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News Headlines for the month of
JANUARY 2017

OGDCL TO ADD 100MMSCFD GAS IN WINTER

ISLAMABAD: The Oil and Gas Development Company (OGDCL) is all set to add 100 million cubic standard feet per day (mmscfd) gas, 400 metric tonnes of liquefied petroleum gas (LPG) and 4,000 barrels per day (bpd) of crude oil during the current winter, officials said. The government planned to add at least 180 mmscfd of natural gas in the national transmission system in the current season to meet growing energy needs, the officials told APP. OGDCL, being the largest exploration and production company in Pakistan, recently achieved the highest ever crude oil production of 50,157 bpd. The company will try to raise its production further and the new discoveries will help meet the energy shortages, they said. OGDCL has already embarked on the course of aggressive exploration, which is evident from ongoing seismic operations being carried out in Balochistan and Khyber Pakhtunkhwa. For the first time in country’s history, four seismic crews are working in frontier areas of Balochistan, including Pasni, Gwadar, Kharan, Zhob, Musa Khel and Lasbela. Seismic activities in the federally administered tribal areas are also in full swing in Latambar block. The company is hopeful that ongoing exploration will lead to new discoveries and fortify OGDCL’s reserves portfolio, besides ensuring long-term sustainability of the organisation and meeting energy demand in the country, the sources said. Officials said OGDCL set the target of drilling of 25 new wells in all the provinces during the current financial year. The target will hopefully be achieved, they added. A source said oil and gas exploration and production (E&P) companies, operating in different parts of the country, drilled 319 wells and made 91 finds during the last three years. During the years (2013-16), the companies spud 51, 51, and 46 exploratory wells, respectively, enabling the current government to add 944 mmcfd gas in the system. Of which, 466 mmcfd came from new discoveries and 478 mmcfd from existing wells. Officials said there was an increase of 32,000 bpd in crude oil production. The drilling figure was 40 percent higher than the tenure of previous government, they added. In 2015/16, the sources said 46 exploratory wells were drilled, including five in Badin – one each in Barkhan, Bhakkar, Dera Ghazi Khan, Dera Bugti, Kohat, Lakki Marwat, Sukkur, Tando Allah Yar and Thatta – two each in Ghotki, Hyderabad, Jamshoro, Mitiari, Rahimyar Khan, Sujawal, three in Khairpur, six in Tando Mohammad Khan and 11 in Sanghar. In 2014/15, the companies drilled 51 exploratory wells; out of which, one each was in Mirpur Khas, Sukkur, Sujawal, Rahimyar Khan, Jamshoro, Hangu, Chakwal and Attock, two each were in Dadu, Dera Bugti and Kohat, three each in Tando M Khan and Mianwali, four in Mitiari, seven in Sanghar, eight in Badin and nine in Tando Allah Yar. In 2013, 1,451 exploratory wells were spud; out of which, one each was in Rawalpindi, Mastung, Kohat and Barkhan, two each in Hyderabad, Naushahro Firoz and Thatta, three each in Tando Mohammad Khan, Tando Allah Yar and Mitiari, four in Khairpur, 10 in Sanghar and 14 in Badin. The discoveries made by E&P companies during the period showed increase in the success rate of drilling to 55 percent from 31 percent. It means there was a find after every two drills, officials said.

Copyright THE NEWS KARACHI

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KP CM WELCOMES DANISH INVESTMENT

January 15, 2017 PESHAWAR: Chief Minister Pervez Khattak has welcomed the transfer of technology for the promotion of agriculture and renewable energy and investment in Khyber Pakhtunkhwa by the Danish government. He said the province offered tremendous potential in natural resources for investment. “The provincial government wants productivity in the productive sectors and exploitation of natural resources on scientific lines,” he added. Talking to Danish Ambassador Ole Thonke at the Chief Minister’s Secretariat, he said the government would facilitate investors. Economic Zones Development and Management Company (EZDMC) Chairman Ghulam Dastagir and administrative secretaries were present on the occasion. The chief minister said that KP government had an industrial policy to attract investors for hydel power generation to overcome energy crisis. He said the province had simplified the procedure for industrialisation and now there was no need for obtaining no-objection certificate. Pervez Khattak said the government was providing one-window operation to facilitate investors. The chief minister said the government established an autonomous EZDMC company and it was giving concessions and facilities to investors. The Danish ambassador agreed to promote trade and commercial activities with Khyber Pakhtunkhwa.

