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News Headlines for the month of
DECEMBER 2016

CHIEF MINISTER SAYS SINDH HAS HUGE NATURAL RESOURCES FOR POWER GENERATION

January 01, 2017 Sindh Chief Minister Syed Murad Ali Shah has said that his province possesses huge resources in the shape of Thar coal for power generation to help meet electricity requirement of Pakistan in the time ahead. In an interview with China Radio International (CRI) Urdu Service during his visit to Beijing, he said its capital Karachi was the economic and commercial hub of Pakistan, which had two ports - the Karachi Port Trust (KPT) and Port Qasim. The metropolis also generated almost 70 percent of the country's revenue, he added. The CM returned here on Saturday after a three-day visit to China during which he also attended the annual Joint Co-ordination Committee (JCC) meeting of the China-Pakistan Economic Corridor (CPEC) held in Beijing on December 29. Murad Ali Shah said under the CPEC there were energy-generation projects in the Sindh province as it had huge resources in the shape of Thar Coal, besides those for the wind and solar power. He said a mining project from indigenous resources was already underway as a part of the CPEC for producing energy in Thar area. The financial close of another energy project under CPEC was also expected in the year 2017, he added. The CM said the CPEC would immensely benefit not only Sindh but also both the countries- Pakistan and China. He said it would also help develop the backward area of Thar that mainly consisted of desert. He said Thar possessed some 180 billion tons coal reserves and their exploitation had required huge money as well as international technical expertise. "Now we have got all this in the shape of CPEC," he added. He pointed out that an airport was almost complete in Thar and would be operational very soon. A lot of development activities would also take place in Thar in the time ahead, he added. The chief minister said there was a lot of interest on the part of investors in the CEPC projects and Sindh had an advantage geographically and location-wise for them. "In Sindh, we have skilled labour as well as the human resource and the government will also extend tax incentives which will make the projects profitable in a short span of time," he added. Murad Ali Shah said that even his cabinet members desired to learn Chinese language and a number of students from Pakistan were acquiring higher education in China. "This will help develop people to people contact and strengthen further the already strong friendly ties between Pakistan and China." He also hailed the representation of all the four provinces of Pakistan in the JCC meeting in Beijing.

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'THAR COAL RESERVES SET TO MEET GROWING ENERGY DEMAND FOR DECADES'

December 01, 2016 World's 7th largest Thar coal reserves are set to meet growing energy demands of country as coal mining and power plant projects have entered construction phase and the first phase would be completed by June 2019. The project of national importance would not only help in bridging the gap of demand and supply of the energy but it would also give a boost to development activities in the most under developed district of the country. According to Sindh Engro Coal Mining Company (SECMC) which works in collaboration with the Sindh government and is the main sponsor of the project, Thar coal reserves containing 175 billion ton coal are spread over an area of 9000 square kilometers in Tharparkar, Sindh which has been divided into 13 blocks while SECMC has been allocated the block-2 area which contains 1 per cent of total Thar reserves. The 1.57 billion tons, exploitable reserves of block-2 can be used to produce 5000MW electricity for 50 years. The Thar coal reserves beat the oil reserves held by Saudi Arabia and Iran. When converted into gas, the coal deposits are equal to 2,000 trillion cubic feet, which is 68 times more than Pakistan's total reserves. "Keeping in view the Pakistan's current population and urbanisation growth rate, the country would need six times more energy (approximately 131,535 MW) than what it is installed now, by 2030", said Shamsuddin Ahmed Sheikh. Source wise electricity generation 2014 data shows that the country was producing 29 per cent hydel and 67 per cent thermal energy while there was zero production of electricity through wind or coal. Meanwhile CEO SECMC Shamsuddin Ahmed Sheikh told a group of journalists from Islamabad at the site of the project in Islamkot, Tharparkar, that first phase of Thar Coal Fired Power Projects with power production capacity of 660 MW would start its commercial operation by June 3, 2019 instead of October 2019 (the earlier set target for completion of the project). He said the financial close of the project was achieved on April 4, 2016 and since then 10.2 per cent of the total work had been completed. He said work on power plant and coal mining was going on simultaneously."This is the first coal-fired power project in Thar and it is one of the leading energy project of China Pakistan Economic Corridor (CPEC)", the CEO SECMC said, adding that this was also the only energy project with such a majority sponsorship of private sector of country. Shams informed that under the second phase, two more power plants (330 MW each) would be launched in January 2017 which would be completed by December 2019 as the SECMC had committed to off-take coal for phase II (7.6 mtpa) to Thal Limited and Hubco for setting up plants at block II. SECMC also planned to add additional capacity of 11.4 mtpa coal beyond phase II by December 2021, he added. Moreover, he said that by December 2021 five more coal fired power plants would be set up in the block II of Thar and the total production capacity of coal based electricity of Thar would be expanded to around 3000 MW. He informed that the coal mining project cost was US $845 million which would be on the basis of 75:25 Debt to Equity ratio and would consist of 31.5 per cent foreign and 68.5 per cent local debt. "The main sponsors of the project are Sindh government with 54.7 per cent share, Engro and Thal Limited with 12 per cent each and Habib Bank Limited (HBL) with 10 per cent share", he remarked. Shamsuddin said the total cost of two 330 MW mine mouth power plants would be $1.1 billion with 75:25 debt to equity ratio and it would consist of 75 per cent foreign and 25 per cent local debt. The main sponsors of the project, he added that are Engro with 50.1 per cent share while its other shareholders are Liberty, HBL and China Machinery Engineering Company (CMEC) and others. He said that the Sindh Government had been a key enabler for the Thar project which committed $110 million equity investment for phase-I and provided a back up for sovereign guarantee to the federal government of $700 million.-PR

