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News Headlines for the month of
JULY 2016

OVER $400 MILLION INVESTMENT: MPCL TO SET UP 400 MEGAWATTS GAS-FIRED POWER PLANT

Mari Petroleum Company Limited (MPCL) is going to establish a 400 megawatt (MW) power plant at Dharki/Sadiqabad, MPCL Managing Director Lieutenant General Nadeem Ahmed (Retd) said. Mari Petroleum is the country''s leading gas producer which''s 40 percent shareholding rests with Fauji Foundation of Pakistan Army, 20 percent with Oil and Gas Development Company (OGDC), over 18 percent with Government of Pakistan and rest with private stakeholders. To be completed at a "standard" cost of $400 million, the gas-based power generation project would be set up under Energy Policy 2015. The official document, according to Ahmed, entitled the low BTU (British Thermal Unit) gas producing firms to the right of first refusal to become an Independent Power Producer (IPP). "The government said you (MPCL) establish the IPP and give us spec gas" the production of which, the MD said, was quite capital-intensive. "Spending $15 million on a well and as much on the processing facility makes it an exorbitant venture," he said. About plant site, Ahmed said, two locations were being reviewed: first at Mari''s Dharki gas fields and second at Sadiqabad "where the law and order is, relatively, better." "Not one or two but many strategic investors have started approaching us for this project," the MD said adding his side had already taken the nod of regulators and stakeholders like National Power Regularity Authority, National Transmission and Dispatch Company, Private Power and Infrastructure Board, Central Power Purchasing Agency and secretary ministry of water and power. "We would be seeking our Board''s approval probably in September," the MD said. For all this to materialise, however, MPCL would have to ensure that it has enough gas reserves to sustainably fuel its power plant in future. "We are in consultation with feasibility firms to examine the total capacity of our fields," he said. The official said the first interpretation of a seismic survey MPCL had conducted in 2012 indicated that more gas reserves were existed at Mari fields, Dharki. Adding an IPP portfolio, he said would save his company the gas processing cost besides getting up to $6 incentive price. "The lesson we have learnt so far is that being on one stream of revenue is not good. You have to diversify," Ahmed told Business Recorder here at the company''s Sujawal gas fields Monday. The diversification move, as he indicated, came after the company underwent some financial setbacks because of the shortage of much-needed exploration funds under the now-dismantled pre-cost plus fixed return formula and a huge slump in international oil prices. Since its $110 per barrel peak in June 2014, benchmark British Brent was once seen having "bottomed out" to $23 level. "Thanks to incremental production, we stayed in green having Rs 88 billion revenue in FY15 and Rs 95 billion last year (FY16)," the managing director said. Currently producing 696 million cubic feet per day (mmcfd) gas and 3,300 barrels per day (bbl) oil, MPCL has 100 percent operating interest in 11 of its 17 countrywide hydrocarbon fields. Tuesday saw MPCL share price hitting its five percent upper limit to close at Rs 974.84 with 97,500 trading turnover. It was just two-and-half year ago when MPCL used to trade at Rs 200 on the local bourses. MD Ahmed attributes this "blown up" price hike to horizontal (geographical) and vertical growth the country''s largest producer of gas to fertiliser sector had achieved since January 2014.

Copyright Business Recorder, 2016

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ENERGY PORTFOLIO: SINDH HAS LARGEST SHARE OF $11.3 BILLION, CLAIMS AHSAN

