Balochistan Conservation Strategy Background Paper

ENERGY

Hamid Sarfraz Dr. Muhammad Ali Mirza

This background paper was supported by the Royal Netherlands Embassy.

Citation is encouraged. Short excerpts may be translated and/or reproduced without prior permission, on the condition that the source is indicated. For translation and/or reproduction in whole IUCN Pakistan should be notified in advance.

The contents and the opinions expressed do not constitute an endorsement by the Royal Netherlands Embassy, IUCN-The World Conservation Union, or the Government of Balochistan.

IUCN Balochistan Programme Office IUCN-The World Conservation Union, Pakistan Marker Cottage, Zarghoon Road Quetta, Pakistan

© 2000 by IUCN-The World Conservation Union, Pakistan

All rights reserved.

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Contents

Foreword 3

Acronyms and Abbreviations 5

Executive Summary 7

Introduction 11 • Focus on Balochistan 14

• Coal 16 • Oil and Gas 16 • Electricity 18 • Firewood and Dung Cakes 19

• Renewable Energy 19

The Stakeholders 23 • Government of Pakistan 23 • Government of Balochistan 24 • Private Sector 24 • Public – The Consumers 24

• Women 24 • NGOs 25

Issues and Trends 27

Consequences of Inaction 29 • Learning from Experience Elsewhere 30

Assessment of Current Initiatives 31

Options for Action 35 • Exploration of Commercial Energy Resources 35

• Renewable Sources of Energy 36 • Energy Conservation Strategy 37

The Way Ahead 39

Appendices 1. History of Oil and Gas Exploration in Balochistan 41 2. Development of Gas Fields in Balochistan 43 3. Checklist of Environmental Parameters for Oil and Gas Exploration and Production 45 4. Checklist of Environmental Parameters for Thermal Power Projects (Major Plants) 47 5. Concessions Granted in Balochistan 50

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Bibliography 53

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Foreword The province of Balochistan is unique in its geo-political significance. It forms 44% of Pakistan’s land mass and has a 770 km long coast line. Economically, its vast rangelands, large numbers of livestock, rich mineral and gas deposits, and good quality deciduous fruits are of significant value although there is relatively little industrialisation in the province. Balochistan’s arid but diverse climatic zones have contributed to a rich animal and plant biodiversity while building a definitive cultural heritage that allowed survival in this rugged and harsh landscape.

The province suffers, however, from the unwise use of its resources – water, biodiversity, rangelands, forests, soils in croplands. This is largely due to unplanned and unsustainable development of its settlements and the industry, mining, energy and water sectors. As a result, the quality of life for most people has deteriorated, poverty has increased and the potential for future development has been reduced.

Given this scenario, the Planning and Development Department of the Government of Balochistan decided to formulate a Balochistan Conservation Strategy (BCS). This has been done with the technical assistance of IUCN-The World Conservation Union and the financial assistance of the Royal Government of Netherlands.

The resultant strategy has been formulated through a wide participatory process, and aims at improving the quality of life of people of Balochistan though:

• conservation and sustainable use of natural resources; • protection of the environment; and • sustainable development.

During consultations at the district and provincial levels, 10 sectors were identified as being critical for the BCS. These can be classified in terms of natural resources (water, agriculture, forests and biodiversity, livestock and rangelands, fisheries and coastal development); resource use (minerals and mining, industry, and energy); the urban environment; and cultural heritage.

In addition, the following cross-cutting themes were identified as crucial to each sector: population, poverty and environment; environmental communication and education; NGOs and gender; environmental health; and environmental legislation.

To address the needs of each of these areas, basic information was gathered through consultations and literature reviews. This data was analysed through background papers commissioned on each of the sectors and themes identified. Both the Terms of Reference and drafts of each paper were shared with the larger community of stakeholders of the BCS.

The papers all follow a similar format: analysis of the current situation; issues; past and present initiatives in the sectors and thematic areas along with the lessons learnt; stakeholders; and recommended policy and action measures. The authors have also addressed cross-sectoral linkages and environmental concerns for the sake of more integration in planning for sustainable development.

There were constraints to developing these Background Papers and in some cases these hurdles were only partially overcome. These included the fragmented and scattered nature of information, the prevalent culture of not sharing information, contradictory and unreliable data, lack of thinking on cross-sectoral linkages and integrated planning, and lack of expertise in developing linkages with the environment.

Parts of the information of the papers were then incorporated into the main Strategy. However, since the Papers contain a wealth of extremely useful information, a decision was taken to produce a series of BCS Background Papers. They should be read alongside the information in the main BCS document.

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Considering the need and importance of timely sharing information with the stakeholders, these papers have been edited for language by Ms. Salma Jaffar. The authors have sole responsibility for the views expressed and data presented.

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Acronyms and Abbreviations ADPB Area Development Programme Balochistan

BDA Balochistan Development Authority

BoS Bureau of Statistics

CNG Compressed Natural Gas

DMD Directorate of Mineral Development

EIA Environmental Impact Assessment

EPA Environmental Protection Agency

GSP Geological Survey of Pakistan

GWh Giga Watt Hour

HDIP Hydrocarbon Development Institute Pakistan

IEE Initial Environmental Essay

kWH Kilo Watt Hour

LPG Liquefied Petroleum Gas

MCF Million Cubic Feet

mcm Million Cubic Metres

NEQS National Environmental Quality Standards

O&M Operation and Maintenance

OGDC Oil and Gas Development Corporation

P&DD Planning and Development Department

PCSIR Pakistan Council for Scientific and Industrial Research

PEPA Pakistan Environmental Protection Act

PIHS Pakistan Integrated Household Survey

PMDC Pakistan Mineral Development Corporation

PPL Pakistan Petroleum Limited

PTCL Pakistan Telecommunication Corporation Limited

Ptv Pakistan Television

Rs. Rupees

SML Saindak Metal Limited

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SSGC Sui Southern Gas Company

TCF Trillion Cubic Feet

TOE Tonnes of Oil Equivalent

WAPDA Water and Power Development Authority

Administrative Set-up

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Executive Summary Pakistan’s economy is heavily oil dependent. Oil constitutes about 43% of the total primary energy supply, and around 48% of the net national energy consumption by source. Around 80% of the total oil supplies are based on imports while less than 20% is based on indigenous production. Balochistan conservation strategy, in line with national objectives is therefore based around minimising dependence on imported oil and petroleum products, exploitation of indigenous resources, increasing efficiency of energy use, and optimum utilisation and exploitation of renewable energy resources.

Balochistan has the lowest per capita consumption of energy in the country, and its share in the national final energy consumption is a meagre 5.1%. The conservation strategy therefore reflects the need for equity, and sharp increase in the provision of energy services through maximum exploration of commercial energy resources, exploitation of renewable resources, and by recognising energy conservation as a cost-effective supply option. An adequate, reliable and affordable supply of energy services would have a beneficial impact on poverty alleviation in the province by generating employment opportunities, improving transportation, health and education, water supply and sanitation, and stemming migration to urban areas.

While energy is essential to economic and social development and improved quality of life in the province, the sustainable patterns of its production, distribution and use are crucial. The conservation strategy therefore perceives the need to reduce the environmental impact of continued energy sector development, and to reduce local health hazards and environmental pollution. This requires significant financial, human, as well as technical resources and a broad-based energy supply scenario, to minimise the possibilities of natural resource degradation.

The conservation strategy takes due notice of the United Nations Framework Convention for Climate Change, of which Pakistan is a signatory, and the Kyoto Protocol. It calls for enhancement of energy efficiency in relevant sectors of the national economy, research, development and increased use of new and renewable forms of energy, as well as measures to limit or reduce emissions of greenhouse gases. The Kyoto Protocol and its aftermath probably improves the market prospects for renewable and carbon-efficient end-uses of energy, and may serve to allocate heavy greenhouse gas reduction investments in Balochistan where the cost of providing energy through conventional sources of energy is otherwise high and financially unattractive.

The conservation strategy considers that, while pursuing the objectives of development, the provincial government should develop indicators of sustainable development to provide a solid base for decision making at all levels and to monitor progress towards self-regulating sustainability of integrated environment and development systems for the province. The use of indicators in planning is not new, for instance, the GDP, the provincial debt, unemployment, literacy rate, and access to primary health are often used to gauge the general well being of an area. Policies for environmentally sound and sustainable development are rather new, and as yet lack the existence of agreed upon and applied indicators on a level comparable with the economic or social sectors; however the need for their development cannot remain under-emphasised.

The provincial government should develop infrastructure to ensure compliance with the National Environmental Quality Standards. Environmental management systems and environmental audits should be introduced to minimise waste generation and control pollution at source. Environmental cells should be created in the provincial planning departments to make sure that every new project prepares and files an environment impact assessment report and that environmental considerations have been incorporated in the development schemes in accordance with the guidelines established by the Pakistan Environmental Protection Agency

Energy conservation and improved efficiency of existing facilities are the most cost-effective means to improve the accessibility of energy to the people in the province, also reducing the detrimental environmental effects. Energy conservation programmes should be supported by financial incentives,

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demonstration projects and regulatory and legislative measures. Scarce funds from domestic, bilateral and multilateral sources should, with higher priority, be directed to improving existing systems to adequate standards before investing in new plants.

For the development and implementation of an efficient energy programme in Balochistan, there is an urgent need for developing sound province-specific policies relating to production, distribution and use of energy that are consistent with short-term and long-term development perspectives and economic goals of the area. There also is a need to give a clear definition to the inter-linkage of provincial developmental objectives with the overall national objectives vis-à-vis enhancing trade with the Central Asian economies.

The institutional structure is neither adequate nor enough though efforts have been made toward capacity building of the conservation-relevant institutions in the province. The conservation strategy recognises this need and considers that the government should develop the relevant institutions and build capacity to catalyse the demonstration, development, construction, and dissemination of energy efficient technologies. Such institutions should be able to carry out market assessment of commercially viable rural energy supply systems based on clean and renewable energy sources, and conduct demonstrations leading to commercial applications. These institutions should also be developed and networked at the regional and/or national level and serve as appropriate centres of excellence in the energy field. These will need to establish reliable information services and monitoring systems, covering also market information and emission inventories.

Identifying the base line or status quo conditions for energy saving potential in various sectors of economy is a major area that needs to be addressed appropriately. Procedures for energy audits, those vary from industry to industry and from one energy-consuming sector to another, need to be developed and implemented by the relevant agencies before a comprehensive effort at the provincial level could be made to address the energy efficiency issues. The conservation strategy highlights the need for taking energy conservation initiatives in all sectors of economy including the industry, power, transportation, residential and commercial buildings, and agriculture.

The biomass fuel meets more than 80% of provincial household energy needs. Given the socio-economic conditions in Balochistan, the use of biomass is likely to increase. The increased and unrestrained use of biomass will cause major environmental hazards like deforestation and erosion of topsoils. Aggressive policies/plans need to be put in place to expand the supply of conventional or other modern energy resources in rural areas to meet this challenge.

The policy options for the provincial government to deal with the above hazard include motivating the rural household to use efficient cooking devices, encouraging plantation and systematic harvesting specifically for energy use, improved farm extension programmes to advise farmers on plant species, crop rotation periods, harvesting and marketing techniques, aggressive education and dissemination programme to promote the use of efficient devices, and provision of subsidised liquefied petroleum gas at selected areas. It may also be appropriate for the provincial government to devise plans for establishing integrated paper and pulp mills or other wood-based industries to provide a secure market for farm tree plantations.

Geographically, Balochistan is located at such a position that full advantage of the solar technology can be made, particularly for small power requirements and remote area applications. This cleanest energy resource has not been properly exploited perhaps due to fear of its high cost, lack of awareness, and non-availability of off-the-shelf low cost systems. For sites far off from the main grid line, solar systems however become cost effective and the adoption of this technology perhaps is the only option.

Wind is another non-polluting and abundantly available source of energy that can be commercially exploited in Balochistan, particularly along the coastal areas that indicate reasonable levels of wind speeds throughout the year. The provincial government should however take necessary steps to carry out wind resource assessment studies to generate reliable data in collaboration with the Meteorological Department and institute research and development to evolve appropriate windmill technology in accordance with local needs and available infrastructure. Wind and solar hybrid systems may be evolved to sustain the energy needs in potential energy deficit areas.

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The institutional arrangements for harnessing renewable resources of energy need to be strengthened. The provincial government should designate one institution as the lead institution for planning, demonstrating, analysing and developing renewable sources of energy in the province. Specific targets for solar, wind or hybrid systems should be planned for each year and the provincial and/or federal government should earmark necessary funding for this purpose.

The conservation strategy considers it imperative for the provincial government to discourage smuggling of adulterated fuel containing high sulphur and lead content that have an extremely negative consequence on environment. The analytical laboratories of Hydrocarbon Development Institute of Pakistan need to be strengthened to effectively undertake assays of representative samples of fuel oil. The federal government should also encourage the import and manufacture of clean fuels as the fuel oil imported by Pakistan State Oil itself contains undesirable levels of sulphur and lead contents.

