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News Headlines for the month of
FEBRUARY 2017

34 KM SHIKARPUR-JACOBABAD GAS PIPELINE TO COMPLETE IN AUGUST

FEB 21ST, 2017 ISLAMABAD: A 24-inch diameter gas pipeline from Shikarpur to Jacobbabad in Sindh province, covering a distance of 34 kilometers, would complete in August this year, official sources in the Ministry of Petroleum and Natural Resources said Tuesday. "The Sui Southern Gas Company Limited (SSGCL), which is carrying out the gas pipeline project, is confident to complete it by August 31, 2017," they told APP. After completion of the project, they informed that the natural gas supply to Quetta and other districts of Balochistan would improve. Answering a question, the sources said the company was executing a number of projects to augment its existing transmission network, under which eight more gas pipelines were being laid in different areas of Sindh and Balochistan. The eight supply lines of different size will cover 126 kilometers distance in various localities of the two provinces, they added. Giving details of the schemes, they said, a 12-inch diameter supply line from Palijai to Tando Allahyar covering a distance of 27 kilometers, a 14-km eight-inch diameter gas pipeline from Sinjhoro Gas Field to Sanghar, a 11-km eight- inch diameter supply line from SMS Khairpur to Khairpur city, a six-inch 11-km line from Upstream Halani to TBS Kandiaro, a 20-inch seven-km line from DHA PH-VIII to Dolman Mall Clifton Karachi, a 20-inch five-km supply main loop from Korangi to Landhi Karachi, 24-inch 33-km transmission line from Kathore to Surjani Town Karachi and a 12-inch 18-km pipeline at Dera Murad Jamali were being laid to ensure uninterrupted gas supply to consumers.

Copyright APP (Associated Press of Pakistan), 2017

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NEW GAS FIND IN GHOTKI ANNOUNCED

ISLAMABAD: Mari Petroleum Company Limited (MPCL) has announced a new gas find in Ghotki district of Sindh. According to a private news channel, the company in a statement announced "a significant gas discovery" under new exploratory efforts at Shaheen-1 exploration well, drilled in Mari development and production lease area in Ghotki, Sindh. The said well was spudded on Jan 5 and has been successfully drilled down to the depth of 1,175 metres into Sui Main Limestone formation. Chief executive of the company Ishfaq Nadeem Ahmad said that seismic data has also identified additional new prospects at different reservoir levels, which the company planned to drill in the next two to three years. According to the company it was the second consecutive find from the results of its acquired extensive 3D seismic data in the Mari D&P lease area. The MPCL said it will continue to find additional hydrocarbon deposits in the country so that the ever-increasing energy needs can be met through local resources.

Copyright APP (Associated Press of Pakistan), 2017

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SSGCL LAYING NINE GAS PIPELINES IN SINDH, BALOCHISTAN

ISLAMABAD: The Sui Southern Gas Company Limited (SSGCL) is executing a number of projects to augment its existing transmission network, under which nine gas pipelines are being laid in different areas of Sindh and Balochistan. "The nine supply lines of different sizes will cover 160 kilometers distance in various localities of the two provinces," official sources told APP Saturday. Giving details of the schemes, they said, a 12-inch diameter supply line from Palijai to Tando Allahyar covering a distance of 27 kilometers, a 14-km eight-inch diamater gas pipeline from Sinjhoro Gas Field to Sanghar, a 11-km eight-inch diamater supply line from SMS Khairpur to Khairpur city, a six-inch 11-km line from Upstream Halani to TBS Kandiaro, a 20-inch seven-km line from DHA PH-VIII to Dolman Mall Clifton Karachi, a 20-inch five-km supply main loop from Korangi to Landhi Karachi, 24-inch 33-km transmission line from Kathore to Surjani Town Karachi, a 24-inch 34-km pipeline from Shikarpur to Jacobbabad and a 12-inch 18-km pipeline at Dera Murad Jamali were being laid to ensure uninterrupted gas supply to consumers. Answering a question, they said that at present the company was observing a three-day CNG closure and a one-day industrial closure under its load-management programme, carrying out reinforcement schemes to boost up the network, replacing outdated network and removing illegal connections to meet needs of gas consumers.