Sindh province has the biggest $11.3 billion share in the energy portfolio of China-Pakistan Economic Corridor (CPEC), according to Federal Minister for Planning, Development and Reforms Ahsan Iqbal. Addressing a gong ceremony here on Wednesday at Pakistan Stock Exchange (PSX), the minister put the total energy portfolio under the multibillion-dollar CPEC venture at $35 billion. The first phase of $46 billion China-backed "game changer", which Iqbal said would change the region''s geo-economics, is based on infrastructure development and would complete by 2018. "Sindh has the biggest share of $11.3 billion in CPEC energy portfolio," the minister told a questioner after explaining "four Es". Extremism, energy, economy and education, he said, were the hallmark of his government''s election manifesto in 2013. The first phase, the PML-N leader said, envisaged the development in the port city of Gwadar Port, an airport, a hospital, a desalination plant and a technical vocational institute to make Baloch youth skilful. Chinese are providing free services, as Islamabad is working on a new Master Plan to make Gwadar an "international smart port city". Also, China and Pakistan would be connected through a strong network of road and rail link. "During last three years, we have invested about Rs 115 billion in railways. This now is bearing fruit," the development minister said. Noting that certain anti-Pakistan "powers" were trying to sabotage CPEC, Iqbal said work on the mega project had been started in a record one-year time with a complete consensus on its route of all stakeholders including Sindh province. "Murad Ali Shah (chief minister-designate) is a dynamic leader who has been working with us as a finance minister. I look forward to work with him. We are very happy that he is the Chief Minister Sindh," he told a reporter. Further, he said CPEC, being a long-term national project to be completed in 2030, would be undertaken by three governments succeeding his in 2018, 2023 and 2028. Dwelling on the four Es, the minister said while Zarb-e-Azb had successfully made Pakistan safer than it was in 2013 through taking on extremism and terrorism, the energy sector had got the largest $35 billion portfolio under CPEC. "So far, we have invested to generate 25,000 megawatts of electricity by 2025," the minister said adding 10,000MW would be added to the national grid by 2018 and 15000MW by 2025. Reiterating 2017-18 as a deadline for the end of loadshedding, Iqbal said various power projects were underway to generate 1320MW at Port Qasim, 2000MW initially from Thar coal by 2017, 1320MW at Sahiwal, 1320MW at HUBCO, ADB-backed 1320MW at Jamshoro, 3600MW through LNG, 2200MW through civil nuclear energy at KANUPP, 4500MW from the World Bank-funded $11 billion Dasu Dam, 4500MW from Diamir Bhasha Dam, 500MW from renewable wind and 1000MW solar energy. Having made the "biggest" investment in energy sector, Iqbal said his government now was to up-grade the country''s ageing power transmission and distribution line. To this effect, he said, a south-north power transmission line was being laid at $2 billion. National economy, the minister said, was progressing from stabilisation to growth phase with FY16 bringing 4.7 percent economic growth, highest in last eight years. With Moody''s and Standards and Poor having Pakistan''s credit rating up-graded, all macroeconomic indicators in the country stood improved. Education: Terming development of human resource as his original agenda, the minister said compared to Rs 100 billion the previous rulers had spent during 2010-2013, his government had invested double, Rs 215 billion, on the promotion of higher education in Pakistan. Citing the previously-neglected Gwadar, Zhob and Fata as his initial target, he said his government had planned to establish universities and colleges in every district of the country within next three years. Also, he also said to have set up a National Curriculum Council to base the country''s existing "Rutta" curriculum on critical thinking. "21st is the century of economic and not political theory," he said. Alluding to PTI Chairman Imran Khan''s inclination to street politics, the minister said Pakistan needed "economic long march" and not political agitation to find its place among the world''s top 25 economies under government''s Vision 2025. Referring to booming Pakistan Stock Exchange as one of the signs, Iqbal said: "Pakistan is rising". Earlier in the presence of PSX board members, Chairman Munir Kamal welcomed the federal minister to the Exchange.