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EXPLORING MINERALS: PUNJAB SIGNS AGREEMENT WITH GERMAN COMPANY

LAHORE: Chief Minister Muhammad Shahbaz Sharif said the agreement between Punjab Mineral Department and a German company regarding survey of reserves in the province was a progressive initiative. Punjab chief minister was the chief guest at the signing ceremony of the agreement between Provincial Minerals Department and renowned International company Fugro of the mining sector. Secretary Minerals Dr Arshad Mehmood on behalf of the Punjab government and German company Fugro’s Managing Director Dr Uta Alisch signed the agreement. Under the agreement, the German company would survey various districts for exploration of mineral reserves. It will then work in connection with exploring oil and gas reserves in the province and will also start its second phase for exploring mineral reserves at Chiniot and adjoining areas. The Punjab government will provide all out cooperation to the German company for exploring mineral reserves. Addressing the ceremony, the chief minister said due to the survey, mineral reserves of the province would be estimated in the real sense and authentic data would be collected. Provincial Minister for Minerals Chaudhry Sher Ali Khan was also present on the occasion.

Published in The Express Tribune, January 15th, 2017.

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TAPI LIKELY TO BE COMPLETED BY END 2019

Islamabad After over decades on the drawing-boards, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project which is often regarded as the coup de grace against the long-discussed Iran-Pakistan-India gas pipeline project, is likely to complete by the end of 2019. As a major development, Turkmenistan has allocated US$2 billion from its own resources to implement TAPI gas pipeline project to export gas to Afghanistan, Pakistan and India that will pass through war-torn Afghanistan, Pakistan Observer has learned. “ $2billion has been allocated to transform TAPI project into reality,” officials privy to the development told Pakistan Observer adding that Turkmenistan has established a company for financing of TAPI gas pipeline to complete the project by end 2019. Turkmenistan has already hired a Japanese consortium to develop the gas field and construction of pipeline work in Turkmenistan territory had been awarded to Chinese firm to lay 200 km pipeline. Pakistan government has imposed a levy for financing of the project. As many as $200 million will be spent by each country Afghanistan, Pakistan and India to lay pipeline to transport gas. Turkmenistan has to develop two fields for gas transport under TAPI. In Afghanistan security survey work has been done and mine swiping work has been started. Target of completion is four years. 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 by December 2019, which will continue for 25 years A gas sale and purchase agreement had already been signed in 2013 to set the pricing mechanism under which the gas price at Turkmenistan border would be around 20% cheaper than Brent crude. With the title of peace pipeline, the TAPI project is expected to bring peace and stability in the region because of cooperation among regional countries and reliance on each other for meeting energy needs. The pipeline will connect South and Central Asia. Pakistan and India will receive 1.325 bcfd of gas each while Afghanistan will get 500 mmcfd. Turkmenistan is expected to achieve financial close for the project by December 2016 for simultaneous completion of the gas field development and pipeline construction in three years. There are two type of investment in TAPI project as $15 billion for developing field. This project had been awarded to Japanese companies that were working to extract gas against service fee and they would not become shareholders in the gas field. Other portion was pipeline project which requires pipeline material and compressors and requires around $10 billion funds to lay pipeline. Earlier, Asian Development Bank (ADB) was playing role of transaction advisor. Therefore, it had expressed inability to join this project as financier due to conflict of interest being transaction advisor. However, it had surrendered its role as transaction advisor now and offered $ 1 billion to finance this project.ADB is being dominated by Japan and the bank made offer of financing after Japanese companies consortium won contract of developing gas field in Turkmenistan from where gas is to be supplied to Pakistan, Afghanistan and India under TAPI pipeline project. Islamic Development Bank (IDB) dominated by Saudi Arabia had also offered $500 million to finance TAPI pipeline project. Saudi Arabia is a major share holder of 23.5 per cent of this bank and this bank had also come up with an offer of financing to TAPI pipeline project. The TAPI Company is to achieve financial close of the project by end of this year. Off-the-record conversation with well-informed officials and diplomats revealed that It is intended that segments of the TAPI pipeline in Afghanistan are buried in order to make them less susceptible to terrorist attacks. Local communities will be given incentives to participate in this defence, and the central government has bruited the deployment of 7,000 soldiers (to be trained by NATO) to safeguard the route. Successful implementation of the project would not only assist in the peaceful economic development of Afghanistan, diversify Turkmenistan’s gas exports, and provide resources to energy-hungry Pakistan and India. It would also alter the geopolitical contours of the region, providing an artery for intensifying cooperation in the meta-region that lies east of the Caspian Sea, south of Russia, and west of China. In particular, it would in the first instance integrate Afghanistan more into South Asia while giving India the opportunity that it has long sought to deepen its own geo-economic projection into Central Asia.

