14TH INTERNATIONAL EXHIBITION FOR THE ENERGY INDUSTRY

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News Headlines for the month of
OCTOBER 2016

COAL PLANTS, LIKELY DOUBLE-DIGIT GROWTH: GOVERNMENT ACKNOWLEDGES INCREASE IN GHG EMISSIONS

Federal government has acknowledged that coal-fired power plants and a (government) projected double-digit growth during the next 10 years would increase Greenhouse Gas (GHG) emissions, well-informed sources told Business Recorder. Ministry of Climate Change recently informed the Federal Cabinet that the 21st session of the Conference of Parties (COP-21) adopted the Paris Agreement, which has been signed by Pakistan. The sources said, every member country of the United Nations Framework Convention on Climate Change (UNFCCC) was required to submit to the secretariat its Intended Nationally Determined Contributions (INDCs) towards stabilization of Greenhouse Gas (GHG) emissions. Pakistan''s INDCs was an interim response in the form of a brief document due to lack of data that could have allowed the estimation of future GHG emissions.The cabinet was further informed that after COP-21 and with the approval of Terms of Reference (ToRs) by the Prime Minister Nawaz Sharif , Climate Change Division, along with a team of experts, undertook exhaustive consultations with stakeholders and prepared an INDC report. The Prime Minister also constituted an Inter-ministerial committee to critically examine the INDC report, which endorsed the draft. The steering committee constituted under the approved ToRs of the INDC project, endorsed submission of the INDC document to the UNFCCC Secretariat. According to sources, three key elements of the INDC report were also shared with the cabinet. Firstly, GHG emissions from 405 million tons of CO2 equivalent in 2014-15 were projected to increase to 1,603 million tons CO2 equivalent by the year 2030. Secondly, Pakistan had the potential to reduce emissions by 20% but this was subject to availability of about $40 billion (at current prices); and finally, estimate of adaptation needs ranged from $7 to 14 billion per year over the period 2010-50. On queries whether the GHG emission estimates in the report had factored in the setting up of several coal-based power generation plants and double digit growth for the next 10 years which would substantially increase the GHG emissions, it was pointed out that these two factors had already been taken into account while preparing estimates in the report. The source said, in terms of rule 16(1)(j) of the Rules of Business 1973, Ministry of Climate Change sought approval of the cabinet for submission of Intended Nationally Determined Contributions (INDCs) to UNFCCC. After detailed discussion, the federal cabinet approved the report and allowed the Ministry of Climate Change to submit the report to the UNFCCC.

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OGRA, CHINESE COMPANY INITIATE SEISMIC SURVEY IN GWADAR

The state owned Oil and Gas Development Company (OGDCL) in collaboration with a Chinese Exploration and Production company has initiated seismic survey in district Gwadar of Balochistan for exploration of oil/gas resources. "For first time in history, we have completed geological survey and now seismic survey is underway, after data processing we will be in a position to start drilling but the area has huge potential for producing gas", Managing Director OGDCL, Zahid Mir remarked. Briefing the Senate Functional Committee on Problems of Less Developed Areas held here on Friday with Senator Mohammad Usman Khan Kakar in the chair, Mir said that overall the OGDCL has spent millions of rupees on various developmental projects in Less Developed Areas, adding during the ongoing financial year it will spend hundreds of millions of rupees across four provinces in areas where the company is working. Usman Kakar and Senator Jahanzaib Jamaldini informed the meeting that Hepatitis was widely spreading in Balochistan, adding the poor people of province can''t afford Hepatitis tests charges that costing up to Rs 15,000. They urged the Ministry of Petroleum and Natural Resources to direct the E&P companies for providing free of charge Hepatitis tests to the people of most under developed province of country. They also asked the OGDCL to arrange Hepatitis tests for people in collaboration with Agha Khan Hospital and other reputed health institutions to save lives of millions of people. The committee was apprised the OGDCL launched a special talent hunt program for the students of Less Developed Areas of Khyber Pakhtunkhwa (KP) and Balochistan under which 50 students of each province have been enrolled in Institute of Business Administration (IBA) and in view of this, two months foundation course training was provided to students of provinces, but unfortunately only two students of Balochistan and no student of KP could manage to pass IBA admission test. The meeting was further informed the OGDCL is to ink an agreement with the Lahore University of Management Sciences (LUMS) and Quaid-e-Azam University for giving scholarships to students of Less Developed Areas to bring them at par with students of the rest of country Director General Oil Ministry of the Petroleum, Abdul Jabbar Memon informed the committee that Pakistan''s current installed refining capacity is 18.79 million tons per annum (MTPA) with five refineries while two more refineries have been planned. He said KP government is expected to make an agreement with Frontier Works Organisation (FWO) to set up an oil refinery at Karak. Pakistan State Oil (PSO) slashed a plan of installing a refinery in KP proposed by former petroleum minister Dr Asim Hussian. The committee directed relevant departments to make sure the establishment of refinery in Karak and if there is any land dispute, the committee members were ready to help resolve issues in consultation with the locals. Memon further said that Pak Arab Refinery Company (PARCO) and Attock Refinery Limited (ARL) are operating at 100 percent as per nameplate capacity while rest of the refineries are older especially two plants by BYCO group, which jointly represent about 38 percent of total installed refining capacity of the country are 2nd hand units. As against the above mentioned refining capacity, the actual annual production of the refineries during 2015-16 remained 11.7 million tons or 62 percent capacity utilization, he added.

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48 MEGAWATTS GORKIN-MATILATAN HYDROPOWER PROJECT: KP GOVERNMENT AWARDS CONTRACT TO ITALIAN, PAKISTANI FIRMS

Khyber Pakhtunkhwa government has formally awarded a contract of 84 megawatts Gorkin-Matiltan, Kalam District Swat Hydro Power Project of its own resources to CMC and GRC companies from Italy and Pakistan in a simple but impressive ceremony held at Peshawar on Thursday. Under Energy Action Plan, the project will be completed at a cost of Rs 20 billion by 2020, which will annually produce 345GW electricity and the province will have an annual income of Rs 2.5 billion. Minister for Energy & Power and Education Muhammad Atif Khan was the chief guest in Contract Awarding Ceremony of the said project which was attended by Secretary Energy and Power Engr Naeem Khan, CEO Pakhtunkhwa Energy Development Organisation (Pedo) Akbar Ayub, reps of Italy and Pakistan Companies and experts of energy sector in a large number. In his speech, Atif Khan said, "Today was a historic day that the KP Government is formally awarding contract of 84MW big hydro power project of its own resources." He added that the previous government in its tenure started hydro power projects of 56MW while the incumbent government would start 12 projects of about 1200MW, out of which five in public and seven in private sector. The private sector would invest $2 billion in energy sector, he informed. The Minister for Energy maintained that in the first phase, projects of 214MW while in second phase projects of 300MW would be started in public sector. He announced that work on Lawi, Jabori, Karora and Machai hydropower projects would be started very soon. On completion of these projects, the province would get extra income of billions of rupees. He, on this occasion, assured full support on behalf of the provincial government to Italian and Pakistani companies.

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MARI PETROLEUM PAT INCREASES TO RS 2.765 BILLION

The profit after tax of Mari Petroleum Company has increased to Rs 2.765 billion in the quarter ended September 30, 2016 as compared to Rs 1.468 billion earned in the corresponding quarter in 2015. The board of directors of the company in its meeting held on Tuesday declared that the company's earning per ordinary share surged to Rs 25.09 in the period under review against Rs 13.32 in the same period last year while distributable earning per ordinary share stood at Rs 1.50 in the quarter against Rs 1.41 in the same period last year. According to the financial results, the company's gross sales to customers increased to Rs 26.025 billion in this quarter against Rs 22.569 billion in the same quarter last year. After paying gas development surcharge, general sales tax, excise duty and gas infrastructure development cess etc, the company's net sales stood at Rs 7.262 billion in this quarter against Rs 5.179 billion in the same quarter last year. The company's profit before taxation increased to Rs 3.805 billion in this quarter against Rs 1.638 billion in the same quarter last year.

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NISHAT POWER POSTS RS 732.969 MILLION AS PROFIT AFTER TAX

Nishat Power Limited has posted Rs 732.969 million as profit after tax in the quarter ended September 30, 2016 as compared to Rs 929.553 million earned in the corresponding quarter in 2015. The company's earning per share has surged to Rs 2.070 in the period under review against Rs 2.625 in the same period last year. The board of directors of the company, in its meeting held on Monday at Lahore recommended interim cash dividend at Re 1.00 per share ie 10 percent for this quarter. According to the financial results, the company's sales decreased to Rs 3.592 billion in this quarter against Rs 4.528 billion in the same quarter last year while cost of sales reduced to Rs 2.626 billion against Rs 3.311 billion. The company's profit before taxation stood at Rs 732.969 million in this quarter against Rs 929.553 million in the same period last year.

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CASA-1000 MAY BE COMPLETED BY 2020: CAREC TOLD

The government has stated that Central Asia-South Asia Electricity Transmission and Trade Project - CASA-1000 - is expected to be completed by 2020 after completion of power interconnection projects. Sources said the Ministry of Water and Power briefed the Central Asia Regional Economic Co-operation (CAREC) on energy sector progress that power interconnection projects are scheduled to be completed by 2018 and mid-2019. The meeting was informed that the first year of the implementation of the energy strategy and the Energy Work Plan (EWP) 2016-20 went smoothly and key efforts were made in securing technical assistances and identify new partnerships, especially for adoption of new technology. Progress implementing the EWP was also reported during the biannual Energy Sector Co-ordination meeting (ESCC) and reviewed at the Senior Officials'' Meetings (SOMs) and Ministerial /conferences (MCs). According to steps agreed upon during the 21st ESCC meeting, element-I includes developing the Central Asia - South Asia Energy Regional Energy Market. The meeting was informed that actions initiated in this regard are: Central Asia-South Asia Regional Electricity Market (CASAREM) with two complementary initiatives: (i) CASA-1000 supported by the World Bank; and (ii) Turkmenistan-Uzbekistan-Tajikistan-Afghanistan-Pakistan Interconnection Project (TUTAP) supported by the ADB. The CAREC was informed that Additional Secretary, Ministry of Water and Power Omer Rasul, CASA-1000in the 21st ESCC reported on the progress of the different segments of the CASA 1000 project. The presentation highlighted procurement challenges, barriers to regional connectivity and the new initiatives on power import options. Given the current issues being resolved, the expected completion is moved to 2020. An official ceremony launching the CASA-1000''s implementation phase was held on 12 May 2016 in Dushanbe, Tajikistan.

