Gasoline

is a transparent, petroleum-derived liquid that is used primarily as a fuel in internal combustion engines In North America, the term gasoline is often shortened in colloquial usage to gas, while petrol is the common name in the UK, Republic of Ireland and in some Commonwealth countries. Under normal ambient conditions, its material state is liquid, unlike liquefied petroleum gas or natural gas.

Volatility
Gasoline is more volatile than diesel oil, Jet-A, or kerosene, not only because of the base constituents, but also because of additives. Volatility is often controlled by blending with butane, which boils at 0.5 C. The volatility of gasoline is determined by the Reid vapor pressure (RVP) test. The desired volatility depends on the ambient temperature. In hot weather, gasoline components of higher molecular weight and thus lower volatility are used. In cold weather, too little volatility results in cars failing to start.

Liquefied petroleum gas, also called LPG, or simply propane or butane, is a flammable mixture ofhydrocarbon gases used as a fuel in heating appliances and vehicles.

Investopedia explains 'Retirement Method of Depreciation '

The purpose of the retirement method of depreciation is to simplify accounting and recordkeeping for companies that own many similar assets that individually are low in value but together represent a significant expense. An electric company might use the retirement method of depreciation to account for the electric meters that are installed on the sides of residents' homes, for example.

Comparison with other natural gas fuels

Compressed Natural Gas is often confused with liquefied natural gas (LNG). While both are stored forms of natural gas, the key difference is that CNG is gas that is stored (as a gas) at high pressure, while LNG is stored at very low temperature, becoming liquid in the process. CNG has a lower cost of production and storage compared to LNG as it does not require an expensive cooling process and cryogenic tanks. CNG requires a much larger volume to store the same mass of gasoline or petrol and the use of very high pressures (3000 to 4000 psi, or 205 to 275 bar). As a consequence of this, LNG is often used for

transporting natural gas over large distances, in ships, trains or pipelines, and the gas is then converted into CNG before distribution to the end user. CNG can also be confused with LPG, which is liquified propane. Unlike natural gas (mostly methane), propane can be compressed to a liquid without continual refrigeration.

Oil & Gas Sector Analysis March-2012 07JUN

38 new oil, gas reservoirs discovered Oil and Gas Exploration companies working in different parts of the country drilled 102 wells during the last four years and discovered 38 reservoirs, taking the natural gas production from 3,973 million cubic feet per day (MMcfd) to 4,165 Mmcfd. The Ministry of Petroleum and Natural Resources awarded 47 exploration licences, from 2007 to 2011, to exploit the natural oil and gas resources. The companies dug 102 wells and found 38 new reservoirs, which increased the gas production from 3,973 Mmcfd to 4,165 Mmcfd, official sources in the Ministry of Petroleum and Natural Resources told reporter on Sunday while commenting on the fouryear performance and achievements of the ministry. Besides, around 800 Mmcfd gas would be added in the system by August-September after producing through local reservoirs. The sources said the ministry announced Petroleum Policy in 2009 and gave a number of incentives to oil and gas exploration companies aimed at achieving self-sufficiency in the sector. While, the Policy-2012 has been finalized, which would be announced soon, the Council of Common Interests has accorded its approval in principle, which would help attract more local and foreign investment in oil and gas sector, they added. Apart making indigenous efforts, they said, the government is working on different plans like IranPakistan (IP) gas pipeline and TurkmenistanAfghanistan-Pakistan-India gas pipeline projects to import the commodity for meeting the growing energy demand in the country.

Work on the I-P gas pipeline project is at a fairly advanced stage. Under the project, Pakistan will construct approximately 800 km pipeline from IranPakistan border to Nawabshah. The venture has entered into the implementation phase and work on Front End Engineering and Design, Feasibility and Detailed Route Survey has already been started by the consultant which is scheduled to be completed by June, 2012, they observed. Bids for construction of the pipeline will be invited after completion of the survey. Pinning high hopes with the gas pipeline project, the sources termed it hallmark of the government, which would help bridge the projected gas shortfall in the country. Pakistan and Iran had signed the Intergovernmental Framework Declaration in May, 2009 for early implementation on the project conceived in early nineties. Subsequently, respective commercial entities Inter State Gas Systems Limited (ISGS) from Pakistan side and National Iranian Oil Company (NIOC) from Iranian side entered into the Gas Sale and Purchase Agreement (GSPA) on June 5, 2009. The pipeline of 56-inch diameter will cover around 1931- Kilometer distance starting from Irans South Pars gas field. The project implementation and construction is targeted in four years and the first gas flow will be available by the end of December 2014. The 750 mmcfd gas volume will help generate around 4,000 MW electricity and provide more job opportunities in backward areas of Balochistan and Sindh. Similarly, Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project is being undertaken, which would cost around US$ 7.6 billion. All the stakeholders have achieved consensus on a number of issues and accordingly signed three agreements in December 2010. First gas flow is expected in 2016 and Pakistan will get 1325 Mmcfd of gas almost double as compared to IP project. The sources said the ministry is formulating the low British Thermal Units (BTU) policy for power sector, according to which, low BTU gas fields and unconventional hydrocarbon reservoirs will be