COPYRIGHT : PAKISTAN OBSERVER ISLAMABAD

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IMPORTED LNG, BETTER MANAGEMENT INCREASE GAS AVAILABILITY BY 20PC

LAHORE: The government increased gas supply to domestic and industrial consumers up to 20 percent during the ongoing winter season due to injection of re-gasified liquefied natural gas (RLNG) into the system and its load management practices, a senior official said on Friday. “There has been a substantial decrease in consumer complaints this winter as gas availability has increased 15-20 percent,” said the official. The official said the gap between gas demand and supply in Punjab alone – the country’s biggest province – during the peak demand season from December to February, was recorded at 300 million cubic feet/day (mmcfd) during the last couple of years. “Now, such gap is being managed by diverting gas from some sectors, injecting RLNG for industry and swapping about 250 mmcfd of RLNG with domestic gas and pressure profiling to provide gas as and when required amid near freezing temperature,” the official added. The official said management practices, including steps to increase production from domestic wells, import of liquefied natural gas (LNG) and swap of re-gasified liquefied natural gas with locally produced gas, pressure profiling and diversion of gas from various sectors to homes helped in meeting energy requirement in the country. During the peak wintery demand, gas supply shortage has always been a source of real concern for various consumer categories, especially for those living in central parts of the country. The problem started back in 2007-08 and gradually worsened in the following years mainly due to lack of any serious effort for increasing supplies. The official added that some innovative initiatives, taken by present government, yielded positive results. There is a marked improvement in gas supply especially to the hardest hit areas in the Punjab. Gas availability in other provinces is also satisfactory and the government ensured that there would be no adverse effect in meeting demand of all the consumers. Such arrangements have no additional financial burden for consumers as well as government. On an annualised basis, the official said, the re-gasified liquefied natural gas volume and domestic gas are equalised. Cluster of industry, especially export-oriented textile units is getting round the clock gas supplies thanks to LNG import. Of total 842 industrial units located in Lahore region of Sui Northern Gas Pipelines Ltd, 681 are fully operational with sustained re-gasified liquefied natural gas supplies nowadays. The official said there are still complaints in some areas which are located on the tail-end or where illegal compressors are in use by other domestic consumers. These complaints are being managed. These problems are a result of lack of zoning in cities where houses, industry, commercial, and compressed natural gas should have been in separate areas. In such pockets, not much can be done in short term. It is a result of bad town planning. However, the provincial government is planning to resolve these issues in these localities in near future. “We are very much upbeat that gas availability would even substantially be improved in the next winter season,” the official said. “It will partly be possible by a quantum jump in LNG import, which is bound to increase to 1.2 billion cubic feet from the present 425 million cubic feet.”