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1,200 MEGAWATTS RLNG-FIRED PLANT TO BE SET UP IN MUZAFFARGARH

The government has decided to establish 1,200 MW RLNG-fired power plant in Muzaffargarh (Punjab) by 2018. The project was approved by the PPIB Board headed by Minister for Water and Power, Khawaja Asif, in its 108th meeting held on Friday. The decision of establishing 1,200 MW RLNG based power project at Muzaffargarh, Punjab was taken in the light of the advice of the Cabinet Committee on Energy (CCoE) in its meeting held on September 15, 2016, wherein Prime Minister Nawaz Sharif lifted ban on RLNG-fired power plants. Federal Government is already setting up two RLNG fired power plants in Punjab near the load centres whereas one similar is being established by the Punjab government. The sources said, Prime Minister had directed the Ministry of Water and Power to initiate the process of advertisement through PPIB for inviting prospective investors for installation of 1,200 MW RLNG-fired power plants on IPP mode which could fulfil the following requirements: (i) give assurance for single cycle operations of power plant by March 2018; (ii) be able to bring Original Equipment Manufacturer (OEM) as partners or with given commitment to provide turbines; (iii) be willing to start installation without financial close; and (iv) be able to provide a performance guarantee for meeting timelines other than quality and standards. On September 15, 2016 Prime Minister had directed the Ministry of Water and Power to review the generation requirement rate due to increase in electricity demand on account of industrial growth and economic activities. Minister for Water and Power, Khawaja Asif said on Friday that the current government believes in the policy of facilitating investors, and does not want them to face any hurdles or delays during the processing of their projects. He further added that in order to make electricity affordable, various short to medium and medium to long term power generation projects based on coal, hydro, RLNG, solar & wind are being established all across the country in private and public sectors. Managing Director PPIB Shah Jahan Mirza gave a briefing to the Board on the 1,200 MW RLNG-based power project being processed. He stated that the said project will be located at Muzaffargarh near the existing Muzaffargarh Thermal Power Station of NPGCL having gas turbines based combined cycle technology. The power plant will have minimum annual availability of 92 percent. Open Cycle Operation is scheduled to start by February, 2018 whereas the full Combined Cycle Operation will start by end 2018. This is a viable option to address the electricity demand supply gap in early 2018 and ensuring elimination of load shedding by that time. Furthermore, due to the highly efficient and state of the art technology of the plant, this will be able to replace old and retiring power plants in the public sector. He said the RFP document for the project has been prepared and it will be advertised in the coming days, and bids will be invited through single stage, two envelope bidding approach.

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IMPORT OF LNG TALKS WITH OVER SIX STATES INITIATED: ABBASI

Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that Pakistan has initiated negotiations with over six different countries for import of LNG to overcome the gas shortage issue in the country. "We have started talks with Russia, Malaysia, Oman, Azerbaijan, Algeria and other African countries for LNG import to ensure sufficient supply of gas to meet local demand", the minister said at inaugural ceremony of the Compressors Revamping Project at Pakistan Petroleum Limited's flagship Sui Gas Field on Monday. The Compressors Revamping Project was undertaken in continuation of PPL's endeavours towards production enhancement and reserves replacement. The project was completed well ahead of time with an actual cost of Rs 3 billion against the budgeted Rs 4 billion. This has enabled additional recovery of almost 217 bfc gas reserves and 25-30 mmscfd increase in gas production from the compressors. As a result of this and other initiatives, the annual historic production decline of 6 percent from Sui Gas Field has not only been arrested but also reversed with production being approximately 5 percent higher than the previous year. The minister said that international sanctions are still major hurdle in completion of Pakistan Iran Gas Pipeline Project. He said gas is primary fuel in the country and it has 50 percent in the total energy mix. He said the government is planning to increase LNG import to 3.0bfc in next two years. The minister congratulated PPL on its efforts towards production enhancement, notably the compressors revamping project at Sui. He urged oil and gas companies to enhance efforts for optimising production in order to bridge the supply demand gap and stem the drain on foreign exchange. He pointed out that after security clearance 30 exploration blocks would be put up for bidding soon. He said the government is negotiating with China's largest exploration company Sinopec and some other companies of Hungry and Poland for strategic allotment of exploration blocks. Syed Wamiq Bokhari, MD and CEO of PPL presented an overview of PPL's recent achievements along with a string of records being broken primarily as a result of the company's move to an asset-based hybrid setup as well as staff efforts. He highlighted the overall production decline reversal the company has been able to achieve along with Corporate Social Responsibility projects undertaken, especially in Sui. He said that PPL has planned to spend Rs 20 billion for exploration activities in Balochistan in next 10 years. He said the company was committed to improve its Reserve Replacement Ratio (RRR) and 28 wells would be spud this year compared with 23 wells last year. Balochistan Home Minister Mir Sarfraz Ahmed Bugti also spoke on the occasion and appreciated PPL's efforts to increase gas production in the country. The event was attended by provincial and local government officials, area notables and media representatives, besides PPL's management and staff.

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ENERGY NEEDS: MINISTER UNDERSCORES NEED FOR TRANS-BORDER PROJECTS

Minister for Water and Power, Khawaja Asif Monday proposed that CAREC member countries should cooperate on trans-border projects and share solution for meeting energy requirements. The representatives of nine members of CAREC are participating in energy investment forum, organised by the Asian Development Bank (ADB) and Private Power Infrastructure Board (PPIB), a subsidiary of Water and Power Ministry. The representatives of member countries gave detailed presentations in the forum on investment needs in energy sector and ways to cooperate with each other. Addressing the forum, Minister for Water and Power, Khawaja Asif said that cooperation on power sector between the member countries should not be limited rather there was a need to initiate trans-border projects. Funding from Pakistan's key partners for power sector projects is estimated to be $10.510 billion over 2017-2023. Asian Development Bank and World Bank will extend funds around $5.650 billion and $6.080 billion respectively whereas $100 million per year are expected from JICA, USAID, GIZ, IDB, KfW etc. Khawaja Asif said the country was facing from 18 to 20 hours power load-shedding before the Pakistan Muslim League-Nawaz (PML-N) came into power, but now it had been reduced to six hours by initiating a number of power projects. As a result of such efforts, the Minister said the government had encouraged private sector to pump in resources into power sector through implementation of a robust energy policy. The Minister said the policy was featuring handsome incentives besides simplifying procedures to private players, offering attractive rate of return on investment, so there was vast opportunities to private sector to inject investment. Owing to the government's measures the Independent Power Producers (IPPs) ventured in to power project with around $10 billion of investment outlay. He said the government had also taken measures to refurbish transmission lines which were one the major causes for power wastage, adding private sector was being encouraged to invest in such projects. He said the country was blessed with massive energy resources, which needed to be explored, adding there were over 11000 billion tons of coal resources in Thar alone. He added efforts had been initiated to get energy from the coal resources and currently projects having a cumulative capacity of over 4000 MW were under process. China Pakistan Economic Corridor (CPEC) had fast track energy projects which would generate more than 10,000 MW in short time, the Minister stated and added that there were vast opportunities for investment in hydropower sector and currently 16 hydro projects were ongoing in public sector with capacity of over 16,000MW. Khawaja Asif hoped deliberations and suggestions by participants of the forum would help a great deal to find regional solution to meet the country's energy requirements. Later talking to media, the Minister said CAREC forum would help work out solution to challenges the member states were facing in power-sector. Konstantin Yelisheyev, Price Waters Cooper, Infrastructure and Energy speaking about the future of the energy sector in Central Asia Regional Economic Cooperation Programme (CAREC) said by 2040 developing countries would have abandoned subsidies for fossil energy resources and nuclear power in view of significant strain on national budgets. According to a press release, Economic Affairs Division, Ministry of Water & Power, and Private Power and Infrastructure Board (PPIB) provided full assistance to this forum. The EIF was attend by the delegates from all member states of CAREC which include Afghanistan, Azerbaijan, Peoples Republic of China, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan and Uzbekistan beside representatives from renowned financial institutions of the region, government representatives, regulators, stakeholders and private sector members. Vice President of the Asian Development Bank Wencai Zhang while outlining conference overview in his opening remarks thanked the Government of Pakistan for facilitating ADB in arranging the first EIF at Islamabad. He highlighted the importance of EIF in attracting investment in the energy sector of EIF member states and reiterated increased cooperation on continued basis. The government representatives from all member states of CAREC elaborated strategies and initiatives to attract investments in energy sectors of their respective countries. After briefing on selected case studies in CAREC member states including Pakistan, prominent investors shared their insights to identify and carry out investments in energy projects. Managing Director, PPIB Mr Shah Jahan Mirza presented overview of the Pakistan Power Sector and briefed on the successful IPP experience in Pakistan, the lessons learnt, and the steps that other CAREC countries could follow to ensure energy security. While addressing the participating investors, Mirza briefly highlighted investment opportunities in the electricity sector of the country. He said that hydro potential of 60000 MW and over 185 billion tons of coal reserves mainly in the Thar area offer huge opportunities to the investors to invest in the electricity sector of Pakistan. He said Government of Pakistan is fully committed to facilitate the investor community particularly in the electricity and transmission network, for which policy framework best aligned with the international standards has been made available. Managing Director PPIB in its wrap-up remarks, thanked CAREC and ADB for providing such a highly productive platform which will be instrumental in increasing regional cooperation among CAREC countries for development of strategies to jointly develop power sector in all countries and regional electricity grids.

