14TH INTERNATIONAL EXHIBITION FOR THE ENERGY INDUSTRY

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News Headlines for the month of
NOVEMBER 2016

'PSO HAS AMPLE FUEL RESERVES TO MEET NATION'S NEEDS'

Pakistan State Oil has repudiated the news circulating in some sections of the media fomenting speculations about shortage of fuel in the country. Pakistan State Oil (PSO) has clarified that there is no imminent shortage of fuel in the country as PSO has ample fuel reserves in its stocks and it's being dispensed off as usual at all PSO retail outlets across Pakistan. Followed by a recent incident at KPT terminal in which a PHI chemical tank caught fire, KPT temporarily disallowed unloading of all fuel cargoes causing rumours about possible disruption of fuel supply and the subsequent fuel shortage in the country. However, after the fire was put out, all cargoes were immediately allowed to berth and unload and the fuel supply resumed as usual. Pakistan State Oil has further informed that the company had even made arrangements to procure fuel from local refineries to ensure seamless fuel supply in case the unloading of cargoes would have delayed any further. PSO has reiterated its commitment that the company is working relentlessly to ensure availability of fuel at all times in the country. The demand and supply cycle of fuel is closely scrutinised and act pre-emptively to ensure seamless supply of fuel in the country. Being Pakistan's flagship oil marketing company and a responsible corporate citizen, Pakistan State Oil is fully aware of its national duty and will put maximum effort to keep the country adequately fuelled.

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PRIME MINISTER, GURBANGULY DISCUSS TAPI GAS LINE

Minister Nawaz Sharif and Turkmenistan''s President Gurbanguly Berdimuhamedov met here Friday and discussed matters of bilateral interests. The two sides discussed matters related to Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and re-establishing of air links between their countries, a statement from the PM House said. Nawaz said China Pakistan Economic Corridor (CPEC) would usher in a new era of prosperity in Pakistan and in the entire region. He said the future of the region''s population was linked with CPEC and added that Pakistan would welcome if any country was interested in joining this mega project. Nawaz said TAPI was a significant project which would help in meeting the energy needs of its member countries. He said the bilateral relations between Pakistan and Turkmenistan were getting stronger with each passing day and proposed holding of a high level meeting every year in Islamabad and Ashgabat. Turkmenistan''s President Gurbanguly seconded Prime Minister Nawaz Sharif on the importance of CPEC, terming it a project that would guarantee the region''s progress and prosperity. He lauded the vision of Prime Minister Nawaz Sharif in taking solid steps for strengthening Pakistan''s economy and ensuring uplift of the people. The two leaders exchanged views on bilateral, regional and international issues of mutual interest. Earlier, the prime minister arrived here in Turkmenistan''s capital Ashgabat to lead the country''s delegation at the first-ever Global Conference on Sustainable Transport. The prime minister is accompanied by his Adviser on National History and Literary Heritage Irfan Siddiqi and Special Assistant on Foreign Affairs Tariq Fatemi. The prime minister is undertaking the visit at the invitation of the president of Turkmenistan, who is co-hosting the conference along with United Nations Secretary-General Ban Ki-Moon. The conference, likely to be attended by around 1,500 participants including heads of state and government, ministers, civil society leaders and the UN officials, will discuss promotion and the role of sustainable transport towards achievement of the 2030 Agenda for Sustainable Development. "Pakistan is keen to improve connectivity with Central Asian States by establishing transport and communication links. These will be conducive to tapping the potential of trade, economic interaction, people-to-people contacts and tourism," an earlier statement released by the Foreign Affairs Ministry said. The statement said Pakistan and China had launched China Pakistan Economic Corridor (CPEC) to provide seamless connectivity to Gwadar and Karachi ports.

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PSO CONTINUES SMOOTH NATION-WIDE FUEL SUPPLIES

In continuation of its resolute commitment toward fuelling the country without interruption, Pakistan's leading oil marketing company Pakistan State Oil continues smooth nation-wide fuel supplies besides ensuring ample fuel reserves in stock. At present, Pakistan State Oil has working stocks of about 135,000 MT of petrol and 250,000 MT of Diesel, with 58,000 MT Petrol and 55,000 MT Diesel cargoes being ready off-port Karachi for unloading. In addition, Pakistan State Oil retail outlets storages are also adequately filled up to meet the nation's energy needs. Improving fuel quality and meeting the nation's energy requirements have been key constituents of PSO's mission, both of which are efficiently met by the company. Recently, the company ushered Pakistan in a new era of premium quality fuels by introducing higher-RON Altron Premium and Altron X High Performance fuel products for the very first time in the country. Committed to provide best possible service to its customers, PSO takes proactive measures to save them any inconvenience besides keeping a close watch on the demand and supply cycle of the country to ensure continuous fuel supply across the country.

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240 SHIPMENTS OF LNG: GOVERNMENT SEES STRONG INTEREST IN GIANT TENDER

Pakistan LNG Ltd has received strong interest in its tender to buy as many as 240 shipments of liquefied natural gas (LNG) from suppliers hungry to sell gas in an oversupplied market, a senior official told Reuters on Thursday. The emergence of Pakistan as a large-scale buyer is a welcome boost in the market for the supercooled gas as demand slows in traditional big buyers like Japan. Spot Asian LNG prices have fallen by two-thirds since the beginning of 2014 as new supplies have flooded the market. Launched earlier this month, the tender for a combination of mid- and long-term shipments "has been extremely well received," said Adnan Gilani, chief operating officer of state-owned Pakistan LNG. "The response is beyond what we thought," the executive said, speaking in an interview on the sidelines of an LNG conference in Tokyo. Gilani didn''t identify any of the bidding suppliers. The company launched its tender to purchase a combined 240 shipments of liquefied natural gas (LNG), The mid-term tender covers a period of five years and calls for 60 shipments, while the long-term tender is for 15 years and 180 cargoes, according to information presented in the tender documents released on the company''s website earlier this month. More than 20 global oil and gas majors and traders attended a bidders conference held by Pakistan LNG two days ago, Gilani said, adding as many as 10 more expressed interest without attending. The deadline for bidding is December 20, he said. Pakistan LNG will launch a new tender for 4.5 million tonnes of LNG "within a few months", and six months later it will seek bids for another 4.5 million tonnes, he said. By 2019 Pakistan, which can only meet two-thirds of its gas demand, expects to be importing about 23 million tonnes of LNG a year via five terminals to fuel power stations and vehicles. "We are buying for our baseload needs," he said. "Price is the main variable."