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EXPERTS FOR PROMOTING INTEGRATED LONG-TERM ENERGY PLANNING

Energy experts in a policy roundtable have urged the government to promote integrated long-term planning in the energy sector and check gaps in the management and implementation capacity of energy projects, especially those related to CPEC. The event, held on Tuesday, titled 'Pakistan's Energy Sector: Status and Prospects' was mainly addressed by Syed Akhter Ali, who has remained a part of the policy and planning process recently as member energy in the Planning Commission. Event was chaired by Ashfaq Mahmood, former secretary, Ministry of Water & Power. The key speakers included former federal secretaries and energy policy analysts Masud Daher and Salahuddin Rifai and IPS associates Brigadier Said Nazir (retrd.) and Ameena Sohail. Former Secretary Water and Power, Ashfaq Ahmad was of the view that 4500 MW Diamer-Bhasha Dam should have been the top priority of energy managers vis-�-vis CPEC stratification and negotiations but so far this most critical hydropower and water storage project has remained at the backburner. He commented that the sovereign guarantees for up to 30 years against tariff regimes cannot allow a competitive market for power generation. A roadmap must be devised for it as in developed countries electricity is sold and purchased in the open market and this is much needed in Pakistan as well. However, former Member (Energy) Planning Commission, Akhtar Ali claimed that with the smaller projects the Chinese were 'testing the waters' in Pakistan and now the funds for Diamer-Bhasha project, either completely or partly, would come through CPEC and/or PSDP. WAPDA has already submitted feasibility for it. Syed Akhtar Ali was of the view that though there were still serious and chronic governance issues the energy sector was faced with, there was a silver lining that the multiple actors and forces in the regulatory regime are interacting gradually towards institutionalisation of policy decisions and issues related to tariff allocation. He was of the view that provincial representation in Nepra Board should be done away with, adding technical experts should be appointed as members of the Authority. He said the target to increase 10,000 MW by 2018 would be achieved by the end of incumbent government's term. However distribution capacity issues will not allow an end to load shedding. The future financial implications, in terms of debt and foreign exchange liabilities, were also yet to be realised. He opposed the government's decision to give administrative control of regulatory bodies to the line ministries. He suggested that Nepra should do away with generation licensing requirement and introduce market operator and electricity trading. He further recommended that the government should develop national electricity plan and tariff policy and set up appellate tribunals to hear appeals against Nepra determinations and orders. It was revealed that except for some modelling efforts done by Asian Development Bank (ADB), there has been no serious attempt ever in Pakistan for an integrated energy planning through which the future energy demands could be estimated according to economic growth.

Copyright Business Recorder, 2017

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TWO COAL-FIRED POWER PLANTS TO BE SET UP UNDER CPEC

January 26, 2017 A joint venture of Hub Power Company (Hubco) and a Chinese company on Wednesday announced that they would set up two coal-fired power plants of 1650MW in Hub, (Balochistan) and Thar, Sindh under China-Pakistan Economic Corridor (CPEC). Documents relating to Power Purchase Agreement (PPA) and Implementation Agreement (IA) were signed in Islamabad in the Ministry of Water and Power between China Power Hub Generation Company, Hubco, Private Power Infrastructure Board (PPIB) and Central Power Purchasing Agency (CPPA). Under the agreements, 1320MW coal-fired power plant will be established in Hub, Balochistan and 330MW in Thar, (Sindh). Minister for Water and Power Khawaja Muhammad Asif who was present on the occasion termed these projects a major milestone, adding that Thar which was known as drought hit area would now become the energy capital. He said construction work on 1320MW power plant in Hub has already begun and these two projects will be completed in 2019. This is demonstrative of the fact that the government is fully implementing projects for completion even after its present tenure is complete keeping in view the future requirements of energy, he added. The minister said the government is giving preference to the use of local coal from Thar for generating cheap electricity. He said these projects will open up new chapter in the energy sector and in the coming years Thar will be the centre of energy supply. These projects will prove to be pilot projects as Thar coal will be opened up. Replying to a question regarding National Electric Power Regulatory Authority''s (Nepra) independence after coming under the administrative control of Water and Power Ministry from the Cabinet Division, Khawaja Asif said that earlier Nepra was also under the federal government, not a police station. "Nepra was under the administrative control of Cabinet Division and now it is with the Water and Power Ministry," he added. Chairman Nepra Brigadier Tariq Saddozai (Retd) recently stated that the regulator''s independence has been compromised after shifting from the Cabinet Division to Ministry of Water and Power. Answering another question, the minister said that Nandipur Power Project was running on full capacity of 430MW on furnace oil. The plant would generate 525MW in May this year. The minister argued that new FOTPs (Furnace Oil Treatment Plants) have been installed in the project, adding that rumours about the project are not accurate. Khawja Asif further stated that work on 4500MW hydropower project''s dam would start this year. The government has decided to fund the dam from Public Sector Development Plan (PSDP). In reply to another question, Khawaja Asif said that work on Mohmand Dam will also start this year. During the signing ceremony, electricity went off not once but twice plunging the committee room of Water and Power Ministry into darkness for few minutes. The minister said the government is giving preference to use local coal from Thar for generating cheap electricity. To a question, he said electricity shortfall has been decreased as a result of government measures. Khawaja Asif said over 100MW of electricity is being generated through alternate energy sources. He said a National Water Policy covering all dimensions will be announced in a few weeks.

