MINISTRY OF PETRLOEUM AND NATRUAL RESOURCES

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)
• Refinery Location Capacity 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