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9TH PAKISTAN ENERGY FORUM ON FEBRUARY 23

December 28, 2016 The 9th Pakistan Energy Forum will be held on February 23, 2017 in Islamabad. This forum would attract participation and support from enterprises, regulators and stakeholders of the energy industry in the country. Several companies and institutions have already expressed their intention to support and participate in this year's forum. Menin Rodriguez, Chairman SHAMROCK Conferences said, "Pakistan is at the crossroads of change, energy demand is growing incessantly, power shortages are challenging industries and regulators but there is an inherent resolve and hope. The political hierarchy, oil and gas industry, the power sector and alternate renewable sources, including coal have the answer, and responsibility, to come up with practical and sustainable solutions. Speakers, experts, industry leaders and professionals from the exploration & production sector, power-producers, Oil-marketing & distribution companies along with renewable energy enterprises, gather at this forum, to realign their collective growth strategy and analyse critical issues. The forum would also create fresh opportunities to establish broad-based collaborations and joint-venture. The theme of this upcoming conference will be: "Approaching new frontiers in Energy-sufficiency" which will help the experts determine how strategic decisions in this sector will pave the way to meet energy demand and drive economic prosperity in the future. Speakers would present updated information on hydrocarbon, hydel & thermal, renewable energy and the related investments activities in the country.

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FOURTH NUCLEAR PLANT GOES ONLINE

December 29, 2016 Pakistan''s fourth nuclear power plant went online Wednesday, a joint collaboration with China that adds 340 megawatts to the national grid as part of the goverment''s efforts to end a growth-sapping energy deficit. Pakistan seeks to close an electricity shortfall that can stretch up to 7,000 MW in peak summer months, or around 32 percent of total demand. The Chashma-III reactor, located some 250 kilometres (155 miles) south-west of capital Islamabad, is the third built as part of a collaboration between the Pakistan Atomic Energy Commission (PAEC) and China National Nuclear Corporation (CNNC). The country''s first nuclear plant was supplied by Canada in 1972, with an installed capacity of 137 MW. "Today we have crossed an important milestone in the journey to free the nation from scheduled power cuts. I am thankful to Allah and congratulate the entire nation," Prime Minister Nawaz Sharif told an inaugural ceremony attended by Chinese and Pakistani officials. He added a fourth Chashma plant was expected to be commissioned by April 2017. Two more reactors would follow at an unspecified date in central Pakistan, as well as two giant 2,200 MW power stations in Karachi. Islamabad is aiming to produce 8,800 MW from atomic energy by 2030. Pakistan has been struggling to provide enough power to its nearly 200 million citizens for years, and Sharif has vowed to solve the crisis by 2018. The energy sector has traditionally struggled to cover the cost of producing electricity, leading the government to divert $2 billion annually as a subsidy, according to a recent report commissioned by the British government. China meanwhile is ramping up investment in its South Asian neighbour as part of a $46 billion project unveiled last year that will link its far-western Xinjiang region to Pakistan''s Gwadar port with a series of infrastructure, power and transport upgrades. Last week Pakistan''s main bourse announced that a Chinese consortium was set to acquire a 40 percent stake in the stock exchange in a deal estimated at $84 million. Shanghai Electric announced in August it would buy a majority stake in the utility that supplies energy to Karachi for $1.7 billion, in the country''s biggest ever private-sector acquisition.

