Natural gas- proved reserves:This entry is the stock ofproved reservesof natural gas incubic meters(cu m). Proved reserves are thosequantities of natural gas, which, by analysis of geological and engineering data, canbe estimated with a high degree of confidence to be commercially recoverable froma given date forward, from known reservoirs and under current economicconditions.

Oil - production (bbl/day)

Country 2001 2004 2005 2007 2009 2010

Pakistan 62,870 61,000 63,000 68,670 59,140 64,950

Definition of Oil - production:This entry is the totaloil produced in barrels per day(bbl/day). The discrepancy between the amount of oil produced and/or importedand the amount consumed and/or exported is due to the omissionof stockchanges, refinery gains, and other complicating factors.

http://www.indexmundi.com/pakistan/natural_gas_proved_reserves.htmlhttp://www.indexmundi.com/pakistan/oil_production.htmlhttp://www.indexmundi.com/pakistan/oil_production.htmlhttp://www.indexmundi.com/pakistan/oil_production.htmlhttp://www.indexmundi.com/pakistan/natural_gas_proved_reserves.html

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Late last month, Prime Minister Nawaz Sharif and his former rival, ex-president

Asif Ali Zardari jointly inaugurated the construction of a $1.6 billion coal plant

the southern town of Thar, hailing their shared goal of ending the nation's power

crisis.

The government has also green-lighted the construction of a pilot 660 megawatt

coal-fired plant in Gadani, a small, serene town on the Arabian Sea known as

Pakistan's ship-breaking hub.

A 600 megawatt plant has also been given the go-ahead in the southern city of

Jamshoro.

The construction of these plants is one plank in an ambitious plan to convertmany of the country's existing oil-based thermal plants and upgrade its ports as

they begin swapping one black gold for another.

"This is a major and historic fuel switching plan as we generate zero from coal

compared to India which generates 69 percent of its electricity from coal-fired

power plants," Pakistan's minister for power and water Khwaja Asif told AFP.

- Oil 'increasingly unaffordable' -

Pakistan has struggled with scheduled power cuts for decades. But the problems

have been particularly acute since 2008, with regular outages of up to 22 hours a

day for many domestic users and even longer for industries -- costing about two

percent of GDP per year.

In the hot summer, when temperatures soar to 50C in the country's centre,

Pakistan produces around 18,000 MW of power, with an average deficit of 4,000

MW.

A lack of capacity together with huge debt cycles exacerbated by poor rates of tax

collection are seen as some of the major factors contributing to the country's

dismal power shortages.

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The issue was also a central campaign theme in last year's general elections,

which saw Nawaz Sharif elected to the top post.

Faced with a growing bill for imported oil that currently stands at $14 billion and

a rapidly depleting supply of natural gas, the country's private and public plants

are switching their oil-plants over to coal.

"Pakistan has been facing rising oil prices and declining gas reserves as well as

tight foreign account situation, rendering the reliance on the import of oil to fuel

power plants increasingly unaffordable," the Asian Development Bank said in a

statement.

Pakistan's largest private sector power utility Karachi Electric Supply Company(KESC), which provides electricity to the country's biggest city, has taken the lead

in plans for the coal switch.

The company has recently granted engineering, procurement and construction

contracts to Chinese company Harbin Electric International to convert two units

of the Bin Qasim thermal power stations with 420 megawatt capacity.

The $400 million project is expected to be completed by 2016.

Alongside the conversions, Pakistan is also upgrading its port facilities to increase

its ability to import coal.

"Ports are the lifeline of the country," says Haleem Siddiqui, a veteran seaman

who pioneered the first state-of-the art container terminal at Karachi Port and

whose company is building a "dirty cargo terminal" at Port Qasim along Arabian

Sea.

The fully-mechanised terminal would be able to handle four to eight million tons

of coal in the first phase to be completed by 2015, growing to 20 million tons in

the extended phase in 2020, at a cost of $200 million.

- Untapped fields -

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But merely raising the amount of imported coal would strain the country's

already dwindling foreign exchange reserves and adverse balance of payment,

which fell to 13-year low of $2.8 billion in February.

Which is why Pakistan is determined to find some of its energy needs under its

own soil.

Some experts have pointed to the Thar Desert in southern Sindh province, which

sits on top a vast potential source of 175 billion tons of coal.

"It is very huge reserve and is equivalent to combined oil reserves of Iran and

Saudi Arab in terms of heating value," Agha Wasif, chief of the provincial energy

department told AFP.

