Role of Coal in Energy Sector of Pakistan
K. Shahzad and M. Shafiq
Institute of Quality and Technology, University of the Punjab, Lahore
ABSTRACT
Presently Pakistan is facing acute shortage of electricity and load shedding of gas in every part of the country. Due to severe shortage of energy almost every sector including industrial, non industrial and domestic sector is affecting badly. The rate of unemployment in every field is becoming high day by day and the economy of the Pakistan is falling badly with the every coming day. The purpose of this study is to analyze and assess as to how the huge indigenous coal resources can be used efficiently to cater the needs of local energy sector and boost the economy of the country.
Key words: Coal, electricity, Pakistan, Energy Mix
INTRODUCTION
Prior to these coal deposits, was the discovery of natural gas in Pakistan, the coal deposits were estimated to be about 10 billion tonnes were one of the major energy sources in Pakistan (Faisal, J. 2012). Initially, most of the Power, fertilizer and cement plants were designed based on the local coal, but on discovery of natural gas all the operating plants, using coal as a fuel, were switched over to the natural gas. Natural gas as an energy source was so liberally and extensively used in industrial and household sectors that it reached at the verge of depletion (Yuri F. M. 2010). Under these circumstances, coal lost its significance and its use was confined only to brick kilns.
During the period when coal remained in obscurity, natural gas and furnace oils gained tremendous importance as energy sources in Pakistan. Subsequently, the discovery of 175 billion tonnes of coal reserves in early seventies at Thar in Sindh province and the high prices of imported fuels brought the realization that the future strategies must be formulated to utilize the huge coal reserves as a major energy source (Pakistan Energy Yearbook 2012). It was a right and positive step in organizing the future demand of energy through the coal reserves of the country which were posing a big challenge to technologists, political and business communities.
Presently, it is an urgent desire of every Pakistani that reserves of Pakistan including Thar coal must be utilized for energy requirements as early as possible.
Status of Energy Sources in Pakistan
Natural Gas
The total gas reserves in Pakistan are 2.8×109 cubic feet, 45% of them have already been exhausted. In further 20 years the existing gas deposits will be depleted if gas is used in current rate of consumption (Muhammad, S. et al 2013).
According a recent agreement, Iran will provide to Pakistan 2.1×106 cubic feet of natural gas per day (Noor- ul- Haq, 2010). Similar agreement is being negotiated with Turkmenistan for the supply of natural gas.
Petroleum
The use of petroleum as fuel started in 1857 in Romania. In subcontinent, during 1869 the first well was dug in Mianwali, but the oil production started in 1915 at Attock. Presently 70,000 barrels per day are produced in Pakistan from different locations. The local production of oil meets 20% of the energy requirement whereas 80% of the energy need is met through imported oil. About 14% of the local oil reserves have already been exhausted (Muhammad, A. Tahira, F. 2012). The total foreign exchange spent for the input of petrol in 2009-10 was around US $ 11.3 billion (Sinha, P. and Kohli, D. (2013)).
Furnace Oil
In Pakistan, furnace oil has been considered to be the only fuel source for power generation. Presently out of 19,500 MW electricity productions, the share from furnace oil is 9000 MW. Unfortunately, the soaring price of the furnace oil has reached to Rs. 60,000 per tonne or even more. Such escalated price of furnace oil is getting unbearable to the end users in the country (Ioannis, N.K. 2013).
Nuclear Power
In Pakistan only about 2.4% of electricity is generated through nuclear source (Munawar, A. S. 2010). The nuclear plants are located at Karachi and Cheshma.
Wind
The required wind velocity for generation of electricity is 13 km per hour. Such wind flowing tendency is in coastal areas of Sindh, Baluchistan and Northern Azad Kashmir. However, the 450 km strip in coastal areas of Sindh and Baluchistan provinces is more promising for wind energy. The expected generation of electricity through wind may be 300 MW, approximately equal to nuclear capacity (Pearre, N. and Swan, L. 2013).
Hydal
The share of electricity generated through Hydal power is 31-33% (Waheed, B. et al, 2012). Presently the major sites of Hydal power are Mangla and Terbella. Other Hydal power projects which are under planning will be located at Diamir, Bhasha and Nelum. The biggest Hydal power project of Kala-bagh has lost its significance by futile viewpoints of politicians of Sindh and Khyber Pakhtunkha.
Coal
God has gifted Pakistan with huge resources of coal which are estimated at 185 billion tonnes. These resources include 175 billion tonnes of coal existed at Thar, the eastern part of Sindh Province (Abdul, K. A. and Imran, N. U. 2012). The rest of ten billion tonnes of coal are scattered in other parts of Pakistan. The Thar coal deposits make the 6th largest reserves in global ranking after USA, Australia, China and India (Muhammad, T. S., et al 2013).
After the discovery of Thar coal, the initial 20 years were wasted for not giving a proper attention to these deposits. For many years, the development work in Thar coal field could not proceed simply due to the conflict between Federal Government and the Provincial Government of Sindh. The Sindh Government claimed the total control over the Thar coal. Whereas the Federal Government stressed that the mineral sector belonged to the Central Government like the natural gas reserves. Finally the Federal Government has offered to pay Rs. 60 per tonne of coal extracted as royalty to the Sindh Government.