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ARL HONOURED

December 24, 2016 Attock Refinery Limited (ARL) was awarded the first prize for "Living the Global Compact Business Excellence 2014-15" in the Large National Category by an International Jury. The UN Global Compact Award acknowledges ARL's commitment towards strategic and sustainable CSR, and also appreciates its efforts in adopting UNGC's universal Ten Principles. The award confirms Attock Refinery Limited focus in areas of Health, Education, Environmental Sustainability, Provision of Potable Water and Poverty Alleviation. The "Living the Global Compact Business Excellence Award" recognises local enterprises integrating into their business the "10 Principles of United Nations Global Compact" philosophy that demonstrates set of core values in the areas of human rights, labour standards, the environment, and anti-corruption. ARL has voluntarily adopted these Principles and thus promotes CSR as part of its core values to create the foundation for a more equitable, just, productive, competitive and knowledge-based environment. The event was organised by Employers' Federation of Pakistan who launched the formation of Global Compact Network Pakistan in 2005. The network is currently fortified with around 90 organisations in Pakistan.-PR

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PMEX LISTS BRENT CRUDE OIL FUTURES CONTRACTS

December 25, 2016 Pakistan Mercantile Exchange (PMEX), the country's only multi-commodity futures exchange, launched Brent Crude Oil Futures Contracts, duly approved by the Securities and Exchange Commission of Pakistan (SECP). These contracts are cash settled with trading units of 10 and 100 barrels and the price quotation is in USD but margins are paid in rupee. At the launch of the Brent Crude Oil Futures Contracts, Ejaz Ali Shah, Managing Director, PMEX said, "We are delighted to add another product in our portfolio. With the introduction of this contract in our energy product mix, market participants can now trade in both Brent & WTI standards of crude oil. We are confident that the new product will provide an excellent opportunity for market participants such as refineries, oil marketing companies, airlines, etc to hedge their price risk."-PR

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CPEC GUARANTEES PROGRESS OF COUNTRY: SHAHBAZ

December 21, 2016 Punjab Chief Minister Shahbaz Sharif has said that China Pakistan Economic Corridor is a guarantee to progress and prosperity of Pakistan and under CPEC, work is being carried out speedily on different development projects including energy in all units of Pakistan. He said that Chinese $51 billion investment in Pakistan under CPEC will change the destiny of Pakistani nation. He said that our friends are happy while enemies perturbed over historic package of CPEC. Talking to the delegation of PML-N, here Tuesday, the CM said that new job opportunities have been generated with the implementation of splendid CPEC projects in the country and Pakistan is moving speedily towards its lost goal. He said that socio-economic activities will enhance in the region due to CPEC. He said that under CPEC, investment of $36 billion is being made in energy projects and with the completion of a number of energy projects in the end of next year, darkness of electricity will be removed from the country. Every nock and corner of the country will be illuminated with the elimination of energy crisis, he added. Shahbaz said that by giving a grand CPEC investment package, China has helped Pakistan to cope with the challenge of energy, for which, we are thankful to China. He termed those creating hurdles in this historic investment package through unjustified sit-ins and protests are enemy of progress of the country and prosperity of the people and said that CPEC projects were delayed due to sit-ins of these defeated elements. He said that the opponents of progress and prosperity of the people tried to create hurdles in journey of development during the last three and a half years but efforts of these elements were foiled with the blessings of Allah Almighty and prayers of 20 crore people of the country. He said that efforts were made to create hindrance in the development of Pakistan and prosperity of its people through sit-ins and these elements wanted to lockdown the development of Pakistan but they failed, he added. The elements taking u-turn again and again wanted to make u-turn of progress of Pakistan as opponents are perturbed over transparent speedy development under the leadership of PM Muhammad Nawaz Sharif. He said that with the blessings of Allah Almighty and support of the people, the journey of development has been forwarded despite sit-ins as service to the people is a form of worship and our politics. He said that under the leadership of PM Muhammad Nawaz Sharif, PML-N government is forwarding successfully the journey of public service and it will be continued speedily during next one and a half years.