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NEELUM JHELUM HYDROPOWER: WAPDA COMPLETES EXCAVATION OF LEFT TUNNEL PROJECT

A significant development towards completion of the strategically important 969MW-Neelum Jhelum Hydropower Project, Water and Power Development Authority (WAPDA) completed the excavation of left tunnel-one of the critical components of the project. The project management achieved this milestone today when it successfully connected the two portions of the left tunnel with an amazing precision. During its mining operation, one of the two tunnel boring machines (TBMs) broke through the left tunnel from downstream side joining it with the portion which had already been excavated through traditional drill-and-blast method from the upstream side. With this development, the left tunnel system from dam to powerhouse stands excavated. The right tunnel system is scheduled to be excavated by April 2017. Thereafter, the water way system would go for final phase of completion. Once this is done, the project will be ready for pressurising the tunnel system, culminating into wet testing ie electricity generation from the project, which is expected in early 2018. In order to celebrate this landmark achievement vis-à-vis left tunnel, Neelum Jhelum Hydropower Project (NJHP) management arranged a simple ceremony at the breakthrough site, inside the tunnel about 6-kilometre from its starting point from upstream side, wherein WAPDA Chairman Lieutenant General Muzammil Hussain (Retd), performed the connectivity of the two sections of the left tunnel. NJHP Chief Executive Officer, Project Director and representatives of the consultants and the contractors were also present on the occasion. While congratulating the project management, the consultants and the contractors on completing excavation of the left tunnel, the Chairman said that Neelum Jhelum Hydropower Project is an important project to overcome electricity shortages in the country and add environment-friendly and low-cost hydel electricity to the National Grid. He expressed the hope that with commitment and concerted efforts of the present management of WAPDA, this project will be completed in the shortest possible time. WAPDA Chairman Lieutenant-General Muzammil Hussain (retd) thanked the Federal Government for its support in construction of the project. He apprised the audience that with a view to completing the remaining works of critical nature at Neelum Jhelum Hydropower Project, the targets have been set by rationalising their timelines, while an effective mechanism is also now in place to closely monitor the progress on the project. It is pertinent to mention that for evacuation of electricity from Neelum Jhelum Hydropower Project and its injection to the National Grid, a 525-KV transmission line is being constructed by National Transmission and Despatch Company (NTDC), which will join the National Grid at Domeli in district Jhelum through a 145-kilometer long double circuit line. This transmission line will be completed much before Neelum Jhelum Hydropower Project goes into operation.

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POWER PROJECTS REQUIRE MASSIVE INVESTMENT: STUDY

Pakistan''s estimated investment requirement for 2017-2023 would be $51.601 billion or 85 percent of total estimated investment requirement of $60.452 billion for prioritised power sector projects including thermal, hydel power projects (mega and small). This was revealed in a study conducted by Pricewaterhouse Coopers on Pakistan last month funded by ADB( TA8727-REG) titled " CAREC: study for power sector financing road map-mobilising financing for priority projects". CAREC-Central Asia Regional Cooperation will hold energy investment forum in Islamabad on Monday (today) being organised by the Asian Development Bank and other lenders. According to the study, estimated funding gap would be $ 19.435 billion which will be arranged from the private sector and assistance from other countries. Estimated funding from development partners will be $10.510 billion whereas estimated government budgetary allocation will be $21.656 billion. Based on the country partnership strategies/ country operations business plan, funding from key partners for power sector projects is estimated to be $ 10.510 billion over 2017-2023. Asian Development Bank and World Bank are estimated to fund around $ 5.650 billion and $ 6.080 billion respectively whereas $ 100 million per year is the past trend of financing by other partners( mainly JICA, USAID, GIZ, IDB, KfW etc) estimated over 2017-2023 at $ 778 million. According to the World Bank estimates, it will spend $ 800 million each year from 2016 to 2019 based on the current CPS which proposes a spending of $ 2 billion per year and allocation of 40 per cent to the power sector. The World Bank funding in FY-2020, FY-2021, FY-2020 and FY-2023 will be $ 920 million each year on the basis of increase in lending by 15 per cent for the next CPS from 2020 keeping in view of past trends. ADB''s funding estimates for 2016 are $800 million, followed by $300 million 2017, $ 450 million in 2018, $ 550 million in 2019, $ 550 million in 2020 based on the average proposed lending for 2016-18 whereas funding in 2021, 2022 and 2023 would be $ 600 million each year respectively on the basis of 10 per cent increase in lending assumed for the period 2021-2-23 over the lending in 2019-2020. The consultant was also of the opinion that macroscopic imbalances, structural weaknesses and security concerns negatively impact Pakistan''s economy. Services sector expanded by 5 per cent and remained the largest contributor to growth in FY-2015. Pakistan has not been able to meet most of its MDGs (eg eradication of extreme poverty, promotion of primary education, checking child mortality, promotion of gender equality and ensuring environmental sustainability). Fiscal discipline had declined because of the constant need to finance expanding energy sector subsidies with improvements in recent years through IMF program period. Currently, a deterioration in the current account position and weakening financial inflows have put pressure on the rupee, promoting foreign exchange market intervention in the spot and forward markets by the Central Bank(State Bank of Pakistan). As Pakistan produces more than one-third of its electricity through fuel-oil powered thermal plants, any change in price trends in the international market affects the energy prices in the country. Household sector continues to be the largest consumer of electricity with about 46 per cent of the total consumption. The growth targets from medium term are subject to various risks such as decline in energy availability, extreme weather fluctuations, non-implementation of expected reform program and fiscal expenditures. Energy shortages are expected to continue over the medium term but volatility in supply will still remain a risk to exports and growth of the economy. High and stable economic growth will be achieved through short-term stabilisation policies which will reduce crisis dangers and restore fiscal and balance of payments sustainability in the economy. The GDP growth is projected to increase to about 5.5 percent by 2020. The industrial sector is projected to grow by 6.4 per cent during FY-2016 because of better energy supply and planned investment under China Pakistan Economic Corridor (CPEC). Pakistan''s power sector consists of many privately-owned independent power producers. K-Electric is the only privatised distribution company. First private hydropower project-84 MW has been commissioned in March 2013. Second private sector hydropower project of 147 MW is under construction and is to be commissioned in March 2017. Third private sector hydropower project of 102 MW achieved financial closure in October 2015. The China-Pakistan Economic Corridor (CPEC) is expected to generate 10,400 MW to Pakistan''s national grid by 2018. Chinese banks and Power Construction Corp of China Limited is financing two coal-fired power projects in Pakistan (Thar coal project and projects and Karachi worth $ 4.15 billion). The government budgetary support over 2017-2023 is estimated at $ 21.656 billion (for capital projects) based on the following assumptions: (i) budget support assumed at 2 per cent of the GDP based on trend of last four years;(ii) estimates include budget contribution and mobilisation of resources by Wapda and (iii) average GDP growth of 4.8 per cent till 2023 (as per IMF projections till 2020). It may also be noted that besides the funding towards power sector projects, the government also provided subsidies amounting to Rs 292.3 billion ($ 2.7 billion) for FY-2015. The Consultant further recommended that the government should make tariff setting more independent, long-term tariff regulations for all the licencees with incentives-penalty framework based on performance. It has also been suggested that private participation in distribution should be increased through a franchise model. The Consultants also recommended that sector regulators for the four provinces should be separated with Nepra as apex body or federal sector regulator. Detailed guidelines should be issued on constitution of regulators, competency of members and process of selection of members. It, has, however, been clarified that the Consultant''s report does not reflect the views of ADB or the government concerned and both the ADB and the government cannot be held liable for its contents.

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KP PRODUCING 54,000BPD CRUDE OIL PER DAY'

Khyber Pakhtunkhwa is producing 54,000 barrel crude oil per day as compared to 30,000 barrel per day production in 2013 and by the year 2018 it will reach to 94,000 barrel per day. This was told to KP Chief Minister Pervez Khattak during a briefing on oil and gas sector in the province. He was further told that the gas production, which was merely 330 mcfd in year 2013, had grown up to 475mcfd while by the year 2018 it will become 970mcfd. Furthermore, the production of LPG in 2013 was only 10 ton per day and now in 2016 it has reached to 500 ton per day and in 2018 it will reach to 1500 ton per day.

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KP COMPLETES 100 HYDEL PROJECTS OF 2500 MEGAWATTS CAPACITY: KHATTAK

Chief Minister Khyber Pakhtunkhwa Pervez Khattak has said that work on 356 small hydel power stations is continue in the province and out of them 100 have been completed. He said that on completion those projects would include 2,500 megawatt electricity in the national grid. Presiding over ninth meeting of the Hydel Development Fund Board (HDFD), here in Civil Secretariat, he further said the provincial government had also planned the construction of 1,000 micro-hydel power stations. Provincial Minister for Energy and Power, Mohammad Atif Khan, KP Minister for Finance, Muzaffar Said, administrative secretaries and other concerned authorities were also present on the occasion. On this occasion the meeting was given detailed briefing on the present status of the Energy & Power Development Fund (Amendment) Ordinance, 2016, progress on the implementation of decisions taken in previous meeting, financial affairs of Provincial Energy Development Organisation (Pedo) an other related aspects. The chief minister also directed the acceleration of the pace of steps for handing over of the already completed hydel projects to committee concerned. He said that industrialists situated adjacent to such projects could be made effective by them. The interest of the investors in the acquiring of plots in Malakand Industrial Estate was signals towards the bright future of industrialisation in the area. He said in district industrial zones gas would be utilised for power generation to use it there. The chief minister said power projects of 225MW would be installed inside the territorial jurisdiction of industrial zones to guarantee interrupt free power supply. He directed for the completion of all legal requirements to make that plan of government successful. The chief minister said negative attitude and vested interested oriented approach of the previous governments had frightened the private sector, which resulted in inflicted huge loss on the province. He clarified that previous government had started hydel power projects of the capacity of only 53 megawatt, but they were still making tall claims in that regard.

