Presentation By

Sardar Shoukat Popalzai

President - Balochistan Economic Forum

At Pakistan Energy Forum 2015

Balochistan is a large mountainous region of 347,190 square

kilometers with population of 10.52 million (approx.). The

Province is strategically situated at the eastern flank of the

Middle East, close to Central Asian States and Caucasus

Mountains, and has a long border in the West with Iran, in the

North with Afghanistan and a 771kms seas coast in the South

that leads to the Arabian Sea.

With its rich natural resources Balochistan features as a unique

land for profitable investments and Balochistan has sufficient

infrastructure resources to support the micro and macro

development process.

Energy Conference in 1994

Oil & Gas Balochistan Roundtable conference 1997

Qatar visit 2006

US Ambassador's address

Advocacy for investors

Also endeavours to impress on the Federal & Provincial

governments to strongly support foreign direct investment

in the province, and importantly, also ensure that the

message is reflected in bureaucratic policies and

procedures.

Pakistan’s unexplored gas reserves are estimated at 62.6

trillion cubic feet (TCF) and oil reserves at 3.5 billion barrels.

Total proven oil reserves are an estimated 313 million

barrels, and proven gas reserves are estimated at 29.67

trillion cubic feet, much of it in Balochistan. According to

international assessments, Balochistan has 6 trillion barrels

of oil in onshore/offshore, and 19 trillion cubic feet gas

reserves.

The South-western province produces about 22.7% of

Pakistan’s natural gas and consumes only 5.81% of the

county’s total output, Balochistan is Pakistan’s largest and

most geologically interesting province

Balochistan could be at the forefront of new exploration and

extractive activities for the next few years. “Best prospects”

in the province include, hydrocarbon prospects, especially

oil & gas, natural gas are particularly bright. In 1952, PPL

discovered a huge natural gas field at Sui Bugti Tribal area.

It was the seventh largest gas field in the world and the

biggest in Pakistan at that time. Since then the Sui Field has

been meeting a significant amount of the Pakistan’s energy

requirements.

Since Balochistan is close to Iran which has a lot of oil so it

is natural for Balochistan to have oil. The apparent rock

surface in Balochistan attracts oil companies with the

prospects of oil and that is the reason oil exploration in

Balochistan has continued for last 100 years by oil

exploration companies from US, UK, Hungary, Poland and

even Malaysia.

Uch Power Project 586 MW (Gross) Low BTU Gas.

Habibullah Coastal Power Project 140 MW (Gross) Natural

Gas.

Uch-II Power for 404MW project.

Khalifa Coastal Refinery at Gadani with a foreign direct

investment of US $6 billion.

Iran refinery of US $9 billion at Gwadar.

Balochistan possesses a deep sea port located at Gwadar,

on the Arabian Sea, not far from the Straits of Hormuz

where 30 % of the world's daily oil supply moves by ship or

pipeline. It is strategically located between three

increasingly important regions of the world: the oil-rich

Middle East, heavily populated South Asia and the

economically emerging and resource-rich Central Asia.

The new port will also encompass conversion facilities to

allow for the movement of natural gas as a part of plans for

a termination point for the Turkmenistan-Afghanistan-

Pakistan natural gas pipeline.

There are three major pipeline projects on the books. The

merging point of all these three pipelines will create

opportunities for the province of Balochistan particularly

downstream industries, such as oil refinery, fertilizer plants,

petrochemical, etc.

Pipeline -1: About 1,000-km of the total 1,400-km gas

pipeline costing about $3.2 billion connects Iran’s Persian

gulf South Pars gas field to the Indian border will pass

through Balochistan province. Transhipment fee from this

project will produce $500 million per year.

Pipeline -2: The $2.5 billion, 1,674-km Central Asia Oil

Pipeline will connect Turkmenistan Oil Fields to Gwadar via

and Afghanistan. Transhipment from this project will

produce $650 million per year.