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GOVERNMENT DOING ITS BEST TO OVERCOME ENERGY CRISES: JAM KAMAL

Pakistan has tremendous potential to grow as an energy-sufficient country that only needs investment-friendly policies and improved law and order, State Minister for Petroleum and Natural Resources Jam Kamal Khan said here on Tuesday. He was speaking on occasion of inaugurating the 23rd Annual Technical Conference (ATC) organized by the Pakistan Association of Petroleum Geoscientists (PAPG) in collaboration with the Society of Petroleum Engineers (SPE), titled 'Oil Price: Domestic Challenges and Exploration and Production (E&P) Strategies.' Chairmen PAPG Abdul Wahid Chughtai and ATC Gulzar Ahmed Memon while talking with the participants said that this conference is not only being attended by local and multinational oil/gas exploration and production (E&P) companies but also by students, teachers and regulatory bodies are present here. Jam Kamal said that the government is committed to speed up exploration efforts across the country, adding that it is moving in the right direction. He said that to control the energy crisis, the ruling PML-N government is not only relying on tapping local natural oil/gas resources, but it has completed the first ever liquefied natural gas (LNG) terminal in Karachi, which at present is handling 400 million cubic feet per day (MMCFD) of imported gas. Jam Kamal said that within the next 2 years, the government will complete 3 LNG terminals in Karachi and Gawadar with taking current LNG import of 400 MMCFD to 2.4 billion cubic feet per day (BCFD). Jam Kamal Khan remarked that Pakistan has one of the world's largest shale gas and oil reserves, and recent comprehensive studies indicate that the potential to be larger than originally envisaged. He further said, "We are in the process of developing policies to attract investment for exploitation of this shale oil and gas potential, which will radically change the dynamics of energy sector in Pakistan." The government has expanded areas in all provinces for oil & gas exploration, and licenses have been awarded to different companies. "We are hopeful to narrow the gap of shortage in the both oil and gas sectors, and pass on this relief to the masses," he added.The minister told the participants of the conference that a petroleum policy with a lucrative pricing regime had been fully implemented and additional incentives were being provided to E&P companies. Other dignitaries shared their insight and vision with the participants too. He also congratulated the organisers for providing unique opportunity to all petroleum engineers and geoscientists and to gather under one roof for exploring more opportunities in this regard. The participants were informed that Pakistan's current crude oil production has reached 100000 barrels a day from 65000 barrels a day in 2013, which reflects the efforts of present government in increasing domestic crude oil production. PAPG-SPE Annual Technical Conference (ATC) is the only technical event of the upstream oil and gas industry of Pakistan. The conference attracted around 1000 to 1500 industry professionals from the exploration and production companies, academia, service providers from all over Pakistan and a large number of technology experts from overseas as well as the officials of the industry regulators. The students of leading universities across Pakistan studying the disciplines of petroleum engineering and geo sciences were encouraged and sponsored by the societies to take part in the conference, by contributing technical papers.

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ADMORE GAS RECORDS IMPRESSIVE 55 PERCENT GROWTH IN OCTOBER

Admore Gas Private Limited (AGPL) has posted an impressive retail fuel sales growth of 55 percent in October against the same month last year, while it equally recorded 42 percent growth against the month of September. It is to be noted that the company has recently been taken over by a new management, which has devised a comprehensive roadmap to set Admore on the path of growth and expansion. This is evident by the tremendous growth the company's retail sales volume has seen recently, having increased to 35 million litres during the month of October against 22.5 million in October 2015, and 24.7 million litres in September this year. "We are striving hard to achieve more milestones to become the brand of choice for millions of motorists in Pakistan," said Nadeem Jafarey, CEO AGPL. He explained the company's future outlook as "We have successfully launched multi-tiered development plans which include further improving the company's financial position and addressing all previous liabilities to emerge as a secure, highly solvent company." "We have also currently undertaken construction of new storage facilities, up-gradation of our retail network, enhancing supply chain reliability and are thereby striving to achieve overall operational excellence", he added.

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COMMUNITY-MANAGED HYDROPOWER PLANTS: PPAF RECEIVES GLOBAL RECOGNITION

The government has announced its plan to enhance oil storage capacity to meet increasing consumption of petroleum products in the country. "The government has also directed the state owned Pakistan State Oil Company (PSO) to enhance its storage capacity of petroleum products", Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said while talking to media at formal inaugural ceremony of PSO's new range of premium quality fuel products here on Thursday. He said that all companies related to oil business are making arrangements to enhance their storage capacity. It is a commercial activity, however the government would offer necessary incentives for the industry in this regard, he added. The current storage capacity is sufficient for 20 days. The minister made it clear that gas prices are not being increased. He said there is not gas shortage issue in Sindh. However, the government is managing gas load to address the 40 percent gas shortfall issue in Punjab and KPK. He said LNG deal with Qatar was transparent and prices were less as compared to the global market. Later, the minister formally inaugurated the PSO's new range of premium quality fuel products. Managing Director of PSO Sheikh Imran Ul Haq and other officials were also present on the occasion. The inaugurated new fuels namely Altron Premium and Altron X High Performance were already put on sale earlier this month at PSO petrol stations nation-wide. PSO, being the country's flagship oil marketing company, has played a key role in materialising the vision of the Government of Pakistan and the Ministry of Petroleum and Natural Resources by introducing higher grade Research Octane Number (RON) fuels in the country for the very first time. Shahid Kaqan Abbasi lauded PSO for its continuous support in helping the government of Pakistan as well as the petroleum ministry achieve their goals of better quality fuels in Pakistan. He said this is a momentous initiative as it renders numerous benefits not only for the consumers, but also for the country's economy at large. Sheikh Imran Ul Haq said PSO continues to be the industry leader, setting new trends for market players to follow. "The launch of our new product line is yet another testament to PSO's commitment to effectively meeting the changing needs of our consumers and delivering them the best quality products", he added. After the inaugural, customers flocked to the petrol station to fuel their vehicles with the new and improved product range. The customers also praised PSO's efforts to improve fuel quality in Pakistan and shared how they had already started experiencing benefits of the new fuel products. The higher-grade RON results in extended engine life and reduced maintenance costs. As they result in better engine hygiene. Altron Premium and Altron X High Performance reduce the environmental impact due to lower emissions. Additional benefits of the new product range include better mileage, enhanced engine performance and a great motor vehicle experience to the customer. Improving fuel quality and meeting the nation's energy requirements have been key constituents of PSO's mission, both of which are efficiently met by the company. PSO pledges to continue undertaking all initiatives that enhance customers' fuelling experience and ensure availability of all its products.

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OIL STORAGE CAPACITY TO BE ENHANCED: MINISTER

The government has announced its plan to enhance oil storage capacity to meet increasing consumption of petroleum products in the country. "The government has also directed the state owned Pakistan State Oil Company (PSO) to enhance its storage capacity of petroleum products", Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said while talking to media at formal inaugural ceremony of PSO's new range of premium quality fuel products here on Thursday. He said that all companies related to oil business are making arrangements to enhance their storage capacity. It is a commercial activity, however the government would offer necessary incentives for the industry in this regard, he added. The current storage capacity is sufficient for 20 days. The minister made it clear that gas prices are not being increased. He said there is not gas shortage issue in Sindh. However, the government is managing gas load to address the 40 percent gas shortfall issue in Punjab and KPK. He said LNG deal with Qatar was transparent and prices were less as compared to the global market. Later, the minister formally inaugurated the PSO's new range of premium quality fuel products. Managing Director of PSO Sheikh Imran Ul Haq and other officials were also present on the occasion. The inaugurated new fuels namely Altron Premium and Altron X High Performance were already put on sale earlier this month at PSO petrol stations nation-wide. PSO, being the country's flagship oil marketing company, has played a key role in materialising the vision of the Government of Pakistan and the Ministry of Petroleum and Natural Resources by introducing higher grade Research Octane Number (RON) fuels in the country for the very first time. Shahid Kaqan Abbasi lauded PSO for its continuous support in helping the government of Pakistan as well as the petroleum ministry achieve their goals of better quality fuels in Pakistan. He said this is a momentous initiative as it renders numerous benefits not only for the consumers, but also for the country's economy at large. Sheikh Imran Ul Haq said PSO continues to be the industry leader, setting new trends for market players to follow. "The launch of our new product line is yet another testament to PSO's commitment to effectively meeting the changing needs of our consumers and delivering them the best quality products", he added. After the inaugural, customers flocked to the petrol station to fuel their vehicles with the new and improved product range. The customers also praised PSO's efforts to improve fuel quality in Pakistan and shared how they had already started experiencing benefits of the new fuel products. The higher-grade RON results in extended engine life and reduced maintenance costs. As they result in better engine hygiene. Altron Premium and Altron X High Performance reduce the environmental impact due to lower emissions. Additional benefits of the new product range include better mileage, enhanced engine performance and a great motor vehicle experience to the customer. Improving fuel quality and meeting the nation's energy requirements have been key constituents of PSO's mission, both of which are efficiently met by the company. PSO pledges to continue undertaking all initiatives that enhance customers' fuelling experience and ensure availability of all its products.

