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Fossil fuels are formed from vegetation, which has been consolidated between rock strata and altered by the combined effects of pressure and heat over millions of years.

Coal is primarily used as a solid fuel to produce electricity and heat through combustion. World coal consumption is about 5.3 billion tonnes annually, of which about 75% is used for the production of electricity. Coal is available worldwide enabling countries to access domestic coal reserves and decrease reliance on oil imports. It is cheap and has great economic value. The hot gases and heat energy produced by burning steam coal at high temperatures, converts water into high pressure steam which is passed into a turbine causing it to rotate and generate electricity. Cement is made from a mixture of calcium carbonate, silica, iron oxide and alumina. A high-temperature kiln, often fuelled by coal, heats the raw materials to a partial melt at 1450C, transforming them into a substance known as clinker which is mixed with gypsum to make cement. Coal is essential for iron and steel production; some 66% of steel production worldwide comes from iron made in blast furnaces which use coal. Other important users of coal include alumina refineries, paper manufacturers, and the chemical and pharmaceutical industries. Mineral oil is often found trapped in dome shaped anticlines betweeb two layers of non porous rocks. It often has gas above it and water below. Alkali metals are often submerged in mineral oil for storage or transportation. The oil prevents the metals from reacting with atmospheric moisture. It is used as a lubricant to reduce friction and is also a source of generating electricity. It is used as a fuel, for items such as oil lamps., heaters and as a motor fuel to drive vehicals, aircraft, ships and trains . Low viscosity mineral oil is sold as a preservative for wooden cutting boards and utensils. A coating of mineral oil protects metal surfaces from moisture and oxidation. It is used as an ingredient in baby lotions, cold creams, ointments and other pharmaceuticals and low-grade cosmetics. Certain mineral oils are used in livestock vaccines, as an adjuvant to stimulate a cell-medicated immune response to the vaccinating agent. Light mineral oil is used in textile industries and used as a jute batching oil.Mineral oil is used to darken soapstone countertops for aesthetic purposes. It is used as a cleaner and solvent for inks in fine art printmaking as well as in oil painting, though turpentine is more often used.

Natural gas is a major source of electricity generation through the use of gas turbines and steam turbines. Natural gas burns cleaner than other fossil fuels, such as oil and coal. For an equivalent amount of heat, burning natural gas produces about 30% less carbon dioxide than burning petroleum and about 45% less than burning coal. Compressed natural gas (methane) and Liquified petroleum gas (a propane and butane blend is used as a clean alternative to other automobile fuels such as gasoline (petrol) and diesel. As of 2005, the countries with the largest number of natural gas vehicles were Argentina, Brazil, Pakistan, Italy, India and Bangladesh. Natural gas is supplied to homes, where it is used for such purposes as cooking, clothes dryers, heating/cooling and central heating. Home or other building heating may include boilers, furnaces, and water heaters. Natural gas is a major feedstock for the production of ammonia, via the Haber process, for use in fertilizer production.Natural gas is also used in the manufacture of fabrics, glass, steel, plastics, paint, and other products.


In view of the tremendous amount of foreign exchange required to import high quality fossil fuels, the authorities have focused on the modernization and development of the fossil fuel industry. It is reported that the NLC would be a major stakeholder in the Thar Coal Mining Company that has been formed recently by the federal government for exploitation of vast Thar coal deposits in Sindh, primarily for power generation. Of course, the NLC has no expertise, experience or qualification to manage a coal mining company. To overcome its deficiency, the NLC intends to appoint international/national service companies specializing in the coal geology and mining. Port Qasim Authority plans to establish a Coal, Clinker/Cement Terminal at a cost of US$ 50 million with handling capacity of 4 million tonnes per annum. Technical and Financial proposals have been issued to prospective bidders. Award of the project is expected by November 2007. Completion period of the project is two years. To handle crude oil and finished products of proposed Indus Oil Refinery, 2 nd Oil Jetty with handling capacity of 9 million tonnes at an estimated cost of US$ 20 million is planned to be set up at Port Qasim. The jetty shall be capable to accommodate vessels of 75000 dwt vessels. FOTCO have appointed M/s Techno Consultants and Royal Haskoning of UK who are finalizing Technical and Financial proposals. The Sara and Suri fields have been producing sales gas since 1999 and plans are in place to increase production by installing a compression facility on the field. The development project on Chachar is well advanced with two new development wells and the original discovery well prepared for production. Construction of the production facility is nearing completion and it is anticipated that the field will come on stream during the third quarter of 2007. 2

Pakistan and Kuwait have signed a number of agreements of understanding for enhancing bilateral trade and economic relations with particular reference to setting up a world class Oil Refinery at Port Qasim, Karachi with an investment outlay of $ 2 billion, with a refining capacity of about 200,000 barrels of crude petroleum per day, to be operational by 2009. The Oil & Gas development Company ltd has hit two discoveries, Sono 7 in Hyderabad Sindh and Bahu in district Jhung, Punjab. From Sono 7 OGDCL will get around 2500 3000 barrels per day oil and 20mmcfd gas. Its production is expected to increase substantially in the future as the company plans to drill for the third phase. Bahu is an exploratory well and will produce 12 15 mmcfd gas and 300 barrels condensate per day. The gas produced from Baru field will be supplied to Kabirwala thermal power plant through Sui Northern Gas pipeline Limited. OGDCs 38 well are producing gas and oil to help cut the countrys import bill. In a bid to enhance production OGDC has been granted licenses for another 28 wells both as sole proprietor and as joint venture with other multinational companies. A US-Canadian company, 'Soneri', has started work on $5 billion project for discovery of coal-bed methane gas under the layers of coal reserves in Sindh, In the near future Sui Northern Gas Pipelines Limited plans to construct 300 Kms, 12 & 8 dia transmission lines to supply gas to Southern District of NWFP and 115 Kms, 8 dia, transmission lines for gas supply to Southern Districts of Punjab.