Engro Powergen Limited, a joint venture of public and private sectors, is

developing a block of the Thar coal field with $800 million dollars investment

which is set to open by 2016.

But not everyone is pleased. Some residents inside the Gadani Energy Park have

been forced to leave their homes.

"We are living here for seven generations and we have the graves of our ancestors

here, how could we leave our place?" said 25-year-old Umaid Ali from the village

of Qadir Goth.

The power minister said no widespread displacements would take place, saying

the land purchased for the Energy Park had been purchased long ago "and if

there is any (residential) disturbance that would be duly taken care of".

Pervez Hoodbhoy, a nuclear scientist and energy commentator, said that despiteits dirty reputation -- coal produced 44 percent of global C02 emissions in 2011 --

Pakistan has few other options to keep the lights on.

"I'm aware of the fact that there are serious CO2 issues but the amount Pakistan

is producing would be insignificant on the global scale.

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"The alternative is nuclear power plants being imported from China and those

have the potential for disaster given Pakistan's safety record. Given the choice

this seems to be the lesser of two evils," he said.

CONSUMPTION OF CNG VEHICLES OUT OF CURRENT RESERVES

KARACHI: Pakistan has become the third country in the list of countrieswith the most natural gas vehicles, as over 26 percent of the vehicles onthe roads consume natural gas, suggests the data of Natural Gas Vehicles(NGV) Europe.

The NGV Global suggests that Pakistan has observed the fastest growth in naturalgas vehicles since the year 2000 as the number of gas vehicles has surged toaround 3.5 million from less than 100,000 vehicles back in the year 2000. WhilePakistan is the country with the highest number of CNG refilling stations in theworld.

Former CEO of OGDCL, Zahid Khan said that independent seminars and analystsconsider CNG to be a burden on the system.An official at the Ministry of Petroleumsaid that from 2005-06 to 2010-11, CNG consumption increased at the rate of 24percent, the highest increase witnessed in any sector.

With gas production facing a decline, this growth is at the expense of other value-added sectors like fertilizers, the general industry and the power sector, hesaid.With growing car ownership and CNG prices being kept at 55 percent of petrolprices, the CNG monster is fast eating into the legitimate gas share of othersectors. Commenting on the investments made by the CNG sector, the official saidthat many CNG stations were initial investments based on a government incentive.

However the initial cost to set up a CNG station is approximately Rs55 millionincluding Rs.31 million of the land cost and on average, the payback period is threeyears. Based on current CNG prices, most of the CNG stations have already madesignificant profits. The industry people say that when deciding on gas allocation, the

government should consider the opportunity cost of the allocation of the gas todifferent sectors.

Fertilizer, textile and other manufacturers are value added industries producinggoods locally with capital and equipment, which is already present in the countryand this reduces the import of goods and increases the exports of locallymanufactured items.

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CNG, on the other hand, involves the substitution of one fuel by another.Keepingenergy prices in the form of CNG artificially low, encourages energy inefficiency.But energy spent using petrol for example, is likely to be less as the efficiency ofuse will be higher. Hence total expenditure on transport will not increaseproportionately if CNG is withdrawn, industry sources said. The governmentshould consider the fact that petrol is a perfect substitute for CNG, but there is nosubstitute available for fertilizer plants that use gas as a raw material, he added.The ministry official said that the CNG sector was stating inaccurately that thegovernment was imposing Rs141 cess tax per mmbtu on CNG.

In reality, in the first official communication on Cess dated Dec 15, 2011, the Cessfor CNG was announced to be Rs 141/mmbtu for Region-1 (KPK, Baluchistan,Potohar Region) and Rs 79/mmbtu for Region-2 (Sindh, Punjab excluding PotoharRegion). Later on it was reduced to Rs 84.6/mmbtu for Region-1 and Rs47.4/mmbtu for Region 2 after the CNG associations went into negotiations with thegovernment of Pakistan. Whereas, the fertilizer industry pays Rs 300/mmbtu.

According to International Association of Natural Gas Vehicles,

as of December 2008, Pakistan has the worlds highest number of

vehicles running on compressed Natural Gas (CNG). The number is 2

million. Pakistan also has the Worlds highest number of CNG

refuelling stations. i.e. 2941(updated as of July 29, 2009). This

growth has been phenomenal noting that CNG as a fuel was madeavailable in Pakistan, only in 1992.

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For many years, Argentina and Brazil used to be the world leaders in

terms of number of vehicles using CNG. Pakistan overtook Brazil in

2006 and Argentina in 2008 to become the worlds largest consumer

of CNG in vehicles.