Copyright Business Recorder, 2016

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CALL FOR DEVELOPING ENERGY INTEGRATION SYSTEM IN ASIA

Asian countries are urged to develop energy integration system in Asia and take concrete measures to do away with the challenges of poverty for achieving sustainable growth, stated participants at a two-day meeting of the Senate Standing Committee on Economic and Sustainable Development of Asian Parliamentary Assembly on Tuesday. Speaking at the opening session of two-day meeting of the committee, Dr Ali Khorram, Deputy to Asian Parliamentary Assembly Secretary-General, highlighted the five main issues and stated that those were now in front of the Assembly to resolve. Those issues he stated included; (i) how to develop energy integration system in Asia;(ii) the environmental impact of energy consumption now and when Asia becomes the main consumer of energy in the world; (iii) eradication of poverty including food security, sustainable economic growth and; (iv) role of APA Parliaments to adopt legislation in supporting the implementation of the Sustainable Development Goals (SDGs). As chief guest Speaker National Assembly Ayaz Sadiq welcomed the delegates from various Asian countries (19 countries) and expressed the hope that the forum would come up with some concrete suggestions for the well being, prosperity and future of millions living in Asia. He said that Asian countries needed building of synergies and forging partnerships to deliver effectively as per the ideals of Asian Century. He added that regional parliamentary forums such as Asian Parliamentary Assembly could play a very important role on critical issues of energy, food security, human rights, women empowerment, water and sanitation, growth and environment, which were common to the most of the Asia. He said Pakistan was a responsible nuclear state and maintained highest standard of nuclear safety and security. Chairman Senate Raza Rabbani stated that the future of Asia lied in the hands of the Asian people. He said criticism of West that Asian integration was not possible due to cultural, religious and social diversity was not true. "We believe that the strength of Asia is its diversity and with diversity comes the unity," he added. He lamented the double standards of United States (US) and Western powers and stated that the ongoing upheaval and turmoil in Middle East was due to their policy of regime change. He said that being a Pakistani he witnessed the double standards of the West as they politically and economically supported the dictatorial regimes in Pakistan and remained silent over the unlawful prosecution of political workers. Rabbani regretted the silence of Human Rights' (HR) champion Western countries over the blatant violation of human rights in Palestine and Indian Occupied Kashmir. "These are the issues that are needed to be resolved in order to achieve equitable development and peace in the region," he said, adding it was imperative for Asian countries to look at things in the right dimension. He urged the member countries to move forward for achieving the goal of Asian Parliament that was "Asian Integration." He proposed establishment of 7-8 regional groups of the Asian countries to chalk out the modalities to achieve objectives of the Asian Parliament. Those groups, he said, would share their reports with respect to modalities in the upcoming plenary session of the Asian Parliamentary Assembly. Senator Chhit Kim Yeat, representative of APA President from Combodia in his inaugural remarks said that in order to realise the ultimate goal of Asian Parliamentary Assembly was integration in Asia. He said the Asian Parliamentary Assembly had to start from somewhere, possibly from Asian integrated Energy Market as its role was essential in improving economic, social and cultural sectors to improve the human development and promote the Human Development Index as an index for the sustainable development goals. Leader of the House Senator Raja Zafar ul Haq was unanimously elected as the Chairman Standing Committee on Economic and Sustainable Development Affairs while Senator Mushahid Hussein Syed stated that the balance of power was shifting from West to Asia and future lied with Asia. Senator Sherry Rehman underlined the need of integration and stated that the countries that were not integrated would not be able to save themselves from the onslaught of climate degradation. She said the hardening borders, refugees as well as climate change and security risk were going to be major problems and the Asian countries needed integration to deal with them. Delegates from Iran as well as Palestine, Russia, Jordon, Bhutan etc also made brief remarks about the meeting as well as about the measures taken by their countries to move towards for achieving SDGs. Delegate of Palestine strongly criticized the silence over the killing of innocent people in Palestine at the hands of Israeli forces and in Occupied Kashmir by the India Forces.

