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Muhammad Azam Director Ministry of Petroleum and Natural Resources Government of Pakistan

Steps towards; “Developing Fuel Quality Road Maps in Asia” (May 22-23 2006, Manila). Muhammad Azam Director Ministry of Petroleum and Natural Resources Government of Pakistan. ECONOMIC INDICATORS. Year 2004-05. Pakistan Energy Supply Mix. 55.5 Million TOE (FY 2004-05).

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Muhammad Azam Director Ministry of Petroleum and Natural Resources Government of Pakistan

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  1. Steps towards; “Developing Fuel Quality Road Maps in Asia” (May 22-23 2006, Manila) Muhammad Azam Director Ministry of Petroleum and Natural Resources Government of Pakistan

  2. ECONOMIC INDICATORS Year 2004-05

  3. Pakistan Energy Supply Mix 55.5 Million TOE (FY 2004-05)

  4. Demand/Supply Pattern, 2004-05

  5. Refining Capacity (Million Tons) RefineryLocationCapacity p.a • Pak Arab Kot Addu 4.50 • NRL Karachi 2.80 • PRL Karachi 2.15 • ARL Rawalpindi 1.66 • Dhodak D.I.Khan 0.12 • Bosicar Hub,Balochistan 1.50 • Enar Petrotec Port Qasim 0.13 Total 12.86

  6. Specification in Pakistan • Motor gasoline • Research octane number (RON)= 90 • Lead content gm per ltr = zero • Sulfur content wt % = 0.1 • HSD • Sulfur content wt % = 1.0 • Furnace oil • Sulfur content wt % = 3.0

  7. Initiative for Clean Fuels • various steps have been taken gradually to improve the specification of petroleum products . • Mono grade 87 RON Gasoline was introduced in the country with effect from 1st October 2000.

  8. Initiatives for Clean Fuels • Unleaded gasoline was introduced in the country with effect from 1st July 2002, which has brought tremendous benefits to public, as lead was highly injurious to health especially to children. • 90 RON, unleaded gasoline is being produced and marketed in the country w.e.f. March, 2003 which is three year ahead than the targets given by the world bank,

  9. Initiatives for Clean Fuels • A pilot project is being conducted to introduce 10 % ethanol in Motor gasoline which is more environment friendly • Renewable Energy sources are developed • Alternative energy Board has been set up

  10. Initiatives for Clean Fuels • Gas oil/HSD of 0.5 wt % sulfur is being imported w.e.f. July 2002. • Attock Refinery limited, Rawalpindi is producing 0.25 wt% sulfur HSD. • Attock refinery limited is producing low sulfur fuel oil (less than 1 wt %) which is being supplied to KAPCO, resulting saving of foreign exchange about US$ 1.5 million per annum.

  11. Initiatives for Clean Fuels • Adultration has been eliminated by rationalizing Kerosene prices • OMCs/ Dealers margins increased to 3.5 and 4% respectively • Introducing CNG Buses in major Cities to reduce HSD consumption

  12. Incentives for New Oil Refinery • 0ffering free of cost land and EPZ status. • Pricing formula for new refineries linked with Singapore Mean FOB spot price. • Import of Crude Oil from any Source after lifting local crude if allocated • Refineries are free to sell their product to any marketing company or market the product through their own marketing network.

  13. Future Strategy • Refineries have been given target to start production of 0.20 wt% sulfur content HSD from 2008 • Refineries up grading their existing facilities to meet the targets of Clean Fuels • New Coastal Oil Refinery to be set up by 2010, will produce Euro III spec products

  14. THANK YOU

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