The conservation strategy recognises the need to overcome the barriers to the accelerated introduction of energy efficient and renewable energy processes and technologies, and to simulate the deployment, manufacture and assembly of energy equipment for far from grid rural areas of Balochistan. This will necessitate policy, legal, regulatory and fiscal incentives to be taken up by the provincial as well as by the federal governments based on a review of progresses made in countries in similar geographic conditions. There is also a pressing need to identify partners for energy efficiency projects qualifying as potential candidates for the new market mechanisms

Energy policies recommended in relation to making Balochistan an energy-efficient province should be equitable and gender sensitive. Micro-credit programs need to be initiated for under-serviced segments of the population to encourage investment in energy conservation and use of renewable and sustainable energy sources. The conservation strategy highlights the need for giving due attention to gender issues with special reference to women’s energy needs and their employment in the energy sector. Women’s co-operation will be essential in domestic energy conservation and utilisation of renewable energy resources. A rational quota for women’s employment should be maintained in the energy sector.

The conservation strategy highlights the need for a total management approach to conserve energy and environment that combines engineering, management, demonstration, training, financial and other policy aspects of conservation into a unified process. The strategy emphasises the need to demonstrate early results in order to provide visible impact and support for conservation. The strategy also emphasises to build a long-term conservation service capacity in the province in order to achieve maximum impact on sustainable basis.

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Introduction The commercially exploitable energy resources of Pakistan include hydropower, natural gas, oil and coal. Though the energy resource base is substantial, Pakistan has historically relied upon imported crude oil and petroleum products to meet its energy demand and production gap, which puts tremendous strain on its scarce foreign exchange reserves. The primary oil supplies by source during 1996-97 were to the tune of 16.62 million tonnes of oil equivalent (MTOE), of which only 2.85 MTOE or about 17% were met through indigenous production (Table 1).

The primary energy supplies at source amounted to 38.5 MTOE during 1996-97, while the final energy consumption by source amounted to 22.62 MTOE during the same period. Oil accounted for the highest percentage share of the primary energy supply as well as the final energy consumption at source to be followed by gas (Figures 1 and 2).

The industrial sector is traditionally the largest energy-consuming sector of economy with 38% share of the total national energy consumption, followed by the transport sector and the domestic sector with 32% and 21% share respectively (Figure 3).

The balance recoverable oil reserves were 26.67 million tonnes as of June 30, 1997. The current indigenous oil production of around 2.9 million tonnes makes current reserves to production ratio as about 9 years. These reserves will not last even two years if we were to meet all our oil requirements through indigenous production. The sedimentary basins of Pakistan extend over an area of more than 525, 000 sq km, most of which remains unexplored. Future exploration in the less explored areas and offshore exploration could change the recoverable oil reserves considerably.

The balance recoverable gas reserves of the country as of June 30, 1997 were 18.153 trillion cubic feet or 335.91 tonnes of oil equivalent. At the current production level of 14.54 million tonnes of oil equivalent, and at the current rate of growth, the remaining reserves are not likely to exceed 15-20 years. Although most of the sedimentary basins of Pakistan are regarded as gas prone areas, yet the rate of gas exploration has been slow due to lack of resources in gas exploration.

The identified hydro potential is estimated to be about 38,000 MW of which only 4,825 MW has so far been exploited. Besides, Ghazi Barotha project of 1,450 MW, Chashma hydro project of 184 MW and small hydel projects of about 24 MW are under construction. The hydel potential, which is mostly located in Northern Areas, NWFP and AJK obviously remain largely untapped.

Table 1: Primary Energy Supplies at Source and Indigenous Production (1996-97)

Primary Energy Supply at Source

Indigenous Production

Indigenous Production Resource

(tonnes of oil equivalent) (as percentage of energy supply at source)

Gas 14,537,757 14,540,712 100.00 Oil 16,616,217 2,853,565 17.17

Coal 2,142,210 1,589,574 74.20 LPG 158,034 122,873 77.75

Hydroelectricity 4,978,599 4,978,599 100.00 Nuclear 82,603 82,603 100.00 Source: Hydrocarbon Development Institute of Pakistan 1998.

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Figure 1: National Primary Energy Supplies by Source (1996-97)

Oil43.1%

Gas37.7%

LPG0.4%

Coal5.6%

Hydroelectricity12.9%

Nuclear Electricity0.2%

Source: Hydrocarbon Development Institute of Pakistan 1998

Figure 2: National Final Energy Consumption by Source (1996-97)

Oil48.0% Gas

29.4%

Coal6.3%Electricity

15.4%

LPG0.9%

Source: Hydrocarbon Development Institute of Pakistan 1998

Figure 3: Sectoral Share in National Energy Consumption (1996-97)

Domestic21.0%

Agriculture3.0%

Transport32.0%

Other Govt.3.0%

Industrial38.0%

Commercial3.0%

Source: Ministry of Petroeum and Natural Resources

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The estimated reserves of coal in the country are of the order of 185 billion tonnes or around 83 billion tonnes of oil equivalent. The total measured reserves of coal are 1.76 billion tonnes that is 60% of measured coal reserves. Coal production for the year 1996-97 excluding unreported coal is about 3.55 million tonnes. Almost 73% consumption is by the brick kiln industry and a small share in overall consumption is being used for power generation. At present, only two power plants of 165 MW capacity are based on coal that require less than a million tonnes of coal annually. We also imported about 1.25 million tonnes of coal to be used as coke in steel industry. As no significant market demand has been created for coal consumption, the production of coal has remained stagnant at about 3-4 million tonnes per year for the last 10-15 years.

The heavy dependence on imported oil, the rapid depletion of indigenous oil and gas reserves, lack of political will to utilise hydro potential, the lack of market demand for coal, extraordinarily high transmission and distribution losses and inefficient energy use practices, coupled with urgent need for increase in energy supplies without compromising the associated environmental and health consequences necessitated the formulation of a conservation strategy for sustainable use of energy resources in the country. The Pakistan National Conservation Strategy (NCS) set the stage for sustainable energy future for Pakistan through proposing:

A transition to energy-efficient regimes and increasing reliance on renewable sources. It will require simultaneous action to improve efficiency of energy supply, introduce energy conservation, and use currently neglected sources. Combustion efficiency, especially in vehicle engines, is also important for keeping emission tolerable.

The NCS suggested three major approaches to tackle this issue: (i) energy supply options, (ii) energy conservation and (iii) institutional reforms. In the first place, need for focus on hydropower and coal with a support from new and conventional renewable was emphasised. Construction industry was identified as one of the industries in which energy conservation measures could be introduced. Energy pricing and introduction of energy-efficient devices and vehicles were some other areas where energy conservation initiatives could be taken. Involvement of private sector in energy production and supply and decentralisation of power generation and local authorisation were the proposed institutional interventions that have now been put in place. The following policies were outlined in the strategy:

• expand the use of coal to meet short term, electricity demand requirements, based on the least polluting technology and current emission standards;

• take early account and full care of impacts of coal and hydel generation;

• develop pakistan’s medium-to long term large hydro potential to meet electricity needs;

• develop alternative sources to meet additional energy requirements;

• use energy more efficiently;

• instil energy conservation across all sectors, in investment choices as well as current operations; and

• use ‘waste’ resources for energy.

In order to realise these policies, the NCS sets the following long-term goals:

• Transmission and distribution losses reduced to 10% by 2050;

• Optimisation at 30% energy conservation in industrial units by 2030;

• Double the saving by 2025;

• Efficient and pollution-free cooking; and

• 2,000 MW additional co-generation by 2015.

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The need for sustainable use of energy resources in Balochistan has been addressed in various development documents. The Comprehensive Area Review undertaken by the Area Development Programme Balochistan (ADPB) asserts that

Energy Consumption can be used as a good index of prosperity and standard of living of people in the province. Balochistan, like other provinces of the country, is facing the serious challenge of energy deficit and environment hazards.

In the 9th Five-Year Plan 1998/9-2002/3: Province of Balochistan, need for awareness and measures to address the problems in energy sector has been asserted.

The environmental effects of these important and diverse economic sectors (minerals and energy) have not been assessed. The potential for environmental damage and health risks to workers is great if the conduct of exploration and development is not carefully assessed. The procedures are available and when followed will contribute to environmentally sound, economically viable sectors. The Pakistan Environmental Protection Act has been notified, together with National Environmental Quality Standards, and these provide the basis for a sound environmental management framework. The major concern is that there is very little awareness of environmental and health and safety issues, and the measures that should be followed to address them.

These premises provided enough support for development of a province specific sub-strategy for energy sector. This document with a special emphasis on Balochistan, attempts to contextualise the multidimensional issue of energy with focus on the exploration of commercial energy resources, promoting the use of renewable resources of energy, and promoting energy efficiency as cost-effective supply option.

Focus on Balochistan

The total population of Balochistan is 6,511,358 (less than 5% of the country) with the highest sex ratio (114.9). The province is least densely populated (18.8 per sq km) with about 44% of the total national geographical area. The urban population constitutes about 23.3% of the total provincial population.

The province produces a considerable proportion (40.2%) of primary energy production of Pakistan (Figure 4) primarily in the form of natural gas, coal and electricity. Of the total mineral fuel reserves of the country, Balochistan contains over 33% of natural gas, about 9% of coal, and about 2% of probable oil reserves.

Balochistan’s energy consumption level is about 5.1% of the national final energy consumption (Figure 5). The major proportion of the provincial energy requirements is met through biomass energy, principally firewood (Energy Wing and UNDP 1993). According to the Pakistan Energy Yearbook 1997, Balochistan used about 12.1% of the nationally consumed petroleum products, about 2.5% of the natural gas and 3.9% of the electricity consumption in 1996-97.

The Household Energy Supply Survey 1991-93 revealed that urban population of Balochistan consumes about 29.2% of the total energy consumed in the province. Firewood constitutes a significant proportion (80.9%) of the total consumed energy (Table 2). However, this survey does not provide an accurate picture of the energy situation in Balochistan, as consumption of petroleum products has not been mentioned in the data.

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Figure 4: Fossil Fuel Production by Provinces (1996-97)

Punjab13.5%

Sind46.1%

NWFP0.1%Balochistan

40.2%

Source: Hydrocarbon Development Institute of Pakistan 1998.

Figure 5: Final Energy Consumption by Provinces (1991-93)

Punjab59.7%

Sind23.1%

NWFP12.1%

Balochistan5.1%

Source: Hydrocarbon Development Institute of Pakistan 1998.

Table 2: Energy Consumption in Balochistan (1991-93)

Urban Rural Balochistan Fuel Types

(tonnes of oil equivalent /year)

Electricity 14,089 8,551 22,641 (2.2%) Natural gas 43,532 n.a. 43,532 (4.3%)

LPG n.a. n.a. 8,901 (0.9%) Kerosene 11,118 20,839 31,963 (3.1%)

Firewood 230,011 60,382 828,488 (80.9%) Dung cake n.a. 74,514 88,183 (8.6%)

Total 298,750 704,286 1,023,708 (100.0%) Source: Federal Bureau of Statistics 1997.

Electricity constitutes the major proportion (60.9%) of the commercial energy sources consumed in Balochistan during 1996-97 (Figure 6). Gas consumption is the lowest in commercial energy sources, mainly due to limited supply of piped natural gas and LPG. As no data are available on coal consumption in Balochistan it is hard to estimate its share. Moreover, the major proportion (about 80%) of the energy requirements is met through non-commercial sources hence the overall contribution of commercial energy sources, especially of gas, is minimal.

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Figure 6: Commercial Energy Consumption in Balochistan (1996-97)

Gas5.6%

Electricity60.9%

Petroleum Products33.5%

Source: Hydrocarbon Development Institute of Pakistan 1998.

Coal

Coal is found in Quetta-Harnai-Duki coal region that covers an area of about 12,500 square kilometres. The region comprises several coalfields in Sor Range-Deghari, Pir Ismail Ziarat, Mach-Abegum, Khost-Sharig-Harnai and Duki areas. Coal in this region occurs in the Ghazij Group of Lower Eocene age (56 million years) that according to Kazmi (1962) and Shah (1990) was deposited in a sub-littoral off-delta or pro-delta environment. The cumulative coal reserves of Balochistan, in 5 coalfields, amounted to a total of 195 million tonnes (1997) of which 53 million tonnes are measured and another 13 million tonnes are indicated (HDIP 1998, p. 45). The heating value of the coal from Balochistan ranges between 7,950 and 12,590 Btu/lb (Table 3).