Copyright Business Recorder, 2017

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UNIDO'S CLEANTECH TO HELP FACE CHALLENGES OF ENERGY AND ENVIRONMENT

January 23, 2017 The UNIDO has introduced the Global Cleantech Innovation Programme (GCIP) for Pakistan with the collaboration of Global Environment Facility (GEF) for small and medium-sized enterprises leverages the power of entrepreneurship to address challenging energy, environmental and economic problems and winners would be entitled to get UNIDO awards. UNIDO's Representative to Pakistan. Esam Alqararah shared UNIDO's vision of energy and environment with President of Multan Chamber of Commerce & Industry Khawaja Jalaluddin Roomi and other members. He highlighted UNIDO's efforts to promote renewable energy and clean technologies in South Punjab. Esam said that by enhancing emerging cleantech start-ups and bolstering the local entrepreneurial ecosystem and policy framework, the GCIP delivers both environmental benefits and economic vitality. During the third cycle of the GCIP Pakistan in 2016, 82 innovators and start-ups in Pakistan, focusing on renewable energy, energy efficiency, water efficiency, waste-to-energy and green buildings, went through a comprehensive and extensive programme of mentoring, training, access to investors, judging and showcasing opportunities, he added. He said that winners would be entitled to get monetary prizes and the opportunity of funded visit to Silicon Valley, USA where they will receive further mentorship and training, and will interact with global investors. He said that we have included Multan and Southern Punjab in our programme and selected five sectors ie Technology, Foundry, Ceramics, Dairy farming and paper industry. Mr. Esam said that we have presented awards to those which developed an innovative technique that reduces the radiation dose released during computed tomography CT scans. The three runners-up were: Vega's, which developed a wastewater flow mechanism that reduces the pollution load by using energy from the flow of wastewater rather than electricity; the Green Team, which developed a palletization technology that provides easier and better handling of fuel after crushing and grinding; and the HempCo, which developed a way to use hemp as a carbon-negative insulation material for use in building construction. He said that an award for the most promising women-lead business would be presented to a team of biomedical engineers from Sir Syed University of Engineering and Technology, which designed an innovative energy-efficient incubating blanket which can replace the traditional baby incubator. Khawaja Jalaluddin Roomi President of MCCI stressed the importance of innovation in clean technology to mitigate the harmful impacts of climate change and support sustainable industrial development. Roomi said that UNIDO should set-up treatment plants in Multan and we would cooperate with them.

Copyright Business Recorder, 2017

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EXTENSIVE OIL, GAS EXPLORATION ACTIVITIES BEGIN IN FATA

January 25, 2017 In a bid to achieve self-sufficiency in the energy sector, the government has started extensive oil and gas exploration activities in different parts of the Federally Administered Tribal Areas (Fata). MOL Pakistan, an oil and gas exploration company, has commenced the 'Gravity Survey' in Tal block of North Waziristan Agency, besides it is planning to conduct drilling in the Biland Khel area under the same block, according to official data revealed on Tuesday. While, Oil and Gas Development Company Limited (OGDCL) has completed 2D seismic survey in the FR Barinu area of Latamber block in 2016 and the drilling would start by the end of 2017. The OGDCL has also planned to initiate the 2D seismic survey in the Wali Block, covering South Waziristan Agency, Lakki Marwat and FR Tank. At present, the project is under discussion with the law enforcement agencies and hopefully the survey would complete in the current year. Zhen-Hua, a Chinese company, has completed 2D seismic survey in the Baska Block of FR D I Khan. Whereas, another oil and gas exploration and production company - Hycarbex - has completed geological mapping in Peshawar Block of FR Peshawar, Orakzai and Khyber agencies last year. Al-Haj, an oil and gas exploration and production company, has completed 80 percent 2D seismic survey in Baska North Block of FR DI Khan and South Waziristan Agency. Last year, the OGDCL has completed geological mapping in the Orakzai and Tirah blocks and the 2D seismic surveys would start during the current year.