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PHOTO OF MA.JINNAH ROAD

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Iran to Start Exporting Gas to Pakistan by2014

Iran will start exporting natural gasto Pakistan by 2014, Shana agency reported citing Irans

Minister of Petroleum Rostam Qasemi.

A deal for Iran to export gas to Pakistan has been finalized, he told a news conference at

Tehran Oil Show. He said Iran has constructed its tranche of the pipeline up to the southeastern

city of Iranshahr.

The minister said Iran is also constructing a pipeline to pump gasto Iraq, adding the pipeline is

expected to be ready in 18 months.

Once this pipeline is ready, Iran would export 20 million cubic metersof gas to Iraq to feed

itspower plants , he said. Negotiations are under way to extend this pipeline up to Syria and

theMediterranean Sea, he added.

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Pakistan Wants to Accelerate Iran NaturalGas Pipeline

Pakistansforeign ministryannounced that Pakistan woulddouble-down on the construction of its pipeline with Iran.

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ByAnkit Panda

December 11, 2013

After adisappointingseries of conversations with U.S.Secretary of

DefenseChuck Hagel, Pakistan announced that it would take steps tobolster its fragile energy security situation by doubling-down oncooperation with Iran over an ongoing gas pipeline project. Thepipeline between the two countries will enable the transfer of gas fromIrans South Pars facilities to Pakistan. Iranhas successfullyconstructedmost of the 900 kilometer pipeline up to the Pakistani

border. The United States opposes the project.The pipeline projectinitially faced a deadline of winter 2014 but dueto repeated delays, gas is not expected to flow from Iran to Pakistanuntil sometime later that year. Reportedly, Pakistanwould becontractually obligatedto pay Iran US$1 million for every day of delayon the project beyond its agreed-upon deadline. The decision to speedup efforts this time came from a meeting between Pakistani andIranian officials in Tehran.According to Dawn,[Pakistan]FederalMinister for Petroleum and Natural Resources Shahid Khaqan Abbasiand Iranian Minister of Petroleum Bijan Namdar Zangeneh held at theMinistry of Petroleum at Tehran on Monday. The two countriesagreed to formulate a road map to proceed with the gas pipelineproject, focusing on bolstering coordination and cooperation on thedevelopment of the pipeline.The United States has expressed opposition to the multi-billion dollarenergy infrastructure project between the two neighbors over concernsregarding the comprehensive sanctions against Iran over its nuclear

program. The recent U.S.-Iran detente in Geneva has not changed this.The Pakistan foreign ministry could have strategically released thisinformation in the wake of Chuck Hagel s visit to emphasize to theUnited States that Pakistan could take unilateral steps in its economicinterests that would be contrary to American interests.Reportsemerged towards the conclusion of Hagels visitthat theUnited States may withhold aid from Pakistan over anti-American

http://thediplomat.com/authors/ankit-panda/http://thediplomat.com/2013/12/hard-times-for-hagel-in-kabul-and-islamabad/http://thediplomat.com/2013/12/hard-times-for-hagel-in-kabul-and-islamabad/http://thediplomat.com/2013/12/hard-times-for-hagel-in-kabul-and-islamabad/http://www.rferl.org/content/gas-pipeline-iran-pakistan-agreement/25195444.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.rferl.org/content/gas-pipeline-iran-pakistan-agreement/25195444.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.rferl.org/content/gas-pipeline-iran-pakistan-agreement/25195444.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.rferl.org/content/gas-pipeline-iran-pakistan-agreement/25195444.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://paktribune.com/news/Russia-to-help-Pakistan-build-IP-gas-pipeline-248932.htmlhttp://paktribune.com/news/Russia-to-help-Pakistan-build-IP-gas-pipeline-248932.htmlhttp://paktribune.com/news/Russia-to-help-Pakistan-build-IP-gas-pipeline-248932.htmlhttp://paktribune.com/news/Russia-to-help-Pakistan-build-IP-gas-pipeline-248932.htmlhttp://www.dawn.com/news/1061696/pakistan-to-push-forward-gas-project-with-iran?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.dawn.com/news/1061696/pakistan-to-push-forward-gas-project-with-iran?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.dawn.com/news/1061696/pakistan-to-push-forward-gas-project-with-iran?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.dawn.com/news/1061696/pakistan-to-push-forward-gas-project-with-iran?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.voanews.com/content/hagel-warns-pakistan-over-border-protests/1806585.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.voanews.com/content/hagel-warns-pakistan-over-border-protests/1806585.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.voanews.com/content/hagel-warns-pakistan-over-border-protests/1806585.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.voanews.com/content/hagel-warns-pakistan-over-border-protests/1806585.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.dawn.com/news/1061696/pakistan-to-push-forward-gas-project-with-iran?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://paktribune.com/news/Russia-to-help-Pakistan-build-IP-gas-pipeline-248932.htmlhttp://paktribune.com/news/Russia-to-help-Pakistan-build-IP-gas-pipeline-248932.htmlhttp://www.rferl.org/content/gas-pipeline-iran-pakistan-agreement/25195444.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://www.rferl.org/content/gas-pipeline-iran-pakistan-agreement/25195444.html?utm_source=Sailthru&utm_medium=email&utm_term=%2AAfPak%20Daily%20Brief&utm_campaign=South%20Asia%20Daily%20Brief%2012-10-13http://thediplomat.com/2013/12/hard-times-for-hagel-in-kabul-and-islamabad/http://thediplomat.com/authors/ankit-panda/