Copyright APP (Associated Press of Pakistan), 2017

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OIL SECTOR TO ATTRACT RS 10.5 BILLION INVESTMENT IN 3 YEARS

ISLAMABAD, Feb 3 (Pakistan Point News - 03rd Feb, 2017 ): The oil sector is expected to attract Rs 10.5 billion investment during the next three years, official sources said here Friday. The Oil and Gas Regulatory Authority (OGRA) has issued 21 provisional licences for establishing oil marketing companies (OMCs) during the last six months - July to December 2016. "With the establishment of these companies, a minimum investment of Rs 10.5 billion will pour into the oil sector during next three years," official sources told APP. The licences have been granted to Best Petroleum (Pvt) Limited, Oil Industries Pakistan (Pvt) Limited, Accel Petroleum (Pvt) Limited, Euro Oil (Pvt) Limited, Oleum Petroleum (Pvt) Limited, Al-Noor Petroleum (Pvt) Limited, Damam Petroleum (Pvt) Limited, Max Fuels (Pvt) Limited, Fast Oil (Pvt) Limited, Hi-Tech Lubricants (Pvt) Limited, Jinn Petroleum (Pvt) Limited, Vital Petroleum (Pvt) Limited, International Petrochemicals (Pvt) Limited, Allied Petroleum (Pvt) Limited, Only One Energy (Pvt) Limited, Pak Gasoline Services (Pvt) Limited, Shams Petroleum (Pvt) Limited, Berkeley Oil & Gas Development (Pvt) Limited, Taj Gasoline (Pvt) Limited, My Petroleum (Pvt) Limited and Terminal One (Pvt) Limited. Besides, the sources informed that OGRA issued product marketing permission to five companies after they established their storage facilities and completed other requirements under three-year provisional licences. The permission has been granted to Horizon Oil Company (Pvt) Limited, Petrowell (Pvt) Limited, Kepler Petroleum (Pvt) Limited, Outreach (Pvt) Limited and Z&M Oils (Pvt) Limited in their respective provinces, introducing new players in marketing arena of petroleum products. During the period, the sources said, OGRA through third party inspectors, inspected oil storage infrastructure developed by various OMCs including Bakri Trading Company (Pvt) Limited at Shikarpur; Petrowell (Pvt) Limited at Port Qasim, Outreach (Pvt) Limited at Manga, Kepler Petroleum (Pvt) Limited at Daulatpur, Gas & Oil Pakistan (Pvt) Limited at Shaheed Benazirabad (Nawabshah), Z&M Oils (Pvt) Limited at Pattoki (Kasur); Hascol Petroleum Limited at Amangarh, Daulatpur (additional), Shikarpur (additional) & Mehmoodkot and Horizon Oil Company (Pvt) Limited at Vehari. They said four licenses had been granted to companies including Hascol Terminals Limited, Fauji Tarns Terminal Limited, Hascol Petroleum Limited for development of new oil storages/terminals at different locations, which would further strengthen the oil supply infrastructure. OGRA had also granted licneces to two lube oil blending plants and six lubricant marketing companies. Answering a question, the sources said OGRA received 3,003 complaints, out of which 2,427 were resolved by providing 195 gas connections and giving Rs 305.188 million relief to consumers.

Publishe in Times of Islamabad on 04th Feb, 2017

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PAKISTAN TO START CIVIL WORK ON TAPI BY END OF THIS YEAR

LAHORE: A delegation comprising officials of the Dubai-based TAPI Ltd is set to reach Islamabad this month to sign various agreements and contracts for the Turkmenistan-Afghanistan-Pakis¬tan-India Pipeline, Federal Minis¬ter for Petroleum and Natural Res-ou¬rces Shahid Khaqan Abbasi said on Saturday. Talking to Dawn, he said the TAPI consortium, led by Turkmengaz (the national gas company of Turkmenistan), is serious about the project deadline which is set for 2019. The ongoing construction work on the portion falling in Turkmenistan shows their commitment, he added. Mr Abbasi, however, was not optimistic about the execution of the Iran-Pakistan Gas Pipeline Project in near future, especially in view of fresh sanctions imposed by the United States. “This project is already on hold for the last couple of years after the US imposed sanctions on Iran. What will be the impact of fresh sanctions on this project, we will come to know soon after studying the list of companies blacklisted by the US under latest sanctions,” he explained. He said Pakistan has signed the agreement on IP pipeline with the National Iranian Oil Company – a state run subsidiary of the Iranian government. Hopefully the name of this company will not be in the list of companies blacklisted by the US, Mr Abbasi said. “If the name shows up in the black list, this project will be in further trouble,” the minister added. Pakistan is expected to initiate civil works on the 780km long portion of TAPI which falls in its territory by the end of this year, a senior official of the Inter State Gas Systems (ISGS) said on Saturday. The 1,800km long pipeline, which begins from the Galkynysh gas field in Turkmenistan, passes through Herat and Kandahar in Afghanistan, moves through Pakistan via Quetta and Multan and concludes at Fazilka in India. Various activities, including signing of respective contracts and preparatory works including route survey are likely to begin by end of this month, the official said. “We are well prepared to assist the TAPI consortium and respective firms for the accomplishment of various tasks. We are hopeful that the civil work on the pipeline’s portion, which falls in our territory, will be launched by end of this year or by January, next year,” said ISGS Managing Director Mobin Saulat. Talking to Dawn, the chief of ISGS – a subsidiary of the Ministry of Petroleum and Natural Resources – said a German firm (ILF) has already been engaged as the project management consultant by the TAPI consortium. The team is likely to start various works related to route survey, designing, planning and feasibility studies within this month. Turkmenistan, being a lead partner or leader of the TAPI consortium, has already started construction work on the portion falling in its territory last year. The consortium has also established a company based in Dubai to supervise and execute the project that is planned to be completed by December, 2019.