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SECOND LNG FSRU WILL SAIL TO KARACHI IN JUNE

January 17, 2017 The second LNG floating storage and re-gasification unit (FSRU) to be deployed in Pakistan has achieved completion and will sail to Karachi on schedule. Constructed by Samsung Heavy Industries, this brand new FSRU is the part of the fast-track LNG terminal being established by Pakistan GasPort Consortium Limited (PGPC) at Mazhar Point, Port Qasim. It will provide 600 MMCFD of regasification capacity to state-owned Pakistan LNG Terminals Limited (PLTL) under a 15-year contract at a tariff of $0.4177 per MMBTU. The FSRU owned by the BW Group, is scheduled to reach Karachi in June. The official naming ceremony for the vessel took place at the Samsung in Geoje, South Korea, on Jan 12, 2017. The FSRU has been named BW Integrity. "This is an occasion of great professional achievement for the men and women who worked for years to make this complex project a reality," said Minister for Petroleum Shahid Khaqan Abbasi in a message read out at the function. "This FSRU will more than double Pakistan's LNG regasification capacity to over 1,200 MMCFD," the message added. Speaking on the occasion, CEO BW Group Carsten Mortensen said, "BW Integrity represents our commitment to provide customers with high quality LNG shipping and regasification solutions. We look forward to a trusted, solid and strong working relationship with our friends and partners in Pakistan, as we deploy this vessel for the second Pakistan LNG terminal." The BW's first FSRU, BW Singapore, is currently involved in a 5-year contract providing LNG regasification and storage services at the Port of Ain Sokhna in Egypt. "BW Integrity is a vital and essential part of our plan to reduce Pakistan's gas deficit, provide fuel for 3,600 megawatts of brand new power-generation capacity, yield an estimated $1.5 billion in annual foreign-exchange savings, and visibly boost the country's economic growth," said Chairman PGPC Iqbal Z Ahmed. The vessel naming ceremony was hosted by DY Park, President and CEO Samsung Heavy Industries. Saira Ahmed, godmother of the vessel, read the encomium, cut the ceremonial rope with an axe, and officially named SN2118 as the BW Integrity. The ceremony was followed by an extensive tour of the FSRU and formal lunch. The function was attended by senior representatives of the PGPC, PLTL, Port Qasim Authority, Samsung, and Trafigura Holdings Limited, the world's largest LNG trading company.

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OGDCL AWARDS CONTRACT TO CHINESE COMPANY

January 18, 2017 Oil and Gas Development Company Limited (OGDCL) has awarded a contract to BSS Petrochemical Equipment Company China through local partner Gas Tech International for designing, manufacturing, supplying and commissioning of Hot Oil Package for its Uch-II Development project. The cost of the project is around $12 million. The production package comprises of four units of heaters along with hot oil circulation pumps, skids, sump and expansion vessel etc. The package includes complete instrumentation with PLC-based logic control. The system has already been installed and commissioned in December 2016 by the commissioning engineers of BSS along with OGDCL team. This is one of the largest Hot oil package plan ever commissioned in Pakistan's oil and gas plants and also the project come across with many challenges during its execution but in the end it was commissioned very effectively and it was great effort and achievement of the milestone from the manufacturer - BSS with the help of Gas Tech International to complete this massive process plant. OGDCL has become able to produce 300mmscfd gas into national natural gas system, which will help to bridge the demand-supply gap to some extent and reduce gas consumption load to domestic and commercial customers. The company is hopeful that the ongoing exploration of will lead to new discoveries and fortify the OGDCL reserves portfolio besides ensuring long term sustainability of the organisation and meting the need of the country's energy. During the last several years, the Company spuds more than 45 exploratory wells respectively, adding 944mmcfd of gas into the gas gird. However, it is noted that the current drilling figure is 40 percent higher than it was three years ago.