In 1996-97, a total of 1,827,719 tonnes of coal was produced from these coalfields that was about 51.4% of the national coal production, while the provincial consumption is less than 1% of the national consumption (HDIP 1998, p. 46). The coal mining industry has absorbed 26.000 workers and has the capacity to absorb additional 15,000 to 20,000 workers. An overwhelming majority of the workers come from other provinces. The provincial government receives estimated revenue of rupees 6 million per annum, in the form of royalty and some other taxes, from this industry. The Balochistan coal is high in sulphur and ash with high BTU values. The coal is amenable to cleaning and is suitable for power generation (units of 5 to 10 MW each).

Table 3: Coal Resources of Balochistan (as on June 30, 1997)

Resources Seam Thickness

Measured Indicated Inferred Total

Heating Value Coal Fields

(metres) (million tonnes) (Btu/Lb.)

Duki 0.3 – 2.3 14 11 26 51 8,291 – 11,475 Mach-Abegum 0.6 – 1.3 9 - 14 23 9,900 – 11,500

Sor Range-Deghari 0.3 – 1.3 15 - 19 34 9,000 – 10,500 Pir Ismail Ziarat 0.4 – 0.7 2 2 8 11 9,627 – 10,681

Khost-Sharig-Harnai 0.3 – 2.3 13 - 63 76 7,950 – 12,590 Total 53 13 130 195 Source: Hydrocarbon Development Institute of Pakistan 1998.

Oil and Gas

The first exploratory well in Balochistan was drilled in 1884 at Khattan (Kohlu District) that produced about 20,000 barrels of oil before it dried up. Since then 43 exploratory wells have been drilled in

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Balochistan out of which 35 have been abandoned and the remaining 8 are capable of gas production. See Appendix 1 for a brief description of oil and gas exploration activities in Balochistan.

The province does not have any significant oil reserves. However, there may be some potential for oil in the off shore, hence a few companies have obtained concessions for off shore drilling.

Since the Sui discovery in 1952, extensive exploratory activities have been carried out in the province. Sui gas field had been the largest original recoverable gas reserve in the country but its imprudent use has resulted in rapid depletion of this resource. The original recoverable reserves were estimated to be 8.624 TCF of which 6.438 TCF have been consumed up to June 30, 1997 (HDIP 1998, p. 37). See Table 4 for details. However, the operators, Petroleum Limited, with the financial assistance of International Finance Corporation and a German bilateral development agency DEG, has started another development project at Sui which will enhance the recovery of gas by about 0.6 TCF.

In Balochistan, Exploration Licences have been granted to 11 companies for 26 blocks covering an area of 126,496.11 sq km. Mining or Development and Prospecting (D&P) Leases for 4 blocks in Uch and Sui, spread over an area of 692.39 sq km have been granted to OGDC and PPL. The Western has been issued a reconnaissance permit for one block in Mekran offshore, covering an area of 42,321.74 sq km (Appendix 5)

The Oil and Gas Development Corporation (owned by the public sector) holds 8 concessions at Pirkoh, Loti, Uch, Gumbaz, Jandran, Risaldar, Rakhni and Tambu Fort. Another private enterprise, British Petroleum, has discovered gas in Savi Ragha area. Recently two gas discoveries have been made at Zarghun South and Zarghun North, about 40 kilometres east of Quetta, by the Bolan Joint Venture including Premier/Shell Pakistan, Novus and Government Holdings as partners (Balochistan Times September 17, 1998). See Appendix 2 for gas field development activities in Balochistan.

Balochistan owns about 48% (13.669 TCF) of the national original recoverable reserves of natural gas (28.506 TCF) while in 1996-97 Balochistan produced 44.6% (304,065 MCF) of the national gas produce (697,763 MCF). On the other hand gas consumption by Balochistan constituted about 2.3% (13,624 MCF) of the total national consumption (597,798 MCF). Despite the fact that Balochistan owns the first ever discovered natural gas reserves in 1952 at Sui, Quetta, the provincial headquarter was supplied natural gas after 31 years, i.e. in 1983, through a 370 kilometres long transmission line. Till now towns of Quetta, Sibi, Dera Murad Jamali, Belpat, Dhadar, Mach, Kolpur, Usta Muhammad, Jhatpat, Dera Bugti, Pirkoh, Pishin, Kuchlak, Yaru, Bostan, Mastung, Pringabad, Bhag and Lehri have been supplied this facility. At the end of April 1996 the total number of gas connections given by Sui Southern Gas Company were 91,220 out of which about 98% were for domestic use. In order to supply gas to these consumers about 2,677 km pipeline has been laid (HDIP 1998, pp. 37-43).

Table 4: Natural Gas Reserves and Production in Balochistan as on June 30, 1997

Original Recoverable Reserves

Cumulative Production

Balance Reserves

Production in 1996-97

Gas Field

(trillion cubic feet)

Operators

Sui 8.624 6.438 2.186 0.243 PPL Pirkoh 1.504 0.681 0.823 0.053 OGDC

Loti 0.292 0.125 0.167 0.015 OGDC Uch 3.100 0.000 3.100 Nil OGDC

Zin 0.100 0.000 0.100 Nil OGDC Savi Ragha 0.030 0.000 0.030 Nil BG

Jandran 0.019 0.000 0.019 Nil OGDC Total 13.669 7.244 6.425 0.311 Source: Hydrocarbon Development Institute of Pakistan 1998.

Balochistan consumed 1,913,268 TOE of petroleum energy products in 1996-97 that was 35.5% more than the quantities used in 1995-96. The consumption of petroleum energy products by Balochistan constitutes about 12.1% of the national consumption. However, these figures do not include the

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quantities of petroleum products smuggled in from Iran and used mostly in the western parts of the province.

Electricity

Until November 1996, a total of 2,692 villages (44.1% of the total villages in Balochistan) had been electrified (WAPDA). The total number of connections given in the entire province up to May 1996 was 232,931 (Table 5). In 1996-97, total electricity consumption in Balochistan was 1,666 GWh (3.9% of the national consumption).

Quetta had limited diesel generated electric supply prior to 1965. Regular electricity was provided to Balochistan province in 1965 by installation of a Thermal Power Station at Quetta from where 66 kV transmission lines were extended to Mastung and Pishin. Balochistan was hooked up with WAPDA national power grid system in May 1979 through a 272 kilometres long 220 kV single Circuit Guddu-Sibi Transmission Line while a 220 kV grid station was established at Sibi. Quetta was connected to this grid station through 163 kilometres long 132 kV Double Circuit Transmission Line (Table 6).

Details of electricity generation, grid stations and transmission lines are given in Map 2. The location of grid stations and electricity generation units indicates the supply network of electricity in their vicinity, within a radius of about 10 km. Northern and eastern parts of the province seem to have more access to electricity.

In the public sector, 14 thermal power generation stations are in operation in Balochistan of which Quetta and Pasni are the larger ones. Other stations are located at: Panjgur; Gwadar; Jiwani; Ormara; Buleda (District Kech); Dalbandin, Nok Kundi and Mashkel (District Chagai); Washuk (District Kharan); Mashkai (District Khuzdar); Qamar Din Karez; and Musakhel. The installed capacity of Quetta Thermal Power Station is 86.59 MW while Pasni Thermal Power Station is capable of producing 17.48 MW. The cumulative installed capacity of the remaining power generation stations is 11.622 MW.

Table 5: Number of Electricity Connections in Balochistan (up to May 1996)

Category Quetta City

Quetta Cantt:

Kalat Division

Sibi Division

Pishin Division

Loralai Division

Turbat Division

Balochistan

Domestic 33,148 40,948 21,689 20,461 23,820 22,634 12,355 175,235

Commercial 19,950 6,293 3,075 4,679 2,904 3,997 3,563 44,461

Industrial 578 367 220 350 229 172 19 1,935 Bulk 22 38 11 42 3 24 10 150

Agriculture 266 1,465 4,129 352 3,114 1,677 59 11,061 Street Light 34 27 0 5 0 10 13 89

Total 53,998 49,138 29,124 26,068 30,070 28,514 16,019 232,931 Source: Quetta Area Electricity Board 1996.

Table 6: Grid Stations and Transmission Lines in Balochistan (1996)

Capacity (kilovolt)

Grid Stations (numbers)

Transmission Lines (kilometres)

220 2 417

132 32 1,568

66 10 351 Total 44 2,336 Source: Quetta Area Electricity Board 1996.

The first private sector power generation venture was HUBCO at Hab (District Lasbela) with an installed capacity of 1,292 MW. Habibullah Coastal Power Company has recently completed its gas powered thermal electricity generation plant and is about to start production capacity of 140 MW.

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Another private power generation project is Uch Power Limited at Dera Murad Jamali with an installed capacity of 586 MW. All these electricity generation units are connected to the national grid.

Firewood and Dung Cakes

In Balochistan, about 80% of the energy requirements are met through the use of firewood, which is being used by 88.3% of the households in the province (Energy Wing and UNDP 1993). About a quarter (27.7%) of the total consumption is in the urban areas (Table 7). About 74.8% of the urban and 98.2% of the rural households use firewood. A major part of firewood used in Balochistan is cut from nearby woodlands and there is hardly any accurate account of the wood cut in Balochistan and of that imported from other provinces or Afghanistan.

Dung cakes are the second major energy source being used by 33.1% of the households (Energy Wing and UNDP 1993). About 12% of the urban and 48.4% of the rural households use dung cakes for cooking (Table 7). Most of the livestock farmers prefer to raise small ruminants. Cattle farming is limited primarily due to the probable shortage of fodder. This might be one reason for less production and utilisation of dung cakes.

Table 7: Consumption of Firewood and Dung Cakes in Balochistan (1991-93)

Firewood Dung Cakes

Urban Rural Total Urban Rural Total

Total households 317,000 436,000 753,000 317,000 436,000 753,000 Household use (%) 74.8 98.2 88.3 12.0 48.4 33.1

Total consumption (thousand tonnes/year) 635 1,659 2,289 51 274 325 Source: Federal Bureau of Statistics 1997.

Renewable Energy

The deficit in energy supply of traditional sources and environmental concerns in Balochistan necessitate the promotion of renewable energy. There exists a great potential for renewable energy sources, however, considerable efforts have not yet been made in this regard. Only a few booster stations of Pakistan Television (Ptv) and Pakistan Telecommunications Corporation Limited (PTCL), located in remote areas of the province, have been energised through solar panels. A few initiatives were taken regarding use of renewable technologies (Table 8) but most of them are non-functional at present.

Desalination of seawater is one way to get drinking water. Pakistan Navy has constructed one such plant at Gwadar. Seawater is pumped into the small panes that are covered with transparent sheets of vinyl plastic. The water evaporates and vapours are condensed on vinyl plastic sheet from where water is collected in under-ground water tank through small ducts. This water is utilised by the Pakistan Navy personnel only.

Solar Energy Solar energy is in abundance throughout the province; it takes the form of radiant energy, most of which is found in the ultra-violet and infrared part of the spectrum. The distribution is influenced by latitude, topography, atmospheric clarity and cloud cover. Quantitative information about the solar energy available in Balochistan is sparse. Nevertheless, the potential of the solar resource is large. The construction and marketing of solar water heaters seem to be within the capability of urban and rural inhabitants. Technology exists to convert solar energy directly to electricity by means of photovoltaic cells and indirectly by means of solar-thermal-mechanical electrical route and use if for purification of water, drying of food and crops, pumping water, refrigeration of food and medicines and solar cooking.

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Table 8: Existing Renewable Energy Installation in Balochistan

Station Capacity (kWh) Application

Khurkhera (Loralai) 8.8 Domestic water supplies

Baiker (Dera Bugti) 5.0 Water supplies Lehtar (Kharan) 20.0 Street light

Sharozai (Kharan) 10.6 Domestic/Street light Nowtani (Kharan) 25.0

Bughat (Loralai) 40.0 Domestic/Street light Karbala (Pishin) 40.0 Water supply

Ali Zai 24.0 Communication Malazai 40.0 Water supply (not installed)

Duragh (Musakhel) 24.0 Telephone Muslimbagh (Qila Saifullah) 40.0 Water supply

Pandari (Qila Saifullah) 24.0 Telecommunication Lak pass (Mastung) 40.0 Radar station

Bio-gas 22 units installed Source: Area Development Programme Balochistan 1998

Biomass Plants collect a proportion of the solar energy falling on them and by means of various photochemical and biochemical reactions convert it into carbohydrates. Much of this organic material (Biomass) accumulates and provides the renewable energy. Biomass is the only continuously available energy resource which has the potential to be utilised at the rural-village level in the province without substantial capital expenditure.

Geothermal Energy Balochistan lies in the zone of favourable geothermal development. The reserves and potential of geothermal resources have not yet been studied adequately. National Institute of Oceanography (NIO) is however involved in the studies of gas hydrates along the Mekran Coast. Bottom simulating seismic reflectors formed by gas hydrate is commonly developed in the areas of mud volcano occurrences along the Mekran Coast. The thermal measurement near the rim of the Chandragup mud volcano’s crater (in Hingol National Park) shows a positive temperature excursion of 0.4°C down to a depth of 2 m. The temperature increase below 4 m correlates with a heat flow of >1.26W/m2 assuming a thermal conductivity of 1.2W/m/K of the mud. The presence of the hydrate indicates that large volumes of methane are being generated at around 300 m depth (below sea floor) in these regions. The presence of the gas hydrates has been demonstrated by identification of the BSR in the Mekran accretionary wedge down to water depth of 1,500 m. The distribution of vents is variable. In most cases it is related to local tectonic structures, such as the outcrops of reverse faults or thrusts, transform faults, back thrusts, and steep slump escarpments and canyons walls over the entire continental slope area.