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HUB INDUSTRIAL AREA: KOREAN DELEGATION SHOWS INTEREST IN POWER PLANT

A Korean delegation has shown interest in setting up power plant in Hub Industrial Area. In its visit to Lasbela Chamber of Commerce & Industry (LCCI) here on Saturday, President LCCI, Ismail Suttar has informed that a delegation of M/s. ES Group, Korea visited the Lasbela held a meeting with him and Managing Director, Lasbela Industrial Estate Development Authority (LIEDA) Sohail Mirza. While presenting the background of HITE Phase I and Phase II invited the ES Group, Korea to set up the 49 MW Power Plant at Hub and participate in the construction of Hub By-Pass to cater to the requirement of future industrial expansion at Hub. He also invited them to develop the infrastructure facilities at HITE Phase II and at Steel City, Gaddani, where huge industrial investment is expected to come in the context of CPEC. Wun Chan Lee of ES Group, Korea was very much interested to make investment to all these projects preferably starting from setting up of power plant. Managing Director, LIEDA Sohail Mirza offered the allotment of a plot of required area of power plant and to work with Korean investor on joint venture basis. Ismail suttar hoped that with the progress of CPEC and the completion of these projects' huge investment is expected to come at Hub which of course will help the improve the living standard of the people of this region.

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LNG DEAL WITH QATAR: MINISTRY YET TO UPLOAD DETAILS

The Ministry of Petroleum and Natural Resources has still not uploaded details of Pakistan-Qatar government to government 15-year Liquefied Natural Gas (LNG) deal on its website, signed on February 10, 2016. Minister for Petroleum, Shahid Khaqan Abbasi, prior to signing the deal, consistently maintained that he would direct the relevant entities - PPRA and PSO - to upload the deal soon after it was signed. This correspondent has repeatedly drawn the attention of the minister to the deal still not being a public document and invariably been told that the deal will be uploaded that very week. The public was informed at the time of the deal by Shahid Khaqan Abbasi that it was a 15-year LNG deal at a lower price in comparison to other countries, including India. However failure to upload the agreement has fuelled speculation that Pakistan has signed a costlier deal than what has been claimed in public.

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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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POLISH GAS FIRM PGNIG SAYS INCREASES GAS OUTPUT

Polish state-run gas firm PGNiG said on Monday it has doubled its gas output in Pakistan to more than 0.5 million cubic metres a day after it launched production at a new deposit earlier this month. -- PGNiG started gas production last year at its Pakistani Rehman deposit, whose total reserves are estimated at 4.5 billion cubic metres. -- PGNiG has started three boreholes in Pakistan to date and is working on another, which will help it boost production. -- "We continue preparatory work to drill the next holes to further increase gas production," PGNiG Chief Executive Officer Piotr Wozniak was quoted as saying in the company''s statement. -- PGNiG imports most of the gas it sells from Russia''s Gazprom and has taken steps to reduce that reliance. -- PGNiG''s sees its 2016 gas production at Polish deposits at 3.9 billion cubic metres, 0.5 bcm in Norway and 0.1 bcm in Pakistan. Poland consumes around 14 bcm of gas annually.

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MINISTRY CLARIFIES OIL SUPPLY POSITION

The Ministry of Petroleum and Natural Resources is hereby conveying the following factual position regarding the status of oil supplies in the country. At the onset it is clarified that strategic and normal stocks are two different entities. The fuel used for armed forces is sufficiently available but details cannot be made public due to security reasons. 1. At present, the countrywide stocks of Motor Gasoline (Petrol) is 225,674 Metric Tons (MTs) which is sufficient for 13 days cover as per current average per day demand of the country, which is around 17,500 MTs. Besides, 02 vessels of motor gasoline, carrying quantities of 17,000 MTs are waiting for berthing, while 02 more vessels having quantity of around 67,000 MTs are expected to arrive, tonight. 2. The country wide stocks of High Speed Diesel (HSD) is 466,821 MTs which is sufficient for 17 days cover as per current average per day demand of the country, which is around 27,310 MTS. Moreover, 02 Vessels of HSD, carrying quantity of 106,000 MTs are waiting for berthing, while 01 vessel having quantity of around 54,000 MTs Is under discharge. It is pertinent to mention here that the total storage of HSD is around 1.2 million tons which is sufficient for 44 days cover. At present, the demand of HSD has increased substantially due to harvesting season at approximately 27,310 MTs as compared to normal demand of 22,000 MTs. 3. Furnace Oil is mainly used in Power Sector and its country wide stocks are 759,022 MTs which is sufficient for 27 days cover as per current average per day demand of the country, which is around 28,320 MTS. In addition to the above quantity of furnace oil, 03 vessels of furnace oil, carrying quantity of 204,974 MTs are waiting for berthing at Fauji Oil Terminal (FOTCO), Karachi. From 14th August, 2016 to 31st October, 2016, one Oil Pier (OP-1) at Keamari port remained un-operational due to its maintenance causing a temporary disturbance in import handling of motor gasoline (petrol). With the close co-ordination among all stakeholders, the Ministry of Petroleum and NR managed all imports without any disruption of supply chain in the country. The said Oil Pier is now operational and import handling at Keamari has improved. At present, there is sufficient supply of petroleum products (motor gasoline/high speed diesel/furnace oil) throughout the country, keeping in view the current surge in demand of the petroleum products. Ministry of Petroleum and Natural Resources has taken proactive action advising the OMCs to import as per plan. Simultaneously, refineries have also been advised to maximise their production in order to cater to the countrywide demand.

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HASCOL'S FIRST SHIP CARRYING 92 RON BERTHED

As per the new specifications for the import of motor gasoline from 87 to 92 RON, Hascol's first ship carrying 25000 MT of 92 RON berthed at the Karachi Port on the 15th of November, 2016 and will be marketed under the brand name of 'Super Tiger XT'.