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KP INITIATES WORK ON THREE HYDEL PROJECTS

December 22, 2016 Secretary of Energy and Power Department Khyber Pakhtunkhwa, Engineer Naeem Khan has said that work on three hydropower project of 194 megawatt has been started. The projects are included 84MW Matiltan (Swat), 41MW Koto (Dir Lower) and 69MW Lawi Hydropower Project (Chitral). He was addressing a special function on the occasion from second draw for Umra under the auspices of PEDO Employees Union here Wednesday. He said that work on the construction of 356 small hydel power projects in the backward and far-flung areas is in full swing. The Secretary, Energy and Power said that for attracting investment in energy sector of the province, the energy policy has been changed into investor-friendly policy. He added that positive policies and steps had improved the prestige of the provincial government.

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PRIME MINISTER TO INAUGURATE LNG PIPELINE PROJECT IN FIRST WEEK OF NEXT MONTH

December 21, 2016 Prime Minister Mian Nawaz Sharif will inaugurate the Karachi-Lahore Liquefied Natural Gas (LNG) Pipeline project in the first week of January 2017, it is learnt. According to Petroleum Ministry officials, out of a total of 1,300 kilometres long pipeline, 950 kilometres pipeline is being laid by Sui Northern Gas Pipeline Limited (SNGPL) while 350 kilometres by Sui Southern Gas Company Limited (SSGCL). Almost 90 per cent construction work has been completed and rest will be completed within the next two weeks. The total cost of the project is about Rs 90 billion of which Rs 65 billion are being spent by the SNGPL while Rs 25 billion by the SSGCL. The pipeline has been designed to transport 1.2 billion cubic feet per day (BCFD) of natural gas or LNG from Karachi to Lahore. Sources said Pakistan State Oil (PSO) has asked Qatargas, the largest LNG producer in the world, to increase LNG supply from current level of 400 million cubic feet per day (MMCFD) to 600 MMCFD by January 12, 2016 as after the completion of Karachi-Lahore LNG pipeline the SNGPL will be in a position to transport 1.2 BCFD of the imported gas to supply various clients. The LNG at present is being supplied to general industry, textile units, fertilizer plants, power plants and CNG stations of Punjab. According to officials, PSO over the past one-and-a-half-year has paid Rs 135 billion to Qatargas for supplying LNG and after the arrival of LNG the Punjab-based industrial units are operating round the clock, which has reduced the unemployment ratio. Sources maintained that Pakistan LNG Limited (PLL) on Tuesday opened technical bidding of two tenders issued last month. The mid-term tender covers a period of five years and calls for 60 shipments, while the long-term tender is for 15 years with 180 cargoes. According to PLL officials, they have received a total of 14 bids and in January 2016 financial bids will be opened while the company is all set to complete the entire process of awarding the contract to winning companies in March 2016. Pakistan has ploughed billions of dollars into LNG infrastructure, including the construction of a second LNG import terminal and pipelines linking Karachi with Lahore. 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 LNG markets with a total capacity to import 2.4 BCFD of LNG.

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PETROLEUM PRODUCTS: COUNTRY SPENDS $38.673 BILLION ON IMPORT

December 18, 2016 Pakistan spent a total of $38.673 billion on import of different petroleum products during the last five years while a total of 291 new wells were drilled out in different parts of the country during the last three years for exploration of oil and gas to increase domestic output to meet the demand. The country's total import bill of the petroleum products during the financial year 2011-12 was $9.422 billion; $8.282 billion in 2012-13; $8.899 billion in 2013-14; $7.411 billion in 2014-15 and $4.659 billion in 2015-16. The official documents say the oil marketing companies (OMCs) maintain reserves of the petroleum products in view of their commercial requirements. The petroleum products reserves for days as on December 6, 2016 are: HOBC (95/97 RON) is for 122 days; MS for11 days; JP-I for 12 days; SKO for 15 days; HSD for 23 days; and FO for 24 days. Production from 45 out of the 82 discoveries made during the last three years has already begun, whereas necessary work on 37 discoveries is being carried out by the exploration and production companies in order to start production. The drilling has increased by 46 percent along with 36 percent increase in the 2D and 3D explorations, the documents say, adding the local production of crude oil has surged to 100,000 barrels per day, which meets 15 percent of the country's requirement.