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ENERGY SECTOR: CAREC FORUM TO DISCUSS INVESTMENT AVENUES TOMORROW

Central Asia Regional Economic Co-operation (CAREC) is to hold Energy Investment Forum on October 24, 2016 in Islamabad to discuss investment avenues in energy sector in the Organisation''s member countries. Total investment requirement in the energy sector within CAREC member countries between 2017 and 2023 is estimated at $118 billion excluding estimated amount of energy projects for China. CAREC program is a partnership of 10 countries and six multilateral development partners, which uses regional co-operation to promote economic growth and poverty reduction. The program facilitates practical, results-based regional projects, and policy initiatives critical to trade expansion and sustainable development. Afghanistan, Azerbaijan, China, Kazakhstan, Kyrgyz Republic, Magnolia, Tajikistan, Pakistan, Turkmenistan and Uzbekistan are the members of CAREC. Pakistan has shown an interest in import of gas from Azerbaijan and electricity from China. Both the proposals will also come under discussion during the meeting The Energy Investment Forum will highlight investment opportunities in the CAREC countries by bringing together key government officials, project developers/sponsors, project financiers, equipment manufacturers, and Engineering, Procurement, and Construction contractors. Senior energy government officials will highlight incentives their governments have put in place to attract investments. Private entities will share their experiences on successful investments in the CAREC countries. The strategic framework for the CAREC program for 2011 to 2020 (CAREC 2020), which was endorsed at the 10th Ministerial Conference in November 2011, guides the CAREC program for the period until 2020 and highlights the need to accelerate progress across core business areas, including the energy sector. There are three principal levels of the governing structure of CAREC: the Ministerial Conference (MC), the Senior Officials'' Meeting (SOM) and the four CAREC priority areas, which are transport, trade facilitation, trade policy, and energy. The first Energy Work Plan (EWP) for the period from 2013 to 2015 was the successor to the EAP and aimed to be a mechanism to facilitate the step-by-step realization of CAREC projects and programs in the energy sector. Regional co-operation in the power sector mixed the thermal-based power systems of Kazakhstan, Turkmenistan, and Uzbekistan systems with the hydro-based systems of Tajikistan and the Kyrgyz Republic. Tajikistan and the Kyrgyz Republic exported energy during the summer when their ability to produce hydropower was at a 10 maximum, and imported energy during winter when they were in energy deficit. The Tajikistan and Kyrgyz Republic water releases were co-ordinated to meet the irrigation needs in the downstream countries. The Central Asia South Asia Corridor was identified as one of the two regions with the highest need and potential for integration. The other region was Intra-Central Asia, which is also critical to the development of the Central-South Asia corridor. Various cross-border projects and programs aimed at increasing energy trade between Central Asia and East and South Asia are being implemented, or are under active consideration by CAREC member countries and multilateral institutions. Infrastructure development projects under implementation are the TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline project, the CASA-1000 power transmission project, and the TUTAP (Turkmenistan-Uzbekistan Tajikistan-Afghanistan-Pakistan) power transmission project. In addition, the East Asian Super Grid Project is currently under consideration. The CASA-1000 power transmission, a Central-South Asia Regional Electricity Market (CASAREM) project with financing led by the World Bank, envisions the creation of a shared power market among the countries of Central and South Asia. The line is expected to support up to 1,300 MW of clean electricity trade between Central Asia and South Asia. Another CASAREM project, the TUTAP power transmission project, with financing led by the Asian Development Bank intends to use existing and planned assets in Afghanistan to connect Turkmenistan, Uzbekistan, Tajikistan and Pakistan to the Afghanistan power grid. The proposed ADB technical assistance and subsequent investments will link East Asia to CASAREM. The East Asia Super Grid Project envisions connecting the power systems of Mongolia, Russia, China, South Korea, Japan, and possibly North Korea. TUTAP power transmission project (Tajikistan-Uzbekistan-Turkmenistan-Afghanistan-Pakistan) 220kV connections exist and currently supply the Afghanistan network. The Turkmenistan component of the Turkmenistan-Afghanistan 500 kV line, which will initially operate at 220 kV, is under construction and is estimated to be completed in 2019. Bids for the Afghanistan component of the line are under evaluation, and contracts are expected to be awarded by 2016. Within Afghanistan, the ADB is preparing a 500 kV transmission line project from Sheberghan to Pule Khumri (200 kms) including a 300 MW back to back HVDC converter station at Pule Khumri.

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ARL ORGANISES ENERGY WEEK

Week was organized at Attock Refinery Limited Rawalpindi from October 17th to 21st 2016 in-line with World Energy Day, "22nd October". Objective of this celebration was to motivate employees, make them energy conscious, renew their commitment, and achieving greater contribution towards energy conservation at workplaces. Energy talks were conducted and energy ideas were presented by the internal stakeholders. Everyone in the company participated in this smart energy movement. The World Energy Day has been initiated by the World Energy Forum to raise awareness of global energy-related issues and was for the first time commemorated on 22 October 2012. Since then, the World Energy Day is celebrated internationally and supported by a large number of United Nations members. ARL management emphasised that we consider energy conservation as our social responsibility. We believe that in today's highly competitive and performance driven business climate nobody can afford to rest on its laurels. Sustainable business growth is possible only when we equally take care of global interests. Organising such motivating events is aligned with ARL's core values to pursue a climate of excellence for sustainable business.-PR

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SECOND UNIT OF GE GAS TURBINE ARRIVES AT BHIKKI POWER PLANT

The second unit of the world's most efficient heavy duty GE 9HA.01 gas turbines has arrived from Belfort, France, in Pakistan to equip the 1,180 megawatt (MW) Bhikki Combined Cycle Power Plant in Punjab. The turbine follows an earlier unit that arrived in August, less than a year after the commencement of the Bhikki project. Both units are expected to enter commercial operation in 2017. Once complete, the Bhikki facility will help to meet up to 20 percent of the current shortfall, contributing to the Government of Pakistan's goals under Vision 2025 to expand access to electricity to over 90 percent of the population. Chief Minister of Punjab, Shahbaz Sharif said "The Bhikki regasified liquefied natural gas (RLNG) project is an essential part of the Government of Punjab's strategy to meet citizens' needs for power." GE has invested almost $2 billion in the development of HA technology, and the turbine provides a combination of the highest efficiency and superior operational flexibility, leading the industry in total life cycle value.-PR

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GUL AHMED WIND POWER LIMITED COMMENCES COMMERCIAL OPERATIONS

Gul Ahmed Wind Power Limited ("Project"), a 50MW wind power generation plant, located in Jhimpir, Thatta, Sindh has commenced its commercial operations on October 18, 2016. The Project will now be dispatching electricity to Central Power Purchaser Agency (CPPA) as an Independent Power Producer. It aims at providing a sustainable tariff at a fixed price for a period of 20 years, by installing twenty state of the art, German-manufactured wind turbines of 2.5 MW each by Nordex. The Projects management appreciates and is thankful for the joint efforts of Alternative Energy Development Board, Government of Sindh, Ministry of Water & Power, National Electric Power Regulation Authority, National Transmission &Despatch Company & Central Power Purchasing Authority for providing their continued support in allowing the project to reach this ground-breaking milestone. The Project sponsors include Gul Ahmed Energy Limited, one of Pakistan's paramount business groups, the InfraCo Asia Indus Wind Pte. Ltd out of Singapore and International Finance Corporation (IFC), a member of the World Bank Group. The Company's CEO, Iqbal Alimohamed, commented that this is the first of many wind projects of the group to tackle the electricity shortage. He further added that this is a remarkable effort by the private sector to come forth to face the challenges currently being encountered by the country and applauds the initiative to enhance power generation through clean and renewable sources.

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PSO DENIES FUEL SHORTAGE ACROSS COUNTRY

Pakistan State Oil (PSO) has refuted the impression that is being created by some circles that there will be shortage of fuel in the country in the next few days owing to the decision of the government to import higher grades of Mogas and compliance of the same by all oil marketing companies (OMCs). PSO clarified that as opposed to the claims made; the company has sufficient quantities of Mogas and assures the public that there will be no shortage of fuel for its customers at PSO outlets across the country. PSO does not operate on short term gains or minimise its stocks and will continue to honour its commitment of fuelling the nation under all circumstances irrespective of commercial benefit to itself as our topmost priority and commitment is to keep the wheels of the country running. Being a responsible OMC, PSO has and will always strive to ensure a smooth fuel supply to its customers. All PSO retail outlets are receiving regular fuel supplies and there is no disruption in the company's supply chain network anywhere in the country. The present government has decided to replace RON 87 and has also deregulated RON 95/97. 92 RON will be imported from November 2016. PSO has moved ahead on its plan by awarding contracts out of which the first consignment to bring 55,000 tons would reach the country in November 2016. It is to be noted that the High Octane Blending Content (HOBC) sold in Pakistan is RON 97. The local refineries (except for Attock RON 87) will be producing 90 RON petrol from the beginning of November 2016 as well. The policy steps taken are a paradigm shift for Pakistan's oil industry and in providing clean fuels that will assist the climate change plans of the country. PSO assures the people of Pakistan that the transition to new improved quality fuels will be a smooth one.-PR

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GOVERNMENT MAKING EFFORTS TO USE IDLE THERMAL CAPACITY: ASIF

The federal government is making hectic efforts to use the idle thermal capacity in the country by renegotiating arrangements with the closed IPPs and even the rental power plants lying idle, said Minister for Water and Power Khawaja Asif during his meeting with the Management of Japan Power Generation Company Limited. The meeting took place to restart power supplies as all formalities in this regard have been finalised according to a press release issued by Japan Power. The low furnace oil rates have encouraged the planners to utilise over 1000 MW of idle power generation capacity. Most of the companies are now awaiting determination of tariff by Nepra. The chief executive of Japan Power said that an application for determination of tariff would be moved in few days. He said the government's decision would save investment worth billions of dollars. He said Japan Power alone was built at a cost of $350 million.