Biogas Fermentation of plant material in water in the absence of air results in the form of biogas, which can be burnt for heat or used as fuel in internal combustion engines. It consists mainly of methane and carbon dioxide. The viability of biogas for use in an agro-industrial project is proposed to be studied.

The Wind Resources Wind is widely available as an energy resource in Balochistan, particularly in the coastal areas. It can easily and efficiently be converted into shaft power or electricity. Conversion efficiencies in the range of 5-50% are possible compared to 1-2% available for solar-mechanical or solar-electrical conversion. The available power increases with the cube of wind speed. Thus doubling the wind speed increases the power by eight times.

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The generally useful range of wind speeds is from 3 to 20 metres per second. In Balochistan data on wind-regimes are sparse, especially on a local scale. Thus attempts to install wind energy converters should be preceded by a proper evaluation of the available data (plotted on wind maps) in collaboration with the Meteorological Department, Quetta.

Four windmills have been installed in coastal area of Mekran, at the Farms of Sheikh Zaid Bin Sultan. Four units are also installed at Khurkhera, Sonmiani and Hub.

Constraints to the Use of Renewable Energy The most glaring obstacle to extended use of renewable energy power systems in rural areas is which almost all renewable energy technologies face: there is a high initial cost, including that of power conditioning and storage, compared with conventional commercial systems. Other obstacles include unavailability of practical information, unavailability of competitive range of appliances, as well as illiteracy, low income and irregular working pattern of those who could benefit. Even if these did not exist there must be on-site training and proper maintenance of mechanical components. To develop renewable energy systems effectively, it needs to be ensured through planning authorities that new demonstration projects are installed at village levels and at district levels in the province to show how maximum use is made of renewable energy applications by proper layout and orientation.

Model for Renewable Energy for Balochistan Development Based on the present day knowledge, research and experience, the Area Development Programme Balochistan (ADPB) has developed a Model for Renewable Energy for Balochistan Development (REFBD). This model manifests multi-prong efforts targeting financial, infrastructure development, capacity building and rural community empowerment with focus on 8 districts selected by ADPB. Success in this effort requires co-operation of the government, commercial banks, NGOs and local community level development organisations. The resulting sustainable growth will then lead to economic growth to the level of users’ satisfaction. To achieve this objective following activities are proposed:

Solar Thermal

The use of solar energy through solar cookers and solar water heaters should be enhanced. Solar energy may also be used for desalination of drinkable water, and heating and cooling of buildings. Using solar dryers, the agriculture products can be dried in a controlled atmosphere for quality products.

Remote Area Electrification

Photovoltaic technology is quite practical for off gridline and low power applications. This could bring revolution in the life style of the people living in the far-flung areas where it is very costly to extend the gridline. Photovoltaic technology is also economical in servicing the telecommunication networks. The government should provide soft term credits to the private sector to promote development of photovoltaic and thermal technologies. The use of solar energy should be promoted through education and training, public awareness, databased networking, and research and development.

A detailed account of solar, biomass, biogas and wind technologies and their applicability has been provided in Comprehensive Area Review undertaken by the Area Development Programme Balochistan. It also provides description of various aspects of a Model for Renewable Energy for Balochistan Development and outlines constraints and expectations for its successful implementation.

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The Stakeholders The objective of sustainable development can never be realised without taking into consideration the stakeholders involved in a specific sector. In case of energy and power three major groups of stakeholders can be identified: producers, regulators and consumers. Although these three groups have their own specific interests, only the sustainable use of energy resources can ensure them a prosperous future. The financial institutions that support power generation, distribution and rehabilitation schemes are also recognised as the stakeholders.

Government of Pakistan

The federal government is involved in the energy sector at the levels of development and production as well as regulation through various organisations (Table 9). The Government of Pakistan intends to develop, through its activities, the energy resources in a sustainable manner to ensure economic and social prosperity of its population. The energy sector received the highest amount of foreign assistance that of US$ 421 million in 1994 (UNDP 1996). The government has been working for development of the energy and power sector through giving concession to the private sector and providing a conducive socio-legal environment. Furthermore, it has been concerned about environmental deterioration as a result of rapid and imprudent exploitation of natural energy resources, which is manifested by the development of the National Conservation Strategy, Pakistan Environmental Protection Act 1997 and National Environmental Quality Standards.

Table 9: Federal Government Organisations involved in Energy Sector

Organisation Major Activities/Responsibilities

Pakistan Petroleum Limited Oil and gas exploration and exploitation

Oil and Gas Development Corporation Oil and gas exploration and exploitation

Water and Power Development Authority

Management of water storage (dams) and with an emphasis on power generation; electricity generation through hydel and thermal projects; electricity distribution; Salinity Control and Rehabilitation Project.

Hydrocarbon Development Institute of Pakistan

Research and development activities regarding fossil fuels; Support establishment of CNG stations

Pakistan Council for Renewable Energy Technologies

Research and development activities regarding renewable energy sources

Energy Conservation Centre Research and development activities for energy conservation Holding Company (proposed) An investment enterprise on behalf of the Federal Government Ministry of Petroleum and Natural Resources

Policy making regarding oil, gas and other natural resources; Regulation of oil and gas sector

Petroleum Policy Cell Policy making regarding petroleum sector development; Review of the petroleum policies

Petroleum Regulatory Board Regulatory authority for petroleum sector Directorate General Petroleum Concessions

Petroleum exploration, production and petroleum service companies

Directorate General (Gas) Down stream gas sector including imports for gas pipelines, LPG, CNG and other gas products

Directorate General (Oil) Down stream oil sector including oil refineries, marketing companies and pipelines

Directorate General (Ports & Shipping) Petroleum terminals

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Government of Balochistan

The Government of Balochistan has little to do as far as development, production and regulation of energy sources is concerned. For the development of the Balochistan Conservation Strategy, Directorate General of Environment and Balochistan Environmental Protection Agency indicate their commitment to the environment.

Coal production is the only energy sub-sector where GoB has an active role of regulation but for the part this role is restricted to mining, production and marketing of coal. In view of large reserves of indigenous coal and its suitability for power generation, the GoB should insist upon the federal government for use of their coal for thermal energy.

Another major concern for the provincial government is production of natural gas that is a significant source of revenue in the form of gas surcharge. The budgetary figure of royalty for gas for 1997-98 is Rs. 820.042 Million which federal government had to remit to Balochistan. The provincial government is also interested in buying the federal government shares in the Pakistan Burma Shell. At present the federal government holds 93% shares, IFC 6% and the remaining 1% are with the employees and the general public.

Private Sector

The private sector participation in the energy and power sector is significant. Many national and multinational companies are involved in exploration of oil and gas, either on-or offshore. HUBCO and Uch Power Company are pioneers of private sector power development in Balochistan. Almost all the coal production is in the hands of private sector.

The private sector ranges from production to retail selling and influences or is influenced by the legislation, development and slumps in the sector. Since profit is the basic concern for the private sector, the idea of conservation seems irrelevant. There is a major dispute of the private sector with IPPs over tariff. However, the private sector can be persuaded for exploitation of non-renewable energy resources as this would not only help the economic scenario of the province in general but also will ensure a long term profitability for this sector.

Recent commissioning of power projects at Hub, Dera Murad Jamali and Quetta is a new dimension of private sector involvement in the energy sector.

Public – The Consumers

The consumers are the main actors in the supply-demand matrix. If the consumers put a high pressure on the market for supply of energy resources, the profit-oriented market forces will try hard to fill the supply-demand gap without considering the sustainability issue. When the consumers find the commercial energy sources beyond their affordability, they start opting for the non-commercial energy sources, i.e., firewood and biomass. The cheapest way to obtain firewood is from cutting of trees and bushes. One such example is of Juniper trees that are being used as firewood for years.

Pricing remains the main concern for consumers. Though some pricing policies have been introduced by the WAPDA and Sui Southern Gas Company to motivate the consumers toward energy conservation, various surcharges and taxes have neutralised the effects of such pricing policies.

Women

The fact that women are not only the consumers but also gatherers of firewood and biomass; enhances the importance of women in energy sector. It is the women folk that directly face all the health and accidental hazards while using any of the energy sources, whether it is firewood, gas,

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kerosene oil or electricity. Women’s concern about energy sources is related to easy access, health, safety and affordability.

NGOs

At present none of the non-governmental organisations in Balochistan seems interested in energy sector as it is considered a sector where only the government and private business enterprises may have some role. However, there is a great room for NGOs to work for the welfare of consumers as well as environmental protection. One such example is of an action committee of Balochistan’s farmers who pressurised the federal government to subsidise electricity for agricultural use. However, the flat rate allowed by the government is considered counter productive as it is resulting in wastage of water and energy resources.

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Issues and Trends The foremost need is for province specific adequate and reliable data of energy sources which is not available at present. At least three set of data are needed: (1) data on possible, potential, indicated and proven reserves of energy sources, (2) data on production and development of energy sources, and (3) data on consumption and consumer behaviour. In the absence of such data it seems very difficult to design a strategy for a sustainable energy sector.

Geographically Balochistan is a vast province with a very low population density (18.8 per sq km). The provision of infrastructure, including commercial energy, is not cost effective. Another obstacle is at the policy level. Except for coal all the primary energy sources, including petroleum, gas and electricity, are within federal jurisdiction and the provincial government is not involved in the planning and policymaking.

Industrialisation in Balochistan has always been stressed as a prerequisite for economic development of the province. One reason for slow industrialisation is lack of adequate electricity supply. Moreover, electricity is also in high demand for domestic use. Realisation of this need may not only overburden the existing infrastructure but also put a high pressure on fossil fuel reserves, of coal and gas, which are used for thermal electricity generation. The private sector power generation projects installed at Hub and Quetta are not eager to provide electricity to Balochistan. The remaining option is supply of electricity from the national grid that ultimately means high transmission and distribution losses. Furthermore, laying transmission lines to provide electricity to a sparsely spread population is very costly.

Another major reason for the underdeveloped economy of this province is inadequate and inefficient electricity supply to the province. In response to the total demand of 460 MW of electricity only 285 MW are being supplied. The demand-supply gap is being addressed by resorting to unscheduled load shedding and power shutdowns. These cause huge damage to machinery and tube-well equipment.

The other facet of the issue is non-payment of revenues by the consumers. Not only the general public but also various provincial and federal government departments are included in the list of defaulters. Illegal connection from the service lines is another problem that not only causes a heavy revenue loss but also puts an undetermined pressure on electricity supply.

Figure 7: Commercial Energy Consumption Trends in Balochistan

0

0.5

1

1.5

2

2.5

1991-92 1992-93 1993-94 1994-95 1995-96 1996-97

Con

sum

ptio

n (m

illion

TO

E)

Petroleum Products Electricity

Source: Hydrocarbon Development Institute of Pakistan 1998.

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A significant quantity of petroleum products including LPG smuggled in from Iran is being consumed in Balochistan. The prices of these products are significantly lower than those of the products being sold legally. The petrol is transported in dirty drums and cans which causes heavy smoke emissions when used in automobiles. In this way this petrol not only pollutes the air but also damages the engines of vehicles. The smoke emitted by such vehicles contributes to acute respiratory tract infections.

People cut firewood from nearby woods and shrublands. If trees are not available they cut bushes even those that have medicinal use, and dry them for using as firewood. At present 1,093,130 hectares (3.1% of the provincial geographical area) have been designated as area under state forest where cutting of trees is prohibited under the law. However nobody bothers to adhere to the law.

Although renewable technologies have been tried in Balochistan, a widespread use of such technologies still seems far away. The renewable sources of energy might help solve the problems of those remote areas where it is difficult to provide electricity through transmission lines. Moreover, use of renewable technologies will surely reduce pressure on fossil fuel reserves, trees and shrubs.

Based on the geological features, the country is divided into various categories that indicate the suitability of these areas for extracting oil and gas. The potential land blocks include protected areas, among other places of historical, cultural and religious significance. To safeguard against any damage to protected areas, the Petroleum Policy 1997 recommends adherence to the prevalent laws, rules and regulations by the petroleum companies. The Environment Ministry has developed a set of rules and regulations for the petroleum sector in light of the Pakistan Environmental Protection Act 1997. The Environmental Protection Council, a more than 40 member body headed by the Prime Minister has not met in the last two years. According to the draft rules, oil & gas exploration activity requires an Initial Environmental Examination (IEE), a desk study. EIA is required only if the activity is planned in ecologically sensitive areas. The above situation allows a petroleum company to get its foot into a protected area. From there onwards, the company may choose to proceed with seismic studies, test drilling and subsequent operations by getting permissions from relevant authorities, as and when needed. The system for protecting wildlife and environment still has loopholes. This at times encourages some of the mavericks in the petroleum industry to venture into taking unfair advantages, thus inflicting environmental damage.