Published in Dawn February 5th, 2017

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PAKISTAN’S OIL PRODUCTION REACHES TWO-YEAR HIGH

KARACHI: Pakistan’s oil production reached a two-year high of 97,000 barrels per day in December 2016 after oil and gas exploration and production companies geared up their drive to find new deposits of hydrocarbons in the country. Nabeel Khursheed, an analyst at Topline Securities, said in a note to his clients that the surge in production became possible with find of new oil reserves from Nashpa and Mardan Khel fields. “Both fields added around 11% to December 2016’s oil production, a cumulative flow of around 10,000 barrels per day (bpd) of oil,” he said. The production meets around 20% of domestic demand. The remainder is met through imported crude oil and finished petroleum products. Rebounding oil prices spell bad news Local production was reportedly hovering below 90,000 bpd in November. This was standing at 87,000 bpd in the previous fiscal year ended June 30, 2016 and 95,000 bpd in the year before. The decline in production in fiscal year 2015-16 (FY16) was seen after oil producing firms put on hold their projects under the then prevailing steep low oil prices in the world market. State-owned Oil and Gas Development Company (OGDC) was maintaining the highest reserves of oil and gas in the country, as its share in local crude oil production stands above 50%. During December, OGDC, Pakistan Oilfields and Pakistan Petroleum Limited registered record oil production levels of around 48,000 bpd, 18,000 bpd and 8,000 bpd, respectively. This was on the back of addition from Nashpa (OGDC and PPL hold 56% and 26% stakes) and Mardan Khel (POL and PPL hold 28% stake each while OGDC holds 21%). Flat gas production Gas production, however, remained almost stagnant at around 4,000 million cubic feet per day (mmcfd) mainly due to “absence of any significant addition and natural depletion of existing fields,” the analyst added. Normalised flow from Kandhkot field (13% of PPL’s total gas production), up from 89mmcfd (faced technical issues last year) in December 2015 to 205mmcfd in December 2016 and 32mmcfd addition from Shahdadpur field nudged up PPL’s gas production. OGDC’s gas production during December 2016 shrunk on the back of lower flow from Uch (26% of gas production), down 12% and Qadirpur (22% of gas production), down 7%. Saudi Arabia to sell 49% of Aramco within decade: report “First half of fiscal year 2017’s cumulative hydrocarbon production numbers remained broadly in-line with our estimates,” Khursheed said. With another expected addition of around 100mmcfd of gas and 4,000 bpd of oil from much awaited OGDC’s Kunnar Pasaki Deep (KPD) project in second half, “Pakistan’s total oil production will likely cross 100,000 bpd to average 95,200 bpd in FY17. This will take Pakistan’s total hydrocarbon production to average 778,000 boed {Barrels of Oil Equivalent per Day},” he said.

Published in The Express Tribune, February 2nd, 2017.

