1. Muhammad Azam Director Refining Ministry of Petroleum and Natural Resources (September 13-14, 2006, Karachi) Fuels Quality Scenario in Pakistan

2. OBJECTIVE This presentation aims at briefly covering the existing fuel quality in the country and various measures adopted by Pakistan to move forward for cleaner fuels. This presentation aims at briefly covering the existing fuel quality in the country and various measures adopted by Pakistan to move forward for cleaner fuels.

3. Oil Consumption Share of total world cons. (%) mil ton/yr 24.6945USA 8.5327China 6.4244Japan 3.4130Russia 3.2121Germany 3116India 0.516Pakistan

4. Oil Consumption Per Capita BP Statistical Review of World Energy 2005

5. Transportation Fuels Consumption in the World

6. Current Energy Mix 55.5 Million TOE

7. Demand/Supply Pattern, 2005-06 (82% import)

8. Refining Capacity (Million Tons) RefineryLocation Capacity p.a Pak ArabKot Addu 4.50 Pak ArabKot Addu 4.50 NRLKarachi 2.80 NRLKarachi 2.80 PRLKarachi 2.15 PRLKarachi 2.15 ARLRawalpindi 1.66 ARLRawalpindi 1.66 DhodakD.I.Khan 0.12 DhodakD.I.Khan 0.12 Bosicar Hub,Balochistan 1.50 Bosicar Hub,Balochistan 1.50 Enar PetrotecKarachi 0.13 Enar PetrotecKarachi 0.13 Total12.86

9. Specification in Pakistan Motor gasoline Motor gasoline Research octane number (RON)=87 minResearch octane number (RON)=87 min Lead content gm per ltr=zeroLead content gm per ltr=zero Sulfur content wt %=0.1Sulfur content wt %=0.1 HSD HSD Sulfur content wt %=1.0Sulfur content wt %=1.0 Furnace oil Furnace oil Sulfur content wt %=3.5Sulfur content wt %=3.5

10. Octane Level in Motor Gasoline Present % share RON Pak Arab Refinery Ltd 5190 National Refinery Ltd 1188 Pakistan Refinery Ltd 1188 Attock Refinery Ltd 2388 Bosicar Pakistan Ltd 487

11. Sulphur Contents in HSD Production % Sulphur wt. % PARCO1253000170.5-0.7 NRL806000110.7 PRL55000070.8 ARL42200060.2 Bosicar24200030.9 Imported4104560.5

12. Environmental Pollution: Sources Major Sources of man made sources include Industrial and Power Generation wastes Industrial and Power Generation wastes Vehicular emission Vehicular emission Agricultural Wastes Agricultural Wastes Municipal Wastes Municipal Wastes Oil Spills Oil Spills For vehicles, the important considerations are Vehicle Technology Vehicle Technology Fitness/maintenance/tuning Fitness/maintenance/tuning Fuel Quality Fuel Quality

13. Various steps have been taken phase wise to improve the specification of petroleum products. Various steps have been taken phase wise to improve the specification of petroleum products. Mono grade 87 RON Gasoline was introduced in the country with effect from 1st October 2000. Mono grade 87 RON Gasoline was introduced in the country with effect from 1st October 2000. Initiative for Clean Fuels

14. Unleaded gasoline was introduced in the country with effect from 1 st July 2002, which has brought tremendous benefits to public, as lead was highly injurious to health especially to children. Unleaded gasoline was introduced in the country with effect from 1 st July 2002, which has brought tremendous benefits to public, as lead was highly injurious to health especially to children. More than 50% gasoline being produced and marketed in the country w.e.f. March, 2003 is 90 RON, unleaded More than 50% gasoline being produced and marketed in the country w.e.f. March, 2003 is 90 RON, unleaded This motor gasoline meets most of EURO II Standards This motor gasoline meets most of EURO II Standards

15.  A new Coastal Refinery of 9-13 mill ton capacity is planned to set up at Khalifa point near Hub Baluchistan by the year 2010.  The proposed Refinery would produce Euro III standard products.  A pilot project has been launched to introduce 10 % ethanol in Motor gasoline which is more environment friendly

16. Rs./MMBtuRatio CNG 31.50 Rs./Kg 649.251.00 Motor Gasoline 57.70 Rs./Litre 1,751.882.70 High speed Diesel 38.73 Rs./Litre 1,049.921.62 LPG 550 Rs./cylinder 1028.331.58

17. Conclusions Most major urban centers experience significant and persistent air quality problems Most major urban centers experience significant and persistent air quality problems Air quality improvement efforts incorporates fuel reformulation due to the large contribution of mobile sources Air quality improvement efforts incorporates fuel reformulation due to the large contribution of mobile sources Control on pollution can be achieved when the bulk engine technology matches fuel, is properly tuned and fuel quality is good. Control on pollution can be achieved when the bulk engine technology matches fuel, is properly tuned and fuel quality is good.

18. Conclusions (contd.) Conclusions (contd.) Each country follows its own path (to suit its own ground realities) and in different phases Each country follows its own path (to suit its own ground realities) and in different phases Fuel quality improvement requires mega- investments and long lead times to implement Fuel quality improvement requires mega- investments and long lead times to implement A home grown plan for clean fuels is more likely to be realistic and achievable. A home grown plan for clean fuels is more likely to be realistic and achievable.

19. Refineries have been given target to start production of Euro II specs. HSD from 1 st Jan. 2008 Refineries have been given target to start production of Euro II specs. HSD from 1 st Jan. 2008 Refineries are upgrading their existing configurations to meet the targets of Clean Environment friendly Fuels Refineries are upgrading their existing configurations to meet the targets of Clean Environment friendly Fuels Conclusions (contd.)

20. THANK YOU