It appears that on the surface, a certain system is in place to prevent and minimise environmental damage from oil & gas exploration activities. But it is also clear that the trouble starts from the first step when a block of protected areas is offered to a company for exploration activities. If the block did not include a protected area, perhaps there would be fewer temptations to find and use the system’s loopholes.

The conservation issues in the energy sector can be listed as:

1. Exploration/exportation in protected areas and in other environmentally sensitive areas like Dureji, Zarghoon, and coastal areas.

2. Installation of thermal power plants without EIA – either through waiver or formality is completed without any expertise.

3. Use of local coal that has high sulphur contents (up to 9%).

4. Ground water mining due to flat rates of electricity, smuggling of petrol, diesel and kerosene.

5. Transmission and distribution losses of electricity.

6. Adulterated fuels, causing air pollution and reducing the life of motor engines.

7. Motor vehicles are not tuned regularly.

8. 2-stroke engine Rickshaws use petrol mixed with mobile oil.

9. CNG supply stations are non-existent.

10. Emergency protocol is to be launched.

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Consequences of Inaction Balochistan has fairly large reserves of coal and a good potential for the development and utilisation of renewable energy resources. Scientific exploration and systematic development of these resources can play an important role in the socio-economic development of the province. However, long gestation period (about 5 years) is needed to operate viable projects based on these resources. Although new policy measures to boost exploitation of energy resources (Petroleum Policy, 1997 and Independent Power Projects) have been taken to cope with the energy requirements, little has been done on energy conservation. Imprudent use of energy sources not only results in rapid depletion of resources but also affects consumer’s health and pollutes the environment. Consequence of in-action on the energy sub-strategy would therefore, result in inadequate development of the energy sector and on the energy based industries in the province (Table 10).

If the sustainable use of energy sources is not ensured, the province may face a disastrous situation regarding its ecosystem, finances and fuels. If already limited woodlands are cut completely, there remain little chances of conserving rainfall and consequent recharging of the degrading water-table. Similarly wildlife will also be endangered in this way. The depletion of gas reserves means a cut in the provincial income through the gas surcharge. This situation will lead to less money available for development activities and a continuation of poor socio-economic status of the population.

Table 10: Some of the Possible Impacts of Various Energy Sector Activities

Energy Sub-Sector Activity Impact/Effect

Coal Mining Land disturbance, resettling of residents, dust emission, acid mine drainage and pollution of rivers and streams, destruction of wildlife habitat.

Thermal generation using coal

Sulphur dioxide and nitrogen dioxide emissions, with human health effects and possible crop damage, increased CO2 emissions as small but growing Pakistani contribution to global warming.

Hydel development

Displacement of people, resource use conflicts, effects on natural aquatic and riverain habitat, local climate change, ecological impacts including loss of wildlife habitat, erosion and watershed disturbance leading to increased flooding and low flows in dry season.

Electricity

Transmission Displacement of people along right of way, potential radiation impact on humans from high-voltage lines.

Production Water pollution from wells, toxic air emissions of hydrogen sulphide. Oil and gas exploration/development

Automobile fuels use

Air pollution in cities including lead and carbon monoxide, respiratory disease among urban dwellers, lead poisoning of children

Fuel wood Indoor air pollution and health effects, deforestation, ecological impacts including loss of wildlife habitat, erosion and watershed disturbance leading to increased flooding and low flows in dry season.

Plant and animal residues and wastes

Burning as domestic fuel

Loss of organic matter needed by soils, local air pollution.

Source: Green and Walters 1989.

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Learning from Experience Elsewhere

Pakistan, as compared to a moderate use of renewable technology by India, is far behind in its efforts though the potential for development of technology exists (Table 11).

Table 11: Comparative Statement of Renewable Technology

Energy Technology India’s Achievements Pakistan’s Achievements

Wind 825 MW Less than 1 MW

Small Hydro-projects 380 MW 2.5 MW

Solar Photovoltaic Systems 400,000 26 (not operational) Solar Cookers 422,000 1,100 Source: Zahid 1998.

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Assessment of Current Initiatives Energy mainly being a federal concern, major initiatives are taken from outside the province, either by the federal authorities or by the large business enterprises. Policy in this sector is made by the federal government that has taken various initiatives for the promotion of energy sector.

The Petroleum Policy (1997) states that new environmental and safety regulations shall be applicable to all companies. A standing task force has been established to address the problems of oil and gas companies to oversee and co-ordinate safety hazards at the oil and gas fields and gas installations. The policy, however, does not make a real commitment to the environmental issues. In the revised policy the role of standing task force needs to be expanded to oversee and monitor the implementation status of environmental regulations as enunciated by EPA in the sectoral guidelines on oil and gas. The policy also offers major incentives in the upstream and downstream petroleum sector, including an economic package, based on production sharing arrangement for offshore and on-shore areas. An economic package has been defined and fixed for the three on-shore geological zones on the basis of prospectivity and corresponding financial and economic parameters. The government participates in all concessions to the extent of 5% carried interest at the exploration stage. The government’s share of expenditure related to a commercial discovery is reimbursed through production in instalments over a period of 5 years. The post discovery share of the government is as under:

• Zone I 15% • Zone II 20% • Zone III 25%

A new geological Zone ‘O’ to cover offshore areas has been defined (Map 3). The economic package for this zone has also been prepared based on production sharing arrangement.

In order to fill the gap between supply and demand of oil and LPG and to conserve the reserves of natural gas, their import to Pakistan is considered inevitable. The gas supply and demand analysis reveals that the country will be facing shortage of natural gas in future. It is therefore necessary to supplement the indigenous supplies through import of LPG and natural gas from neighbouring countries Qatar, Iran and Turkmenistan. Oil that accounts for 43% of the primary energy supplies is largely imported from the neighbouring countries. The indigenous production of oil meets about 17 to 18% of the oil requirement. The government has proposed routes for the import of oil and gas to Pakistan (Map 3). The pipeline mainly passes through Balochistan. Environmental hazard assessment study along the proposed route needs to be carried out.

The Government has decided that hydel projects will be implemented on a Build-Own-Operate-Transfer (BOOT) basis and thermal projects on a Build-Own-Operate (BOO) basis, to be transferred to the province in which it is situated at the end of concession period. Competitive tariffs will comprise an energy purchase price and a capacity purchase price with adequate provision for escalation. Regarding environmental aspect of the power project the government has decided that all environmental guidelines of the GoP will have to be satisfied and the PPIB will provide copies of the same at the time of pre-qualification of firms. The policy needs to be more specific on compliance of environmental regulations through EIA. Adoption of a system of self-monitoring of status of implementation of these regulations is proposed to be made mandatory for the companies.

The Environmental Protection Agency (EPA) has prepared sectoral guidelines for oil and gas exploration. These guidelines are part of the package of regulations and guidelines that include Pakistan Environment Act 1997, policy and procedures for filing, review and approval of environmental assessments and other specific guidelines. The objective is to mitigate environmental damage from exploratory activities. Though useful, the guidelines still need formal approval for their mandatory adoption by the energy sector as a part of the Environment Impact Assessment (EIA). The guidelines identify and explain issues that should be addressed for a proposal involving exploration

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for, or production of oil and gas. It is intended that companies involved in oil and gas exploration activities, surveying, seismic operations, land use, drilling, and fuel storage will self regulate and undertake monitoring of the measures check listed in Appendix 3.

The EPA has also prepared sectoral guidelines for construction of major thermal power stations. The objective is to mitigate environmental damage from the gaseous emissions. These guidelines also need formal approval for their mandatory adoption by the energy sector as a part of the Environment Impact Assessment (EIA). The guidelines identify the key environmental issues that need to be assessed as well as mitigation measures and alternatives that need to be considered in the actual EIA. The degree and relevance of the issues will vary from proposal to proposal. It is intended that companies while designing various phases of power plants, construction, air emissions, coal benefaction, and particulate removal will self regulate and monitor the measures checklist (Appendix 4).

Compressed Natural Gas (CNG) is an attractive automobile fuel that reduces the cost, protects environment and saves foreign exchange spent on import of liquid fuel. The Hydrocarbon Development Institute of Pakistan (HDIP) has already introduced CNG as an automotive fuel in Pakistan and the government is promoting development of CNG industry in the private sector. For this, import of conversion kits and cylinders by CNG companies need to be exempted from duties and sales tax, besides elimination of double taxation in the form of excise duty. HDIP has established 35 stations in major towns of Pakistan, whereas 38 stations are under construction (Table 12). Plans are underway to construct one station at Quetta. The Chief Engineer, Sui Southern Gas Company Limited (SSGCL) expressed his concern about supplying gas to more than 2-3 CNG stations at Quetta at the current level of supply.

The exploration licences, mining leases and reconnaissance permits are granted by the Ministry of Petroleum & NR through the Director General (Petroleum Concession). Concessions have been granted (March 1999) to 28 exploration companies to operate 167 potential blocks located in various parts of the country. The total area under investigation is 334,881.13 sq km (Appendix 5). While granting concessions the viewpoint of respective provinces regarding sensitivity and suitability of the concession areas need to be given due consideration. This would help in meeting the environmental protection standards and attaining sustainable development, particularly in protected areas.

Table 12: The Status of CNG Stations in Pakistan (by December 31, 1998)

Location Operational Under Construction Vehicles Converted

Islamabad/Rawalpindi 18 7 20,000 Karachi 7 7 4,000

Lahore 5 6 5,000 Faisalabad 1 2 300

Gujranwala 1 0 250 Multan 1 1 300

Abbottabad 1 3 300 Jhelum 0 1 0 Peshawar 0 5 0

Sialkot 0 1 0 Sargodha 0 1 0

Haripur 0 2 0 Mansehra 0 1 0

Nowshera 1 1 200 Total 35 38 30,350 Source: Directorate General Gas

The commercial energy resources of Pakistan are oil, gas and coal. The domestic production of oil is 2,853,565 TOE, gas 14,540,712 TOE and coal 1,589,574 TOE. The total national consumption of oil,

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gas and coal is 15,846,211 TOE, 12,969,418 TOE and 1,968,560 TOE, respectively. The oil meets 17-18% LPG 77.75% natural gas 100% and coal 80.7% of domestic requirement.

The Government of Balochistan is working on the current initiatives to address the gap of energy supply and demand. In its policy agenda for the next five years (Planning and Development Department 1999), the province has committed that:

Effective measures of energy conservation at household level, which obviously cannot be implemented without the participation of women, have to be promoted. At the same time the Government will continue the discussion with the Federal authorities about expansion of the gas pipeline network. These measures will reduce especially the use of wood as fuel and will have a positive impact on the environment.

The provincial government, in close co-operation with NGOs and the private sector, intends to formulate a policy on its own role with regard to promotion of the use of renewable energy sources.

In order to overcome the problem of inadequate and inefficient electricity supply, three steps have been taken by the government: (i) energisation of 220 kV Industrial Grid Station at Quetta, (ii) completion of 132 kV Kingri-Mekhtar-Loralai transmission Line, and (iii) completion of Second 220 kV Double Circuit Guddu-Sibi Transmission Line. It is hoped that the problem of load shedding will now be overcome.

Presently WAPDA is working on two development programmes: Village Electrification and Energy Loss Reduction Programme. The Village Electrification is being carried out under loans from two sources: OECF and World Bank. Under the OECF loan a total of 814 villages, which should be within 6 km radius from 11 kV lines and have a population of at least 200 individuals, have to be electrified. Of this target, 482 villages had been electrified and 99 were under progress up to November 1996. The World Bank loan was for electrification of 628 villages with a condition that the population-distance ratio of such villages should be 24. Under this programme 273 villages had been electrified and 224 were under progress till November 1996.

In order to reduce energy losses, the Energy Loss Reduction Programme is being implemented with the help of Asian Development Bank and the International Bank for Rural Development. Under this programme, high and low tension transmission lines and feeders are being rehabilitated throughout the province.

The Quetta Area Electricity Board has now been transformed into a public limited company and has been renamed as Quetta Electric Supply Company. Recently, the Pakistan Army has been requested to manage WAPDA and to make it a commercially profitable organisation. An intensive recovery campaign has been designed under army supervision. After institutional reforms and budgetary stability, WAPDA will be offered for privatisation.

Projects Requiring an IEE Projects Requiring an EIA

Hydroelectric power generation less than 50 MW Hydroelectric power generation over 50 MW

Thermal power generation less than 200 MW Thermal power generation over 200 MW

Transmission lines less than 11 kV and large distribution projects

Transmission lines (11 kV and above) and grid stations

Oil and gas transmission system Nuclear power plants Oil and gas extraction projects including exploration, production, gathering systems, separation and storage

Petroleum refineries

Waste-to-energy generation projects Source: Hamid 1998.