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A Step for the Future Sustainability in Pakistan:

Conversion of Vehicle Fuel from CNG to HCNG

&

its Environmental Effects/BenefitsQandeel Fatima Gillani *, Farrukh Jamil**, Waqar-un-

Nisa***,Dr. Moinuddin Ghauri****

Department of Chemical EngineeringCOMSATS Institute of Information Technology

Lahore, Punjab, Pakistan

AbstractAbstract- The land of Pakistan is highly enriched with treasure of

natural gas reservoirs due to that compressed natural gas CNG is

abundantly used all over the Pakistan as a vehicle fuel. Natural gas

can be blended with hydrogen to make HCNG. HCNG vehicle

offers the potentials for immediate emission benefits, reduction in

NOx/ SOx emission, which eventually affects positively on our

environment. At the same time they can pave the way for a

transition of fuel cell vehicles by building early demand forhydrogen

infrastructure and vehicle fueled with hydrogen based

transportations for future. This paper will mainly focus the blends of

H and

CNG as a fuel and its benefits for the future of Pakistan.

Keywords: Saba, reducing substances, tannins, mucins, proteins,

alkaloids, saponins, flavonoids., E. coli, callouses,

Ethanol

1. IntroductionMost of energy used in world is supplied by fossil

fuels. Burning of fossil fuels generates waste materials,

mainly emissions to the atmosphere in form of

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combustion fuel gases and dust, as well as some ash

and/or clinker. These waste materials have hazardous

effects on environment, some of them locally, others with

more widespread or even global impact.

1.Pakistan is that part of land which is very rich withtreasure of natural gas. It is one of most abundant energy

resources in Pakistan. Natural gas is mixture of various

gases, major component is methane. In nature, this is

odorless and colorless gas. In year 2007-2008, natural

gas consumption in Pakistan was 1817.741 MMCF/day2.

Natural gas is a domestically available energy source withall consumers including residential, commercial,

industrial, electricity generation, and automotive. While

liquid petroleum fuels are current standard for automotive

applications, some believe that hydrogen is indeed future

automotive fuel of choice. A transition to hydrogenfueled

automobiles will take a litte time. One approachbeing suggested as an early step is concept of blending

hydrogen with compressed natural gas (H/CNG) for usein internal combustion engine vehicles. Current natural

gas engines and vehicles can be modified to operate on

H/CNG with available technology.

Pakistan has been suffering from severe kind of

energy crisis for long. Transportation fuels are major

component of our energy consumption scenario. Prices of

transportation fuels are increasing and this is the mainreason that transportation in Pakistan is becoming very

expensive day by day. Rapid growth in transportation

industry has occurred in last two decade in Pakistan. CNG

is cheaper, environmental friendly and well known

alternative transportation fuel. Hydrogen is an excellent

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A higher efficiency

Better environmental effect

Blend of H2 (5%, 10%, 15%, 20%, 30%, 40%, 50%

by volume) with CNG may be utilized. The volume to

weight ratio of H2 in HCNG is shown in Table 01. Fromthe table it is clear that hydrogen has less weight then

same volume of CNG. In table 2, the properties of

Hydrogen and Methane are shown. Based on an

examination of properties in Table 2, it is seen that

hydrogen is able to burn ultra-lean at an equivalence

ratioequivalence ratioequivalence ratio.