Copyright Business Recorder, 2016

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INDUSTRIAL, ENERGY SECTORS: 24 PACTS, MOUS INKED WITH CHINA

Punjab Chief Minister Muhammad Shahbaz Sharif met Chinese Vice Foreign Minister Zhang Yesui in Beijing on Tuesday. Speaking on the occasion, the Chief Minister said that Pak-China friendship is a precious asset of every Pakistani. He said that completion of China-Pakistan Economic Corridor will change the destiny of the region. He said that implementation of CPEC projects will result in promotion of exports of Pakistan and different countries of the region as well as create job opportunities, besides curbing the trend of extremism. He said that Pakistan has always supported China on "One China Policy", Tibet as well as regional and international issues. Chinese Vice Foreign Minister Zhang Yesui said that China has always stood by Pakistan and will continue to help Pakistan achieve progress and prosperity. He said that China would extend all out co-operation to Pakistan in increase productive capacity of industrial sector and this co-operation will also include construction of industries and transfer of technology. He said that Pakistan would be among China''s priorities in the programme of shifting of Chinese industries to other countries and will assist Pakistan in any industrial sector. Shahbaz while addressing signing ceremony of different agreements and memorandums of understanding between different government and private companies of China and Pakistan at Pakistan Embassy in Beijing said that Pakistani traders and industrialists have a golden opportunity in the form of Chinese co-operation and they should benefit from it for promotion of mutual trade and progress and prosperity of Pakistan. As many as seven agreements and 17 MoUs were signed at the ceremony. These agreements pertain to textile industry, establishment of industrial estates, training of master trainers in different skills, promotion of trade fairs and exhibitions, energy, infrastructure and water treatment and other sectors. Shahbaz Sharif said that in the background of Pak-China co-operation, a new history will be written in the form of implementation of these agreements. The Chief Minister further said that pace of implementation of development projects in Pakistan under CPEC is unprecedented. He said that Chinese President Xi Jinping came to Pakistan in April 2015 and different agreements were signed. Then, he said, speedy implementation of these agreements started and these projects are being completed at an extraordinary pace. Addressing Pakistani industrialists and traders signing the agreements, he said, government and people of Pakistan expect from them to work on these agreement at the same speed. Meanwhile, the Chief Minister while talking to the representatives of Chinese print and electronic media, news agencies and radio in Pakistan Embassy in Beijing said that Pak-China love and friendship is based on golden principle of honesty, trust and transparency. He said that people of China and Pakistan should learn each other''s languages as it will them closer. He said that there is a need for visits of delegations of traders, industrialists besides scientists, artists, students and teachers. Addressing Pakistani boy and girl students in Pakistan Embassy in Beijing, Shahbaz Sharif said that Punjab government has sent them to China at its expenses to learn Chinese language. He said that Pakistani students are very talented and learning of Chinese language is the need of the hour. He said that Punjab government has sent them to China and it is now their responsibility to work hard to gain command over this language. He said that though Chinese is a difficult language but he is sure that they will learn it through their hard work and commitment. He said that these students are ambassador of their country. The Chief Minister while speaking on the occasion said that due to provision of resources by the Chinese banks, the pace of work on the projects is enviable and every penny of funds is being spent with honesty. He said that completion of projects with Chinese co-operation will benefit crores of Pakistanis. Meanwhile, Chief Minister Shahbaz Sharif met Vice Chairman National Development and Reform Commission Nuer Baikeli in Beijing. The pace of progress on projects under CPEC was discussed in the meeting. Shehbaz Sharif thanked Chairman of Huaneng group for speedy work on Sahiwal Coal Power Plant. Chairman Huaneng expressed satisfaction over the arrangements made by Punjab government and said that his group is ready to work on more mega projects in Punjab. The Chief Minister said that all out measures have been taken for the security of Chinese nationals in Punjab and Sahiwal Coal Power Project will prove to be as splendid example of Pak-China friendship. Chief Minister Shahbaz Sharif also met Administrator National Energy Administration Noor Bakri. A briefing was also given to the Chief Minister. Shahbaz Sharif informed that Punjab government has evolved the project of establishment of command and control centers for the protection of life and property of the people and a big programme is being implemented for facilitating the masses by benefiting from information technology.

Copyright Business Recorder, 2016

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BRAZIL OFFERS COOPERATION IN RENEWABLE ENERGY SECTOR

Brazil is ready to extend cooperation to Pakistan in the renewable energy sector, Diplomat Claudio Lins has told the Lahore Chamber of Commerce and Industry. Senior Vice President Almas Hyder, Vice President Nasir Saeed, former president Iftikhar Ali Malik, Executive Committee Members Amjad Ali Jawa, Mian Abdul Razzaq, Tariq Mahmood, Waqar Ahmed Mian and Brazilian Consul Mian Hassan Mansha attended the meeting. "Brazil covers more than 42 percent of its energy needs through renewable sources and ready for knowledge sharing with Pakistan," he told his audience. "Brazil has improved per hector yield through modern technology and double cropping and is also one of the largest exporters of poultry meat. Pakistani businessmen can take benefit from Brazilian expertise in these sectors." He also talked about the trade volume between his country and Pakistan, despite having various commonalities and good diplomatic relations. "The mutual trade volume in 2015 was hardly $369 million which does not match the potential exists in the two countries." He said, "Brazil is looking for new trade partners in Asia while Pakistan products are best and can easily make their way in the Brazilian market." He invited Pakistan businessmen to work for joint ventures with their Brazilian counterparts and also report their reservations to the Brazilian Embassy in Pakistan over tariff. Senior Vice President Hyder told his guest that the Brazil-Pakistan relations were characterised as friendly and co-operative and that the balance of trade had been in favour of Brazil. "From 2013 to 2015, the two-way trade has surged from $227 million to $316 million. However, in contrast to that, Pakistan exports are falling in terms of value which contracted from $87 million to $56 million. We should work on ways to improve our trade and economic relations." "The private sector of Pakistan can definitely take advantage of exporting to Brazil various types of consumer goods like ready-made garments, fabrics, knitwear, towels, leather and leather products, pharmaceutical and surgical instruments. Brazil offers a huge potential for exports of high quality footballs. Everyone knows that the game of football is very close to the hearts of Brazilian people. We can also supply agro products including rice, pulses, fruits and vegetables. For this, we need to work closely with your office to find the right partners." Former president Ali Malik called for business-to-business meetings between businessmen of the two countries. Consul Mansha then talked up the trade and economic relations. "Pakistan's geographical location is very important and could be beneficial for the Brazilian investors."