Until now the private sector has been a dormant actor in the energy sector and the government has taken almost all the initiatives. With the privatisation and open market policies of the government, the private sector has started taking interest in this sector and a few major initiatives are being undertaken. Three major power generation ventures have been started in Balochistan by the private

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sector. The first and the largest is HUBCO with an installed capacity of 1,292 MW. This plant is supplying electricity to the national grid from where it is distributed all over the country.

According to the Pakistan Environmental Protection Agency (Review of IEE and EIA) Regulations, 1998 (draft), the following types of energy projects require either an Initial Environmental Examination (IEE) or Environmental Impact Assessment (EIA) before commissioning:

While examining the IEE and EIA, it may also be ascertained that the sites selected for Major Power Plants do not fall within the potential seismic risk area of Zones 3 and 4.

IUCN Pakistan has developed its policy guidelines regarding oil and gas exploration as under:

1. Incorporation of biodiversity consideration into EIA procedures.

2. Attention to impacts on marine environment.

3. Supporting a reduction in fossil fuel use through direct measures as efficiency improvement, and indirect measures as energy pricing and taxes.

4. Promoting the development and use of renewable energy sources.

5. Promoting IUCNP’s image of being a supporter of sustainable development and wise-use of resources.

6. Supporting the concerned government institutions in resolving any disparity between different policies, plans and programs.

7. Advising the concerned agencies on sustainable approaches to oil & gas exploration and subsequent development activities.

8. Building the capacity of the relevant agencies to enable them in fulfilling their obligations towards environmental protection.

9. As upstream measures for environmental protection, supporting the government to require application of Strategic Environment Assessment (SEA) to the relevant new policies plans and programs.

10. The policy urges the petroleum industry to change its functioning from ‘Decide-Announce-Defend’ to ‘Consult-Agree-Implement’.

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Options for Action

Exploration of Commercial Energy Resources

The energy sector has to play its role by providing the productive sectors of provincial economy with reliable and competitively priced energy. Balochistan owns about 48% of the original recoverable gas reserves and produced about 44.6% of the national gas produce in 1996-97. Balochistan has the lowest per capita consumption of energy in the country, and its share in the national final energy consumption is a meagre 5.1%. The recoverable reserves of coal in Balochistan amounted to 31.5 million tonnes, out of which 1.83 million tonnes of coal was produced during 1996.97.

A logical policy initiative to extend energy supplies will be the maximum exploration of the available commercial energy resources of the province, which so far has been slow due to low investments. Due to limited availability of resources, the exploitation of these resources should favour privatisation, market orientation and globalisation.

The present gas allocation policy, in terms of priority includes, domestic and commercial consumers, feedstock for fertiliser, HSD replacement in the gas turbines, fuel oil replacement in power sector, and fuel oil replacement in industrial sector. There is a large gap in gas supply/demand position due to limited availability of indigenous gas for the province.

Imports of gas from the neighbouring countries like Iran and Turkmenistan should be firmed up, as gas is a clean and efficient fuel, and also to take advantage of the extensive transmission and distribution system available in the country, which may be under-utilised after depletion of the Sui field. Consideration should be given to construction of a separate terminal for the import of LPG, if market conditions warrant additional LPG imports. Price regulation of LPG in the province also needs to be rationalised.

The provincial government is not adequately equipped to effectively manage and monitor various exploration joint ventures in the province currently being undertaken or planned to be undertaken. The provincial government should either raise its technical capacity, or redefine a mechanism to oversee all such developments in the province.

More attractive policies must be developed for encouraging foreign investment in this sector. Policies should not be changed to the disadvantage of existing investors. Rather, these policies should give appropriate legislative cover to generate confidence among the investors. More attractive policy packages should be devised for offshore exploration. Presently, no petroleum exploration is possible in some potential areas of Mari-Bugti agencies. Solutions to resolve deadlocks in such areas need to be found on a permanent basis. Solution to security problems in tribal areas will also have to be found by giving incentives to people in tribal belts.

Foreign investment has a significant role in the promotion of a diversification of economic growth, importation of environment friendly technology, efficient management and marketing techniques. The government has already enacted an extensive package of incentives whereby foreign investors have been placed at par with the local investors. To expand international co-operation and build investor’s confidence to invest in Pakistan, the incentives should range from reduced import duty on machinery and equipment, moderate level of taxation, and reasonably developed infrastructure. Indigenous production of energy related machinery/equipment should be encouraged by providing appropriate level of protection.

Coal is a provincial subject. Coal exploration and mining activities are carried out mainly by GSP and by the Department of Mineral Development. However, the bulk of small-scale mining operations are in the private sector. For large-scale coal mining in the province, mechanisation and trained/skilled manpower would be necessary. Marketability and utilisation of coal should improve. A key cause of

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failure to utilise indigenous coal for power generation has been the unavailability of funds for pre-feasibility and feasibility studies and necessary data gathering. Such studies should be carried out through appropriate allocations of funds in the public sector.

To accelerate coal development, initial geological, investigation and pre-feasibility studies of promoting sites should be undertaken by the provincial government to a sufficient level of detail to facilitate inviting international investors for competitive bids.

It is felt that the fastest way of developing the indigenous coal resources would be to create an environment in which private power developers could be given the existing and future promoting sites and prospective blocks of coal fields for preparing their bids for integrated coal mining and power generation.

Renewable Sources of Energy

Biomass is the major non-commercial renewable resource of energy supply for the low-income household in Balochistan. The unbridled cutting of trees and bushes from farms or forests coupled with rapidly growing population may pose serious environmental threat due to their extinction.

In order to conserve biomass resource, a number of options may be considered on urgent basis including promoting plantation specifically for energy use, improved farm management and community training, establishing wood-based industries, and provision of alternate fuels like LPG, particularly in areas in close proximity of top soil erosion.

The option of promoting biogas as a renewable source of energy in rural areas can be given a very serious consideration. Biogas plant is a device for conversion of organic materials into combustible gas and organic conditioner. Bio-chemically the process consists of three major phases i.e. liquefaction, acidic phase and methane producing phase. The biogas technology is cost-effective, environmental friendly and can help reduce the energy shortages in the rural settings.

Among all renewable energy resources, solar energy is the cleanest, most abundantly available, widely spread, and may cover a wide range of applications. One way of utilising solar energy is photovoltaic, that is, by converting sun energy directly to electricity through solar cells. The photovoltaic technology has shown tremendous development during last 30 years with cost of solar cells coming down to several orders of magnitude in this period. For sites far removed from WAPDA’s grid line, the application of solar photovoltaic systems may become financially viable.

Another way of utilising solar energy is solar thermal that is, converting solar radiation into heat directly. This technology can be used for a number of common applications including water desalination, water heating for domestic and/or commercial use, and drying vegetables, fruit and timber. The main reasons for this technology not being wide spread so far are public unawareness, lack of motivation, and non-availability of low-cost of-the-shelf systems. These technologies can be effectively promoted for the uplift of remote rural areas as well as in the urban areas for conservation of conventional sources of energy.

Wind is another renewable, non-polluting but dispersed source of energy. The coastal areas of Balochistan are known to have sufficient wind around the year to justify installation of wind energy projects. However, proper wind assessment studies are still required to generate reliable data to encourage large-scale application of this technology and to encourage private sector investments in properly exploiting this form of energy. Comprehensive research and development efforts are needed to evolve appropriate windmill technology in accordance with local needs and available infrastructure.

There is an urgent need to develop a separate policy on power generation for Balochistan from renewable energy sources that are environment friendly and require specific incentives to enable them compete with conventional sources of energy. Substantial funding and support is needed to conduct meaningful and result oriented research and development in developing indigenous renewable energy resources.

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Balochistan covers a vast area with varied landscape and abundant renewable resource. It has a large rural area with dispersed population spread. Conventional energy is expensive to supply in this setting. The concept of establishing sustainable energy units is recommended.

Energy Conservation Strategy

Energy conservation offers the most cost-effective supply option to bridge the demand-supply gap. Conservation is not a form of energy rationing. It is rather using energy more efficiently and thereby minimising waste component. With energy conservation, the same level of output can be achieved with less energy, or output can be increased with no corresponding increase in energy consumption. By eliminating waste, energy also becomes available to a greater number of consumers. It is therefore another way of adding to the total supply of available energy. In this respect, energy conservation is similar to increasing energy supplied through increased levels of domestic production, and serves as import substitution.

Energy conservation also has several advantages over the other supply options, in that, it has short gestation periods, it has particular advantages in terms of saving scarce foreign exchange, and above all it has positive environmental consequences. It is estimated that a comprehensive provincial level energy conservation programme may increase available energy supplies by 10-15% over a relatively short time frame and at costs much less than the costs of production of conventional sources of energy. Significant savings can be achieved in the industrial, power, transportation, residential, commercial and agricultural sectors, the benefits of which can become immediately available to energy consumers.

A large share of potential energy savings can be captured in a relatively short time, as compared to the longer development time needed for most other energy supply options. Many energy saving steps can be implemented immediately or within a few months, while development and construction of fossil fuel resources, power stations and distribution networks typically take up to 5-10 years.

Energy conservation can be targeted at all sectors of economy including industry, buildings, power, transport, and agriculture sectors. In the industrial sector, the conservation opportunities may come through implementation of low cost measures such as improving operating procedures of production equipment, upgrading steam system efficiency, improving combustion efficiencies, improving illumination, eliminating overheating or over drying, avoiding idle running of machines, and improving compressed air system efficiency or through moderate cost measures as installation of combustion control systems, replacement of burners, using variable speed drives, improving insulation, waste heat recovery, and replacing over-sized motor. Substantial saving may accrue by capital investments in the sector by major revamps and modernisation, and/or by process improvement.

The cumulative power transmission and distribution losses for WAPDA and KESC during 1996-97 were of the order of 24.8% and 37% respectively. This depicts a huge inefficiency in the national grid system and offers a tremendous opportunity for improvement. Other opportunities in the power sector include a proper load management strategy and improvement of efficiencies in various power plants in the province.

The transport sector also offers a great energy conservation opportunity though the lack of concentration of energy use, as found in the industrial sector, but the high degree of individual ownership makes focused efforts difficult. Sectoral energy use can be affected by a range of measures including improved operation and maintenance of vehicles, introduction of vehicle fitness standards, and vehicle emission standards, and/or implementation of capital intensive measures as more streamlined construction of trucks and buses, introducing mass transit systems, and incorporating energy conservation opportunities into land use planning.

For the buildings, the measures likely to accrue savings may include use of improved cook stoves, improved use of air conditioners, improved use of heating equipment, use of more efficient appliances, replacement of incandescent lamps with energy efficient lamps, better insulation of hot water heaters, and better architecture of the buildings to cater to energy efficiency requirements.

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In the Agriculture sector, major energy saving opportunities exist in the better operation and maintenance of tractors, improvement in tubewell operating efficiencies, and farm management.

Specific energy conservation proposals included in the Balochistan Conservation Strategy include:

• conducting sector-specific energy audits to assess/identify conservation opportunities and investment requirements;

• conducting energy conservation awareness campaigns, and information and outreach services;

• to demonstrate early results in order to provide visible impact and support for energy conservation;

• to use total energy management approach, which combines engineering management and financial aspects of energy conservation into a single, logically connected, unified process;

• to cover major energy consuming sectors of economy including industry, power, buildings, transportation, and agriculture sectors with large-scale demonstration throughout the province;

• planning of programmes, including conduct of special policy studies and developing legislative initiatives to support implementation;

• establishing and maintaining energy conservation databases for sector of economy; • developing and presenting training courses and curriculum for educational and training

institutions; • instituting annual energy conservation achievement awards; • preparing and disseminating information through outreach materials and media campaigns; • conducting technical assistance projects, including demonstration energy audits, feasibility

projects/studies, and applied research projects; • monitoring, evaluating and reporting on the progress of energy conservation programmes for

each sector of economy; and • institutional strengthening to promote and implement energy conservation; • integrating national load management plans and energy conservation activities being carried

out by various government organisations to minimise redundancy of effort and maximise results achievement.

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The Way Ahead Although great enthusiasm is being expressed by the federal as well as provincial governments regarding exploration and conservation of energy resources, there are little chances of major resource discoveries, except that of the natural gas, in the coming years. The safe way would be sustainable use of existing resources. In this situation there is a significant need for a shift towards renewable energy sources. Cleaner energy sources – wind, wave, solar – should be promoted.

Any type of exploration activities in protected areas should not be allowed. If such activities are absolutely inevitable, a baseline study must be conducted in these areas, by an independent researcher, to assess their biological and cultural importance. permission for exploratory activities should base upon the results of the baseline study.