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KHAQAN INAUGURATES MAKORI GAS PLANT IN KHYBER PAKHTUNKHWA

December 07, 2016 Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi here Tuesday inaugurated the gigantic Makori Gas Processing Plant Karak that would help play vital role in development of oil and gas industry in Pakistan. Politicians, lawmakers, LG representatives and senior officials of Ministry of Petroleum and Natural Resources and MOL Pakistan Oil and Gas Company besides local elders attended the inauguration of Makori Gas Processing Plant. The plant would produce 305 MMSCFD of natural gas, 520 metric tons per day LPG and 25000 barrels per day of condensate/crude that would play a vital role in development of oil and gas industry in the country. Speaking on the occasion, the Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said the government was well aware of requirements of industrial and domestic sectors and were taking every possible measure to meet the gas needs of these sectors for stable and progressive economy. The Minister said no proper planning was done during the previous regimes to cope with rising demand of gas of domestic and industrial sectors, saying the present elected government soon after coming into power had accorded highest priority to energy and gas sectors to cater the high domestic and industries by utilising all options. Shahid Khaqan Abbasi said the Government was working on several gas search projects to fulfill the country's gas requirements. The Federal Government had initiated gas-related projects worth Rs 800 billion including setting up of LNG terminals and gas pipelines to meet energy needs of the country. He said Pakistan will have energy surplus due to effective policies of PML-N government under the leadership of Prime Minister Muhammad Nawaz Sharif by 2018. The Minister said special focus has been given to energy sector in CPEC and these projects after completion would exterminate menace of load shedding for ever. Abbasi while commenting on three and half years performance of the PML-N government said the country has achieved tremendous progress almost in every sectors including energy, infrastructure, communication, economy, social and oil and gas sector and today Pakistan is for better, economically stable and prosperous that it was in 2013. He said uninterrupted gas supply was being provided to industrial and domestic sectors of Khyber Pakhtunkhwa despite shortage of gas in the country and urged people to save gas especially during peak hours. The Minister said 50 percent electricity used by domestic and industrial sectors was being produced from different power units, which are run from gas. The Federal Minister said the shortage of gas problem would be addressed with completion of gas and energy projects in the country. He said gas and energy was engine of growth and no economy could develop without promotion of business and industry. The Minister said the government was seriously working to confront with all the challenges presently the country was facing. He said shortage and lower pressure of gas would be overcome with the addition of more gas in the system. He said Karak was very rich in gas and Makori gas facility like projects would help generate job opportunities besides eradicating poverty in the area. The Minister congratulated MOL Pakistan at inauguration of Makori Gas Processing Plant and expressed the hope that they will continue to invest and build the gas exploration and production sector of the country. Earlier, the Minister was briefed by MOL authorities about salient features of Makori Gas Processing Plant.

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PPL'S NET PRODUCTION CROSSED 1 BCFEPD IN NOVEMBER

December 08, 2016 Pakistan Petroleum Limited (PPL) has achieved a major milestone in November with net PPL production once again crossing the 1 bcfe/day-mark, resulting in an overall production increase of more than 10 percent during the current year as compared to 2014-2015. This has been made possible largely due to the company's structural reorganisation to an asset-based hybrid set-up in mid-2015, enabling renewed focus to optimise reserve replacement and production from mature assets and fields. Notable among these are drilling a record 23 operated wells (including 11 development wells with four each in Sui and Kandhkot, two in Adhi and one in Gambat South), maximising production efficiencies mainly through revamping of Sui compressors and work over jobs on existing wells in various fields and commissioning of new production facilities at Adhi and Gambat South. With respect to PPL's mature assets, this entailed arresting the annual historic production decline of 6 percent from PPL's flagship Sui Gas Field as well as reversing the decline with production being approximately 5 percent higher than 2014-2015, increasing gross production from Adhi and Kandhkot fields from 84MMscfde and 159MMscfde in 2014-2015 to 111MMscfde and 203MMscfde, respectively, in 2016-2017. Looking to the future, PPL continues to improve production efficiencies and implement an aggressive exploration programme to enhance production while maintaining a healthy reserve replacement ratio. During 2015-2016, for instance, the company made six discoveries and drilled 12 exploratory wells in operated blocks and achieved 127 percent reserve replacement ratio.