To cause further delay in exploitation of Thar coal, some local and foreign agencies started the adverse propaganda expressing that Thar coal, being an inferior grade having low heating value, will prove to be a poor energy source for generation of electricity. These agencies had ambitious desires to discourage the use of local coal and the import of fuel oils and natural gas to meet the energy requirements of the country. They forget the historic fact that Germany and Hungry, having much inferior coal than that of Thar, are meeting their 30% of energy demand through their brown coal (Liu, Z. et al 2013).
It is a healthy sign that the development work, though in slow pace, has been started in that coal field. Eight major blocks and four sub-blocks have been marked to start development activities. Some development work is in progress on blocks 3, 5, 6 and 8 and blocks 1, 2, 3 and 4 are available for local and foreign investment (Elizabeth, M., 2012).
According to an estimate that if block 5 has been assigned to Dr. Sammar Mubarak Mand for UCG is fully exploited it can generate 10,000 MW of electricity for 20 years and if the total Thar reserves are exploited, they may be able to generate 100,000 MW of electricity for 500 years. From these figures the potential of Thar coal may be fully realized (Samar M. M. 2013).
Coal used in electricity generation in world wide
Most of the progressive countries of the world are using coal as a primary source of electricity. The above figure shows that the maximum use of coal for the production of electricity is in Poland which is 96% and along with Poland in RSA, Australia, China and India is 90%, 86%, 81% and 75% respectively. In USA and Germany above 50 % electricity is generated from coal (Wenying, C. and Ruina X., 2010).
STATUS OF COAL WORLDWIDE
Coal provides 27% of the global primary needs and generates 42% of the world’s electricity. The worldwide primary energy consumptions and the total world electricity generation may be seen in the following table:
It may be seen in the table that the coal has a significant position in the world’s demand of the energy need. In future the coal will be the fastest growing fuel when the oil and gas reserves will be depleting and their prices will be increasing.
Pakistan’s Energy Mix
Figure 2 shows the energy mix of Pakistan in which the highest share 37 % of furnace oil which is most expensive among all the ingredients, while 31% share of Hydal power and the share of gas is 26% which is also shortened in Pakistan now due to the excess usage in transports. In the above fig. the share of coal is 0.1% which is negligible (Yaseen A. et al, 2012).
STATUS OF COAL IN PAKISTAN
Pakistan has produced 3.48 Mt of coal in 2009 from its own reserves also imported 4.66 Mt of high grade coal for coke formation at Pak. Steel in Karachi and for other industries. The import of coal is still in progress from Australia, China and Indonesia (Pakistan Energy Year Book 2009).
COAL CONSUMPTION BY SECTOR IN PAKISTAN
Figure 3 shows that major coal consumption sector in Pakistan is cement plants which consumes 56.20% of coal and in brick kiln industry the usage of coal is 37% whereas 5.30% coal is used in steel industry for making of coke. The use of coal in power plants is only 1.50% which shows the least interest for utilization of coal in for generation of electricity (Pakistan Energy Year Book 2009).
The share of 8.14 Mt of total coal (local and imported) is consumed in the following industries of Pakistan:
Cement Plants 56.2%
Brick kilns 37.0%
Coke formation 5.3%
Power Plants 1.5%
CONCLUSIONS AND RECOMMENDATIONS
At present there is an acute shortage of power supply to the industrial and household sectors. And very limited natural gas is available for the industry, transportation and domestic use. This is an alarming situation that causing a severe damage to the economy of the country. It has already been pointed out that in Pakistan the furnace oil and gas have 67% share in electricity generation which includes 35% share of imported furnace oil. The overall import of energy sources costs Pakistan more than US $ 12 billion which are equivalent to 60% of the total export earnings.
The depleting trend of the natural gas reserves and ever increasing prices of the imported energy sources for running the power and other industrial plants are posing serious problems. This alarming situation warrants looking into the alternative energy sources. In this respect the only option left for the country is to think and plan exploitation coal deposits. These coal deposits appear to be solving almost all the problems of energy supply mix.
Under current circumstances Industry will hinge on upon Imported Coal @ $ 180 (Rs. 15,000) for every MT. Pakistani Industries answers for Power and Heat ought not be left on Coal from outside business. The cost will build extremely quick and might leave the ventures unfeasible in not so distant future. Neighborhood Coal in a matter of seconds Rs. 7,500 ($ 80) for every MT is the main true result. The costs in not so distant future will go up however still will remain much beneath International Coal costs Industrialists from Mining Industries and Coal Technologists will approach (their business chance) to attempt endeavors to improve coal mines with better nature of Coal Mines.
These indigenous coal deposits having high quality lignite coal to low quality lignite coal. These deposits should be utilized for overcoming the shortage of electricity in Pakistan by blending high grade coal with low grade or by blending with imported coal which is very cost effective approach. By using the indigenous reserves of coal we can overcome the acute shortage of electricity also we can save billions of $ which we wasting on import of furnace oil.
Presently, it is an urgent desire of every Pakistani that reserves of Pakistan including Thar coal must be utilized for energy requirements as early as possible.
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Fig. 1 Coal Used In Electricity Generation as a Percentage
Fig. 2: Energy Mix of Pakistan electricity Generation (Hydrocarbon Development Institute of Pakistan)
Fig. 3: Coal consumption by sector in Pakistan
Table 1: Worldwide primary energy consumptions and the total world electricity generation (Craig, H. et al, 2013; Energy Statistics Year book 2010)
Source World’s total Primary Energy Consumption (%) World’s Electricity Consumption (%)
Coal 27 42
Natural Gas 21 20
Oil 35 6
Nuclear 6 14
Hydro 3 16
0thers 10 2