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NEW CAPACITIES TO BE ADDED TO NTDC SYSTEM BEFORE SUMMER: MD

Managing Director of National Transmission and Dispatch Company (NTDC) Dr Fiaz Ahmed Chaudhry said that about 1800 MVA of 500/220 kV and 3000 MVA capacities of 220/132 kV are being added in the NTDC system before summer 2017. "In summer 2016, system constraints were identified in the NTDC and DISCOs by exercising no load shedding during peak hours," he added. He said the transmission interconnection for all new power generation projects, renewable, including solar and wind, coal and LNG are being executed and will be completed well before respective commercial operation dates. NTDC is building generation interconnections as well as reinforcing its transmission system to reliably transmit additional power to load centres throughout the country. The additions will be adequate to prevent or significantly curtail load shedding for all provinces, he added. He said the third 500 kV circuit will be completed before CODs of generation projects, being installed in southern parts of the country. MD NTDC said the transmission line for evacuation of power from 1320 MW Hub Coal power plant will be ready in December 2018. Rarely, generation or load shed is due to bulk transmission configuration changes due to faults, as the NTDC interconnection network is mostly capable of handling N-1 contingencies. NTDC is implementing an advanced asset management system to maintain its transmission assets and increase their reliability. Transmission losses in NTDC are already at par with international standard, which will be further reduced after implementation of large number of reinforcement projects. Land purchased and sufficient preliminary work has been completed for converter stations and construction work is expected to start as soon as NEPRA approves its tariff. While giving reason of delay in completion of 220 kV Uch - Sibbi transmission line, he said progress was suffering due to law and order problems and security issues. However, he added, the NTDC has arranged FC security for supervisory staff and contractor crews. He said a contract with FC was signed on 14 October 2015 and FC was deployed at site on 1st January 2016. He expressed the hope that the delay would be recovered and it is expected that transmission line will be completed and energised before 31 March 2017.

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PSO LAUNCHES ULTRA PREMIUM FUEL PRODUCTS

The government has rejected the summary of Oil and Gas Regulatory Authority (OGRA) to increase the gas prices. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Wednesday said this while inaugurating the Pakistan State Oil premium quality fuels namely Altron Premium and Altron X High Performance at PSO Defence Service Station. He said that gas prices will remain unchanged and OGRA has been informed about this decision accordingly, he added. He said the gas provision will be 40 percent less than the demand; however, better gas load management will be made for the public. Prime Minister Nawaz Sharif had made it clear that no increase will be made in gas prices for the domestic consumers. He said the government possesses adequate stock of petroleum products for any prevailing condition. Abbasi lauded the PSO for its continuous support in helping the government of Pakistan as well as the petroleum ministry for achieving goals of better quality fuels in Pakistan. "This is a momentous initiative as it renders numerous benefits not only for the consumer, but also for the country's economy at large. To keep the superior quality of the new fuel products intact and prevent adulteration, the color of Altron Premium and Altron X High Performance has been kept different from the other fuels", he added. "PSO continues to be the industry leader, setting new trends for market players to follow", said MD PSO Sheikh Imran Ul Haque. "The launch of our new product line is yet another testament to Pakistan State Oil's commitment to effectively meet the changing needs of our consumers and to deliver them the best quality products", he added.

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KARAK, HANGU DISTRICTS 40,000 HOUSES TO GET GAS CONNECTIONS SOON

As many 40,000 houses of KP southern districts of Karak and Hangu to get phase wise gas facility and infrastructure development programme costing Rs 7 billion, out of which four billion rupees being provided by the provincial government while the rest of amount will be generated through the system for which modalities will be worked out by the federation and the concerned company. This decision was taken at a high-level meeting between Chief Minister Khyber Pakhtunkhwa Pervez Khattak and Federal Minister for Petroleum Shahid Khaqan Abbasi at Pak Secretariat, Islamabad. Provincial Minister Muhammad Atif Khan, MNAs Dr Imran Khattak, Sheryar Afridi and concerned federal and provincial authorities also attended the meeting. It was decided that 40,000 houses will be gradually provided the gas facility. In the first phase houses within the radius of 5km from the gas wells will be provided the facility while in the second and third phase the same will be extended the rest of target areas. The meeting was told that the Gas Development Surcharged will be increased to generate additional funds to complete the task within the stipulated period. This will be over and above of the existing Rs 3.4 billion gas development surcharge. The CM said that provision of gas facility is the right of the people of the area adding that this project should be completed within two years. He also stressed upon the authorities concerned to control stealing of gas. The chief minister further said that funds will be provided on priority basis to ensure time completion of the project adding that efforts will be made for the infrastructure development of backward areas to ensure rapid socio-economic development and creation of employment opportunities for the people of the area.

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PAKISTAN MAINTAINS LOWEST PETROLEUM PRICES IN SOUTH ASIA: DAR

Minister for Finance Senator Ishaq Dar here on Tuesday said Pakistan has maintained the lowest prices of petroleum products in comparison to the rest of South Asia, particularly India and Bangladesh. He stated this while chairing a meeting here with Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi, where they reviewed the progress of different initiatives relating to Ministry of Petroleum and Natural Resources. The Finance Minister said that under the advice of the prime minister, the finance ministry was providing maximum relief to the end consumers. He urged the Petroleum Ministry to focus on discovery of new fields so that the burden on national exchequer could be reduced on oil imports. The petroleum minister appreciated the stability maintained in oil prices for the benefit of the end consumers. He also discussed with the finance minister the overall gas supply situation in the country. He said that during winters the usage of natural gas by the domestic consumers goes up and his ministry will make every effort to maintain the pressure of the gas supply for domestic as well as industrial consumers. He also informed the finance minister that petroleum ministry is encouraging investment for new discoveries of oil and gas to ease the supply situation in the country. The meeting was attended by senior officials of ministries of finance and petroleum and natural resources.

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ENERGY PROJECTS; WORK BEING CARRIED OUT FOR EARLY COMPLETION: SHABAZ

Punjab Chief Minister Muhammad Shahbaz Sharif has said that tremendous work is being carried out for early completion of energy projects. He said that energy projects are also being speedily forwarded throughout the country under China Pakistan Economic Corridor (CPEC). He said that 1320-megawatt Sahiwal Coal Power Plant will be completed far earlier than the stipulated period and this project will start generating electricity from the beginning of next year. He said that 1320-megawatt coal power plants are completed in four to five years and there is no other example of carrying out work speedily on the project of such capacity in the world including China.