prepared separately to meet the rapidly increasing energy requirements. They said Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) policies have been introduced to ensure LPG availability in every nook and corner of the country besides encouraging LNGs import. For the first time in history of the country, the sources said, the present democratic government introduced Gas Theft Act- 2011 to stop unauthorized use of gas. Theft of natural gas has been declared a cognizable offence. They said a think-tank has been established for providing expert advice on issues pertaining to oil and gas sector. A Task Force has been established for monitoring and checking compressed natural gas cylinders to avoid any untoward incident. During last four years, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) installed 13,90,234 new domestic, commercial and industrial gas connections. Giving the break-up, the sources said the SNGPL granted 970,699 domestic, 13,379 commercial and 1,693 industrial gas connections. Whereas, the SSGCL provided the facility to 397,654 domestic, 5,944 commercial and 865 industrial consumers. (Pakistan Observer: March 18, 2012)

Pakistan Oil and Gas Report Q3 2012

Business Monitor International June 12, 2012 75 Pages - SKU: BMI3938205 AbstractTable of ContentsRelated Reports Countries covered: Pakistan

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BMI View: While the short-term gas production outlook is good, it will prove impossible over the longer term for Pakistan to maintain gas self-sufficiency. Domestic consumption continues to rise rapidly, boosted by the start-up of additional gas-fired power stations. As import volumes rise, LNG is set to become part of the energy mix. In the meantime, Pakistan will again attempt to privatise more of its various state-controlled energy companies and stimulate investment in domestic oil and gas

production. The main trends and developments we highlight for Pakistans Oil & Gas sector are: The long-delayed Iran-Pakistan pipeline has been dealt another blow by ICBC's withdrawal as a leading financier for Pakistan. The withdrawal has been prompted by the threat of US financial sanctions on firms participating in the IP pipeline, with the sanctions aimed at putting pressure on Iran to halt its nuclear development programme. This has forced Pakistan to look to other alternatives to raise its US$1.2bn part of the pipeline. The Pakistan government has a deal with Eni to cooperate on oil and gas development projects. The Italian company will provide expertise and technology exclusively to its Pakistani state partners in return for access to fields that have been under national control. Eni said the agreement would help it double its production in Pakistan over the next five to six years. Oil demand for 2011 is estimated at 420,000 barrels per day (b/d), with imports thought to have been 354,000b/d. We expect oil consumption to reach almost 462,000b/d by 2016, with oil exports to reach 409,000b/d and rise further to 483,000b/d by 2021. The upturn in exploration and development activity may be sufficient to boost near-term production to 68,000b/d in 2012. Pakistan aims to raise its gas output by 23mn cubic metres per day (Mcm/d) in 2012, according to a government report. This increase of 8.4bn cubic metres (bcm) per annum has been attributed to the 38 oil and gas reserves that were discovered following the drilling of 102 wells and the award of 47 exploration licences during 2007 and 2011, according to sources from the Ministry of Petroleum & Natural Resources. Our forecasts see gas production reaching 50bcm by 2016. Gas demand is expected to rise substantially over the next few years, according to the countrys oil and gas ministry. Pakistan also plans to promote the use of gas in future power generation projects, which does mean there will be rising dependency on the fuel. The government has decided to import 500mn cubic feet of LNG per day (5.2bcm per annum) from Qatar to cope with an energy crisis. If demand rises in line with our projections, gas imports of at least 13bcm will be necessary by 2021. Crude oil import costs in 2012 are estimated at US$14.67bn, based on an OPEC basket oil price averaging US$111.47 per barrel (bbl). In 2013, the price is forecast to be US$107.00/bbl. By 2016, Pakistans oil import bill could reach US$14.80bn (assuming an oil price of US$99.00/bbl), rising to a possible US$17.10bn by 2021. With a forecast 13bcm of net gas imports, the total 2021 petroleum import bill could be US$23.40bn.