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ATTOCK REFINERY LIMITED POSTS RS 1,227.987 MILLION PAT

Attock Refinery Limited has posted Rs 1,227.987 million as profit after tax in the quarter ended September 2016 as compared to Rs 528.927 million earned in the corresponding quarter in 2015. The board of directors of the company, in its meeting held on Wednesday at Rawalpindi declared that the company's earning per share surged to Rs 14.39 in the period under review against Rs 6.20 in the same period last year. According to the financial results, the company's net sales stood at Rs 20.845 billion in this quarter against Rs 21.045 billion in the same quarter last year while the cost of sales reduced to Rs 20.690 billion against Rs 21.647 billion.

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ATTOCK PETROLEUM LIMITED'S PROFIT SURGES

Attock Petroleum Limited (APL) has posted Rs 1,563.247 million as profit after tax in the quarter ended September 30, 2016 as compared to Rs 691.643 million earned in the corresponding quarter in 2015. The board of directors of the company, in its meeting held on Wednesday in Rawalpindi, declared that the earning per share of APL surged to Rs 18.85 in this quarter against Rs 8.34 in the same quarter last year. According to the financial results, the company's net sales increased to Rs 31.506 billion in this quarter against Rs 31.401 billion in the same quarter last year while the cost of product sold stood at Rs 29.210 billion against Rs 30.375 billion. The company's profit before taxation surged to Rs 2,199.789 million in this quarter against Rs 967.643 million in the same quarter last year.

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POL ANNOUNCES CONSOLIDATED EARNINGS OF RS 2.3 BILLION

Pakistan Oilfields Limited (POL) on Wednesday announced its consolidated earnings of Rs 2.3 billion in the quarter ended September 30, 2016 as compared to Rs 1.2 billion earned in the corresponding quarter in 2015. The company's earning per share surged to Rs 9.6 in this quarter against Rs 5.2 in the same quarter last year. According to the financial results, POL's net sales remained almost flat at Rs 5.9 billion. POL's oil volume improved by around 7 percent on year-on-year basis mainly due to low base effect an analyst at Topline Securities said. To recall, Makori East field (around 45 percent of POL's total oil production) witnessed technical issues during the first quarter of FY16, which hampered POL's total oil production. Gas volumes of the company remained almost flat at around 71mmcfd in the first quarter of FY17. Pre-tax consolidated earnings of the company improved significantly in this quarter, up 118 percent on year-on-year basis primarily on the back of lower exploration charges and increase in profits from associates. In this quarter, POL booked exploration expense of Rs 64 million against Rs 1,135 million in the same quarter in FY16. These significantly lower charges were due to higher base effect. To recall, POL incurred exploration cost of Rs 1,126 million in the first quarter of FY16, on account of Margala North dry well. Profits from associates (National Refinery and Attock Petroleum) increased to Rs 510 million in this quarter against Rs 151 million in the same period last year. Despite 118 percent jump in its pre-tax profits, POL's net earnings grew by 86 percent. This was owing to higher effective tax rate, up 14ppts to 18.4 percent in the first quarter of FY17. On quarter-to-quarter basis, net sales of the company declined by 10 percent while its net earnings improved by 7 percent in the first quarter of FY17.

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INVESTORS ASKED TO OPT FOR PAKISTAN'S RENEWABLE ENERGY SECTOR

The government in collaboration with China has undertaken several energy projects which would help overcome loadshedding menace by early 2018, said Federal Minister for Science and Technology Rana Tanveer Hussain on Tuesday. He said this during his address at the inaugural ceremony of a three-day international conference and exhibition on "Renewable Energy Technologies". The minister urged the investors to opt for Pakistan's renewable energy sector which has immense potential. The event is being organised by the Pakistan Council of Renewable Energy Technologies (PCRET) and the Commission on Science and Technology for Sustainable Development in the South (COMSATS) in collaboration with the Islamic Educational, Scientific and Cultural Organisation (ISESCO), from October 18-20, 2016. The minister said that Pakistan has been facing power shortage for over last many years; however, the incumbent government has taken several strides to overcome loadshedding. He said the promotion of renewable energy sector was top priority of the government and it has launched many projects to tap the renewable energy potential. Pakistan was blessed with high exposure solar energy which could be utilized for getting environmentally clean energy, he added. He said the developed countries made immense progress to get clean energy from the renewable energy sector. However, underdeveloped countries could not yet tap the sector. The Ministry of Science and Technology (MoST), government of Pakistan showed tangible support towards initiatives related to Renewable Energy Technologies (RETs). Academia, Industry and R&D organisations have been urged to make extraordinary efforts to enhance the share of RETs in the countries total energy mix. "Pakistan is endowed with a lot of solar energy throughout the year, which is a great investment opportunity for foreign and local business enterprises", said the minister, adding that it is important to fully exploit the RETs for successful implementation of the government's energy policies especially amidst the huge concerns related to energy scarcity. Federal Secretary MoST Fazal Abbas Maken highlighted the importance of RETs especially in view of the rising environmental concerns in face of rapid climate change. He called for more efforts to include the share of renewable energy in the total energy mix of Pakistan. He lauded PCRET's efforts to install microhydel plants in the mountainous regions of Pakistan, including Gilgit and Baltistan and Kashmir, and those in Khyber Pakhtunkhwa. Dr Basharat Mehmood, Director PCRET said that the vast renewable energy resources available in Pakistan are among the highest in the world. He stated that PCRET is making all out efforts to strengthen the area of RETs that has a lot of significance for present energy scenario of the country, and hoped that the deliberations of the event would enrich the Council's efforts with new knowledge, wisdom and best practices in the field.

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CHINA SAYS THIRD PAKISTAN NUCLEAR REACTOR CONNECTED TO GRID

The third unit of the Chashma nuclear project in Pakistan has gone into full operation, marking the completion of China's third overseas reactor, the Chinese firm in charge of construction said on Monday. The China National Nuclear Corporation (CNNC) said in a notice that the unit was formally connected to the grid on Saturday at a ceremony in Pakistan. China's first overseas reactor at Chashma went into operation in the year 2000, while the second was completed in 2011. The fourth unit is expected to go into full operation in the first half of next year. China has also agreed to invest $6.5 billion to build a reactor in Pakistan's Karachi. The project will mark the overseas debut of China's home-grown third-generation reactor design known as the Hualong One. It is scheduled to be completed in 2020. Beijing is in the middle of a reactor building programme that aims to bring domestic nuclear generating capacity up to 58 gigawatts (GW) by the end of 2020, up from 31.5 GW at the end of August. An industry official said last month that as many as 60 nuclear plants are expected to be built in the coming decade. But China's long-term target is to become a dominant player in the global nuclear market. As well as investing in Britain's Hinkley Point C reactor with France's EDF, Beijing has also signed cooperation agreements with countries like Argentina, Romania, Egypt and Kenya. CNNC said in the notice that it had already exported a total of seven reactor units, and had also established technology and trade relations with more than 40 nations. But China's involvement in the construction of reactors in Pakistan is controversial. Pakistan is not a signatory to the Nuclear Non-Proliferation Treaty (NPT), meaning that it is not bound by safeguards that ensure fissile materials are used only for peaceful purposes.

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4TH NUCLEAR POWER PLANT BECOMES OPERATIONAL

Country''s fourth nuclear power plant at Chashma Unit-3 (C-3) with 340 Megawatt (MW) power generation capacity, has been successfully connected to the national grid, Pakistan Atomic Energy Commission (PAEC) revealed to APP on Sunday. "Congratulation to the nation that Pakistan''s 4th nuclear power plant Chashma unit-3(C-3) has been connected to the national grid," the PAEC sources said and added hence starting supply of electricity generate by this unit to the national grid on trial basis. They said "After performing various safety and functional tests, the plant will attain full power in first fortnight of December 2016 and a formal inauguration ceremony of the full power grid connection will be held in December." Chairman PAEC Muhammad Naeem, on achieving this milestone, has re-affirmed that the scientists, engineers and technicians of PAEC are working hard to contribute in achieving all the targets set to ensure energy security for the country. He acknowledged the support of Special Plans Division and the government for help achieve these targets. Pakistan''s first nuclear power plant KANUPP at Karachi, is in operation for the last 44 years. The other two nuclear power plants C-1 and C-2 at Chashma are generating electricity with more than 90% capacity factor. These are the best performing power units among all power generating units of the country from all sources. These nuclear plants are supplying around 600 MW to the grid. Two larger capacity nuclear power plants K-2 and K-3 near Karachi are under construction and will be completed in 2020 and 2021 respectively.

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PESCO CHIEF INAUGURATES NEW FEEDER IN NAWAN KALLAY

Chief Executive of Peshawar Electric Company (PESCO) Anwarul Haq Yousafzai inaugurated "New Nawan Kallay-2 Feeder" at a ceremony at 132KV Kohat Road Grid Station to ensure smooth supply of power to the said village. Renowned squash player and member Pesco board of directors Qamar Zaman, Project Director Iqbal Khan, XEN Construction Fawad Habib and other notables were also present on this occasion, according to the statement issued by the company here on Sunday. The PESCO chief said that the feeder-2 was installed at the cost of rupees 10 million and it would benefit over 10000 families of Nawan Kallay, a village whose players achieved great name for the country. He said that the 5kms transmission line from Kohat Road Grid Station to Nawan Kallay which consists of 50 poles would ensure smooth power supply of electricity to the residents of the village. He said that work on planned installation of 38 new grid stations had already been started and that would redress complaints of low voltage, tripping and frequent power breakdowns after completion of the projects. Anwarul Haq further said that if people extend cooperation against Kunda (illegal connection) culture and pay electricity bills on time he would ensure that there would be no load-shedding even before 2018. He said that the distribution system was improved throughout the province to facilitate consumers. Elders and general public of the area praised the PESCO chief executive and staff for completion of the project in within a short span of time and said that they would extend their cooperation to PESCO for improving the distribution system and curbing power pilferage and kunda culture.