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OIL, GAS SECTOR MAKING STRONG PRESENCE AT ADIPEC

Pakistan is making a strong presence at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), one of the world's most influential energy sector events, which is currently taking place from 7-10 November 2016 in the city's National Exhibition Centre. The theme of the event is 'Transitional Strategies for an Efficient and Resilient Energy Industry' and is being held under the patronage of HH Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE. The event features 94,661 attendees including 8,555 registered delegates. Pakistan's Ministry of Petroleum and Natural Resources (MP&NR), Petroleum Institute of Pakistan (PIP) and leading oil and gas companies are featuring prominently in this event by setting up a grand Pakistan Pavilion. The theme of the Pakistan Pavilion is 'Pakistan-A Land of Emerging Opportunities.' The aesthetically created Pavilion is being set up to provide the delegates an excellent opportunity to network and explore new business opportunities, encourage foreign direct investment in the country, promote its Government's investor friendly policies and consequently, boost its overall image internationally. Participating Pakistani companies at the ADIPEC include Sui Southern Gas Company, Sui Northern Gas Pipelines Ltd, Pakistan State Oil, Pakistan Arab Refinery Company, Pakistan Petroleum Ltd, Mari Petroleum Company Ltd, Government Holdings (Pvt) Ltd, Oil and Gas Development Company Ltd, Pakistan LNG Terminal Ltd, Khyber Pakthunkhwa Oil and Gas Company Ltd, in addition to the MP&NR and PIP. The CEOs and top officials of these companies are representing their respective organisations at the Pakistan Pavilion and holding B2B meetings at the event. On November 8, Shahid Khaqan Abbasi, Pakistan's Federal Minister for Petroleum and Natural Resources spoke at the Ministerial Panel Session entitled "Empowering Emerging Markets". Jam Kamal Khan, Pakistan's Minister of State for Petroleum and Natural Resources and Zahid Muzaffar, Advisor MP&NR were also present at the occasion. Other ministers who shared the stage at the session included His Excellency, Suhail Mohamed Ali UAE's Minister of Energy, Tarek El Molla, Egypt's Minister of Petroleum and Mineral Resources and Arcandra Tahar Indonesia's Vice Minister of Energy and Mineral Resources. ADIPEC is a yearly event which attracts over 8,500 delegates from world over including Ministers of Oil, Gas and Energy, CEOs from leading national and international oil companies, operating companies and service providers. The event is an excellent platform for sharing knowledge, experience and innovation related to the energy sector as well as future opportunities this sector offers.

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SSGCL AND SNGPL NETWORKS: ECC APPROVES 30 LPG AIR-MIX PLANTS ACROSS COUNTRY

The Economic Co-ordination Committee (ECC) of the Cabinet has approved 30 air-mix plants each on SSGCL and SNGPL networks across Pakistan in addition to establishment of a similar plant at Murree. Official sources told Business Recorder a summary on the supply of LPG through air-mix projects for Murree was submitted to the ECC on April 8, 2016 for approval of LPG air-mix plants at Kurbagla-Dewal, Tret and Company Bagh. The ECC of the Cabinet in its meeting held on April 11, 2016 had decided that the Ministry of Petroleum and Natural Resources might proceed in accordance with LPG Policy-2016 approved by the Council of Common Interest (CCI). Accordingly, Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) were requested to take up the matter with Ogra in the light of these decisions for approval of the construction of LPG air-mix plants. Ministry of Petroleum and Natural Resources further revealed that SNGPL had submitted a proposal to Ogra for the installation of LPG air mix plants at Murree and decision of the Authority was awaited. The Ministry further stated that the SSGCL had intimated that Ogra had directed them that the companies had neither furnished approval of ECC for new LPG air-mix projects to be installed in Awaran, Bella, Zhob, and Qilla Saifullah, as required per the prevalent policy guidelines, nor had obtained requisite licences for the said projects. SSGCL had accordingly, requested for approval of the ECC of the Cabinet for specified projects. It was further stated that CCI had given approval to the LPG Policy, 2016 wherein the guidelines were provided to regulate the LPG sector. As regards tariff, LPG Policy, 2016, section 3.4.4: "tariff for LPG air-mix for supply to domestic and commercial consumers would be as determined by the Federal Government from time to time". It was further apprised that it may not be possible for both companies to undertake LPG air-mix projects unless the approval is granted by the ECC. In order to satisfy the Ogra''s requirement, the Ministry of Petroleum and Natural Resources had submitted the following proposals for the consideration of the ECC of the Cabinet: (i) proposed projects for supply of LPG air-mix for Murree (Kurbagla Dewal, Company Bagh and Tret), Awaran and Bella at an estimated cost of Rs 1353.29 million to be funded by respective Gas Utility Companies may be approved;(ii) tariff rate of above projects would be Rs 600/MMBTU ie equal to highest slab for supply of natural gas to domestic consumers or may be changed by the Federal Government from time to time. However, the impact on weighted average cost of gas (WACOG) in respect of these five projects was calculated at around Rs 0.60/MMBTU as worked out by SNGPL and SSGCL; (iii) UFG (if any) in case of LPG air-mix supplies would be ring fenced and would be borne by the respective consumers of the LPG air-mix plant;(iv) SNGPL/SSGCL may also install LPG air-mix plants in housing colonies. However, the tariff would be at the actual cost of LPG incurred by the Gas Utility Companies plus their operational and distribution margins; (v) for housing colonies, the private sector was free to establish their own LPG air-mix plants, distribution network (by themselves or through gas utility companies) and arrange LPG supplies. However, this would be subject to fulfilment of all codal formalities such as Ogra licensing, explosive licenses etc; (vi) permission may also be granted for operation of LPG air-mix plants and construction of LPG storage by third party contractors, if needed; and (vii) for future a blanket approval for construction of 30 air-mix plants each on SSGCL and SNGPL systems may also be granted. The tariff and UFG will be applicable as-per ii & iii above or may be changed by the government from time to time. During ensuing discussion, the meeting observed that identification of areas to be covered by the construction of these plants is very important. The Ministry of Petroleum and Natural Resources was directed to provide the list of such areas. After detailed discussion the ECC decided that the proposed projects for supply of LPG air-mix for Murree (Kurbagla-Dewal, Company Bagh and Tret), Awaran and Bella at an estimated cost of Rs 1353.29 million to be funded by respective Gas Utility Companies from their own resources may be approved. In addition to above for future, a blanket approval for construction of the following 30 air-mix plants each on SSGCL and SNGPL system across the country may also be granted. The tariff and UFG will be applicable as-per ii & iii above or may be changed by the Federal Government from time to time: List of areas for proposed LPG air-mix plants: SNGPL System Punjab: Phagwari, Allot, Sher Bagla, Rawat, Ghora Gali, Charhan, Dhanda, Ariari, Karor, Kotli Sattian, Santh Anwali, Kahuti, Lehtrar, Narrar and Panjar. Khyber Pakhtunkhwa: Chitral, Ayun and Malklot Azad Jammu and Kashmir: Muzaffarabad, Rawalakot, Kotli, Palandri, Forward Kahuta, Bagh, Hajira, Abbaspur, Dhirkot and Bhimber. Gilgit-Baltistan: Gilgit and Skardu SSGCL System Sindh: Umerkot and Mithi at Thar. Balochistan: Zhob, Qilla Saifullah, Loralai, Kharan, Musakhail, Qilla Abdullah, Keecha at Turbat, Khuzdar, Uthal, Winder, Muslim Bagh, Killi Khanzai, Chaman, Sherani, Sanjawi, Chagi, Panjgor, Harnai, Washuk, Sohbatpur, Wadh in Khuzdar, Barkhan, Bagh District Kachi/Bolan, Mitri (Bolan Katchi), Injeera (Khuzdar), Gandva (Jhal Magsi), Kohlu and Lehri.