Copyright Business Recorder, 2016

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100 KILOWATT BIOMASS GASIFICATION POWER PLANT INSTALLED AT UAF

The University of Agriculture Faisalabad (UAF) has installed 100 kilowatt biomass gasification power plant meant for promoting alternative way of energy to overcome power shortfall touching 5000MW. UAF Vice Chancellor Professor Dr Iqrar Ahmad Khan inaugurated energy plant established at Punjab Bio Energy Institute, Postgraduate Research Station, UAF in collaboration with China as an initiative of the Punjab government. Chinese experts Dr Hai Bin Li from Guangzhou Institute of Energy Conversion, China and Dr Xiaobo Wang; UAF Agri Engineering Dean Dr Allah Buksh, Dr Ehsan Ali, Dr Anjum Munir and other notables also spoke on the occasion. Dr Iqrar Ahmad Khan said the country was producing a huge quantity of biomass and crop residue every year that must be converted into electricity as an alternative way. He termed the project a solution to meet the need of the electricity, especially at the village level. He said that it is an initiative of Punjab Chief Minister who had invited China to set up biomass plant to promote the technology for which UAF was selected for the purpose. He said the plant converts the agricultural waste into the power through the gasification process. He was of the view that though 100KW plant, we can provide the power to 50 houses. He stressed upon the need to adopt the model at the every village level. He added that the combination of biogas, biomass, and solar energy would help to become self-sufficient in the energy sector. He said in Pakistan, post-harvest losses in fruits and vegetables are 25-40 percent and 15-18 percent in food grains. He said the plant will be used for the research and development activities as step towards to reach it out to every corner of the province. He said that plant is installed by the China whereas the UAF staff is trained to handle it in this regards. Dr Hai Bin Li said that China is producing 650 million agricultural wastes. Fifty percent of the wastes were being used for producing the energy. He said that forest waste was also touching 270 million tonnes in China which 30 percent is used for the energy purposes. He said that they are meeting 10 percent of the power demands from the bioenergy. He said that the promotion of such technology would promote the country to meet its energy demands. He said 4,700 scaled land poultry farm biogas plants and 1600 scaled industrial organic waste biogas plants were in operation in China by 2010. Totally about 4 billion m3 biogas was produced each year. Dean Faculty of Agri Engineering Dr Allah Buksh said that in Pakistan, 26 million hectare is under the cultivation. He suggested using the agricultural wastes for the production of energy. He said that reserves of fossil fuels can end up after half a century. Therefore it is the need to find out the alternative way of energy. He said that the University had launched a programme of energy system engineering that would also help to fight the challenge with the help of trained manpower. Dr Anjum Munir said that Pakistan spends 14 billion US $ yearly on import of oils. He said that electricity shortfall was greater than 5000MW resulting daily load shedding. He said available energy resources are unable to meet the required energy demand of the country. He said that besides the biomass and biogas, the UAF is actively working on solar energy. It has developed solar grain dryer, solar cooker, solar assisted milk pasteurizer, and solar tunnel dryer. Dr Xiaobo Wang stressed the need to utilise renewable energy as substitute of fossil fuels. He said that provision of clean energy would not only improve living quality but also improve the local environment and further to global environment. Dr Ehsan Ali also spoke on the occasion.

