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• Use and Benefits.
• Use of Gas.
• Natural Gas in Pakistan.
• Energy Crises in Pakistan.
• Iran – Pakistan Gas pipeline.
Natural gas refers to natural gases that occur in
underground deposits, whether liquefied or gaseous,
consisting mainly of methane.
Global 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
- natural gas plant: $650/kW
- coal-fired plant: $1,300/kW
- fuel-oil fired plant: $1,000/kW
• 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
Natural gas is a major source of electricity generation
Natural gas is a powerful domestic cooking and
CNG is a cleaner alternative to other automobile fuels
such as gasoline (petrol) and diesel
Natural gas is a major feedstock for the production of
ammonia, via the Haber process, for use in fertilizer
• Hydrogen production.
Natural gas can be used to produce hydrogen, with one
common method being the hydrogen reformer.
• Balochistan Development
• Local investor
• Agricultural Development
Rapidly growing population resulting in increasing
Largest energy source in the country, supplying 49% of
the entire energy needs
Excessive agricultural, industrial and domestic use in
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
In 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
Discussions 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.
The 2,775-kilometre (1,724 mi) pipeline will be
supplied from the South Pars field.
Delay 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.
Pakistan and India is facing international Bans,
which decreases their revenue.
The 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.
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.
Natural 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