MoWP supporting imposition of ban on naphtha

Ministry of Water and Power (MoWP) is supporting imposition of ban on export of Naphtha, a by-product of petroleum, despite the opposition by the oil refineries, Business Recorder has learnt. Naphtha is an alternate to natural gas for use in power generation plants. Its production in Pakistan is around 833,000 tons annually. Pakistan is currently facing gas crisis, which may be partly resolved if Naphtha is used domestically.
Sources revealed that Ministry of Water and Power urged oil refineries to allocate their entire Naptha production to domestic power generation plants. "But refineries have expressed their inability to allocate Naphtha for power generation plants due to agreements already inked with international importers," sources said. In addition hydro-cracker plants are being set up that convert naphtha into high-octane gasoline. One major refinery in Pakistan is already producing high-octane gasoline using naphtha. "If other refineries follow the suit, naphtha would not be available for power generation plants," the sources said.
The Asian Energy Ventures Ltd, Karachi, has already requested the government to allocate 325,000 tons of naphtha on a yearly basis for use as a primary fuel for power generation plants.
The least expensive of oil fuels, naphtha is also used for power generation across the world, either as primary or alternate fuel to natural gas. Leading world manufacturers of gas turbines and diesel/gas engines have installed a number of simple-cycle and combined-cycle units using naphtha as fuel for power generation in many countries. India is using naphtha on gas turbines.
Naphtha production in Pakistan is about 833,000 tons per annum, which will rise due to an expansion of Byco Refinery and setting up of Khalifa Refinery in the coastal area of Balochistan. Naphtha requires special safety considerations for use in gas turbines and diesel/gas engines. The related technology, however, has recently improved and more effective protection systems and safety management regulations are in place.