Copyright Business Recorder, 2016

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GOVERNMENT TO START IMPORTING RON 92 STANDARD PETROL FROM OCTOBER

Pakistan will start importing RON 92 standard petrol from October, which will improve efficiency of vehicles and give good mileage per liter, official sources in the Ministry of Petroleum and Natural Resources said. "Currently, the country is importing 87 RON petrol; which is not of a very high quality, but from October we are going to replace it with RON 92 standard petrol," they told APP. Besides, they said the government was making tireless efforts to increase the country's oil refining capacity. Accordingly, a task to Pakistan Arab Refinery Company (PARCO) to complete Khalifa Coastal Refinery, having capacity to produce 250,000 barrels per day, which was pending for last several years. They said six oil and gas discoveries were made in June, adding 83 discoveries were made in three years since the present federal government took over.

Copyright Associated Press of Pakistan, 2016

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'GROUNDBREAKING OF KHALIFA COASTAL OIL REFINERY THIS YEAR'

In a significant move to achieve self-reliance in the oil production sector, the government has given a task to Pakistan Arab Refinery Company (PARCO) to complete the much delayed multi-billion-dollar Khalifa Coastal Oil Refinery project. "PARCO has been given the task to complete the project having capacity to refine 250,000 barrels oil per day - equal to 13 million tons of petroleum products per year," official sources in the Ministry of Petroleum and Natural Resources told APP. The sources informed that the groundbreaking of the project was likely to be performed this year, and it would be completed within five years. Presently, they said 70 percent of the current oil demand is met through import and the government had planned to set up more oil refineries in the coming days. The government has allotted 1,000 acres of land for the refinery project, being executed at a cost of around $5 billion. The project, approved in October 2007, was suspended several times due to paucity of funds, they added. PARCO is a joint venture between Pakistan and Abu Dhabi in which Pakistan holds 60 per cent shares while Abu Dhabi has a 40 per cent stake through Abu Dhabi Petroleum Investment Company, a subsidiary of International Petroleum Investment Company (IPIC). In the Khalifa Refinery, IPIC will have a majority shareholding of 74 per cent while PARCO will have a 26 per cent interest.

Copyright Associated Press of Pakistan, 2016

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WINDMILL ENERGY: GOVERNMENT ALLOCATES 800 ACRES OF LAND

Sindh Government has allocated 800 acres of land in Nooriabad district Jamshoro for setting up two windmill energy projects with objective to overcome the energy crisis and provide electricity to the people on cheap rates. The Commissioner Hyderabad Qazi Shahid Pervez informed this while presiding over a meeting with the officers of concerned departments here at his office on Friday. He informed that a project will be established at 500 acres of land while the other will be set up at 300 acres land and the completion of these two projects will not only fulfil the energy requirements in Nooriabad and its outskirts with cheap prices, but will also provide job opportunities to local people. In order to achieve the task of the windmill policy of Sindh Government, the Commissioner informed that a committee has been formed with representations of Commissioner Officer, Land Utilisation Department, Director Land Record, Director General Mineral Mines, Windmill Power and Crash Plan to conduct the survey of the allotted land for the projects. The said committee will conduct survey and submit its report in the meeting which will be held on July 29, 2016 the Commissioner informed and added that after review of the report of the committee, further decisions will be made in this direction.

Copyright Business Recorder, 2016

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'COAL & GAS-BASED POWER PLANTS TO PROVIDE LOW COST ELECTRICITY'

Punjab Chief Minister, Muhammad Shahbaz Sharif has said that completion of 5,000 MW coal and gas based power plants will provide low cost electricity to the people He was addressing a high level meeting that reviewed progress on development projects including power projects here on Monday. Chairman Planning & Development, Secretary Industries, Chairman Investment Board and concerned authorities attended the meeting. He said energy projects under China Pakistan Economic Corridor are being speedily implemented and 1320 megawatts Sahiwal Coal Power Plant will be completed much before the stipulated period. The power production from this project will start from the beginning of next year. Shahbaz said that work is continuing expeditiously on 3600 megawatts gas-based power projects in Punjab and these projects have been obtained at the lowest rate in the contemporary history. He said saving of 112 billion rupees has been made on these projects while funds of billions of rupees have been saved in development projects through transparency; work on solar projects is also in progress. The CM said that thousands of megawatts electricity will be generated with the completion of several energy projects till 2018 which will fulfil electricity requirements while industrial and agriculture sectors will also progress.