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US ANNOUNCES 'INTEGRATED ENERGY RESOURCE PLANNING' ACTIVITY

The United States is strengthening Pakistan's energy sector through improved sector-wide planning. The United States Agency for International Development (USAID) and Ministry of Planning, Development and Reforms, entered into a memorandum of understanding (MoU) to co-ordinate on integrated energy planning in Pakistan. Through the MoU signed on Tuesday, the integrated energy planning process will help policymakers understand the impacts of different energy policy options and support effective short-term decisions that are consistent with long-term energy and economic objectives. With the support of USAID, the United States Department of Energy and the Pacific Northwest National Laboratory are bringing their technical expertise and experience to work with ministries, provincial governments, and others to improve energy planning in Pakistan. Speaking at the ceremony, USAID Mission Director John Groarke said, "Through the improved planning process, governments and utilities will evaluate a range of feasible policy and resource options and assess them against a common set of planning objectives and criteria. The integrated energy planning process will help policymakers understand the impacts of different energy policy options." The US government has supported private investment in Pakistan's energy sector through two large investment conferences, new energy sector guarantees through private Pakistani banks, and helped distribution companies, such as K-Electric, adopt commercial practices

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FIRST-EVER LNG TERMINAL YET TO BE INAUGURATED

The government has not yet officially inaugurated the country''s first ever liquefied natural gas (LNG) terminal that has been operational since March 2015, it has been learnt. According to the officials of Ministry of Petroleum and Natural Resources, the LNG terminal set up by Engro has been functional since March 2015 while the governments of Pakistan and Qatar signed the LNG agreement on February 10, 2016 but still neither the petroleum ministry nor any other relevant department has uploaded the details of the deal on its website. Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi has repeatedly stated that placing the pros and cons of the deal on website is the responsibility of Pakistan State Oil (PSO) and Public Procurement Regulatory Authority (PPRA) but, despite the passage of nine months, the agreement has not been made public. 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 is making payments to Qatargas - the largest LNG producer in the world - every fortnight through Standby Letter of Credit (SLBC) at 105 percent of the value of four LNG cargoes. When Abbasi was asked why the government has failed to inaugurate the first ever LNG terminal officially, he replied that it would be done soon. On a query about not making the LNG deal public, Abbasi said that he has advised the PSO management to place the non-confidential parts of the deal on the website. According to PPP Senator Saleem Mandviwalla, the government is deliberately not making the deal public, which, as per law, is necessary, saying that there is no clarity in the entire process. Mandviwalla alleged that the government has received kickbacks in the LNG deal; therefore the ministry is not unveiling it.

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WAPDA CHIEF FOR DEVELOPING ENERGY, WATER RESOURCES

The WAPDA Chairman Lieutenant General Muzammil Hussain (Retd) has said that energy and water are two cardinal sectors of the national security, which concerted efforts are needed to develop water and energy resources in the country. He was talking to a delegation of National Security and War Course of National Defence University (NDU) Islamabad, headed by NDU Chief Instructor Major General Muhammad Naeem Ashraf visited Friday WAPDA House and attended briefings on the water and power sectors of the country. Addressing the delegation, he said that WAPDA is constructing a number of projects in water and hydropower sectors including Neelum Jhelum, Tarbela 4th Extension, Golen Gol, Dasu (Stage-I), Kurram Tangi Dam and Nai Gaj Dam etc. He said that three of the under construction hydropower projects with cumulative generation capacity of 2485 MW will be completed in 2018. Besides the under construction projects, Bunji Hydropower Project with generation capacity of 7100 MW and Diamer Bhasha Dam with generation capacity of 4500 MW and gross water storage capacity of 8.1 MAF are among the projects which are ready for construction. He said that Diamer Bhasha Dam is the most essential project for Pakistan, being a multi-purpose project to store water and generate electricity. He said that WAPDA enjoys a very good credit rating for raising funds for its hydropower projects. The Chairman said that apart from its services for water and power sectors, WAPDA can take pride for its contribution towards promotion of sports in Pakistan and its patronage of engineering discipline in the country. WAPDA Advisor (Diamer Bhasha Dam Project) Dr Izhar-ul-Haq and PEPCO General Manager (Revenue and Commercial Operation) Muhammad Saleem briefed the delegation about water and power sectors respectively. In the briefing about water and hydropower sector, the delegation was briefed about annual water flows and storage capacity, per capita availability of water, impact of climate change on water resources, water management challenges, water conservation and hydropower potential of the country. In another briefing about power sector, the delegation was appraised about power sector reforms, electricity crisis and issues relating to power sector. The delegation was also informed of the Government's efforts to overcome the electricity shortages in the country. Following the briefings, a question-answer session was also held, wherein the queries about water and power sectors raised by the participants were responded to. Later, WAPDA Chairman and NDU delegation head exchanged the souvenirs as memento to the visit. NTDC Managing Director, Permanent Commissioner for Indus Waters Pakistan, WAPDA Members, WAPDA Managing Director (Administration), WAPDA Secretary, and other senior officers also attended the briefings.

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CHINESE INVESTMENT COMPANIES: CONSORTIUM''S REPRESENTATIVES MEET PRIME MINISTER

Represen-tatives of a consortium of Chinese investment companies comprising China Huarong International Holdings Limited, China Innovative Finance Group Limited, Hong Kong Tian Group, Chandong Hi-Speed Group and China Road & Bridge Group called on Prime Minister Nawaz Sharif at PM House on Friday. While welcoming the delegation, the Prime Minister appreciated the Chinese delegation''s fruitful interaction with Ministries of Finance, Petroleum & Natural Resources, Water & Power and Capital Development Authority. The PM expressed hope that members of the Chinese delegation would have a productive visit in the backdrop of briefing by various ministries about immense potential for investment in Pakistan''s infrastructure development, energy and communication sectors. The PM expressed his gratitude to the leadership and brotherly people of the People''s Republic of China for their all weather support that was getting stronger with each passing day. "CPEC is a game changer that is going to transform the lives of the billions of people of the region," the PM said. The PM said economic outlook of Pakistan had altogether changed in the last three years, which was being acknowledged globally. Standard & Poor''s (S&P) has also upgraded Pakistan''s ranking to B from B-; Pakistan is among this year''s global top 10 improvers in Doing Business 2017, the PM expressed with satisfaction. Inflation was continuously on downward trend; reduction in petroleum prices also helped in decreasing inflation, further added the PM. The Foreign Exchange Reserves have now increased to over US $24 billion, the PM apprised the delegation. Our Investment Policy has been designed to provide a comprehensive framework for creating a conducive business environment for the attraction of FDI, the PM said. "Pakistan''s policy trends have been consistent, with liberalisation, de-regulation, privatization, and facilitation being its foremost cornerstone," stated the PM. The Law of Special Economic Zones (SEZ) has been made to meet the global challenges of competitiveness to attract Foreign Director Investment (FDI). Members of the visiting delegation lauded the vision of the PM for economic revival and putting the country on development path. The members of the delegation said Pakistan was fully ready as well as capable of absorbing and capitalising the Foreign Direct Investment. The delegation apprised the PM that they were bringing $3 billion Investment Fund to Pakistan because of the vision of the PM that focus on infrastructure development and energy sectors. The Chinese delegation also expressed its intent to explore possibility of starting a new airline in Pakistan after the permission from the government of Pakistan. The Chinese side said that it is actively pursuing its investments in infrastructure, power, aviation and tourism sectors of Pakistan. "We fully appreciate the vision of Prime Minister Muhammad Nawaz Sharif which enunciates that economic prosperity is an offshoot of infrastructure connectivity and self sufficiency in the energy sector, the members of the delegation stated. The members of the delegation said that the present government under the visionary leadership of PM Nawaz Sharif has done enormous work in infrastructure development and achieving energy self sufficiency. The present government has very liberal investment regime that offers an ideal and investor friendly environment for which the leadership role of PM Nawaz Sharif is highly appreciated," said the members of the delegation. Finance Minister Ishaq Dar, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Chairman Board of Investment Miftah Ismail, Mayor Islamabad Sheikh Ansar Aziz and other senior government officials were also present during the meeting.