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TAPI GAS PIPELINE CONSORTIUM PLANS INVESTOR ROADSHOWS

A long-delayed pipeline project from Turkmenistan to Pakistan and India via Afghanistan is in the final stages of financing, and investor roadshows are due to be held next month, a Pakistani official involved in the project said on Friday. Originating at the giant Galkynysh gas field in Turkmenistan, the $10 billion TAPI (Turkmenistan, Afghanistan, Pakistan and India) pipeline, which involves the four countries'' own energy companies, would carry 33 billion cubic metres (bcm) of gas a year. But difficulties in obtaining financing for the project and concerns about security in Afghanistan, where Islamist Taliban insurgents control swathes of the territory earmarked as the pipeline route, have led to lengthy delays. Mobin Saulat, head of Pakistan''s state-owned Inter State Gas Systems (ISGS), told Reuters there was "significant progress" with the TAPI project and that investor roadshows to raise funds are planned for November. "There will be roadshows soon in all the major financial hubs," he said. "The project''s planned commissioning is 2020 and I think we are very much on target." Over the decades, international oil giants have expressed interest in the proposed pipeline, but the region''s complex geopolitics and contract disagreements meant none ever fully committed. A total $4 billion for the pipeline has been put forward by the four TAPI countries, Saulat said. Pakistan''s ISGS has a 5 percent stake in the 1,814 km (1,127 mile) pipeline project. Saulat said the Asian Development Bank had shown interest in funding some of the project and there was "huge interest shown and commitments made from some of the major suppliers who said they would be able to get supplier credit." Turkmenistan, which sits on the world''s fourth-largest gas reserves, last December started building its section of the pipeline, designed to ease its dependence on Russia and China, but the three other countries have yet to begin work. Saulat said selecting project management consultants for TAPI was in the "final stages" and TurkmenGaz, Turkmen-istan''s national gas company, was in advanced talks with suppliers about the purchase of giant compressors, needed to funnel gas down the route. TAPI is one of three main pipeline projects aimed at securing long-term energy supplies to Pakistan, where chronic energy shortages are proving a major drag on growth. The other two planned projects include a $2 billion Russian-funded North-South liquefied natural gas (LNG) pipeline from the coast city of Karachi to Pakistan''s industrial heartlands in Punjab, and a Chinese-funded LNG pipeline starting from a proposed LNG terminal at the port city of Gwadar in Baluchistan.

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Reon installs solar EPC solution at Unilever factory

Reon Energy has recently installed solar EPC project at the Unilever Tea factory, which would save more than Rs 2.55 million and carbon savings of 97 tonnes, said Inam-ur-Rahman, CEO, Reon Energy Limited. He said the solar EPC projects with a less than 4 years payback time offers the businesses a lasting solution to cut down electricity expenses, meet sustainability standards, and maintain uninterrupted operations. "As Pakistan's grid-power shortage exceeds 7,000 MW during peak summer seasons, solar energy with its short set-up time offers many long-term benefits," he added. He said Reon Energy Limited has achieved unmatched technological expertise and operational strength to revolutionise the energy sector of Pakistan. Reon is a part of the Dawood Hercules Group, which is the single largest contributor to the private energy sector of Pakistan-PR

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OGDCL'S CRUDE OIL OUTPUT TOUCHES HIGHEST LEVEL

The state owned Oil and Gas Development Company Limited (OGDCL) has become largest crude oil and natural gas producer with achieving highest ever crude oil production of 48,767 barrels a day and over one Billion Cubic Feet per Day (BCFD) of gas. According to a statement of OGDCL, the significant milestone was achieved through greater focus on project completion, work-over jobs and development activities over the years. Company witnessed a phenomenon of growth stagnation in crude oil production during the last five years; however, production numbers are likely to improve in the coming months after completion of ongoing projects. Pakistan's total crude oil production is around 95,000 barrels per day and OGDCL's share is almost 50%. The crude oil production achieved by OGDCL has never been matched by any foreign or local E&P company operating in Pakistan as the company owns most petroleum/gas concessional blocks in the country. OGDCL's engineers and workers did a commendable job and are vigorously pursuing even higher goals. The credit for this record production also goes to the board and management for developing an effective growth oriented strategy during a challenging period while oil and gas sector was under tremendous pressure. According to officials the company is the top oil/gas producing company of the country with crude oil production reaching almost 49,000 barrels per day whereas gas production is 1.1 bcfd. The company has planned to take the gas production to 1.25 bcfd and crude oil production to 50,000 barrels a day by the end of the current year. The official said that within next three months Kunnar Pasakhi will come into production which will be followed by Nashpa.

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KAROT HYDROPOWER PROJECT TO BECOME OPERATIONAL BY 2020

The 720 megawatt Karot Hydropower Project being built from Silk Road Fund initiated by Chinese President, Xi Jinping, would become operational by the year 2020. The construction work on this project has already been started at Karot village of Rawalpindi district in January this year and is expected to be completed in 2020, a senior official in the Ministry of Planning, Development and Reforms said. He said, it is the first hydropower project financed by China's Silk Road Project for which land acquisition is being completed at a fast pace. After completion in 5 years, the Karot Power Company will run and maintain the project for 30 years after which it will be transferred to the Punjab government. The Project site is accessible through the road from Islamabad-Kahuta-Kotli Road approximately 29 kilometres from Kahuta village, and 65 kilometres from Islamabad. The major project features included construction of concrete gravity 91 meters high dam with a crest length of 320 meters near the village of Gohra. The dam's reservoir will be approximately 152 million cubic meters in volume, with a length of 27 kilometres. However 72 homes and 58 businesses are expected to require relocation as a result of construction, while 2.8 kilometres of the Karot-Kotli road, and 8.9 kilometres of the Azad Pattan-Kahuta road will need relocation. The power intake structure will be constructed on right bank of the river immediately upstream of Dam site and will divert the water into headrace tunnels entering into Cavern Powerhouse. The water will be discharged back to River Jhelum through tail-race channel located at right bank of the River Jhelum immediately downstream of Karot village. The dam will generate mean annual energy 3,436 GWh, and will connect to Pakistan's national electricity grid.

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PSO SEEKS 500,000 TONNES OF GASOLINE FOR DECEMBER-JANUARY

The State Oil Company (PSO) is seeking 500,000 tonnes of gasoline for delivery over December and January, official sources said on Tuesday. In the first tender, the company is seeking four cargoes of 55,000 tonnes each of 92-octane gasoline for delivery into Kaemari, Karachi in December, and four similar-sized cargoes for delivery in January. In the second tender, PSO is seeking two 30,000-tonne cargoes of 95-octane gasoline for delivery in December and January. Both tenders close on October 29 with offers to remain valid until November 10. Pakistan is moving towards 92-octane gasoline from November and is phasing out imports of 87-octane gasoline, in line with a global shift toward cleaner fuels.

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TURKISH SUPPORT FOR PAKISTAN''S ENERGY SECTOR REAFFIRMED

Minister for Water & Power and Defence, Khawaja Muhammad Asif accompanied by Pakistan''s Consul General in Istanbul Dr Yusuf Junaid, called on Turkish Prime Minister Binali Yildirim on the sidelines of the 23rd World Energy Congress being held in Istanbul. Turkish Prime Minister re-assured the Pakistani delegation of Turkish Government''s support in the development of energy sector in Pakistan and encouraging Turkish companies to play an increased role in the process, the Foreign Office said on Tuesday. Khawaja Muhammad Asif is attending the congress at the invitation of Turkish President Recep Tayyip Erdogan. Presidents of Russia, Azerbiajan, Venezuela, Turkish Republic of Northern Cyprus and energy ministers of many countries are also attending the meeting. Khawaja Muhammad Asif specially thanked Turkish Prime Minister and people of Turkey for standing by Pakistan at a time when there is a tension on the Eastern borders and appreciated Turkey''s consistent support for the Kashmir issue. He also facilitated Turkish leadership on emerging even more stronger after the attempted failed military coup of 15 July. Turkish Prime Minister thanked Pakistani leadership for showing strong solidarity with Turkey. Meanwhile, Turkey also reaffirmed its strong support for the cause of the people of Jammu and Kashmir. On the first day of their visit to Turkey, Prime Minister''s Special Envoys, Muhammad Pervez Malik and Mohsin Shah Nawaz Ranjha, met a cross-section of the Turkish parliamentary leadership, media, civil society and think-tanks to apprise them of the gross and systematic violations of human rights being perpetrated by the security forces in the Indian Occupied Jammu & Kashmir (IoK). The Special Envoys called on the Speaker of the Turkish Grand National Assembly (TGNA), Ismail Kahraman, and briefed him in detail about the atrocities being committed against the defenseless Kashmiri people, demanding their legitimate and inalienable right to self-determination. They highlighted that the death of the young Kashmiri leader, Burhan Wani, had re-ignited an intense phase of the popular uprising in the IOK, also being characterised as the Kashmiri Intifada. Drawing attention towards the use of arbitrary force, live ammunition and pellet-guns by the occupying forces to quell the recent peaceful protests in IOK, the Envoys underlined the need for an urgent and meaningful intervention by the international community to bring an end to the brutalization of the Kashmiri people; conduct a fair, independent and transparent inquiry under the UN auspices to hold the perpetrators of these heinous acts responsible; and, above all, ensure the realisation of the right to self-determination of the people of Jammu and Kashmir in accordance with UN Security Council resolutions, and the aspirations of the Kashmiri people. The Envoys thanked Turkey for its principled position on the Jammu & Kashmir dispute and its consistent support for the Kashmiri people. Lauding Turkey''s active role in the OIC Contact Group on Jammu & Kashmir, the Special Envoys underlined the high importance of its proposal to send an OIC Fact Finding Mission to Jammu and Kashmir. Extending a warm welcome to the Envoys, the Honourable Speaker Ismail Kahraman thanked Pakistan and its people for their strong support and solidarity for Turkey against the attempted coup of 15 July 2016; reiterated support for Pakistan in its fight against terrorism; and underlined that Pakistan and Turkey had always supported each other on their respective national causes, ie Kashmir and Cyprus. In the current phase, Turkey had called for restraint and use of peaceful means to resolve the Kashmir dispute. He reaffirmed Turkey''s consistent support for a negotiated solution within the framework of relevant UN resolutions and taking into account the legitimate aspirations of the Kashmiri people. Separately, the Special Envoys met with the Chairman of Pakistan-Turkey Parliamentary Friendship Group; visited the prominent Turkish think-tank, Economic and Social Research Center (ESAM); and interacted with prominent media outlets. During these engagements, the Special Envoys informed their respective interlocutors that more than 110 innocent Kashmiri protestors had so far lost their lives, and another 12,000 injured since 8 July 2016 as a result of unbridled use of force by the occupying forces. Over 150 - primarily among Kashmiri youth - had been blinded permanently, while the eyesight of over 700 had been seriously affected. The Special Envoys emphasised that Pakistan expected the international community to fulfil its moral responsibility towards the people of Occupied Jammu and Kashmir in line with the relevant UN Security Council resolutions.