Pakistan's Future in Oil & Gas

November 13, 2012 RECORDER REPORT 0 Comments

The Oil and Gas sector in Pakistan has seen phenomenal growth since the independence in 1947 when oil quantities produced were scarce. These limited quantities were being produced from

few

small

fields

located

in

the

Potohar

region.

At

that

time

was

no

gas

production.

Over the past half century the petroleum industry has played a significant role in national development by making large indigenous gas discoveries. Pakistan meets about 18% of its oil demand from local sources. The Government realising fully well that while a fiscal package with competitive incentives plays a vital role in attracting fresh investment an adequate protection of the companies' investment, is an essential prerequisite for the promotion of petroleum exploration in the country. This led to the enactment of the Foreign Investment Protection law of 1976 by the Parliament , under which the Government guaranteed full safeguard to foreign investments in Pakistan. Pakistan's presents economy growth rate shows that our energy needs will increase from 64.5 Million Tonnes of Oil Equivalent (TOE), in 2010-11 to over 361.31 Million TOE in 2030. To overcome the projected needs of energy, major dependence will remain on the Oil & Gas sector. A total of 808 exploratory wells have been drilled so far in the sedimentary basins of Pakistan covering 827,267 Sq. Kms. Till 31st July 2012, 250 oil and gas fields (58 oil and 192 gas and gas/condensate) have been discovered in various basins of Pakistan with a success rate of 1:3.22. The remaining recoverable reserves of natural gas and oil are estimated at 26.6 Trillion Cubic Feet (TCF) and 341.9 Million US Barrels respectively.

Large areas of Pakistan's petroliferous basins eg Offshore Indus Basin, Makran Basin & Balochistan Basin still remain as a geological frontier and hold promise for the future in view of the multiple havitats for petroleum generation and accumulation which may act as a game changer in energy self-sufficiency. Independent international studies indicate an oil and gas potential that is many times more than these proven reserves. This area is totally under-explored & exports believe that it has huge prospectus for oil & gas. Following steps are being taken to enhance the exploration of oil & gas in the country:--- New Petroleum (Exploration & Production) Policy, 2012 will accelerate E & P activities and promote foreign direct investment in the oil & gas sector of Pakistan.

--- Basin study has been completed to co-relate entire data of different basins. It would help to identify new play types and help in new discoveries & simultaneously increase in indigenous energy. --- Have state-of-the-art data repository centre-digitised data is available to existing and new companies to participate in exploration.

--- For exploration of non-conventional hydrocarbons separate policies on Tight Gas, Low BTU, Low Pressure Flared (LPF) gas have been prepared. --- Completion of pending development projects-can and 400-500 MMCFD gas. At the current oil and gas production/consumption rate, the oil reserves can last for 11 years and gas for the 18 years. The government is thereof, besides making efforts to increase local supply has signed an agreement for import of gas from Iran. Additionally government is also considering different options of import of gas from Turkmenistan & Qatar and import of LNG to cope with the increase in demand.

2012: oil, gas sector's performance unsatisfactory

January 01, 2013 ABDUL RASHEED AZAD 0 Comments

Pakistan's oil and gas sector's performance during the outgoing year 2012 remained unsatisfactory and the Petroleum Ministry remained unable to utilise nearly 8,00 million cubic feet per day (MMCFD) already discovered gas. The government time and again increased the price of petroleum products, natural gas and LPG for all sectors to meet rising expenditures reflective of escalating international fuel prices as well as poor governance.

At the end of the year gas prices increased by 9.87 percent for the consumers of Sui-Northern Gas Pipelines (SNGPL) and by 6.14 percent for the consumers of Sui-Southern Gas Company (SSGC), effective January 1, 2013. The Ministry failed to implement a plan to bring up to 800 MMCFD gas into the system. The plan was devised by the Ministry on January 25, according to which by the end of June 30, an estimated 800 MMCFD gas was to be added to the system to overcome the current energy crisis.