Pipeline -3: The $1.88 billion Gulf-South Asia (GUSA)

pipeline project will have a 1,610-km long pipeline running

offshore along Balochistan’s coastline from Qatar up to

Jiwani . This project will generate $450 million per year.

China Pakistan Economic corridor Energy Pipeline.

THE GREAT GAME

Gwadar & Chabahar Energy outlets.

Gwadar is planned to serve as a major energy hub for

storage and transhipment of oil and gas to and from

the Central Asian states as well as China.

Energy Geopolitics: Natural Gas Pipelines

Iranian gas arrives in Sharjah - UAE

PROJECTS AT GWADAR PORT - ENERGY SECTOR DOWN

STREAM

Oil and Gas terminals

Oil refineries and large oil storages

Petrochemical industries etc.

RECONSTRUCTION OPPORTUNITY ZONES (ROZ’S) BEING

DEVELOPED BY USA AND ALSO SUPPORTED BY EUROPE.

Gadani Energy Park (10 coal power plants with 6600MW

capacity).

Electricity:

Iran is supplying around 130 MW of electricity in coastal

areas of Balochistan, and Iran would further provide

1000MW

Gwadar Energy corridor and costal refinery.

Exact coal sources data in Balochistan is not available, but

the possibility of these deposits being sizeable cannot be

ruled out.

Renewable energy :

Balochistan is blessed with the resources that can help ease

energy shortage substantially through renewable energy

provided timely and necessary steps are taken to exploit

these resources to the benefit of the province and the

country.

According to the18th Amendment of the Constitution,

renewable energy comes under the purview of provinces, It

is difficult to understand how this system will work and how

it is going to benefit the province in terms of revenue

generation.

Wind Energy:

Balochistan is blessed with seven wind corridors suitable for

wind farms. Some of these corridors are at least 50% better

and more efficient compared to other areas of the country.

These are high potential points where the Balochistan

government should put up wind masts and invite potential

investors to set up wind farms.

Geo-thermal:

The province should make efforts to establish the potential

of the geo-thermal source west of Koh-e-Sultan in Chagai

District.

There are potential sources of geo-thermal energy north of

Nokundi and west of Koh-e-Sultan, a survey report reveals

that 10,000 MW electricity could be generated using

underground warm water in Koh-e-Sultan area of

Balochistan. This can be a source of cheapest energy

Huge reserves of tight gas:

Sui area in Balochistan have huge reserves of tight gas

equivalent to its presently known natural gas reserves.

Wave Energy:

Power generation using wave energy. Offers more

predictable outputs than wind. Pakistan has about 1000km

long coastline of which complex network of creeks in the

Indus deltaic area. The erosional features along the Makran

costal areas show the relevance of strong wave energy,

which could be harness for the generation of electric power

for rapidly developing costal cities like Gawader, Pasni,

Ormara, Gadani, etc.

Coal:

Pakistan is believed to have 186 billion tons of coal reserves

as of 2013, and Balochistan is believed to have 0.459 billion

tons of coal reserves and coal fields all of which are located

in northern part of the province.

Solar Power:

The northern belt of Balochistan from Taftan to Zhob and

Kharan, Basema touching Surab is highly suitable for

installation of solar power or solar thermal power

systems.The potential of solar energy is immense in

Balochistan, an agreement was signed in 2013 with Korean

company for establishment of USD 700 Million, 300 MW

Solar Power Plant.

The following slide shows the wind mapping stations in

Balochistan and the solar radiation map of Pakistan with

very bright prospects of daily solar radiation in the province

of Balochistan.

Tribal Society

Little Exploration, Declining Production

Security

Corporate Social Responsibility

There are many challenges to doing business in Pakistan: often

unresponsive bureaucrats, inadequate infrastructure, a pre-

modern mind-set among much of the population, to name a few.

Balochistan presents many of these challenges and a few more in

a purer form. The province also offers great opportunities to those

willing to look for and develop the energy resources below the

surface of a lightly explored, but geologically promising part of

the world.