PERAC's Role in Energy Conservation

By Chaudhry, M. H. | Economic Review, February 1991 | Go to article overview
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PERAC's Role in Energy Conservation


Chaudhry, M. H., Economic Review


PERAC's Role in Energy Conservation

Pakistan is only moderately-endowed with natural resources such as oil, gas, coal, wood etc. and is one of the developing countries which depend largely on imported crude oil and finished petroleum products for meeting its energy needs oil and gas accounts for about three quarter of country's energy consumption.

So far as oil concerned about 60 per cent of the total crude oil requirement for petroleum products is currently being met by imports. In addition to imports of crude oil about 6 MM tonnes of finished products are currently being imported. These imports of deficit products is expected to increase to about 15 million tones/year by the end of the century. The refining capacity in the country is thus very small compared to the demand of the products and the refineries which are operating were established at a time when crude oil was very cheap and the trend in those days was such that energy consuming plants and equipments were designed to reduce capital costs at the expense of energy consumption. The same applied to most industries built in Pakistan in the sixties. With spiralling energy costs, this is no more the situation, and worldwide the designs, technologies and operating techniques for industrial plants and equipments have been improving so that energy consumptions are minimum and utilisation of each energy streams available to the country is optimally economic.

In order to keep up with world trends and to sustain a respectable level of economic growth in an overall energy resource deficit environment, Pakistan is faced with a great challenge which calls for planned energy resource conservation and optimum utilization of its available energy resources, particularly in the petroleum sector. Such a course has now become inevitable in view of the instability in the Gulf Region, which has been the source of all imports in the country. The State Petroleum Refining & Petrochemical Corporation (Pvt.) Ltd. (PERAC) was set up in 1974 under the economic reforms order with the objectives to develop and manage petroleum refining and petrochemical industrial sector in the country. National Refinery Limited (NRL) with the total investment of Rs. 10 crore was the first company to be placed under its umbrella. PERAC has since then emerged as one of the major companies of the public sector working directly under the Ministry of Production with a total investment of Rs. 400 crore in its companies and expects to reach Rs. 1300 crore before the end of the century. To fulfill its objectives PERAC is actively engaged in implementation of properly chalked out development strategy based on optimising the usage of the barrel of crude oil through installation of adequate processing facilities and implementation of energy conservation measures.

Energy Conservation

We must realise that a barrel of oil saved is equal to a barrel of oil produced but at a much lesser cost. It is therefore, essential that all efforts are made at all levels to economise the use of energy. There is every need to continuously monitor the use of energy. Developments in processes are continuously taking place which call for studying, particularly for older plants, changes that can be instituted for implementing changes leading to energy conservation. Keeping this in view, energy management and conservation studies were done at National Refinery Limited and as a result of these studies, NRL has identified scheme which with modest investments would reduce energy consumption by around 20 per cent and icncrease throughout capacity of the refinery by around 30 per cent. These schemes are briefly describes as under:

Energy Conservation at NRL

i. Revamp of Crude Distillation Unit:- This project envisaged the reduction of energy losses by improving the efficiency of furnace and by optimisation of heat recovery system, thus providing sufficient energy to process 15,000 bbl/day more of crude oil in the Crude Distillation Unit (CDU).

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