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PESCO BOD APPROVES POWER TRANSMISSION PURCHASES

111th meeting of the Board of Directors (BoD) of Peshawar Electric Supply Company (PESCO) was held at Wapda House, Peshawar. Chairman BoD PESCO Malik Muhammad Asad Khan presided over the meeting. Company Secretary presented Minutes of 110th BOD meeting which were approved after detailed discussions. The BoD discussed the measures taken to make PESCO a profitable entity. Chairman BoD said that they have to put the company on the path of success and profitability and suggested new ideas and proposals in this regard. The Chairman BoD extended full cooperation to the management and said that they have to improve performance and to develop it as a consumer-friendly company. The BoD approved purchase of 1000 KM Conductor, 4000 KM PVC, purchase of circuit breakers, bus isolators, lighting arresters, incoming panels and Relays under ADB loan. It also approved fund for the repair of damaged distribution transformers of 200 KVA and 100 KVA. A comprehensive briefing was also given to BoD about the Photo Meter Reading and BoD directed for the 100% implementation of it as early as possible. The Chief Executive, PESCO, Anwar Ul Haq Yousafzai gave presentation to the board about the performance of the company and vowed that he will do his best for the betterment of the company. He said PESCO employees have to be efficient in resolving consumer's complaints. Similarly, public was also requested to remove kundas, so that they can benefit from the relief given in load shedding like good areas. A number of other managerial and administrative matters on the agenda were also approved.

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LNG TERMINAL AT GWADAR: CPP BUREAU AGREES TO CONSTRUCT ON EPC BASIS

China Petroleum Pipeline (CPP) Bureau has conveyed its refusal to construct Liquefied Natural Gas (LNG) terminal at Gwadar on Build- Own- Operate-Transfer (BOOT) to Pakistan but agreed to proceed on EPC basis, well informed sources told Business Recorder. The project envisaged construction of 700-km pipeline having a diameter of 42 inches from Gwadar to Nawabashah. The main objective of the project was to overcome the shortage of natural gas supply by importing LNG at Gwadar and was to be completed in phases. The estimated cost of the project was Rs 203.314 billion. While describing the background, the sources said that initially sponsors submitted the PC-I and sought its approval (both pipeline and LNG terminal segments); however while planning the project, the sponsors considered various models (EPC, BOOT etc) and proposed that 700-km pipeline segment of the project should be implemented on an EPC basis and LNG terminal be constructed on BOOT basis by the same contractor. ECC approved the proposal and the sponsors submitted PC-I for approval of only 700-km pipeline segment from Gwadar to Nawabshah on BOOT basis and the LNG terminal project on EPC basis. Ministry of Petroleum and Natural Resources, sources said, was considering submitting a summary to the ECC for a change in the execution methodology of the project. The PC-I in this respect was under preparation by sponsors and would be submitted soon. The sponsors revealed that the Price Negotiation Committee (PNC) constituted by ECC has negotiated the project price with the Chinese and a final discount of $122 million had been made in the project''s EPC cost. The sources further revealed that the project was considered by the CDWP in its meeting held on June 8, 2016 and recommended in principle, to ECNEC subject to the following conditions: (i) financial arrangement and its terms and conditions should be finalised; (ii) sponsors may resolve the issue of tax exemptions from FBR on the pattern of NHA; (iii) EAD to review the revised lending rate with a new lending policy at the earliest (by June 30, 2016) to avoid expensive loans; and (iv) sponsors may rationalise the cost of the project and provide a cost break-up of each component. In compliance with the CDWP decisions, the Ministry of Petroleum and Natural Resources/ ISGS had revealed that a formal loan application had been made by the EAD to the Economic and Commercial Counsellor, Embassy of China, to request EXIM Bank of China to proceed with the funding. According to sources, terms and conditions of financing of project would be finalised in due course, adding that a summary had been prepared for tax exemption for the ECC. The matter was under deliberation with EAD and would be addressed based on the response from China Exim Bank. The overall cost of the project has been rationalised from Rs 228.859 billion to Rs 203.314 billion.

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1300MW POWER PROJECTS TO BE SET AT PORT QASIM: MUSADIK

Spokesman to the Prime Minister Dr Musadik Malik has said that two mega energy projects through China Pakistan Economic Corridor (CPEC) would be set up at Port Qasim that would add 1300 MW electricity in national grid. Talking in a private TV programme, he said CPEC would bring economic revolution in the country and provide equal opportunities to all the provinces. He said the main focused of CPEC was energy, infrastructure, development, industrial zones and ports. These were key factors for development and economic growth. Musadik said industrial zones and airport would be established in Gwadar. Several power projects would be set up in Thar through the Corridor to meet the growing energy demands, he added. Replying to a question, he said the name of the Prime Minister was not mentioned in Panama Papers. He said the peaceful protest was right of every political party in democratic system but actions would be taken against violators of law and constitution during Pakistan Tehreek-e-Insaf (PTI) protest demonstration on October 30 in Islamabad.

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KE SECURES SECOND POSITION IN FUEL, ENERGY SECTOR

K-Electric (KE) secured second position in the fuel and energy sector at the Best Corporate and Sustainability Report Awards 2015 jointly organised by the Institute of Cost & Management Accountants of Pakistan (ICMAP) and the Institute of Chartered Accountants of Pakistan (ICAP) at a local hotel. The award was received by Muhammad Rizwan Dalia, Director Finance and Company Secretary, K-Electric on behalf of the organisation. The award recognizes the utility for ensuring best practices of disclosure and transparency in preparing its annual report. Last year the utility secured fourth position in the same category, hence this year's achievement marks major improvement.-PR

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INDUSTRIAL SOFTWARE SOLUTION: GE SIGNS ACCORDS WITH NISHAT GROUP

The General Electric has signed agreements to provide advanced digital industrial software solutions to the Lalpir Power Ltd and Pakgen Power Ltd operators of Nishat Group's thermal power plants located in Mehmood Kot near Muzaffargarh. Each facility has a capacity of 365 megawatts (MW), and the new contracts signal the continuing adoption of software within Pakistan's power sector, including plants equipped with non-GE steam turbines and generators. The agreements were signed at a ceremony in Dubai by Hassan Mansha, Director and Chairman of the Board of Directors of Lalpir Power Ltd and Pakgen Power Ltd, and Joe Anis, President and CEO of GE's Power Services business, in the Middle East and Africa. The software solutions provided by this agreement will help the Pakistan government's goals under Vision 2025 to provide uninterrupted and affordable electricity, and increase electricity access from 67 percent to over 90 percent of the population. "As one of the leading conglomerates in Pakistan, Nishat Group is always looking for the latest innovation and most advanced solutions to strengthen operational performance across its many facilities," said Hassan Mansha. "The GE's industrial expertise in the power sector, advanced digital competencies, and proven track record in the country gave us the confidence to adopt their solutions to improve the reliability of operations at our power plants." "At GE, we are committed to supporting the government meet its goals of providing reliable power to improve the lives of the people of Pakistan," said Sarim Sheikh, President and CEO of GE Pakistan and Central Asia.

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PAKISTAN INVITES RUSSIA TO JOIN CASA-1000 PROJECT

Pakistan has invited the Russian Federation to join CASA-1000 Project for non-hydel part as there is a room for transmission of electricity from October to May when the hydel generation is lower in the two central Asian countries. The proposal was discussed in a meeting between Russain Deputy Minister for Energy Yuri Sentyurin and Secretary Ministry of Water and Power, Younus Dagha on Wednesday. According to an official spokesperson, Pakistan and Russia have also agreed to enter into negotiations for 600 MW gas fired power plant at Jamshoro on Russian funding. While, highlighting the importance of CASA-1000 project, Secretary Ministry of Water and Power said that work has already been started on the project. He said that the Kyrgyzstan and Tajikistan will transmit their hydel electricity through the transmission line to Pakistan in the summer months of May to October. However from October to April the line will be available to transmit Russian thermal electricity. He said that Russian side can take benefit of this idle period. He said that Russian joining of CASA-1000 project will also bolster regional connectivity and greater regional cooperation. Secretary Ministry of Water and Power further elaborated that Pakistan offers excellent investment opportunities in the energy sector. Talking about Russian investment in the 600MW gas fired power plant at Jamshoro, Younus Dagha said that the project's feasibilities have already been conducted and PC1 is also ready. He said that since the power evacuation system already exists from the site, therefore it is one of the most viable project where the Russian investment can be made. The project will replace the existing low efficiency capacity with higher efficiency turbine. He said that Pakistan is looking forward to take the cooperation between the two countries to new heights. Yuri Sentyurin thanked the Pakistani side for the warm welcome accorded to him and the delegation. He said that Russian companies have rich experience in energy sector. He said that many potential Russian companies are eager to invest in the energy sector of Pakistan. Yuri Sentyurin welcomed the Pakistan's proposal to join CASA-1000 project and expressed the willingness to be part of the project. He urged that Pakistan and Russia will jointly pursue other partners of the project for this purpose. He also said that Russian side is eager to pursue Jamshoro up gradation project and is exploring ways to finance the same. He said that cooperation between the two countries is deepening with each passing day. He expressed the confidence that given the conducive environment, Russian investors are much eager to explore the energy sector of Pakistan.-PR

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PAKGEN POWER SIGNS PACT WITH GE GLOBAL SERVICES

Pakgen Power Limited entered into an agreement with GE Global Services, a world's digital industrial company, to provide advanced digital industrial software solution to the company. Powered by Predix, GE's operating system for the industrial internet, GE's digital power plant that includes a suite of software solutions that can enable the company to visualise plant performance, analyse and monitor operations in real time and help to identify maintenance issues before they occur, leading to greater asset uptime and reduced unplanned downtime, the company in a material information sent to Pakistan Stock Exchange said. Overall performance is also to benefit from the system, it added.