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MASSIVE AMOUNT BEING SPENT ON GAS TRANSMISSION WORKS

January 10, 2017 The government is following a compressive strategy to reinforce existing gas transmission network for which around Rs 3.571 billion will be spent in different phases. "Rs 71 billion are being spent on up-gradation of SNGPL and SSGCL transmission network across the country during the current fiscal year, besides initiating projects worth $2 billion North-South gas pipeline and approximately $1.5 billion Gwadar-Nawabshah gas pipeline and LNG terminal at Gwadar," official sources in the Ministry of Petroleum and Natural Resources told APP. Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGL) have planned to invest Rs 13,896 million on transmission projects, Rs 32,739 million on distribution projects and Rs 24,408 million on other projects bringing the total investment of Rs 71,043 billion. Commenting on the last year performance of companies, they said SNGPL and SSGCL had laid 116 kilometer gas transmission network, 1,848 kilometer distribution, 679 kilometer service lines and connected 203 villages and towns to gas network. During the period, they said the utility companies had invested Rs 9.959 billion on transmission projects, Rs 8.705 billion on distribution projects and Rs 13.705 billion on other projects bringing total investment to about Rs 31.919 billion. During the fiscal year 2015-16, they said, the companies issued 254,648 domestic, 202 commercial and 20 industrial connections. Answering a question, the sources said a 1,100 kilometer North-South gas pipeline will be constructed with Russian investment of $2 billion. Under the project, around 12.4 bcm (billion cubic meters) of gas would be transported from Karachi to Lahore per annum through a 42 inch diametre pipeline. Moreover, they informed that 42-inch diameter 700-kilomtre Gwadar- Nawabshah gas pipeline is expected to commence soon on the same route of Iran-Pakistan gas pipeline project in collaboration with China. The pipeline would be laid along with two compressor stations, while the terminal at Gwadar would have the capacity to handle up to 500 million cubic feet per day (mmcfd) of gas. The $1.4 to 1.5 billion project, he informed, was being executed on build-operate-transfer (BOT) basis, adding that the pipeline would pass through Pasni, Ormara and Hingol before reaching Nawabshah. The sources said 48 percent energy-mix needs of the country were being met through natural gas, adding that the country had an extensive gas network of over 11,538 kilometer transmission, 1,14,982 kilometer distribution and 31,058 kilometer services gas pipelines to serve more than 7.9 million consumers.

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PSO IMPORTS 500PPM ENVIRONMENT-FRIENDLY LOW-SULFUR EURO II DIESEL

January 08, 2017 Continuing its leadership role in transforming quality of fuels in the country, Pakistan State Oil (PSO) has imported the first vessel of the country's foremost low-sulfur diesel product that ensures a healthier environment and better performance of vehicles. The move comes just two months after PSO successfully launched higher-grade RON petrol for the first time in Pakistan. Bringing the fuel revolution that it triggered and spearheaded to a full-circle, PSO has received the first 55,000 MT low-sulfur diesel vessel from Kuwait, heralding a new era of premium quality diesel in the country with more to follow in the coming weeks and months. PSO's new low-sulfur diesel product with 500ppm (as opposed to 10,000ppm that the existing local diesel products from Karachi-based refineries contain), is the first and the only EURO II compliant diesel to be shortly available in the Pakistani market. "I congratulate Pakistan State Oil on becoming the first OMC to import the country's first environment- and vehicle-friendly diesel product, and compliment the company for materializing the vision of the Government of Pakistan and Ministry of Petroleum and Natural Resources of improved fuels in the country that has eluded us for decades," said Shahid Khaqan Abbasi, Minister of Petroleum and Natural Resources. "It gives us great satisfaction that the country's national oil marketing company has played the leading, proactive and responsible role in effectively transforming the country's fuel landscape within a short span of time," he added. "With the import of Pakistan's first low-sulfur diesel vessel, PSO has yet again emerged as an industry leader, working hand-in-hand with MP&NR to realize the shared mission of better fuels in the country," said Sheikh Imran-ul-Haque, CEO & MD Pakistan State Oil. "Having introduced LNG in 2015 and higher-RON 92/95 grade gasoline in November 2016, and now the low-emission diesel product, we are proud to be the torchbearer of Pakistan's fuel revolution and will continue to introduce and promote quality fuels in the country," he added.-PR