Table 1: Volume To Weight Ratio Of H2Volume Weight

14% 5%

20% 7%

29% 10%

34% 12%

42% 15%

Addition of H2 in CNG increases the calorific value

of fuel. HCNG can be used without modification in CNGvehicles. [1]. In Pakistan, small vehicles are gradually

shifted from gasoline to CNG fuel. This is the better step

for saving our natural resources that directly convert

gasoline vehicles on HCNG.Table 1 Comparison Between Properties Of Methane And

Hydrogen

Properties Hydrogen(H2) Methane(CH4)

Equivalence ratio ignition lowerlimit in NTP air [6]

0.10 0.53

Mass lower heating value (kJ/kg) [7] 119,930 50,020

Density of gas at NTP (kg/m3 ) [7] 0.083764 0.65119

Volumetric lower heating value at

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engines.

According to studies, with increasing H2 percentage,

BSNOx values are increasing or decreasing. According to

[9][10][8] with increasing H2 percentage, BSNOx values

are increasing. BSNOx values, which were obtained by[9], can be considered as high [8] obtained BSNOx about

21g/kWh at 40%H2 + 60%CH4, 19g/kW h at 20% H2 +

80% CH4 and 16g/kW h BSNOx and 100% CH4 at

equivalence ratio 0.8. But, in experiments performed by

[11] with increasing H2 percentage, BSNOx values are

decreasing. Moreover, if equivalence ratios are decreased,

BSNOx values reach to a low value.Some experiments conducted on complete vehicles,

according to [12] NOx values are changes at different

equivalence ratio () NOx changes as shown in fig 01.Figure 1. NOx and torque in function of k for lean mixtures at

1500rpm (15% H2)

Karan D. & Francfort J. made a study in 2003 on factory

CNG vehicle without modifying its engine, except NOx

all emissions reduced to significant amount. The results ofCNG versus HCNG are shown in table 03.Table 2 Percent Change In Emissions: Vehicle Operating Using Cng

Versus Hcng.Emissions Percentage Change

Carbon monoxide (CO) -55.4

Total hydrocarbons (HC) -34.7

Carbon dioxide (CO2) -11.3

Oxides of nitrogen (NOx) +92.1Purification of Natural Gas with High CO2 Content by

Formation of Gas Hydrate: Thermodynamic Verification

1825. Environmental Problems And Benefits Using

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Hcng As A FuelPakistan has been declared highly polluted country by

World Bank (WB) & other organization. Road transport

sector causes more urban air pollution than any othersingle human activity in Pakistan according to a report of

WB, it is cause of one half of the NOx, two-thirds of CO,

and about one half of hydrocarbon emissions. It has beennoted in last twenty years that, air pollution (AP) due to

vehicles fuels exceeds maximum limits set by various

organizations including World Health Organization

(WHO), United States Environmental Protection Agency

(US-EPA), WB and might be a major cause of respiratorydiseases7. The WBs estimation reports that AP causes

168,000 premature deaths annually in Pakistan (60

percent of them attributable to indoor air pollution)8.

Use of HCNG as a fuel definitely helps a lot to solve

these problems. The emissions from automobiles are

reduced approximately up to 30% as per calculation. The

premature deaths and respiratory diseases in Pakistan can

be minimized by providing clean environment.

6. ConclusionA complete study of Hydrogen sources in Pakistan

should be conducted, so that cheapest way of getting H2

for HCNG may be adopted. Improve the quality of CNG

cylinders so that they can be used for blends of 20% to

50% H2 by volume rather than 15% by volume.

For filling purpose dispensers should be well equippedand calibrated for measuring correct amount of H2 and

CNG by volume.Instead of shifting vehicles from

gasoline to CNG, the vehicles must be directly shifted to

HCNG for efficient fuel consumption and low emission.

Additional catalytic treatment kit must be installed in

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prevailing CNG vehicles to reduce NOx emissions while

using them with HCNG.

Existing natural gas vehicles can be enabled to use a

mixture of hydrogen and natural gas (HCNG) which will

help to stimulate the development of hydrogenreformation and dispensing infrastructure. The

combination of HCNG infrastructure and natural

gas/hydrogen vehicles may prove to be essential for

nurturing the infancy of the future hydrogen highway for

sustainability in Pakistan.

At the same time the immediate reduction is shown in

emissions from automobile which definitely help us toprotect our environment. The pollution free environment

helps us to save many children from pre mature death.

REFERENCES[1] Karan D. Francfort J., 2003. Freedom car and vehicle technologies

program- advanced vehicles testing activity- Arizona public

services.

[2] Karim GA, Wierzba I., 1992. Safety measures associated with theoperation of engines on various alternative fuels. Reliab Eng

System Safety, 37:938.