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LPG DISTRIBUTORS, MINISTER FOR IMPORT OF EXCESSIVE GAS

December 09, 2016 Chairman Liquefied Petroleum Gas (LPG) Distributors Association Pakistan, Irfan Khokhar and Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi have agreed to feasible the import of in order to provide consumers with cheap gas. In a statement issued here on Thursday, Irfan Khokhar said, "The Minister Petroleum has ensured to cut off tax on import of LPG for which I am thankful to him." "It's our priority to provide economic gas to LPG consumers," he added. "In the result of steps taken in the best results of LPG consumers by Minister Petroleum, Shahid Khaqan Abbasi to stabilise the gas prices, according to previous record total gas imported in 2014 was 62,117MT, in 2015 was 2,45,578MT while in 2016 total import was more than 5lac MT and total sale exceeded 12lac MT breaking all previous records," he said. "The LPG marketing companies have decreased the price of LPG to Rs 10/kg, Rs 100 for domestic cylinder and Rs 400 for commercial cylinder," he said. "For the first time in the history of Pakistan, artificial shortage and unprincipled profiting ended while winters are here," he added. "In winters when there is huge consumption of gas, not only excessive amount of gas is present in the country but for the first time in the history of country gas prices have decreased and LPG is easily available everywhere which have proven LPG mafia wrong. Countrywide rise and fall of LPG prices depend on import of gas," he said. "With excessive gas present in the country, LPG mafia can no longer create artificial shortage now for immoral profits. Credit for ensuring availability of LPG by importing LPG goes to LPG Distributors," he said. "The LPG will be available in Karachi at Rs 85/kg, Rs 970 for domestic cylinder. Lahore, Gujranwala, Faisalabad, Jehlum, Qasoor, Sahiwal, Sialkot, Daska, Peshawar Rs 90/kg, Rs 1030 for domestic cylinder. Raheem Yar Khan, Sadiqabad, Haiderabad, Attok, Gujrat, Mirpur, Azad Kashmir Rs 100/kg, Rs 1150 for domestic cylinder. "Whereas in Rawalpindi, Islamabad, Abbotabad, Muzafarabad, Bag, FATA, Kotli, Azad Kashmir, Tendu Muhammad Khan, Tendu Allah Yar, Mirpur Khas, Umerkot, Nawabshah, Manbari, Thatha, Dado, Jamshoro, Shikarpur Rs 110/kg, Rs 1260 for domestic cylinder. Gilgit, Baltistan, Murree, Nathiagali, Balakot Rs 120/kg, Rs 1380 for domestic cylinder," he said.