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PSO LAUNCHES NEW RANGE OF PREMIUM QUALITY FUEL PRODUCTS

In continuation of its efforts to serve its customers better, Pakistan's leading oil marketing company Pakistan State Oil (PSO) has launched a new range of superior quality fuel products namely Altron Premium and Altron X High Performance nationwide. The new product range is now on sale at Pakistan State Oil stations in Karachi and will be made available nationwide in 3 to 4 days as product transhipment to central/north region is currently underway. Pakistan State Oil has played a key role in materializing the vision of the Government of Pakistan and the Ministry of Petroleum and Natural Resources (MNPR) by introducing higher grade RON (Research Octane Number) fuels in the country for the very first time. The higher-grade RON results in extended engine life and reduced maintenance costs. As they result in better engine hygiene, Altron Premium and Altron X High Performance reduce the environmental impact due to lower emissions. Additional benefits of the new product range include better mileage, enhanced engine performance, and a great motor vehicle experience to the customer. "With the launch of Altron Premium and Altron X High Performance fuels, we have aimed to further strengthen the trust that millions of customers put in us," said Sheikh Imran Ul Haque, CEO & MD Pakistan State Oil, while sharing his thoughts on the countrywide roll-out of the new product range. "As the new product range brings us closer to matching the quality of fuels in Pakistan with the international standards, Pakistan State Oil prides itself on becoming the first oil marketing company to lead the country into an era of premium quality fuels." Improving fuel quality and meeting the nation's energy requirements have been key constituents of Pakistan State Oil's mission, both of which are efficiently met by the company. Pakistan State Oil pledges to continue undertaking all initiatives that enhance customer fuelling experience.

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TAPI PROJECT: PAKISTAN TO GET 13.8BN CUBIC METERS GAS

The TAPI gas pipeline's early completion would bring 13.8 billion cubic meters gas from Turkmenistan to Pakistan to cater for its growing energy demand and strengthen the country's energy security. Source said Pakistan gave a briefing on energy sector progress report to the participants of two days CAREC meeting last week and maintained that availability of TAPI gas would bring economic benefits through job opportunities in Pakistan and upgrade associated infrastructure. They added that allocated gas volume for Pakistan and India is 14 billion cubic feet for each country and 5 billion cubic feet for Afghanistan annually over a commercial operation period of 30 years. The project is said to enhance energy security of the region. Although the cost of the project is currently expected to be over $10 billion, the total project cost will be determined upon completion of the detailed design and the arrangements for the procurement of long-lead items, construction and other services. Reference document presented to the meeting available with Business Recorder noted that on August 2015, Turkmengas was unanimously endorsed as consortium leader for TAPI Pipeline Company Ltd. Four months later, the shareholders agreement was signed in Ashgabad, Turkmenistan at a ground breaking ceremony to commemorate the beginning of the construction of the Turkmen portion of the planned TAPI pipeline. An investment agreement, which provides for an initial budget for each party and cost estimates for pre-construction activities was endorsed on 7 December 2015 immediately after the conclusion of the 24th Steering Committee Meeting. The meeting was further informed that acting as TAPI secretariat since 2003 and as transaction advisor since 2013, Asian Development Bank (ADB) has been involved in the progress of the TAPI pipeline and helped establish the TAPI Pipeline Company Limited (TPCL), due diligence activities, production of the technical and financial feasibility studies. More recently in April 2016, the TAPI shareholders signed the investment agreement, which includes TPCL's initial Business Plan and Budget for the necessary project development activities, enabling the shareholders to take the project's final investment decision (FID). The planned pre-FID activities include, the project's detailed design, environmental and social safeguards due diligence, preparatory procurement and debt raising activities.

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RESOLUTION OF ENERGY, ENVIRONMENTAL ISSUES URGED

The national and international experts have underlined the need for resolving the issues of energy and environmental challenges for sustainable development in Pakistan as according to them no goal of development can be achieved for the betterment of the people. They expressed these views while speaking at the 4th International Conference on Energy, Environment and Sustainable Development, organised by Mehran University of Engineering and Technology Jamshoro in joint collaboration with Energy and Environmental Engineering Group, US-Pakistan Centre for Advanced Studies in Water and Coventry University London. The Managing Director Pakistan Petroleum Limited (PPL) Syed Wamiq Bukhari, who was the chief guest at the inauguration session of the conference said that population in the country is growing with rapid pace and there is the need of effective utilization of energy and other available natural resources in order to save the future of the coming generations. The energy and environmental experts have great responsibility to resolve the challenges in these sectors with advanced technologies and lay foundation of sustainable development in Pakistan, he said. The Vice Chancellor Mehran University Professor Dr Muhammad Aslam Uqaili while welcoming the national and international experts hoped that they would prepare effective recommendations so that the same could be submitted to the government for implementation as well as the sustainable development in the country. Former Environment Minister Italy and expert Professor Dr Corrado Clini while addressing the participants of the conference termed the energy and environmental challenges, the global issues and said that hectic efforts are required to tackle these issues amicably in the world particularly in developing countries including Pakistan, China and India. In developing countries, he said that increasing population is the major issue where the introduction of renewable energy system could become effective in controlling the environmental issue as the traditional sources of energy like coal based plant could be harmful for environment. Among others, Dr Jonathan Daniel Nixon and Dr Aslam Choudhry also addressed the participants of the inaugural session and shared their views on energy and environmental challenges. A total of 337 papers from the international experts including Italy, Malaysia, UK, America, Saudi Arab, Japan and China were presented in the conference of which, the team of experts have selected 192 papers, read out in the technical session of the conference.