All policies and programmes should be subject to Strategic Environmental Assessment (SEA). Environmental guidelines prepared by the Federal Environmental Protection Agency regarding conduct of EIA or IEE must be implemented in all exploration and exploitation activities. All power generation plants should be subject to EIA.

Environmental Protection Agency Balochistan should be enabled to play an effective role regarding EIA and monitoring. Its staff must have capacity to evaluate EIA reports and monitor the implementation of National Environmental Quality Standards (NEQS).

Availability and use of clean fuels, free from adulteration, should be ensured. Illegal trade of adulterated petroleum products, including petrol, engine oil, gear oil and other lubricants, must be stopped through law enforcing agencies.

Use of CNG in motor vehicles and auto rickshaws must be encouraged. In this regard necessary infrastructure, including filling stations and CNG kits should be made available. Frequently asked questions must be answered through mass media and doubts of rickshaw owners and drivers should be removed satisfactorily. Conversion of public sector vehicles in the provincial metropolis might be a god start in this direction.

Economic incentives should be provided for research and development activities. Universities in the province may be asked to focus their research activities on renewable energy sources and energy conservation techniques that are suitable for the province.

Flat rate of electricity charges for tubewells in rural areas must be abolished to discourage ruthless mining of groundwater as well as to save electricity. Payment of fuel bills should be ensured through litigation against the defaulters.

Emergency protocols for power generation and fuel production projects should be developed and implemented.

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Appendix 1

History of Oil and Gas Exploration in Balochistan

The briefs given in Appendix 1 and 2 were provided by the Resource Centre of the Planning Studies Section, Planning and Development Department, Government of Balochistan, Quetta. However, the briefs do not include new discoveries in Zarghun South and Zarghun North.

It is interesting to note that the first oil production obtained in Indo-Pak was from Khattan (Kohlu District) belonging to Sardar Khair Bakhsh Marri. Townrends Company drilled first well in Balochistan at Khattan in 1884 to a depth of 160 metres. An oil show was observed and the well was abandoned. In a similar way 12 additional wells were drilled to maximum depth of 408 metres but the results were same as of Khattan # 1. Oil production was obtained at the maximum rate of 416 barrels per day in 1884 and estimated oil obtained amounted to 20,000 barrels. Government of Bombay drilled Spintangi # 1, 57 km from Sibi, to a depth of 171 metre in 1890 but it proved to be dry.

Twenty-six years later Burmah Oil Company (BOC) drilled Chandragup # 1 along Mekran Coast in 1916 to a depth of 810.7 metres but abandoned owing to gas show. In the same year BOC drilled two wells, Chapper Rift # 1 located between Khost–Khanozai (District Pishin) and Pir # 1 (District Sibi), but both proved to be dry. After this no further drilling activity was carried out in Balochistan during the British period.

After independence, Sui # 1 was drilled to 3,060 metres in 1951 by the Pakistan Petroleum Limited (PPL) and achieved the target depth in one year and proved to be gas bearing.

Second gas discovery was made by the PPL at Zin by drilling to a target depth of 1,946 metres in 1954. Estimated recoverable reserves are 100 billion cubic feet but contain 44.7% carbon dioxide (CO2) and 13.3 grains per 100 cubic feet (ft3) hydrogen sulphide (H2S). With a calorific value of 484 BTU per cubic feet, Zin field is considered of low quality gas field. The lease was surrendered to the government due to lack of market for a low BTU gas.

Third gas discovery was made at Uch in 1955 by drilling to a depth of 335 metres. This field has estimated reserve of 4.05 trillion cubic feet but also contains 46.2% carbon dioxide (CO2) and lowest range of calorific value, i.e., 308 BTU per cubic feet. The hydrogen sulphide (H2S) contents are even higher than Zin Field. The lease was surrendered to the government in 1958, as avenues for utilisation of gas did not exist at that time. The OGDC has taken the lease and the field is under development. After gas discovery of Zin, the PPL drilled wells at Sanni and Bannh in 1957 to a depth of 3,963 metres. They proved to be dry. Other foreign companies drilled wells in Balochistan during 1956–94 that also proved to be dry (Table A-1).

After PPL, M/S Amoco made the gas discovery at Jandran by drilling the well down to 2,455 metres in 1975. Due to security reasons this field could not be developed. At present this area belongs to the Oil and Gas Development Corporation (OGDC).

Table A-1: Drilling for Oil and Gas in Balochistan

Company Well Depth (m) Year

Hunt Dhak 1& 2 Max. 4,450 1956

Hunt Ketch Band 3,349 1956 Amoco Jhatpat 4,664 1974 Amoco Garrkoh 3,623 1975

British Petroleum Jhal 5,000 1982 British Petroleum Sanni 4,170 1983

Albion Dabar 1,372 1994

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The state owned organisation OGDC made its first gas discovery at Pirkoh in 1977 by drilling the well down to 2,800 metres. Estimated recoverable reserve are 1.8 trillion cubic feet from which 0.681 trillion cubic feet have been produced until June 30, 1997. The gas has high methane content, a calorific value of 840 BTU per cubic feet and is free of hydrogen sulphide.

OGDC’s second gas discovery was made at Loti in 1985 by drilling down to 2,252 metres. Gas has a high calorific value but less than that of Sui and Pirkoh.

Another gas discovery was made by a foreign company British Petroleum in 1994 by drilling Savi Ragha – 1 to a depth of 2,977 metres. The gas has been tested at a rate of 16.01 MMSCFD and 709 barrels condensate. A further drilling of Gullan – 1 is underway which is close to Savi Ragha structure.

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Appendix 2

Development of Gas Fields in Balochistan

Sui

Commercial production of natural gas commenced from Sui field in 1955 and the field produced 722 MMSCFD during January-December 1993 whereas condensate produced was 1.33 million litres.

A total of 86 wells have been drilled and completed and field has produced 6.438 TCF up to June 30, 1997. Sui compression station completed and commissioned in 1986 is functioning satisfactorily. The compression station for Sui Main Limestone reservoir that contains 92% of the field reserve would enable PPL to maintain field production level for a number of years.

Preparatory work for the installation and commissioning of the seventh Turbo Compressor Train of Sui Main Limestone well head gas compressor station has been done. Additional wellhead gas compression facilities for Sui Upper Limestone reservoir were also planned to be installed and commissioned by end 1996 to maintain production from Sui at the required level.

Loti

The field was discovered by OGDC in 1985. After drilling 18 wells, the commercial gas supply to Sui Northern Gas Pipelines Limited (SNGPL) commenced in 1989. The reservoir study indicates that initially there is about 276 BSCF recoverable gas. The reservoir life is estimated at 15 years. Presently about 44 MMSCFD gas is being supplied to SNGPL at an average delivery pressure of 670 PSIG. The decline in pressure has necessitated to installation of compression facilities for achieving a delivery pressure of 750 PSIG as per agreement with SNGPL and for maintaining the production level. The field has cumulatively produced 95 BSCF of gas.

Installation of field compression and related facilities to increase the declining pressure to contractual limit of 750 PSIG was expected to be installed by December 1997.

The project will be financed through OGDC’s own resources. The estimated cost for installation of compression facilities is US$ 30 million. Contract negotiations for consulting services have been finalised and after management approval the consultant will prepare the basic designing and turnkey bid documents.

Pirkoh

The Pirkoh gas field, located about 56 km northwest of Sui in Dera Bugti Agency, was discovered by OGDC in 1977. The development of this field started in 1981 in different phases. Phase-I and II of the project have since been completed with the financial assistance of Asian Development Bank (ADB). Fifty-three wells were drilled under the three phases along with allied processing facilities.

The scope of the project for Phase-III envisages (a) drilling of 35 wells, (b) surface gathering facilities, and (c) gas compression facilities to sustain a production of 230 MMCFD due to decrease in reservoir pressure.

The total cost of the project is Rs. 4,146.3 million including a foreign exchange component of Rs. 2,256.3 million. The ADB has provided a loan of US$ 110.35 million to finance foreign exchange component of the project. Drilling of 26 wells (i.e., well numbers 28 to 53) has been completed under Phase-III of the project. British Gas of U.K. has been engaged as consultants for the Compression Project.

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The original recoverable reserves of the Pirkoh gas field are estimated to be 1.504 TCF out of which 0.681 TCF have been produced till June 30, 1997. About 190-200 MMCFD gas is being supplied to the SSGC and SNGPL from Pirkoh gas field. The field has the capability of producing 230 MMCFD of gas.

Uch

Uch Gas field was discovered by the PPL in 1955 and the exploratory well Uch Well # 1 was abandoned after the gas was found to be of low heating value. Until now, three phases of the project for appraisal of the field have been successfully completed. Under these phases 9 more wells were drilled with an investment of about Rs. 570 million. Out of 10 wells drilled, 7 wells are gas producers with an average daily production of 20 MMCFD of gas.

The objective of the project is to produce 250 MMCFD of gas from the field. The heating value of the gas is low (425 BTU/CFT) due to which it cannot be injected into the national gas transmission system. Its end use is only in power generation. The gas has, therefore, been dedicated for a 584 MW combined cycle power plant to be installed by the Uch Power Group Ltd for which a Gas Sale Agreement (GSA) has been signed with the company on August 4, 1994. The project envisages the following components (a) drilling of 11 wells, (b) gas gathering facilities for 18 wells, (c) 50 km pipeline from Uch to Dera Murad Jamali, (d) gas treatment and processing facilities, and (e) dehydration plants. The capital cost of the project has been estimated at Rs. 7,622.626 million with a foreign exchange component of Rs. 6,965.147 million.

The original recoverable reserves at Uch gas field are estimated to be 3.1 TCF and the field has a capability of producing 250 MMCFD of gas.

The gas fields of Balochistan are plotted on Map 3.

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Appendix 3

Checklist of Environmental Parameters for Oil and Gas Exploration and Production

Actions Potential Damage to the Environment

Recommended Protection and Mitigation Measures

1. Surveying

Disturbance of flora and fauna

Select reference survey points and survey lines that minimise vegetation clearance required. Collect and bury waste materials resulting from survey activities.

2. Seismic operations Disturbance of flora and fauna

As above, Seismic testing should be done at times which will minimise impacts on the breeding cycle of rare or endangered species.

3. Land use Disturbance to adjacent land uses

Care in siting well and camp, providing suitable buffer distances, adequate compensation payments.

4. Well site location and preparation

Destruction of local habitats, impacts on drainage and ground water.

Paper planning of well site location and lay-out

5. Camp for exploration activities

Health and safety for workers

Good layout provides separation from noises and odours, provision of septic tanks and other arrangements for disposal of wastes, good rainwater run-of-design.

6. Road location, construction and maintenance

Damage to natural system, opening up new areas to exploitation

Careful siting, provision of buffer distances to sensitive receptors, minimising earthworks and changes to natural drainage patterns, dust suppression near sensitive receptors.

7. Drilling activities: ground water and water supply

Impact on existing supply to local users, pollution of ground water.

Pipe water whenever possible. Re-use water to minimise requirements. Share new sources with local community. Line waste pits to prevent contamination of ground water.

8. Drilling activities: drilling fluid and drilling wastes

Degradation of land and water environments

Limit use of oil based mud; Minimise addition of hazardous additives to drilling mud; Line oil based mud waste pits; Safe disposal of drilling mud and cuttings; Manage other wastes by recycling, incineration or burial.

9. Drilling activities: power supply

Grand and water contamination from spilt diesel

Storage tanks to be bounded; Split diesel (and other lubricants) to be Collected and used as low grade fuel, burned, or recycles.

10. Drilling activities: air emissions

Emissions from power generators, presence of hydrogen sulphide

Careful siting of generator down wind from the accommodation area. Monitoring and contingency plan for hydrogen sulphide.

11. Drilling activities: wastewater discharge

Contamination of local environs

Wastewater disposal to conform to waste disposal plan. Re-use of wastewater to be done where practicable.

12. Drilling activities: flora and fauna

Destruction habitat, exposure to hazardous substances

Prohibiting hunting of birds or animals; minimising removal of vegetation, minimising contamination of soil and groundwater.

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Actions Potential Damage to the Environment

Recommended Protection and Mitigation Measures

13. Socio-economic impacts Direct impact of exploration activities.

Provide employment opportunities; Site roads to assist local movements; Ensure adequate consolation with local communities;

14. Well testing Management of well product during testing, to avoid degradation of natural environment.

Contain well product, and safely flare and burn petroleum products.

15. Control of subcontractors Environmental damage by subcontractors.

Proponents shall bind subcontractors to implement the environmental conditions through contractual clauses and penalties.

16. Well abandonment and site restoration

Potential contamination of ground water, impact on local amenity

Wells should be abandoned in a manner to ensure down hole isolation of hydrocarbon zones, and protection of fresh water aquifers, sites to be cleared of structures and materials, pits filled to ground level, and area let in a condition for normal use.

17. Operational health and safety

Adverse impacts on health and safety of workforce.