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OGDCL, CHINESE COMPANY LIKELY TO EXPEDITE OPERATIONS IN BALOCHISTAN

January 08, 2017 Oil and Gas Development Company Limited (OGDCL) is likely to go into a joint venture with Poly-GCL Petroleum Group of China to expedite exploration of potential oil and gas in Balochistan province. The country's largest oil and gas exploration company, OGDCL, has already awarded several contracts to a Chinese firm in Balochistan to conduct seismic surveys to expedite oil and gas recovery. In a steering committee meeting on China-Pakistan Economic Corridor (CPEC) - held a few weeks ago in Beijing on the sideline of the sixth meeting of Pak China Joint Co-operation Committee (JCC) with Chief Ministers of the four provinces it was decided to offer the oil and gas sector to Chinese companies. The Steering Committee on CPEC is headed by Prime Minister Nawaz Sharif and includes all the Chief Ministers of Provinces. To follow up the decision made in China, a Pakistani delegation, led by OGDCL Managing Director, Zahid Mir, Executive Director (Joint Venture) Masood Nabi and other senior officers from the Ministry of Petroleum and Natural Resources, left for China on Friday to hold initial talks with Chinese oil and gas companies. The government has sent this high level delegation to China with the scheduled departure a secret, as 'it is premature' given that talks with China on this issue are at a preliminary stage, sources added. Poly-GCL Petroleum Group has reportedly entered into a $500 million join venture with Ocean Pakistan Limited (OPL) for exploration of oil/gas sector in Sindh - the collaboration is focused on enhancing oil/gas production from depleting fields such as Zamama field which was once producing over 500 million cubic feet per day (mmcfd) but now its production is 150 mmcfd. The Zamzama Block in Sindh province has potential recoverable gas reservoirs of 300 billion cubic feet (bcf).

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OGDCL, CHINESE COMPANY LIKELY TO EXPEDITE OPERATIONS IN BALOCHISTAN

January 08, 2017 Oil and Gas Development Company Limited (OGDCL) is likely to go into a joint venture with Poly-GCL Petroleum Group of China to expedite exploration of potential oil and gas in Balochistan province. The country's largest oil and gas exploration company, OGDCL, has already awarded several contracts to a Chinese firm in Balochistan to conduct seismic surveys to expedite oil and gas recovery. In a steering committee meeting on China-Pakistan Economic Corridor (CPEC) - held a few weeks ago in Beijing on the sideline of the sixth meeting of Pak China Joint Co-operation Committee (JCC) with Chief Ministers of the four provinces it was decided to offer the oil and gas sector to Chinese companies. The Steering Committee on CPEC is headed by Prime Minister Nawaz Sharif and includes all the Chief Ministers of Provinces. To follow up the decision made in China, a Pakistani delegation, led by OGDCL Managing Director, Zahid Mir, Executive Director (Joint Venture) Masood Nabi and other senior officers from the Ministry of Petroleum and Natural Resources, left for China on Friday to hold initial talks with Chinese oil and gas companies. The government has sent this high level delegation to China with the scheduled departure a secret, as 'it is premature' given that talks with China on this issue are at a preliminary stage, sources added. Poly-GCL Petroleum Group has reportedly entered into a $500 million join venture with Ocean Pakistan Limited (OPL) for exploration of oil/gas sector in Sindh - the collaboration is focused on enhancing oil/gas production from depleting fields such as Zamama field which was once producing over 500 million cubic feet per day (mmcfd) but now its production is 150 mmcfd. The Zamzama Block in Sindh province has potential recoverable gas reservoirs of 300 billion cubic feet (bcf).

Copyright Business Recorder, 2017

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