According to the Ministry officials, had the government utilised and developed these discovered gas reservoirs in a timely fashion, the economy of the country may be protected from huge losses. Official said that some of the Exploration and Production (E&P) companies were not ready to put discovered gas into the system due to price disputes with the government. "These gas companies are requesting the government to enhance wellhead gas price in accordance with the 2012 gas policy, wherein the government has announced wellhead gas price in the range of $6-$9 per Million British Thermal Units (MMBTU)", the official maintained. Pakistan's current gas production is 4.2 billion cubic feet per day (BCFD), against total managed demand of 6.5 BCFD. The government during past four years did not take any serious steps to access these gas reservoirs which account for many local manufacturers relocating to other countries, including Bangladesh. The government also through legislation imposed Gas Infrastructure Development Surcharge (GIDS) on major gas consumers excluding domestic and petroleum levy on LPG in a bid to locally generate about Rs 57 billion per annum for the construction of IP, Tapi and LNG gas pipelines projects but none of these projects have started. The government during the year twice increased the gas price for all segments of economy: on January 1, for domestic, commercial, cement industry, for Water and Power Development Authority (Wapda) and Karachi Electricity Supply Company (KESC) by 13.98 percent and for industrial sector by 16.95 percent. Additionally the government also decided to impose GIDS on five sectors excluding domestic and commercial sectors. For fertilizer sector under GIDS gas tariff increased by Rs 197 per MMBTU, industrial sector by Rs 100 per MMBTU (which later was reduced to Rs 50 per MMBTU, KESC by Rs 27 per MMBTU and Independent Power Plants (IPPs) running on gas by Rs 70 per MMBTU, the official maintained.

However the Petroleum Ministry approved new 'Exploration and Production Policy 2012' where onshore gas has been priced at more than six dollars per MMBTU and offshore up to nine dollars per MMBTU for future exploration activities. The Petroleum Ministry also remained unable to start the import of Liquefied Natural Gas (LNG) plan which was aimed at importing 1.4 BCFD as the government and potential importers could not settle core issues including sovereign guarantees for purchase of gas for dedicated consumers or allow subletting capacity allocations and decided to strictly follow the initial conditions required under the expressions of interest. The government in the mid of the year announced its decision to import up to 500 MMCFD LNG from India but this plan failed due to non serious attitude of the concerned quarters. Gas shortfall remained the highest in Punjab, because of reduction in supply to SNGPL system, which fell to about 1.9 BCFD from a peak of 3 BCFD. Punjab at present is facing around 1.1 BCFD gas shortage resultantly over 2,200 industries have been compelled to suspend their production. Currently SSGC is receiving 1,100 MMCFD gas against the demand of 1,500 MMCFD. However, E&P companies have made following discoveries during 2012: United Energy Pakistan Ltd made discoveries in Badin Blocks that include Gharo-1 Oil and Gas discovery in July 2012, which is producing 520 barrels of oil per day (BOPD) and 0.03 MMCFD gas, Mohano-1 discovery in February 2012, which is producing 300 BOPD and 0.03 MMCFD gas, Pir Apan-1 discovery in March 2012 producing 375 BOPD and 18 MMCFD gas, Piraro Deep-1 discovery made in April 2012 which is producing 483 BOPD and 15.2 MMCFD gas, Nurpur Deep-1 gas discovery in May 2012 producing 4.5 MMCFD gas, Mulaki-1 oil and gas discovery in July 2012, which is producing 25 BOPD and 7 MMCFD gas, Shekhano-1 discovery made in August 2012 that is producing 84 BOPD and around 17 MMCFD gas. The Oil and Gas Development Company Limited (OGDCL) with its partner Government Holdings Limited (GHPL) discovered a rough estimated gas reservoir of 1.06 Trillion Cubic Feet (TCF) at Zin SML-I located in District Dera Bugti of Balochistan. OGDCL made Suleman-1 gas discovery in March 2012 (Khewari Block) which is expected to produce 20 MMCFD of gas, OGDCL discovered gas reservoirs in Nashpa-2 and Nashpa-3 (appraisal wells). Nashpa2 is expected to produce around 3370 BOPD and 11 MMCFD gas, whereas Nashpa-3 is expected to produce 3165 BOPD and 14.35 MMCFD gas.

Eni has made gas discovery at Badhra-B North-1 located in Badhra Lease Area-B which is expected to produce around 25 to 35 MMCFD of the gas. Pakistan Oilfields Ltd has made a discovery in their Meyal/Uchri Lease in Bela-1 well which will produce around 100 barrels per day of condensate and 5 MMCFD of gas.