[3] Adamson KA, Pearson P., 2000. Hydrogen and methanol: a

comparison of safety, economics, efficiency and emissions. J Power

Source, 86:54855.

[4] Hackney J. Neufville R., 2001. Life cycle model of alternative fuel

vehicles: emissions, energy, and cost trade-offs. Transport Res Part

A, 35:24366.[5] Demirbas A., 2002. Fuel properties of hydrogen, liquefied petroleum

gas (LPG), and compressed natural gas (CNG) for transportation.

Energy Sources, 24:60110.

[6] Das LM, 1990. Hydrogen engines: a view of the past and a look into

the future. Int J Hydrogen Energy, 15(6):425- 43.

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[7] Peschka W., 1992. Liquid hydrogen: fuel of the future. Berlin:

Springer, 283-6.

[8] Bauer CG, Forest TW, 2001. Effect of hydrogen addition on

performance of methane-fueled vehicles, Part I: effect on S.I.

engine performance. Int J Hydrogen Energy, 26:5570.[9] Swain MR, Yusuf MJ, Dulger Z, Swain MN, 1993. The effects of

hydrogen addition on natural gas engine operation. SAE paper

932775.

[10] Hoekstra RL, Collier K. Mulligan N., 1994. Demonstration of

hydrogen mixed gas vehicles. Proceedings of 10th World hydrogen

Energy Conference held in Cocoa Beach, USA, June 2024.

[11] Raman V, Hansel J, Fulton J, Brudery D., 1994. Hythanean

ultraclean transport fuel. Proceedings of 10th World hydrogenEnergy Conference held in Cocoa Beach, USA, June 2024.

[12] Fernando Ortenzi, Maria Chiesa, Riccardo Scarcelli, Giovanni

Pede, 2008. Experimental tests of blends of hydrogen and natural

gas in light-duty vehicles. Int J Hydrogen Energy, 33:32253229

Home

Pakistan

Pakistan said to have largereserves of shale gas, oilKHALEEQ KIANI

http://www.dawn.com/http://www.dawn.com/http://www.dawn.com/pakistanhttp://www.dawn.com/pakistanhttp://www.dawn.com/news/1038762/pakistan-said-to-have-large-reserves-of-shale-gas-oilhttp://www.dawn.com/news/1038762/pakistan-said-to-have-large-reserves-of-shale-gas-oilhttp://www.dawn.com/authors/309/khaleeq-kianihttp://www.dawn.com/authors/309/khaleeq-kianihttp://www.dawn.com/authors/309/khaleeq-kianihttp://www.dawn.com/news/1038762/pakistan-said-to-have-large-reserves-of-shale-gas-oilhttp://www.dawn.com/news/1038762/pakistan-said-to-have-large-reserves-of-shale-gas-oilhttp://www.dawn.com/pakistanhttp://www.dawn.com/

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Published 2013-08-28 06:28:00

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ISLAMABAD: In a major development, the Energy

Information Administration (EIA), the American federal

authority on energy statistics and analysis, has estimated

fresh recoverable shale gas reserves of 105 trillion cubic

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billion barrels for those two countries, with 3.8 billion barrels for

India and 9.1 billion barrels for Pakistan, the EIA said.

The southern and central Indus basins are located in Pakistan,

along border with India and Afghanistan which are bounded bythe Indian shield on the east and highly folded and thrust

mountains on the west.

The lower Indus basin has commercial oil and gas discoveries

in the Cretaceous-age Goru Fm sands plus additional gas

discoveries in shallower formations. The shales in the Sembar

Formation are considered as the primary source rocks for

these discoveries.

The EIA said that while oil and gas shows have been recorded

in the Sembar Shale on the Thar Platform, no productive oil or

gas wells have yet been drilled into the Sembar Shale.

About the resource assessment, the EIA said that within

31,320 sq miles of dry gas prospective area, the Sembar Shale

in the lower Indus basin had a resource concentration of 83

billion cubic feet per square mile. Within the 25,560 square mile

wet gas and condensate prospective are, the Sembar shale

has resource concentration of 57 BCF per sq. miles of wet gas

and nine million barrels per square mile of condensate. Within

the 26,700 square miles oil prospective area, the Sembar

Shale has a resource concentration of 37 million barrels per

square mile.

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No change in position on

Iran-Pak gas pipeline: USLast Updated: Tuesday, January 14, 2014, 13:22

1

Washington: The US has said that there is no change in its position regarding

Iran-Pakistan gas pipeline, to which it was earlier opposed to, in the view of the

landmark nuclear deal between Iran and the P5+1 countries.