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SUPPLY OF LNG: TALKS WITH ITALY UNDER WAY: KHAQAN

December 06, 2016 Italy is keen to supply Liquefied Natural Gas (LNG) to Pakistan for which negotiations are under way between the relevant officials, Federal Minister for Petroleum Shahid Khaqan Abbasi said. Talking to Business Recorder, here on Monday after chairing a high-level meeting with Italian delegation led by Italian Minister for Economic Development Ivan Scalfarotto, Abbasi said that Pakistan is also in talks with a number of other suppliers for LNG deals. He said that the country has planned to take LNG supply within the next few years from current volume of 400 million cubic feet per day (MMCFD) to 2.2 billion cubic feet per day (BCFD). The government is also holding talks with Malaysian LNG supplier Petronas, the second largest global LNG supplier, Russian Gazprom as well as Nigerian and others. The minister said that two sides discussed matters related to energy issues from Italian investment in oil/gas sector of the country to LNG supply and others. He said Italian oil/gas exploration and production (E&P) company ENI is actively involved in tapping the natural resources and "we discussed to further enhance this co-operation with Italy." Pakistan has been facing severe gas shortage since past many years and to cope with the energy crisis the country has stepped up effort to attract foreign investment, especially in the oil, gas and LNG sectors. Pakistan is currently buying LNG from Qatar under the long-term deal signed earlier this year. Also, it is buying the fuel from Gunvor that has received a contract for providing 60 ships. Total supply stands at 300mmcfd from Qatar and 100mmcfd from Gunvor. The price for both supply sources was 13.37 per cent of the Brent oil rate. Pakistan GasPort Limited has started constructing the country''s second LNG terminal, which is likely to be completed on June 30, 2017 with a capacity to handle 600mmcfd of imported LNG. Fasiah Iqbal of Pakistan GasPort limited told this correspondent that the government has given the company 11 months for completion of the terminal, but the company is committed to completing it within the shortest possible time. At present 9 ships are working in Port Qasim Karachi on the project. The state-owned Pakistan LNG Limited (PLL) is seeking the supply of 240 cargoes of LNG for which it has issued two separate tenders. According to the company''s tender documents, first tender is inviting bids from LNG suppliers for the delivery of 60 cargoes through a master sale and purchase agreement over a period of five years. In a second tender, PLL is looking for the supply of 180 cargoes delivered over a period of 15 years. Cargoes, under both tenders, are to be delivered on a DES (delivered ex-ship) basis to the LNG terminal operated by Pakistan GasPort Consortium at Port Qasim, the company said. The start of the deliveries is set for July 2017, with a nominal cargo capacity set at 3bcfd, according to the documents. Major portion of imported LNG is being supplied to gas-based power plants that are either sitting idle due to non-availability of gas or burning expensive form of fuel to produce expensive electricity.

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FIRST COMMERCIAL-SIZE BIOGAS PLANT STARTS IN PAKISTAN

December 06, 2016 The United States Consul General Yuriy Fedkiw on Monday inaugurated the Pakistan's first commercial-size biogas plant at the government-owned Bahadurnagar Farm in Okara. The Minister for Livestock and Dairy Development Department, Punjab Asif Saeed Manais was also present on the occasion. Joining these dignitaries were Lollywood singers and dancers, bringing a bit of glamour to biogas technology. The United States Agency for International Development (USAID) and Nestle Pakistan, working together through the Dairy and Rural Development Foundation (DRDF), collaborated with the Punjab Livestock and Dairy Development in the construction of this biogas unit. The plant will yield significant benefits including electricity generation for agricultural production, cooking gas, and manure production. "Promoting energy efficiency and scaling up renewable energy requires an effective and supportive enabling environment. Today's ceremony highlights the importance of alternative energy resources, not just in Pakistan, but globally as well," said Consul General Fedkiw. "Establishing biogas units in rural communities is an efficient and effective way of meeting local energy needs by utilising renewable resources," he added. "The Government of Punjab is committed to resolve the energy crisis which has adversely impacted the agriculture and industrial sectors. The vast potential of biogas should be explored further to provide an alternative to 122 million people in Punjab without a reliable source of energy," the Minister said. "With the help of USAID and DRDF, this biogas unit will serve as a model for investors and rural communities to replicate, and reduce reliance on firewood or dung cakes for cooking and heating," he further added. Speaking on the occasion, DRDF chief executive officer, Ahmed Sajjad said that his organisation through the dairy project has been transforming the dairy sector by promoting breed improvement and dairy farming skill development. "In addition, we are addressing the energy needs of rural communities through our biogas plant initiative. This plant is a continuation of the dairy project's successful pilot intervention of 50 cubic meter biogas unit constructed for a dairy co-operative at district Vehari." USAID's five-year, $21 million dairy project has improved the lives of more than 50,000 small dairy farmers in Punjab by improving livestock productivity and increasing dairy farmer incomes by at least 10 percent. Also joining in the Lollywood fun at the ceremony were Chairman Nestle Pakistan Ltd, Syed Yawar Ali, DCO Okara, Soqrat Aman, DPO Okara, Faisal Rana, Assistant Commissioner Okara, and Senior Development Advisor USAID/Lahore Sajjad Moghal. Other attendees included Chief of Party, Jack Moser, the District Co-ordination Officer for Okara, and representatives from the academia and dairy industry.-PR

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