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IN THE YEAR OF 2017: PAKISTAN TO REQUIRE LOWER SULPHUR DIESEL FUEL

Pakistan will lower the sulphur content of diesel imports from January next year, in line with a global shift toward cleaner fuels, said two sources familiar with the matter. As vehicle numbers in Asia have surged, countries across the region, including China, India and Vietnam, have adopted more stringent sulphur requirements for their fuels in recent years to cap emissions. Pakistan will require diesel fuel with 500 parts per million (ppm) sulphur starting from January 2017 from the current 5,000 ppm sulphur gasoil, the sources said this week. Pakistan and Indonesia are some of the few remaining Asian countries still using high-sulphur gasoil. With the shift, the South Asian nation will be on par in terms of sulphur standards with Bangladesh, Vietnam and Myanmar. State-owned Pakistan State Oil Co (PSO), the country''s largest oil products importer, could not be immediately reached for comment. But the country''s refineries are still not completely ready to meet the change in sulphur standards, one of the sources familiar with the matter said. About 40 percent of Pakistan''s refineries have upgraded their units to produce the low sulphur diesel while the remaining refineries are still working to finish units to reduce the amount of sulphur in the fuel, the source said. The country''s refineries use outdated hydro-skimming equipment and desperately need updating, only surviving due to a favourable tax regime, Pakistan''s petroleum minister told Reuters last year. PSO has a long-standing term contract with Kuwait Petroleum Corp (KPC) to import about 2.2 to 2.5 million tonnes of high sulphur gasoil every year. KPC has agreed to supply diesel with 500 ppm sulphur to PSO from next year, the two sources close to the matter said. PSO rarely imports gasoil in the spot market except for summer when it needs the fuel for power generation. So, the shift in sulphur specification is not expected to have a major impact on trade flows, middle distillates traders said. Pakistan is also moving towards 92-octane gasoline from November and is phasing out imports of 87-octane gasoline, one of the sources said.

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POWER GENERATION INCREASED BY 35 PERCENT IN THREE YEARS: OFFICIAL

Secretary Ministry of Water and Power, Younus Dagha has claimed that power generation has increased by 30-35 per cent during the last three years as compared to increase in demand of 4-5 per cent, showing a substantial reduction in demand-supply gap. In an exclusive chat with Business Recorder, he maintained that there has been a significant growth in electricity production during 2015-16 as compared to the previous year which not only reduced the gap between demand and supply but also facilitated a reduction in load-shedding from 16 hours to 6-8 hours daily. Dagha noted that the Prime Minister recently approved a load management plan for 2016-18 whereby load shedding would be reduced in urban areas from 6 hours to 3 hours daily and in rural areas from 8 hours to four hours, which means load shedding in rural areas will be around 7 hours daily. However, areas where recovery is low or theft is high the load management plan would not be applicable. Commenting on current unexpected load shedding duration, he said at present the temperature in Gujranwala, Faisalabad and Lahore is like in May due to a heatwave, which is unprecedented in October in Pakistan. According to Secretary Water and Power, October and November are considered relaxed months with respect to demand of electricity, and thermal power plants are allowed to go for annual maintenance as these plants are again made fully operational by December and January due to canal closure. "On one hand, several thermal power plants went on annual maintenance and on the other provinces lowered their water demand in October due to which hydel generation dropped drastically. Both these factors have challenged the government''s power management," he continued. On Monday, Ministry Water and Power Ministry requested Indus Water System Authority (Irsa) to release some water from reservoirs early and delay the discharge mechanism at barrages like Chashma etc. This step has increased hydel generation which has reduced load shedding duration, he added. Usually demand declines by 5000MW in October each year, but this time demand increased by 5000MW due to the heatwave, Dagha stated, adding that 1500MW-2000MW electricity shortage was witnessed due to lower hydel generation and shutting down of thermal power plants for annual maintenance. In reply to a question, he said that growth in demand of electricity has increased by 4-5 per cent per annum against growth in generation of around 30-35 per cent. Sources added that Hubco''s 300MW plant, Muzzafargarh power, Saphire power plant and liberty power with a total generation of around 1000 MW, are again in operation. The government has tailored plans to increase generation from existing level of 19000MW to 24,000MW by the end of 2018 which implies the country will be surplus in next 18 months. Prime Minister Nawaz Sharif is expected to inaugurate a number of projects this month which include 300MW coal-fired power plants established by Hubco and several small power projects.

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TARBELA 4TH EXTENSION PROJECT: WAPDA CHAIRMAN REVIEWS CONSTRUCTION WORK

Pakistan Water and Power Development Authority (WAPDA) Chairman Lieutenant General Muzammil Hussain (Retd) has emphasised upon the project management to put in their maximum to complete the 1410 MW-Tarbela 4th extension hydropower project as early as possible. Besides accelerating the pace of work, the stipulated quality standards must be adhered to in letter and spirit for completion of the project. He expressed these views during his visit to Tarbela 4th extension hydropower project on Monday. "Energy and water availability being most critical needs will improve after completion of the projects underway," he said. Discussion during the visit with the project authorities, consultants and contractors were aimed at meeting the timelines for completion of Tarbela 4th extension hydropower project. Tarbela 4th extension hydropower project is being constructed on tunnel No 4 of Tarbela Dam. The project will increase generation capacity of Tarbela Hydel Power Station from 3,478 MW to 4,888 MW, after installation of three units with installed capacity of 470 MW each. Earlier, the WAPDA chairman visited WAPDA Cadet College, Tarbela, and viewed the facilities being provided to the students with regard to the curricular and co-curricular activities.

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BHIKKI POWER PLANT: SECOND GAS TURBINE ARRIVES

Second of the three gas turbines, imported from France for installation at 1180MW Bhikki Power Plant, has arrived and special arrangements have been made for transporting from Port Qasim Karachi to the site of plant where its installation is likely to start within 20 days. This machine weighing 400 tons has a capacity of 358MW power generation. First such turbine had been transported to site about one and a half months ago. The two turbines will start power generation before summer 2017 and contribute 716MG electricity in the national grid for minimising load shedding. Manufactured by the General Electric (GE), this 9HA Gas Turbine has been included in the Guinness Book of world records because of its efficiency. The same turbine was being used in Beauchene Power Plant in France which had been rated as the best power generation plant because of its 62.22 per cent efficiency. One of the three gas turbine generators, also manufactured by General Electric, has already reached at site last week. The generator has been imported from New York. The remaining two Gas Turbines and as many generators are being manufactured by General Electric and will reach Pakistan in due course of time. The civil work of the Bhikki Power Plant in District Sheikupura is also in full swing and so far, more than 50 per cent of the construction work has been completed. The plant will start production early 2017 and will be contributing 760MW of power in the national grid by the coming summer season. It will produce power to its full capacity by the end of next year. It is expected that Bhikki Power plant will prove to be a mile stone for the power sector of Pakistan. Its better efficiency will result in reduction in the cost of production which will ultimately benefit the consumers. Due to saving in production cost and better efficiency rate, there will be a reduction in per unit cost of electricity.

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RENEWABLE ENERGY: IFC PROVIDE CREDIT LINE

Country Director World Bank (WB), Patchamuthu Illangovan called on Finance Minister Ishaq Dar on Saturday. Illangovan apprised the Finance Minister on the forthcoming annual meeting of the World Bank group. The meeting discussed the portfolio of the World Bank assisted projects in Pakistan. "Pakistan has shown strong economic turnaround. The World Bank Group sees Pakistan as stronger partner for further development, collaboration and assistance," Illangovan said. He also said that the IFC will help in renewable energy in Pakistan and provide a credit line in this regard. Finance Minister appreciated the interest and support of World Bank President for developmental projects in Pakistan. Dar said he is looking forward to his forth-coming visit to Washington to participate in the World Bank and the IMF annual meetings and appreciated World Banks support for the green energy projects. Representatives of IFC and senior officials of Ministry of Finance attended the meeting.

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LNG DEAL WITH QATAR: DETAILS NOT UPLOADED ON WEBSITE YET

The Ministry of Petroleum or any of the relevant departments have failed to upload the details of Pak-Qatar Liquefied Natural Gas (LNG) deal signed on February 10, 2016 on the websites despite repeated statements of the petroleum minister. Federal Minister for Petroleum, Shahid Khaqan Abbasi talking to Business Recorder has repeatedly stated that placing the deal on website was the responsibility of the Pakistan State Oil (PSO) and the Public Procurement Regulatory Authority (PPRA), but seven months and 20 days have passed and the deal was not made public on any of the websites. The deal envisages import of 2.25 million tons of LNG from February 2016 to June 2017 and 3.75 million tons per annum from July 2017 to 2030. The PSO will make payments to Qatar gas every fortnight through Standby Letter of Credit (SLBC) at 105 percent of the value of four LNG cargoes. When the Minister was asked as to why Pak-Qatar LNG deal is not being made public as neither the Ministry nor the other relevant departments including PSO uploaded the details, Abbasi said he has advised PSO management of placing the non-confidential parts of the deal on the website. When contacted Senator Saleem Mandviwalla of Pakistan Peoples'' Party (PPP), he said the government was deliberately not making the deal public which as per law is necessary. He said there are kickbacks and commissions in LNG deal therefore the Petroleum Ministry has not placed it on the website of any of the relevant department. When he was informed about the repeated statements of the Petroleum Minister who several times stated that the government has directed PSO for making the deal public, he said apparently the Ministry didn’t issue such directions to the PSO management or the company has ignored the directions of the Petroleum Minister of placing deal on the website of the company. After completing LNG terminal at Port Qasim Karachi, Pakistan so far has imported 50 LNG ships each carrying 3.2 Billion Cubic Feet (BCF) of the commodity.

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