"It's my understanding there's no change in position," State Department Deputy

Spokesperson, Marie Harf, told reporters yesterday at her daily

newsconference.

As a result of the agreement between Iran and P5+1 countries - the US, UK,

Russia, China, and France plus Germany - the US has relaxed a number of

sanctions on Iran, including the one which does not require countries like India to

reduce import of oil from Iran to avoid American sanctions. "Obviously, even the

limited relief that Iran would get under the Joint Plan of Action, if they fulfill their

commitments, maintains the core architecture of oil, banking, and financial

sanctions in place," Harf said.

Harf said the first stepof the agreement goes into effect on January 20th.

"On the 20th, the IAEA will report on the current status of Iran's nuclear program,

including specifically on its uranium enrichment program and the Arak reactor. So

http://zeenews.india.com/news/south-asia/no-change-in-position-on-iran-pak-gas-pipeline-us_903988.htmlhttp://zeenews.india.com/news/south-asia/no-change-in-position-on-iran-pak-gas-pipeline-us_903988.htmlhttp://zeenews.india.com/news/south-asia/no-change-in-position-on-iran-pak-gas-pipeline-us_903988.html

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regardless of what they do between now and then, on the 20th, they will halt

production of 20 per cent enriched uranium," he said.

"They'll disable the centrifuge cascade configurations they've been using to

produce it. They will start to dilute half of the 20 per cent enriched uranium, and

continue to convert the rest to oxide form not suitable for further enrichment,"

Harf said. "By the end of the six months, they'll have completed a dilution of 20

per cent enriched uranium and ? or conversion to oxide by the end of the six

months.

"So regardless of what they do between now and then, by the end of the six

months, if they fulfil their commitments, they will have completed the dilution or

conversion of their stockpile of 20 per cent enriched uranium," the spokespersonsaid.

The JointAction Plan, she said, have laid out very specifically what Iran can and

can't do. "We have always said that if the Iranians, when they say they only want

a peaceful nuclear program, that they can prove it. That's part of what this

process is about," she said.

"If they fulfil their commitments under the Joint Plan of Action, that's certainly a

step in the right direction, a credible, concrete, tangible step. But words aren't

enough, given the history here," she added.

"That's why we need to see actions. That's why it's so important that on January

20th, we are going to see Iran take concrete, tangible actions that could

eventually, through very difficult diplomacy, lead to a comprehensive agreement,"

Harf said.

PTI

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Pakistan stung by Iran pipeline blowBy Syed Fazl-e-Haider

KARACHI - Iran has not only canceled a US$500 million loan promised to Pakistan lastyear to help fund its construction of pipeline to bring natural gas from Iran; it has alsosaid it will demand compensation if Islamabad fails to build its side of the pipeline by theend of next year. The announcement came just days after Islamabad had agreed tospeed up work on the US$7.5 billion project.

Reasons for Tehran's drastic and sudden u-turn decision could range from the dismalstate of its own economy to understandings reached with the US last month on the

future of its nuclear-development project. Complicating matters, Pakistan was reportedlast month to have built nuclear weapons for Saudi Arabia, Iran's arch-rival in the region,and that these were ready for shipping. Whatever the case, it turns the pipeline, onceconsidered an energy lifeline for Pakistan's economy, into a liability for the cash-strapped South Asian country.

Iran's Deputy Oil Minister Ali Majedi, announcing the cancelation of the planned $500million loan, said Tehran had no obligation to finance the Pakistani side of the pipelineprojectand warned that compensation would be demanded on failure to complete the

Pakistan end of the pipeline on schedule within the next 12 months.

"Pakistani officials were told in recent talks that, given the sanctions [on Iran],Iran is not able to finance construction of the pipeline [in Pakistan] and has noobligation to do so," Associated Press reported Majedi as saying. "If a contractoris chosen today and pipeline construction begins today, it will take four years tocomplete it. Should Pakistan fail to take gas by the end of next year, Iran willdemand compensation under the terms of the contract."

The pipeline deal stipulates that Pakistan must construct its side of the pipelineby December 2014. If the country fails to meet this deadline, it will be liable topay fines that could run into themillions of dollarsper day. Islamabad has so far

failed to secure the required funding for the IP pipeline due to the threat ofsanctions from the US.

Iran's new stand on the pipeline has pushed Pakistan into a dilemma. There is aprice the country will have to pay either way if it withdraws from the project orgoes ahead. It will have to pay a penalty for abandoning the project, while it willhave to arrange financing and face US sanctions in the event of starting work onthe project. It will be hard for the country to arrange funds to pay the cost in either

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situation.

