12-year ''energy mix'' plan suggested: over $100 billion could be saved on oil & gas import

Pakistan could save over $100 billion being spent on the import of oil and gas, if the government devises an ''energy mix'' utilisation plan for next 12 years. Pakistan needs to increase nuclear, hydel, coal-based power projects in the country''s energy mix, encourage/facilitate private sector participation and foster development of renewable energy sources, energy experts said.
Speaking at the Oil and Gas Pakistan Forum 2011 titled "Focusing on energy issues and opportunities to secure Pakistan''s future" here on Saturday, the participants discussed strategic insight in all energy related critical issues and opportunities in the energy industry of Pakistan.
These indicative numbers are based on studies undertaken by the Energy Expert Group whose policy recommendations once implemented are expected to lead to a minimum of a $100 billion savings over 12 years ($30 billion from oil and $70 billion from gas). To achieve these goals the government should implement the recommendation made by the Energy Expert Group to set up a National Energy Authority.
Speaking on the occasion, Mumtaz Hassan Khan Chairman HASCOL Group said the international experience shows that integrated energy planning and implementation is critical for the success of the economy (South Africa experience). The authority must comprise the best professionals from private and public sectors, he added.
The authority must have the ability to co-ordinate efforts of all the sectors for implementation of the integrated energy policy and providing an oversight of regulatory issues. The authority will report to the Prime Minister and must be headed by an eminent and recognised industry expert. The experts stressed the need to capitalise on the stabilising global prices, focus on energy shortages, strategic planning, conclusive decision-making and understanding regional dynamics.
They stressed the need for privatisation of distribution companies with very strict criteria of pre-qualification, phasing out non-recoverable regions and following benchmark performance against international best practices and standards.
Kalim Siddigue President BYCO Petroleum Limited said that the base load must remain in the public sector, mid and peak loads should be in private sector, tap potential of 1000 MW from sugar mills bagasse and coal. He added that the cross border power import should be resorted, phasing-out furnace oil as a base load fuel by 2020, replacement of inefficient GENCOs plants, and hydro capacity of 18,000 MW must be inducted by 2022 for developing an efficient transmission network.
The conference adopted following recommendations: Integrated mining policy for power generation to be prepared, pricing mechanism must provide minimum 15% return on investment, independent regulatory body for coal pricing and tariff determination, incentives for investors to be provided eg: infrastructure, fresh water, road, security etc and to increase power generation for Lakhra coal block.
The conference was attended by a large of delegates from government, regulatory bodies, prominent oil and gas companies, stakeholders, Diplomats and media persons. The conference was supported by MOL Pakistan, PSO, Eastern Testing Services and the Petroleum Ministry.
Deputy Chairman Senate of Pakistan, Mir Jan Muhammad Khan Jamali also attended the conference. Speaking on the opportunities in Balochistan, he said that Pakistan has abandoned natural resources, but we have to capitalise on these resources by devising long term plans and polices to avert energy crises in future.
Federal Secretary Petroleum, Imtiaz Kazi highlighted the attractive features of the liberal petroleum policy, including several new initiatives and urged the local and foreign companies to proactively invest in Pakistan for higher productivity. The conference was divided into four sessions, in which the energy experts shared different facts, trends and ideas, including shortcomings were exchanged on topics like; integrated energy plan, alternate energy, power sector reforms, strategic resources and Inter-state pipelines for oil and gas.
The eminent speakers included Chairman of Hascol, Mumtaz Hasan Khan; Director of Alternate Energy Board, Irfan Yusuf; President of BYCO Petroleum, Kalim A Siddiqui; President of Balochistan Economic Forum, Sardar Shaukat Popalzai; MD & CEO of Inter-State Gas Systems, Hilal Raza and the MD of Progas Pakistan, Abbas Bilgrami.
The 4th Session comprised a productive panel discussion on "Energising the Country on War Footing". The panel included industry experts like; Imran Akhtar, Joint Executive Director of Ogra; Ejaz A. Khan; Samir Ahmed, MD of NCEL; Dr SNA Zaidi, GM Operations of PSO; Ms Talat Jabeen, Country Manager, Kuwait Petroleum and Hammad Bashir, Director Projects at Nouveau Energy. In his address of welcome, Menin Rodrigues, Chairman of the Conference & CEO of Shamrock Communication (Pvt) Limited appreciated the efforts of the sector specialists and emphasised the emerging opportunities and challenges in fuelling the industrial and domestic sectors of Pakistan.