Pakistan – Iran Gas Pipeline

Project Outline• Introduction.• Use and Benefits.• Use of Gas.• Natural Gas in Pakistan.• Energy Crises in Pakistan.• Iran – Pakistan Gas pipeline.• Hurdles.• Benefits.• Conclusion.

IntroductionNatural gas refers to natural gases that occur in underground deposits, whether liquefied or gaseous, consisting mainly of methane.

Benefits of Natural GasGlobal Energy Markets' Demands for Natural Gas

Expected to expand from 650 million tons of oil equivalent(mtoe) in 1994 to 1380 mtoe by 2011• Least capital cost per unit power

generation capacity- natural gas plant: $650/kW 

- coal-fired plant: $1,300/kW  - fuel-oil fired plant: $1,000/kW

Benefits of Natural Gas• Higher thermal efficiency

- natural gas plant: 45 - 50 percent  - coal fired plant: 30 - 35 percent  - fuel-oil fired plant: 30 - 35 percent• Shorter construction period

- natural gas plant: 2 - 3 years  - coal fired plant: 5 years  - fuel-oil fired plant: 4 years 

Uses of Natural GasPower generationNatural gas is a major source of electricity

generation Domestic Use Natural gas is a powerful domestic cooking

and heating fuelTransportationCNG is a cleaner alternative to

other automobile fuels such as gasoline (petrol) and diesel 

Uses of Natural Gas

• Fertilizers.Natural gas is a major feedstock for the production of ammonia, via the Haber process, for use in fertilizer production.• Hydrogen production.Natural gas can be used to produce hydrogen, with one common method being the hydrogen reformer.

Benefits of Gas in Pakistan• Cost.• Durability.• Balochistan Development• Local investor• Agricultural Development

Sources of Gas in Pakistan

• Kadanwari. 232 MMscfd• Qadirpur. 600MMscfd• Sawan.

400MMscfd(285MMscfd)• Sui.

12Tcf(550MMscfd)• Bahu. 17MMscfd• Nandpur. 50MMscfd

Proved Gas Reserves of Pakistan

Production of Natural Gas

Sources of Gas in Iran

• Ferdowsi. 13Tcf• Golshan. 56Tcf• Kish. 40Tcf• South Pars. 51Tcf

Iran Total Reserves

Energy Crises of PakistanRapidly growing population resulting in

increasing energy demand

Largest energy source in the country, supplying 49% of the entire energy needs

Excessive agricultural, industrial and domestic use in the country

Energy Crises of Pakistan

Latest estimates show 38.41 billion cubic meters of annual gas consumption in Pakistan.

But natural gas supply is expected to decline from 4 billion cubic feet per day (bcfd) in 2010/11 to 1 bcfd by 2025/26

Pakistan-Iran Gas PipelineIn the mid 1950s a young Pakistani civil

engineer Malik Aftab Ahmed Khan proposed an idea of Iran-Pakistan-India gas pipeline also known as IPI or Peace pipeline that is proposed to deliver natural gas from Iran to Pakistan and India

Pakistan-Iran Gas PipelineDiscussions between the governments of

Iran and Pakistan started in 1994.  A preliminary agreement was signed in 1995. This agreement foresaw construction of a pipeline from South Pars gas field to Karachi in Pakistan. Later Iran made a proposal to extend the pipeline from Pakistan into India. In February 1999, a preliminary agreement between Iran and India was signed.

Route of Gas PipelineThe 2,775-kilometre (1,724 mi) pipeline

will be supplied from the South Pars field.

Hurdles of Gas PipelineDelay from India: The gas project which was initiated by Iran

India and Pakistan was having many constraints.

US opposition to Pak-Iran gas pipeline US has been opposing this gas pipeline

agreement between Pakistan and Iran since the day of inception of the idea of this project.

• Cost: Pakistan and India is facing international Bans, which decreases their revenue.

Benefits of Gas PipelineThe government estimates that the

power crisis in the country reduces economic growth by between 2% and 2.5% of gross domestic product every year. Supplies from Iran could go a long way towards helping to mitigate that crisis.

Larger gas fields tend to be far cheaper to extract gas from Iran.

Benefits of Gas Pipeline

the insurance costs for the pipeline, likely to be driven to prohibitively high levels due to the fact that the pipeline passes through Afghanistan, currently in the midst of an intense Taliban insurgency.

countries have yet to finalize a gas price or sign the gas sales purchase agreement which has been done between Pakistan and Iran.

ConclusionNatural gas is an important need and an

important asset for any country. Besides, natural gas being an economical resource of power generation is very important these days. Pakistan is already facing a shortage of power; therefore, it needs it badly. In such an hour of need Pak-Iran gas pipeline has the capacity and capability of satisfying the overall needs of Pakistan efficiently and taking Pakistan out of this energy crisis.