Copyright Business Recorder, 2016

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KP, FWO MAY SIGN AGREEMENT TO SET UP OIL REFINERY

Chief Minister Khyber Pakhtunkhwa Pervez Khattak has revealed that his government is expected to make an agreement with the Frontier Works Organisation (FWO) for the setting up of an Oil Refinery at Karak along with some other projects in hydel power generation, housing sectors and industrial sectors in the province. The housing projects include Peshawar Model Housing Scheme comprising 120,000 Kanal of land, Housing scheme on Motorway comprising 80,000 Kanal and Hangu Housing Project. Cement projects pertaining mines & mineral sector and four hydropower projects three in Chitral and one at Balakot and establishment of industrial hubs and economic zones in the context of CPEC and other industrialisation, the provincial government has already planned in the province. The Chief Minister agreed to the proposal that the strategic storage normally occurred in KP and Northern Punjab necessitated the establishment of oil refinery in Karak that will ensure national security and it was also important from social prospective and there will be no chances of fuel shortage in the entire belt. He asked the quarter concerned to finalise the formalities for making agreement with FWO. The province will get its share from these projects. Khattak called upon the officials of energy sector to expedite land acquisition and make all formalities without wastage of time so that an agreement could be concluded with the FWO for the projects in hydel power generation sector. These projects lay in Chitral and Balakot. The province of Khyber Pakhtunkhwa would be a share holder in the earning from the projects. In the cements projects, the Chief Minister directed to finalise all formalities so that a cement project could be launched in Sarikot Haripur. A decision in this regard could be taken on the 30th of this month. In the housing sector, the Chief Minister offered three projects to the FWO that included Peshawar Model Town, a Township at Motorway and Hangu Township. FWO took keen interest and was willing to take these projects in hand. In the establishment of Industrial hubs and economic zones in the context of CPEC, the Chief Minister wished to thresh out a sharing formula and asked the quarter concerned to make further progress in this regard. Khattak said his government has given a direction to the development and progress of the province. "We want this province to make progress by leaps and bounds. The government officials should pull their sleeves for a more hectic job ahead. His government would make legislation for the benefit of its people and province," he added.

Copyright Business Recorder, 2016

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PPL DISCOVERS GAS IN SANGHAR

Pakistan Petroleum Limited (PPL) on Friday announced gas discovery at its exploration well Hadi X-1A in District Sanghar, Sindh. PPL operates Gambat South Block with 65 percent working interest (WI) along with its joint venture partners, Government Holdings Private Limited and Asia Resources Oil Limited with 25 percent and 10 percent WI, respectively. Hadi X-1A was spud on February 5 and reached the final depth of 4,020 meters on April 19, said the company in a statement issued here. Based on wireline logs interpretation, potential hydrocarbon bearing zones were identified in Sembar Formation. During initial testing in Sembar Formation immeasurable amount of gas flowed at the surface for three days and reservoir appeared to be tight. To further evaluate tight gas potential Frac job was conducted after which flow rates improved significantly. The well flowed at 0.85 MMscfd gas at 32/64 inches choke size, thus confirming the presence of natural gas at Hadi X-1A. "Post Frac results suggest that it is a tight gas discovery," PPL said. However, further evaluation is required to determine the size and commerciality of the discovery, based on post well studies and its integration with geological, geophysical and engineering data collected during drilling and testing of the well.

Copyright Business Recorder, 2016

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POL DISCOVERS HYDROCARBONS IN HANGU

Pakistan Oilfields Limited (POL) said on Monday to have discovered hydrocarbons from one of its wells at Hungu. Company Secretary Syed Khalid Nafees in a stock filing said, "Operator of TAL Block, hydrocarbons had been encountered in Development well Makori East-05." POL shares surged by 1.78 percent as the company disseminated the material information to its stakeholders on Pakistan Stock Exchange. "POL shares surged on the back of oil and gas reserves discovery at Makori-East-05," said Ahmed Saeed Khan, analyst at JS Research. This, he said, would translate into a positive impact of Rs 3.21 per share. According to company official Nafees, the well was completed in Lockhart, Hungu and Lumshiwal formation. After stimulation through acid job, the well has tested 2,836 barrels of condensate, 19.26 MMscf of gas and 121 barrels of water per day at 40/64, fixed choke size at the flowing wellhead pressure of 2,718 psi, he said. Currently under cleaning phase, production from the well is expected to start from September. The pre-commerciality working interest of POL in the discovery stands at 25 percent, said Nafees.

