POWER INDUSTRY IN PAKISTAN The source of Pakistan's primary energy supply in 2002-03 comprises of Furnace Oil, Natural Gas,

hydel/nuclear and coal. The development of Energy sector is high priority as electricity demand in the country is increasing at the rate of 5% p.a. Initially in the late 80s and early 90s, Pakistan faced severe energy shortages and domestic energy demand outstripped supply. Due to this, a number of IPPs were set up to overcome the gap between supply and demand. The Power Industry in Pakistan primarily consists of two Government controlled utilities, Water and Power Development Authority (WAPDA) and Karachi Electric Supply Corporation (KESC) along with 11 Fuel Based Independent Power Producers IPPs (including Hubco and KAPCO) which produce energy that is totally consumed by these Government sectors as per their contractual agreements. WAPDA generates, transmits and distributes electricity to the whole country except Karachi and a part of Balochistan where supplies are made through KESC. Existing total installed capacity in Pakistan is 17,726 MW which is characterized by a combination of Hydel, Thermal and Nuclear Generation whereas Hydel is 5,010 MW(28.3%), Thermal is 12,254 MW (69.1%) and Nuclear is 462 MW(2.61%). The Thermal position also include 5,813 MW from the private sector. Total Installed capacity of WAPDA is 15,246 MW while that of KESC is 2018 MW. In WAPDA the generation of electricity in 2002-03 through Hydel was 22,241 Mkwh and Thermal was 19,497 Mkwh while total energy generated by IPPs was 22,127 Mkwh. Similarly, In KESC the total generation of electricity was 8,810 MKwh in 2002-0. PSO'S ROLE IN THE POWER SECTOR The primary source for generation of Thermal Power Stations is through Furnace Oil. The demand of FO depends on the electricity generation from the FO powered plants after having exhausted available generation from Hydel, Gas, Nuclear and Coal resources. The reason being, FO generation is the most expensive as compared to other sources. In 1994, PSO was the only OMC which made huge investment of around 2.2 billion and aggressively entered the power sector and captured a market share of approximately 88% by supplying product to all power plants from its state of art oil installations at Zulfiqarabad and from up country Depots and Installations. POWER PROJECTS DEPARTMENT PRODUCTS HANDLED High Sulphur Furnace Oil-(HSFO) Low Sulphur Furnace Oil-(LSFO) High Speed Diesel (HSD Lubricants

NATURE OF BUSINESS Non Contractual Business (WAPDA)/(KESC) Contractual Business (IPPs) POWER CUSTOMERS RPPL (Rousch Power Co. Ltd.)-Abdul Hakim AES (AES Lalpir Ltd. & AES Pakgen (Pvt.) Co. Ltd)-Lalpir SABA (Saba Power Co. Ltd.)-Farooqabad KEL (Kohinoor Energy Ltd.)-Raiwand JPGL (Japan Power Generation Ltd.)- Raiwand SEPCOL ( Southern Electric Power Co. Ltd.)- Raiwand TEL ( Tapal Energy Ltd.)-Karachi GAEL (Gul Ahmed Energy Ltd.)-Karachi HUBCO (Hub Power Co. Ltd.)-Hub River Road Baluchistan KAPCO (Kot Addu Power Co. Ltd.)-Kot Addu WAPDA (Water and Power Development Authority)- At various locations in Pakistan KESC (Karachi Electric Supply Corporation)-Karachi FUNCTIONS Ensure timely and uninterrupted supplies with enhanced services to all its customers in order to achieve maximum customer satisfaction. Fulfill the contractual obligations efficiently and effectively towards power plants. Closely monitor FSA Clauses for timely ordering, payments and dispatches, etc. Carry out future planning in order to effectively meet future FO demand and assess the future scenario of Furnace Oil. CONTACT PERSON M. Haroon Chandna (GM Power Projects) Ph: 021-9203866-85 (Ext.2703) Ph (Dir): 021-9203755 Fax: 021-9203790 Asif Hussain (DGM-North Power Projects) Ph: 021-9203866-85 (Ext.225) Ph (Dir): 021-9203783 Fax: 021-9203790 Jehangir Ali Shah (DGM- South Power Projects) Ph: 021-9203866-85 (Ext.2707) Ph (Dir): 021-9203782 Fax: 021-9203790

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POWER

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SCENARIO

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OCAC

Source:

OCAC

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PSO

Source: Energy Book