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Pakistan’s primary energy consumption has grown at a CAGR of 6% per annum during the past 5 years and stood at 62.9 MMTOE in FY2008. However, this energy consumption growth rate is not fully representative of the increase in actual energy demand, particularly in the power sector, fuelled by the acceleration in economic growth, as supply side constraints are not allowing the demand needs to be fully met. |
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2
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Natural gas continues to be the largest energy source in Pakistan with a share of 48% in the total energy supplies in FY2008. At present, the country’s natural gas consumption is met by indigenous sources only |
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3
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Although supply constraints restricted further upside, natural gas consumption has grown from 873 Bcf in FY2003 to 1,276 Bcf in FY2008 showing increase by 7.9% CAGR. Thermal power generation by PEPCO and IPPs consumes 34% of total gas supplies in Pakistan. Gas consumption in the form of CNG, although only 5.6% of total sales, increased by CAGR of 44.8% to 72BCF in FY2008 |
| Exploration & Production |
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4
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As of June 2008, Pakistan has recoverable gas reserves of TCF (551.22 MMTOE) and, currently, there are 26 exploration & production companies operating in the country. |
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5
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Natural gas production in Pakistan has grown at a CAGR of 7.9% during FY2003-08 period. The country’s average natural gas production was 3,984 MMscfd in FY2008 which translates in to aggregate annual production of 29.9 MMTOE |
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6
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The state owned Oil and Gas Development Company Limited (OGDC) leads the domestic natural gas segment with average production of 904 MMscfd in FY2008, representing about 23% of the country’s total natural gas production. Pakistan Petroleum Limited (PPL), another state owned company, is a close second with average production of 830 MMscfd in FY2008, a market share of 21%. |
| Gas Distribution |
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7
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Two public-sector companies operating in different regions across Pakistan are responsible for gas distribution in the country. These are Sui Southern Gas Company Limited (SSGC) operating in Sindh and Baluchistan and Sui Northern Gas Pipelines (SNGPL) in Punjab, NWFP and Azad Kashmir region. These gas distribution companies operate through a distribution network of over 101,705 KM spread across Pakistan. |
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8
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As per the regulations, OGRA determines the consumer prices while distribution companies are entitled to claim any shortfalls in their revenue that includes the gas purchase prices from E&P companies and a pre-defined operating margin. |