Copyright Business Recorder, 2016

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OGDCL DISCOVERS GAS CONDENSATE IN SANGHAR

Oil and Gas Development Company Limited (OGDCL) said to have discovered gas condensate from one of its exploratory wells in District Sanghar of Sindh province. "The discovery has opened up a new avenue and would add hydrocarbon reserve base of OGDCL, GHPL and of the country," said OGDCL's company secretary Ahmed Hayat Lak in a stock filing. The new discovery, he said, has been made by the Joint Venture of Bitrism Block, which comprises OGDCL as operator with 95 percent shareholding and Government Holdings (Pvt) Limited (5 percent carried) from Bitrism West 01-A. The structure of Bitrism West Number 01-A was delineated drilled and tested using OGDCL's in house expertise and in close collaboration with GHPL team. The well was drilled down to the depth of 4210 M, said Lak. The well has tested 290 BPD of condensate and 4.3 MMSCFD of gas through 32/64" choke at Well Head Flowing Pressure (WHFP) 970 Psi from Lower Goru (Basal Sand) formation.

Copyright Business Recorder, 2016

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AZAD-PATTAN HYDROPOWER PROJECT: PPIB, POWER UNIVERSAL COMPANY EXECUTE LOS

Private Power and Infrastructure Board (PPIB) and Power Universal Investment Co Ltd, Dubai UAE, a subsidiary of China Gezhouba Group Company Limited on Thursday executed Letter of Support (LoS) for the development of 640MW Azad-Pattan Hydropower project. According to an official, execution/signing of the LoS will lead to further development, financing, construction and subsequently operation of the project. 640 MW Azad-Pattan Hydropower Project is a run of the river hydropower project located on river Jhelum on dual boundary of AJ&K and Punjab having capability to generate clean, reliable and affordable 3.075 billion units of electricity per year to the national grid. The project is located very close to the load center and will be connected to the national grid through 500 kV transmission line. As the government attaches top priority to generate electricity at affordable prices utilising indigenous resources like coal and hydro, the project assumes further importance. In line with the policy of the government, the PPIB is handling and facilitating the development of this project for its timely completion to meet the future energy requirements, the official added. The project will be implemented on Build-Own-Operate-Transfer (BOOT) basis under the provisions of Power Policy 2002. After commissioning, the project company will operate and maintain the project for 30 years after which it will be transferred to the Government of AJ&K at a notional price of one rupee. Further, during operation and maintenance of the project, the Government of AJ&K/Punjab will receive Rs 1.306 billion every year on account of water use charges which would be shared equally between AJ&K and Punjab. After the transfer of the project to AJ&K, the Punjab will receive full amount of water use charges i.e. Rs 1.306 billion/annum. The PPIB is processing hydropower projects with a cumulative capacity of around 6400 MW through private sector which is at various stages of development.

Copyright Business Recorder, 2016

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ENERGY SHORTAGES: CHINESE COMPANY VOWS SUPPORT TO PAKISTAN

Power Construction Corporation of China Ltd, the biggest hydropower designer and builder in the country has assured that it would fully support Pakistan in its efforts to overcome energy shortage. This was stated by the Company's President Yan Zhiyong in a statement issues here. He said in many overseas projects in countries such as Pakistan, the company provides power solution services for the whole country's energy supply instead of a single project. His company will enhance its co-operation with Pakistan to meet its energy needs, he said adding in the past several years, we have provided power planning for free to more than 30 countries along the Silk Road. The Company will build on its current achievements to accelerate its overseas work during the 13th Five-Year Plan (2016-20), Yan Zhiyong added. By the end of 2015, the company, often called PowerChina, made than 50 percent of the gross profit from its international business. Overseas business takes up more than 30 percent of its total revenue, according to the company. "PowerChina will continue to bring the best power solution to the world," he said. "In our overseas projects, the company offers not only technologies and experiences, but also lessons we've learned." "As a global company, we are making efforts on sustainable growth not only for Chinese people, but also for people in the whole world."

Copyright Independent News Pakistan, 2016

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