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OGRA ISSUED 21 PROVISIONAL LICENCES TO SET UP OMCS IN SIX MONTHS

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has issued 21 provisional licences for establishing Oil Marketing Companies (OMCs) in a period of six months from July to December 2016. "With the establishment of these companies, a minimum investment of Rs 10.5 billion will pour into the oil sector during next three years," official sources told APP Friday. The authority, they said, granted the licences to M/s Best Petroleum (Pvt.) Limited, M/s Oil Industries Pakistan (Pvt.) Limited, M/s Accel Petroleum (Pvt.) Limited, M/s Euro Oil (Pvt.) Limited, M/s Oleum Petroleum (Pvt.) Limited, M/s Al-Noor Petroleum (Pvt.) Limited, M/s Damam Petroleum (Pvt.) Limited, M/s Max Fuels (Pvt.) Limited, M/s Fast Oil (Pvt.) Limited, M/s Hi-Tech Lubricants (Pvt.) Limited, M/s Jinn Petroleum (Pvt.) Limited, M/s Vital Petroleum (Pvt.) Limited, M/s International Petrochemicals (Pvt.) Limited, M/s Allied Petroleum (Pvt.) Limited, M/s Only One Energy (Pvt.) Limited, M/s Pak Gasoline Services (Pvt.) Limited, M/s Shams Petroleum (Pvt.) Limited, M/s Berkeley Oil & Gas Development (Pvt.) Limited, M/s Taj Gasoline (Pvt.) Limited, M/s My Petroleum (Pvt.) Limited and M/s Terminal One (Pvt.) Limited. Besides, the sources informed that OGRA issued product marketing permission to five companies after they established their storage facilities and completed other requirements under three-year provisional licences. The permission have been granted to M/s Horizon Oil Company (Pvt) Limited, M/s Petrowell (Pvt.) Limited, M/s Kepler Petroleum (Pvt.) Limited, M/s Outreach (Pvt.) Limited and M/s Z&M Oils (Pvt.) Limited in their respective provinces, introducing new players in marketing arena of petroleum products. During the period, they sources said, the authority, through Third Party Inspectors (TPIs), inspected oil storage infrastructure developed by various OMCs including Bakri Trading Company (Pvt.) Limited at Shikarpur; M/s Petrowell (Pvt.) Limited at Port Qasim, M/s Outreach (Pvt.) Limited at Manga, M/s Kepler Petroleum (Pvt.) Limited at Daulatpur, M/s Gas & Oil Pakistan (Pvt) Limited at Shaheed Benazirabad (Nawabshah), M/s Z&M Oils (Pvt.) Limited at Pattoki (Kasur); M/s Hascol Petroleum Limited at Amangarh, Daulatpur (additional), Shikarpur (additional) & Mehmoodkot and M/s Horizon Oil Company (Pvt.) Limited at Vehari. They said four licenses were granted to companies including M/s Hascol Terminals Limited, M/s Fauji Tarns Terminal Limited, M/s Hascol Petroleum Limited] for development of new Oil Storages/Terminals at different locations, which would further strengthen the oil supply infrastructure. The authority also granted licences to two Lube Oil Blending plants and six Lubricant Marketing companies. Answering a question, the sources said OGRA complaint departments received 3,003, out of which 2,427 were resolved by providing 195 gas connections and giving Rs 305.188 million relief to consumers.

Copyright APP (Associated Press of Pakistan), 2017

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WORK ON TAPI PIPELINE TO KICK OFF IN PAKISTAN THIS MONTH

ISLAMABAD: Work on the long-awaited Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline will kick off in Pakistan this month as Tapi Company, which has the mandate to run the pipeline, has awarded the project management consultant (PMC) contract to German firm ILF. The consultant is ready to conduct route survey, detailed engineering and feasibility study in the current month. Four countries ink deal for $10 billion TAPI gas pipeline project “A team from Turkmenistan will reach Islamabad on February 14 to begin work on the route survey, engineering and feasibility study to implement the Tapi pipeline project,” a senior government official said. The team will first start work in Pakistan and then it will proceed to Afghanistan. “Pipeline construction and gas-field development has started in Turkmenistan and we appreciate efforts of Turkmenistan authorities to expedite the project,” Inter State Gas Systems Managing Director Mobin Saulat said while talking to The Express Tribune. He added that Pakistan had reiterated its firm commitment and continued to provide full support for the Tapi pipeline. Efforts to achieve financial close were going on and the project would be commissioned as per schedule, he said. Turkmenistan, Afghanistan, Pakistan and India have signed a $10-billion investment agreement for the Tapi pipeline in a bid to kick off activities, update feasibility study and finalise pipeline route in Afghanistan. Leaders of the four countries performed the ground-breaking of the project, which would help ease energy deficiency in South Asia, in December 2015. According to the agreement, Turkmenistan will invest around $25 billion to deliver 3.2 billion cubic feet of gas per day (bcfd) to energy-hungry Afghanistan, Pakistan and India. Of the total, $15 billion will be invested in developing the gas field whereas $10 billion will be poured into laying the pipeline over 1,680 km connecting Afghanistan, Pakistan and India with Turkmenistan. ADB offers $1b loan for TAPI gas pipeline Officials said a consortium of Japanese companies was working on a fast-track basis to develop the gas field in Turkmenistan. A gas sale and purchase agreement had already been inked in 2013 to set the pricing mechanism under which the gas price at Turkmenistan border would be around 20% cheaper than the price of Brent crude. Pakistan and India will receive 1.325 bcfd of gas each while Afghanistan will get 500 mmcfd.

Published in The Express Tribune, February 2nd, 2017.

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