Iran's nuclear deal with Western nations rekindled hopes in Islamabad that itwould be able to pursue the pipeline project, but the US has refused to exemptthe project as a part of its sanctions against Iran. Islamabad took up the issue

with US authorities at a meeting on the sidelines of the revised bilateral strategicdialogue in Washington last month. The US however was not convinced.

US State Department spokeswoman Jen Psaki, three days after the November23 nuclear deal with Iran, said, "Our position on that [opposing the Iran-Pakistanpipeline] has not changed."

While the Iranian economy is in a mess, with a devalued currency, high inflation,and limited scope for exports, the nuclear deal reached last month with the USgives it access to $1.5 billion in revenue from trade in gold and precious metals,and will allow some $4.2 billion from energy sales to be transferred in

installments if, and as, Iran fulfills its commitments, according to a White Housefact sheet. Its scope for helping to fund the pipeline is therefore possibly greaternow than prior to that deal.

US opposition to the pipeline is linked both to its sanction-regime against Iranand to Washington's determination to develop a gas pipeline from Turkmenistanthrough Afghanistan and on to South Asia, including Pakistan. It is alsopromoting the Central Asia South Asia Electricity Trade and Transmission Project(CASA-1000), which would allow Pakistan and Afghanistan to buy electricity fromTajikistan and Kyrgyzstan, pledging $15 million this month towards that.

Last week, Islamabad said it was pushing ahead with the much-delayed pipelineto Iran, a day after the Federal Minister for Petroleum and Natural Resources,Shahid Khaqan Abbasi, and Iranian oil officials decided during a meeting inTehran to expedite work on the project. Pakistan's Ministry of Foreign Affairsdeclared that both sides had agreed to speed up work to finish construction ofthe pipeline.

Last month, Islamabad requested a $2 billion loan from Tehran to build its portionof pipeline on its territory. Iran has already laid the necessary 600 kilometers ofpipeline on its side.

Last year, Washington pressed Islamabad to shelve the IP pipeline as a pre-condition to holding further talks on the possibilities of cooperation in the energysector, but the US did not make any commitment to finance the proposed $13billion Diamer Bhasha Dam project. Washington has also dangled Islamabadother energy carrots, including the Turkmenistan-Afghanistan-Pakistan-India(TAPI) gas pipeline and potential projects involving the importation ofliquefied natural gas in efforts to convince the country to halt the IP pipeline.

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The IP pipeline is considered vital to Pakistan's economy, as the countrycontinues to face extreme power shortages and prolonged blackouts in rural andurban areas, severely restraining industrial growth. Under the pipeline deal, Iranwould export 21.5 million cubic meters of gas per day to Pakistan from next year.Local experts however have warned that the high cost involved would itself

cause severe damage to the local economy. The Islamabad-based SustainableDevelopment Policy Institute said in a recent report that the pipeline would be a"death sentence" for the country.

The report criticized Pakistani officials for blatantly ignoring the energy dynamicsand pricing while agreeing to the pipeline deal with Tehran. The report raisedserious doubts about how Pakistan could finance the at least $1.5 billion neededto construct the pipeline and whether it could go through with the project withoutfacing US sanctions in place over Iran's nuclear program. It also urged thegovernment to renegotiate its contract with Iran and uncouple the price of gaswith the cost of oil.

Some local analysts suggest that the gas price may be renegotiated with Tehran,but that the government in Islamabad must not withdraw from the project underUS pressure without securing a tit-for-tat deal with Washington. Pakistan mayturn to Russia and China, which have shown interest in building and financing thepipeline through government-to-government cooperation.

The location of Pakistan provides a key to jump-starting strategic pipelines fromboth central Asia and the Middle East to supply energy to India and southeast

Asia.

Syed Fazl-e-Haider(http://www.syedfazlehaider.com) is a development analystin Pakistan. He is the author of many books, including The EconomicDevelopment of Balochistan(2004). He can be contactedatsfazlehaider05@yahoo.com.

(Copyright 2013 Asia Times Online (Holdings) Ltd. All rights reserved. Pleasecontact us about sales, syndication and republishing.)

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The American oil company Unocal has proposed the construction of oil

and gas pipelines from Turkmenistan through Afghanistan to Pakistan and

later to India. Afghanistan's long war has prevented this project from

moving forward. If some degree of stability returns to Afghanistan, the

project may be resurrected.