Use of hearing protection when noise levels exceed 80 db; Correct storage and handling of hazardous materials.

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Appendix 4

Checklist of Environmental Parameters for Thermal Power Projects (Major Plants)*

11. This lists significant environmental effects known to have occurred in past thermal power development projects.

12. This is arranged to permit (i) ready screening out non-pertinent items by checking the column ‘No significant Effects’, and (ii) ready grading of significant environmental effects by degree of effect.

13. The checking process of (2) above furnishes the information needed for preparing the IEE.

Actions Damages to Environment Recommended Feasible Protection Measures (A) Environmental problems due to project location (A) Unnecessary environmental losses which

stem from poor site selection (A) Careful site selection to minimise loses

• Disruption of hydrology • Impairment of other beneficial water uses • Careful site planning and project design • Resettlement • Social inequities • Appropriate resettlement planning and

budgeting • Encroachment into previous ecology • Loss of ecological values • Careful site planning and project design • Encroachment on historical/cultural values • Loss of these vales • Careful planning, plus mitigation measures • Cooling water obstruction (excessive) • Conflicts with other beneficial water uses • Appropriate sharing of water rights • Regional flooding hazards • Hazard to plant operations • Careful site selection and project design • Waste emissions related to siting • Intensification of problems of pollution

control • Careful site selection and project design

(B) Environmental problems due to inadequate design, including assumption relation to O&M

(B) Unnecessary environmental losses of many types

(B) Careful planning/design/operations plus monitoring

• Cooling water system (once through). • Impairment of downstream beneficial water uses

• Careful design/O&M monitoring

• Pollution control equipment selection • Assumed pollution removals not realized in operations

• Appropriate equipment selection

• Environmental pollution control operations • Surface waters (fresh/estuarine/marine) • Groundwater

• Impairment of beneficial water uses • Careful design O&M/monitoring and use

for appropriate environmental standards.

* Source: Director General (PC), Ministry of Petroleum and Natural Resources, GoP.

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Actions Damages to Environment Recommended Feasible Protection Measures • Air environment • Impairment of air quality • Noise • Nuisance and health hazards • Bottom sludge’s (special problem) • Impairment of beneficial water uses • Impacts on adjacent land economic uses, including

recreation/tourism • Impairment of land values

• Occupational health and safety hazards • Hazards (spills/fires/explosions).

• Hazards to workers health and safety • Careful design and operation planning

(C) Environmental problems in construction stage • Silt runoff during construction • Continuing erosion of unprotected exposed area

• Impairment of downstream water land uses

• Other construction stage hazards • Depends on nature of effect

• Careful construction stage planning plus monitoring

• Monitoring during construction • Without it, construction contractor not like it to observe constraints.

• Incorporate monitoring requirements into construction contracts

(D) Environmental problems relating to inadequate operations

• Inadequate O&M due to poor management • Failure to achieve protection to workers and environment assumed in design

• Careful O&M plus training and monitoring

• Occupational health and safety programs, including accidents

• Hazards to worker health and safely • Careful O&M, including readiness for emergency actions

• Nuisance from handling/transportation of fuel on access roads

• Dust and noise nuisance

• Surface runoff from plant yard • From pickup of fuels stored on around of oil drippage, etc.

• Careful design/O&M/monitoring

• Operations monitoring • Without it, operations not likely to observe constraints

• Incorporate carefully prepared monitoring program into O&M plan.

(E) Realisation of feasible enhancement measures (F) Impacts from power transmission facilities • Encroachment on precious ecology • Careful planning, plus promotion of

improved community drainage system • Depreciation of environmental aesthetics

• Loss in these values

• Adequate attention to O&M parameter • Erosion/silt runoff during construction • Damage to water quality and land uses • Careful planning to minimise hazards, plus

competent clean up system • Continuation erosion/silt runoff from uncovered

exposed areas • Loss in community environmental

aesthetics • Adequate attention to O&M parameter

• Water/sewer pipes in same trench • Health hazard if not properly designed and • Careful design and construction including

49

Actions Damages to Environment Recommended Feasible Protection Measures constructed monitoring

(G) Environmental problems in construction stage (G) Unnecessary environmental damage (G) Careful planning of construction including monitoring

• Hazards to workers (and nearby residents) • From accidents, including fires and explosions • From hazardous materials/contacts and sails • Communicable disease hazards • From emissions of dusts, fumes, noise vibrations

• Injuries to health/safety of workers/nearby residents

• Uncovered cut-and-fill areas • Soil erosion/silt runoff and consequent damages to properties and aesthetics

• Local flooding during back filling or washing operations

• Local flooding damages

• Quarrying hazards • Hazards to safety of workers and others nearby

• Careful construction planning plus monitoring

• Accidental damage to utilities in same trench • Careful construction plus prompt repair system plus monitoring

• Traffic congestion and blockage of access to buildings

• Loss of time and fuel and accidents

• Back filling and resurfacing inadequate • Impairment of streets and other paved areas

• Care construction planning plus monitoring

• Construction monitoring deficiencies • Un necessary damages to environment • Monitoring essential for ensuring careful component construction.

50

Appendix 5

Concessions Granted in Balochistan*

Exploration Licences as of April 3, 1999

S. NO. OPERATING COMPANY

BLOCK AREA (sq km)

DISTRICTS GRANT DATE RELINQUISH DATE

REMARKS

1 BHP 2863-3 (Risaldar-A)

1,180.04 Dera Bugti Agency, Jacobabad, Rajanpur

04/04/1997 FM since October 1997

2 British Gas Block-34 253.12 Zhob, Loralai, DG Khan & S. Waziristan

08/10/1990 31/12/1999 2 Yr. Renewal; 4 months Ext. in 2nd renewal; 1 Yr. renewal; 6 months Ext.; 18 months Ext.

3 Lasmo Kirthar 2,938.91 Dadu & Lasbela 30/11/1994 29/11/1999 1 yr. extension in the initial term. One year renewal

4 2667-2 (Kirthar West)

2,151.28 Khuzdar & Lasbela 14/01/1997 13/01/2000

5 2566-3 (pab) 7,332.44 Lasbela, Zhob &Khuzdar 22/09/1997 21/09/2000 6 Murphy Kharan 28,145.89 Kharan, Chagai &Turbat 07/12/1978 13/10/2006 Force Majure since February 1979.

Supplemental Agreement signed to lift FM from southern part of the Block on 19-10-98.

7 OGDC Jandran 600.54 Loralai & Kohlu Agency 20/09/1989 13/11/1999 FM during 01/10/90-24/09/94, 2 months Ext. in initial term/1 yr. renewal/2nd 1 yr. renewal, one year’s extension.

8 2867-2 (Kotra) 836.83 Kachhi, Khuzdar 31/12/1995 30/12/1999 9 2868-4

(Risaldar-B) 594.15 Dera Bugti Agency,

Jacobabad, Jaffarabad 04/04/1997

10 2868-1 (Zin) 5,559.74 Kachhi, Nasirabad, Dera Bugti & Mari Agency

23/06/1996

11 2969-2 2,826.83 DG Khan, Musakhel & 27/09/1997 26/09/2000

* Source: Director General (PC), Ministry of Petroleum and Natural Resources, GoP.

51

S. NO. OPERATING COMPANY

BLOCK AREA (sq km)

DISTRICTS GRANT DATE RELINQUISH DATE

REMARKS

(Rakhru) Barkhan 12 2969-3 (Siah

Koh) 1,790.11 DG Khan, Barkhan 27/09/1997 26/09/2000

13 3070-5 (Kharat)

1,106.74 DG Khan, Barkhan 27/03/1999 26/03/2002

14 OPPI Kohlu 7,135.00 Tribal area (SU Range) Rajanpur, Loralai, Kohlu & Dera Bugti

19/02/1989 07/08/2000

15 2869-4 (Zamurdan)

4,256.89 Bugti Agency, DG Khan & Rajanpur

17/12/1994 06/02/2001

16 POGC 3069-2 (Mekhtar)

1,525.07 Zhob, Loralai, &Kohlu Agency

19/02/1998 18/02/2001

17 Premier 2967-1 (Bolan) 4,535.21 Kalat, Karachi, Sibi, Quetta, Dhadar & Pishin

30/11/1994 31/08/1999

18 2567-1 (Dumber)

7,013.80 Karachi East, Dadu, Thatta, Khuzdar & Lasbela

05/07/1997 04/07/2000

19 Tullow Block-28 5,856.71 Sibi, Loralai & Kohlu Agency

14/01/1991

20 UMC 2462-1 (Pasni) 7,480.70 Pasni 14/01/1996 13/01/2000 21 2462-2

(Gwadar) 4,541.87 Mekran Coastal Region 13/06/1996 12/06/2000

22 2564-1 (Pasni East)

5,748.70 Mekran Coastal Region 13/06/1996 12/06/2000

23 2563-1 (Ormara)

5,977.88 Lasbela, Khuzdar, Gwadar & Turbat

24/10/1997 23/10/2000

24 2462-3 (Pasni South)

7,283.11 Mekran Offshore 24/10/1997 23/10/2000

25 UTP 2467-2 (Karachi Urban)

2,328.77 Karachi & Lasbela 24/10/1997 23/10/2000

26 2765-1 (Nauroz Kalat)

7,444.78 Kharan and Chagai 04/05/1998 04/05/2001

Total 126,445.11

52

Mining/D&P Leases as of April 3, 1999

S. NO. OPERATING COMPANY

BLOCK AREA (sq km)

DISTRICTS GRANT DATE RELINQUISH DATE

REMARKS

1 OGDC Uch 121.00 Dera Bugti Agency 01/07/1996 30/06/2021 2 PPL Sui 455.80 Dera Bugti Agency 01/07/1955 31/05/2015 3 Sui Additional

(M.L) 45.16 Dera Bugti Agency &

Larkana 14/12/1978 15/04/2000

4 Sui Additional (D&PL)

70.43 Dera Bugti Agency 13/10/1997 12/10/2002

Total 692.39

Reconnaissance Permits by Company as of April 3, 1999

S. NO. OPERATING COMPANY

BLOCK AREA (sq km)

DISTRICTS GRANT DATE RELINQUISH DATE

REMARKS

1 Western 2365-2 42,321.74 Mekran Offshore 18/04/1998 17/04/1996 Area revised w.e.f. 26/02/1999

Pending Applications as of April 3, 1999

EXPLORATION LICENSES S. NO. BLOCK NAME APPLICANT NAME DATE APPLIED AREA (sq km) DISTRICT STATUS

1 2069-4 (Sulaiman)

OGDC 15/05/98 2,013.09 Musakhel, Barkhan, Loralai & Kohlu Agency

The company has been asked to submit execution copies of Licence & PCA.

2 2461-1 (Jiwani) OPI 13/06/98 2,473.93 Gwadar Decision awaited 3 2867-3 (Dhadar) Premier 15/08/98 6,248.04 Mastung, Bolan, Sibi, Jhal

Magsi & Khuzdar The company has been asked to submit execution copies after necessary changes.

Total 10,735.06 RECONNAISSANCE PERMITS

1 2866-1 (Kalat) Premier 24/12/98 7,280.09 Kalat Execution of agreement is being arranged.

53

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Planning and Development Department 1994. Concept Eight Five Year Plan 1993-98 Government of Balochistan. Quetta: P&DD, GoB.

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Zahid, Tanvir 1998. “Renewable Energy Development,” Daily Dawn, 30th November 1998.

IUCN-THE WORLD CONSERVATION UNION IUCN-The World Conservation Union, is one of a kind

organisation. Founded in 1948, it brings together states, government agencies and a diverse range of non-governmental organisations in a unique partnership. Today, we have over 954 members, spread over 140 countries of the globe.

What do we seek to do? To "influence, encourage and assist

societies throughout the world to conserve the integrity and diversity of nature, and to ensure that any use of natural resources is equitable and ecologically sustainable."

How do we do it? By building on the strengths of our members,

networks and partners, by enhancing their capacity, and by supporting local, regional or global alliances that will safeguard natural resources.

IUCN has been in Pakistan since 1985. We have 20 members

which include the Government of Pakistan itself as a state member, 5 government organisations, as well as 14 NGOs.

Our main work has been to support the development and

implementation of sustainable development strategies: we started with the National Conservation Strategy, are now helping to implement the Sarhad Provincial Conservation Strategy, and are assisting in the development of the Balochistan Conservation Strategy as well as the Northern Areas Conservation Strategy. From the provincial level we are moving to the district. A logical move forward from the provincial strategies are two district conservation strategies that have been initiated in Chitral and Abbottabad. Future initiatives are planned for the Punjab, Sindh and Azad Jammu and Kashmir.

Besides a focus on policy and strategic planning for the

environment, IUCN also tests and demonstrates new approaches, by developing and implementing field projects, that directly involve and affect people and their communities.

IUCN Pakistan Balochistan Office Marker Cottage, Zarghoon Road, Quetta Tel: 081-840450-1 Fax: 081-820706