The Role of Natural Gas in the Transport Sector for Sustainable Development
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- Phebe Ramsey
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1 International Symposium on Natural Gas and Sustainable Development Doha, Qatar: 6-8 February 2006 The Role of Natural Gas in the Transport Sector for Sustainable Development by Hilal A. Raza Director General & Chief Executive Officer Hydrocarbon Development Institute of Pakistan
2 Key Messages Natural gas is a practical answer to meeting road transport fuel needs in a sustainable manner Developing countries with natural gas supplies can learn from success stories like Pakistan
3 Concepts of Sustainable Development
4 What is Sustainable Development? (1/2) Primary Concept Meet the needs of the present without compromising the ability of future generations to meet their own needs. -Our Common Future, the World Commission on Environment and Development, 1987.
5 What is Sustainable Development? (2/2) Operational Concept A process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and institutional change are all in harmony and enhance both current and future potentials to meet human needs and aspirations. -Our Common Future, the World Commission on Environment and Development, 1987.
6 Essentials for Success in Sustainable Development in Developing Countries Optimistic vision Reliance on domestic capacity Correct selection of technology option Synergy between economic and environmental benefits
7 Global Perspective
8 World Oil and Gas : Reserves and Production Oil Gas Reserves (Billion Barrels) Production (Million bpd) R/P Ratio Reserves (Billion Barrels) Production (Million bpd) R/P Ratio Percent Increase 56% 38% 14% Reserves (TCF) Production (TCF) R/P Ratio Reserves (TCF) Production (TCF) R/P Ratio Cumulative Production Billion Barrels Cumulative Production Percent Increase 86% 67% 14% TCF
9 Natural Gas as Transport Fuel Compressed Natural Gas (CNG) has been used as a vehicle fuel for many decades Presently about 5 million vehicles are running on CNG worldwide in more than 70 countries, using estimated 600 MMCFD gas (0.2% of total world production) Transition fuel to hydrogen economy (?) 16% of total CO 2 emissions are from road transport
10 CNG Vehicles Worldwide Country Vehicles Argentina 1,440,000 Brazil 1,108,000 Pakistan 900,000 Italy 382,000 India 204,000 USA 130,000 China 97,000 Others (65) 634,000 Total 4,895,000
11 Why Natural Gas as a Transport Fuel Environmental improvement Energy security Economic benefits
12 Environmental Benefits of CNG as Compared to Petrol/Diesel Pollutants Reduction Carbon Monoxide 95% Unburnt HC 50% Nitrogen Oxides 50% Lead 100% Particulates Ten-fold reduction in PM10 as compared to diesel
13 Pakistan s Perspective
14 Pakistan Energy Supplies:1993 to Million TOE Gas Oil 10 5 Primary Electricity (Hydro+Nuclear) Coal 0 LPG Fiscal years ending 30 th June
15 PAKISTAN GAS INFRASTRUCTURE GAS TRANSMISSION AND DISTRIBUTION NETWORK Transmission (KM) 9,062 Distribution (KM) 67,942 No. of Customers (million) 4.27 Fields connected 24 AFGHANISTAN Peshawar Dhodak Pariwali Dakhni Dhulian Meyal NWFP Sadkal Retana Tut Bangali Turkwal l Adhi Faisalabad PUNJAB Islamabad Misa Keswal JAMMU & KASHMIR JAMMU & KASHMIR DISPUTED TERRITORY DISPUTED TERRITORY Mirpur Lahore Quetta Pirkoh Rodo Multan INDIA BALOCHISTAN Zamzama Bhit Karachi Mazarani Dadu Loti Sawan Mazari T.M.Khan Khaskhali Turk Golarchi Nur/Bagla Sui Qadirpur Hassan Sukkur Kadanwari Bobi Miano Nawabshah SINDH Hyderabad SSGC LINES SNGPL LINES GAS FIELD
16 CNG Industry Development in Pakistan Concept, Experimentation and Pilot Program Policy and Regulatory Framework Commercialization and Industrial Development 850 CNG Stations, 900,000 vehicles About 100,000 vehicles and 150 CNG stations being added annually Pakistan has become the leading CNG using country in Asia and 3 rd in the world
17 Main Elements of Pakistan s CNG Policy Strong government commitment and liberal licensing Free market consumer price of CNG Natural gas tariff for CNG linked to petrol Exemption of import duty and sales tax on import of machinery and conversion kits
18 Fuels Used in Road Transport in Pakistan Diesel 7.5 mtoe (7.2 mt) (59% imported) 79.3% 14.6% 6.1% CNG 0.6 mtoe (67 MMCFD) $ 1.7 billion spent on import of diesel oil Petrol 1.4 mtoe (1.3 mt)
19 Future Plans for Diesel Oil Substitution OPTION I: Conversion of diesel buses Dual fuel system Dedicated CNG Several engineering and management problems experienced OPTION II: Gradual replacement of diesel bus fleets by CNG driven buses Preferred Option
20 Way Forward for Developing Countries
21 Way Forward for Developing Countries Government Policy Support Gas Supply Infrastructure Regulatory Framework Indigenous Capacity Building North-South and South-South cooperation Learning from success stories like Pakistan
22 Thank you
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