Energy insecurity

LNG a short-term quick fix at best

Despite having one of the largest coal deposits of the world, Pakistan faces serious energy crisis. As a country we are out of fuel, this shortcoming should be taken seriously. On January 14, 2022, my friend Dr Moeed Yousaf announced the National Security Policy (NSP) which covers the following areas: National Cohesion, Securing Economic Future, Defence Territorial Integrity, Internal Security, Revamping Foreign Policy, Human Security. The document after approval of the cabinet was presented to the National Security Committee (NSC) which approved it. Dr Yousaf the National Security Adviser (NSA) rightfully pointed out the importance of implementation. Somehow ‘Energy Security ‘was not included as a separate head.

In the year 1952, huge gas reserves (12 TCF) were discovered in the Dera Bugti area of Balochistan. After this massive discovery, Pakistan remained an energy surplus nation till about the year 2002 when the resource was depleted. After its discovery in the decade of the nineties, the coal reserves at Thar despite its enormity (175 Billion Tons) remained untouched. In the year 2004, the Planning Commission formed an ‘Energy Foresight Committee ‘under the chairmanship of Engr. Munawar Basir Ahmad (Late) the then Managing Director of Sui Southern Gas Company (SSGC). As Chairman Pakistan Science Foundation (PSF), I was tasked to focus on the development of coal as an energy resource. It started a long, ardeous journey of development that has continued till to date. It was on the recommendation of this group that a seperate Ministry of Energy (MOE) was created to ensure security in this vital need of the nation that keeps the wheels turning.

In the decade of the seventies it was Zulfiqar Ali Bhutto (ZAB) who came up with the idea of using the ‘Oil Weapon’ against the developed ‘First World’. In those days ZAB emerged as the undisputed leader of the suffering ‘Third World ‘. After the roaring success of the Islamic Summit in Lahore in the year 1974, he announced an international conference of the the ‘Third World Countries ‘which was checkmated by the Western Powers. He then convinced Shah Faisal the ruler of Saudi Arabia for an ‘Oil Embargo ‘. There were four players in the formulation of this strategy (ZAB, Shah Faisal, Ahmed Sakkaf the Foreign Minister and Mian Anwar Ali Economic Adviser to the Shah). United Sates of America (USA) which was dependent on the Saudi Oil was hit hard by this move. Life came to a grinding halt. President Jimmy Carter, promised the nation that it would never happen again. He created a separate Ministry of Energy and started research to develop alternate resources to ensure ‘Energy Security ‘of the country. Several options were considered (Shale Gas, Solar, Wind, Geothermal, Coal, Nuclear etc). Since then USA has achieved complete ‘Energy Auturky’in this vital area. Currently Shale Gas is being used which costs around $ 3 per MMBTU compared to $ 11 to 15 per MMBTU for imported LNG in Pakistan. Some lessons should have been learnt from this tussle between the net energy exporters and importers. To protect their long term ‘Energy Interests ‘, all four men who were behind this ‘Oil Embargo ‘were targeted and eliminated. Since then the oil continues to flow Westward, leaving the ‘Third World’behind to bear the brunt of increased fuel prices.

The ‘Energy Foresight ‘prepared in the year 2004 can be a good starting point. MOE has to be in the driver’s seat to ensure the much-needed security in this vital area.

Fuel constitutes to be the largest item of our imports (Petroleum, Gas) followed by edible oil and tea. As Chairman PSF, I focussed on all three of them. At Thar the focus was on mining. After several detours finally, I was able to touch the Black Gold in 2018 in the first Open Pit Coal Mine in block No. 2. Recently the Chinese have developed mine in block No. 1 as well. Several recommendations came out of the ‘Oil Seeds Group while Tea Plantation was started in Kashmir. Now that mining activities have been extended at Thar mainly for power generation, other uses of this important resource should also be explored. At the recently held International Pittsburgh Coal Conference (IPCC 2021), I presented a paper titled; ” An Integrated Energy System for Thar Coal in Pakistan “. It covers all areas from mine development to down stream applications. A few years back I visited the Dakota Gasification Company located at Beulah North Dakota where in addition to producing pipeline quality gas form coal (Synthetic Natural Gas) several other products are also being produced that include Urea, Naptha, Diesel, Tar Oil etc. Due to the availability of low-cost Shale Gas in USA, the use of SNG has not been pursued. Imported LNG (Liquified Natural Gas) is an expensive short-term fix for Pakistan. Above ground Coal Gasification is an established process which can cater for the gas needs of the country together with Urea production. Currently a pilot level plant is being considered to produce about 100 MMCFD of SNG from Thar Coal. Once operational, additional batteries of gasifiers can be installed to produce larger quantities of gas. Energy Security should be a part and parcel of our National Security otherwise the wheels of the nation can come to a grinding halt, lets ensure their movement through a well thought out ‘Energy Policy ‘prepared by experts in the field. The ‘Energy Foresight ‘prepared in the year 2004 can be a good starting point. MOE has to be in the driver’s seat to ensure the much-needed security in this vital area.

Dr Farid A Malik
Dr Farid A Malikhttps://www.pakistantoday.com.pk
The writer is ex-Chairman, Pakistan Science Foundation. He can be contacted at: [email protected].

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