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LNG IMPORT: DEALS TO BE NEGOTIATED WITH SIX STATES'' FIRMS

Pakistan has decided to negotiate Liquefied Natural Gas (LNG) import deals with companies of six countries aimed at meeting gas shortages hitting industry, well informed sources told Business Recorder. Pakistan is currently facing a severe shortage of natural gas, both for its electricity generating plants and for general use by all sectors. Domestic gas production of nearly 4,000 MMCFD is unable to meet the country''s demand; the supply-demand gap is approximately 2,000 MMCFD and keeps on rising. This shortage of energy is not only causing hardships for the people but is also inhibiting the economic growth of the country. Therefore, the Government of Pakistan is pursuing import of LNG to minimise the gas shortfall. Well informed sources told Business Recorder, pursuant to a bidding process and ECC as well as Cabinet''s approvals dated February 28, 2014 and April 18, 2014 respectively, Sui Southern Gas Company Limited (SSGC) and Engro Elengy Terminal (Pvt) Limited (EETPL) executed an LNG Services Agreement (LSA) on April 30, 2014 for the provision of LNG receiving, storage and re-gasification services under a levelized tolling fee of $0.66/MMBTU. The first LNG terminal was commissioned in a record time of eleven (11) months on March 27, 2015. PSO has managed LNG supplies under competitive bidding as well as on Government to Government arrangements with Qatar. In this regard, a Price Negotiation Committee (PNC) was constituted which was approved by the ECC on August 15, 2014 with the mandate to negotiate LNG price and other related aspects. As of 12th August, 2016, 43 LNG Cargoes (equivalent to 136,438,577 MMBTU) have been handled at the LNG Terminal and Re-gasified LNG (RLNG) is being injected at a rate of 400 MMCFD into the national gas grid. In order to further mitigate the huge demand-supply gap in the country it was felt necessary by the Ministry of Petroleum and Natural Resources (MPNR) that LNG may be handled by independent companies. Accordingly, pursuant to the summary, the ECC on November 25, 2015 approved establishment of a subsidiary company of Government Holding Private Limited (GHPL) for setting up LNG terminals. As per approval of the ECC, a company naming Pakistan LNG Terminal Limited (PLTL) has been incorporated with the main objective of construction of LNG Terminal in the country. The PLTL as per their mandate approved by ECC carried out a bidding process for construction of 2nd LNG Terminal in the country. The bids were evaluated by the company/PLTL''s Consultant M/s Galway Group; Akbar Associates (Pvt) Limited (AAPL) was technically disqualified whereas Pakistan Gas Port Company Limited (PGPCL) emerged as successful bidder. The finding of the bid process and agreed draft Operations & Services Agreement (O&SA) with the PGPCL was submitted to the ECC which approved the capacity and utilisation charges with the instructions to seek advice of Law and Justice Division which was accordingly sought and conveyed to PLTL. PLTL subsequently has signed an O&SA with PGPCL on July 4, 2016. The completion period of the 2nd LNG Terminal is one year approximately. According to sources, for import of LNG molecules, a summary was submitted by MPNR for establishment of a subsidiary company of Government Holding Private Limited (GHPL) with the mandate to import LNG. The ECC approved the proposal on November 25, 2015. Accordingly Pakistan LNG Limited (PLL) was incorporated. PLL as per their mandate approved by the ECC is in the process of arranging LNG supplies through open competitive bidding as well as through Government to Government (G to G) negotiation basis. Under G to G negotiations, PLL has revealed that they are engaged in discussions specifically with PETRONAS of Malaysia and Gazprom of Russia. In addition, the PLL is also in discussion with ENGIE of France, ENI of Italy, OTI of Oman and SOCAR of Azerbaijan for LNG Supplies. The draft Intergovernmental Agreement (lGA) between the Government of Pakistan and aforesaid countries would be executed after completing requisite formalities. Being a capital intensive project of national importance and in line with the earlier constituted Price Negotiation Committee (PNC) for LNG supplies from Qatar, MPNR proposes that a PNC may be constituted to negotiate the LNG prices and other important aspects with PETRONAS of Malaysia and Gazprom of Russia at present. It further proposed that the same PNC may also negotiate the LNG Prices and related issues in future LNG deals on G to G negotiation basis to be undertaken by PLL with companies like ENGlE of France, ENI of Italy, OTI of Oman, SOCAR of Azerbaijan and companies nominated by any other country. The committee will be consist of: (i) Chairman BoI (Chairman);(ii) Secretary Finance ( Member);(iii) Secretary Petroleum (Member);(iv) Managing Director, SNGPL( Member) ;(v) Managing Director, SSGCL( Member);(vi) Managing Director, PSO(Member) and ;(vii) Managing Director, PLL(Member/ Secretary Committee. Secretary Water and Power is also expected to be member of the PNC. The Ministry of Planning, Development and Reforms maintained that due to urgency of meeting energy demands of the country, it is imperative to secure LNG supplies at the earliest. For this very purpose negotiations with Petronas of Malaysia and Gasprom of Russia are at an advanced stage. Moreover, the availability of LNG with secure backdrop supplies is the primary requirement, which is inevitable prior to entering with different suppliers. However, the PLL is also is discussion with companies like M/s Engie of France, ENI of Italy, OTI of Oman, and Socar of Azerbaijan for LNG supplies.

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TENDER TO BUY 240 SHIPMENTS OF LNG LAUNCHED

Pakistan LNG Ltd has launched a mid-and a long-term tender to purchase a combined 240 shipments of liquefied natural gas (LNG), the company said on its website, as the country emerges to become a major gas importer. Pakistan, which can only meet around two-thirds of its gas demand, is expected to issue further tenders seeking twice as much supply to fill out remaining capacity at its new import terminal at Port Qasim, in the commercial capital Karachi, according to one energy expert. The mid-term tender covers a period of five years and calls for 60 shipments, while the long-term tender is for 15 years and 180 cargoes, according to information presented in the tender documents released on the company''s website on Tuesday. Suppliers must submit bids by December 20. Pakistan has ploughed billions of dollars into LNG infrastructure, including the construction of a second LNG import terminal and pipelines linking Karachi with Lahore in the Punjab region, the nation''s industrial heartland. The current crop of tenders are a small part of Pakistan''s projected demand as the country works to bring two more import terminals online within the next couple of years, making it a potent force in global gas markets. The country first began buying LNG last year and has already contracted supplies from trading firm Gunvor and Qatargas, the world''s biggest LNG producer. Cheap gas is tempting out new importers from the Middle East to Africa and Asia, helping stave off a deeper price rout hurting producers'' bottom lines. Cheaper than fuel oil and cleaner-burning than coal, LNG suits emerging economies racing to bridge electricity shortfalls and support growth on tight budgets. The Port Qasim LNG terminal, which is due to go online in mid-2017, has a capacity of 600,000 million cubic feet per day. "This tender is for 200 million cubic feet. That means another 400 million will need to be tendered out soon," said the industry source. A Pakistan LNG official in September said the country was working on commercial as well as government-to-government LNG deals.

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WIND FARM: ADB APPROVES $75 MILLION LOAN

The Asian Development Bank (ADB) has approved a $75 million loan with Triconboston Consulting Corporation (TBCC) to support the development of the largest wind farm in Pakistan. The deal is ADB's third wind energy investment in Pakistan's burgeoning independent power producer segment. Power from the project will be sold under a 20-year take-or-pay energy purchase agreement under a feed-in-tariff to Pakistan's Central Power Purchasing Agency. "This wind farm is a major contributor to Pakistan's drive to scale up renewable energy use." said Mohammed Azim Hashimi, Investment Specialist in ADB's Private Sector Operations Department. "The operation of this farm will avoid the production of over 350,000 tons of carbon dioxide equivalent emissions a year." The three 50 megawatt (MW) wind farms, situated 100 kilometers north-east of Karachi at Jhimpir, will generate a total of 520 megawatt-hours annually and are expected to be completed by March 2018. The project sponsors include Sapphire Textile Mills, a leading local energy developer, and Bank Alfalah, Pakistan's sixth largest bank by market share. "Sapphire firmly believes that renewables have changed the energy paradigm and remains committed to the development of renewable energy resources in Pakistan. The 150MW Triconboston wind power project is a step in this direction" said Nadeem Abdullah, Chief Executive Officer of Sapphire Textile Mills. Pakistan has launched several initiatives to promote private sector participation in the country's energy sector, with a concerted push to build up its renewable energy resources and to cut its heavy dependence on fossil fuels. Power shortages are a major obstacle in Pakistan's economic development, with demand for electricity outpacing supply. ADB is Pakistan's largest development partner in the energy sector with both sovereign and non-sovereign investments, including support for policy reforms. ADB's assistance is helping the government to address the persistent energy crisis through Vision 2025, Pakistan's comprehensive plan for economic growth. The plan aims to increase power generation, provide uninterrupted electricity to all, and improve demand management.

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