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News Headlines for the month of
SEPTEMBER 2017

PARACHA SEES CNG SECTOR’S COMPLETE REVIVAL IN TWO YEARS

SEP 22ND, 2017 ISLAMABAD: All Pakistan Compressed Natural Gas Association (APCNGA) is confident that the CNG sector will fully revive with increased import of Liquified Natural Gas (LNG) during the next two years. "Around 3,200 CNG stations were operating in 2012 when natural gas supply to the outlets was stopped due to scarcity of the commodity, but now after May 26, 2016 around 2300 stations have restarted their operations - courtesy to LNG," the association's leader Ghiyas Abdullah Paracha told APP. With effective policies of the government, he said a number of private sector investors were taking keen interest in setting up LNG terminals and import of the gas, hoping that in next two years Pakistan would have the market of one bcfd (billion cubic feet per day) LNG. Paracha said CNG stations were operating round-the-clock in a week and getting uninterrupted supply of gas, adding that the association was planning to start import of latest CNG kits and cylinders. "We have got approval from Oil and Gas Regulatory Authority to import lightweight CNG cylinders and latest Electronic Fuel Injection (EFI) compatible kits, which will have eight to ten percent more mileage of vehicles," the chairman remarked. The association, he said, had finalized all the arrangements to start import of new lightweight 22kg CNG cylinders and compatible kits, which could be used in 660cc to 3000cc vehicles. "Two foreign companies from Italy and Singapore have agreed to provide EFI compatible CNG kits and new lightweight cylinders in Pakistan," he added. The chairman said the lightweight cylinders would have the same eight kilograms CNG filling capacity as of the old 60 kg CNG cylinders, adding that the new technology would be easy in handling and useful in fuel consumption, which would give better mileage. "It will be cost-effective as compared to the increased prices of vehicles. However, price of new cylinders and kits will be determined after their import," he said in reply to a question. In 2012, he said, Pakistan was on top among CNG-user countries with 3.7 million CNG-run vehicles. "Future will be of the inexpensive and environment-friendly fuel, which is almost 30 per cent cheaper than the petrol at the existing rates. Currently, CNG stations are consuming 100 mmcfd gas and it will be increased to 250 mmcfd level soon," he remarked.

Copyright APP (Associated Press of Pakistan), 2017

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PAKISTAN BECOMING REGIONAL ENERGY HUB, COMPANIES KEEN TO INVEST IN LNG BUSINESS

SEP 18TH, 2017 ISLAMABAD: Islamabad Chamber of Small Traders on Sunday said Pakistan can become an energy hub in the region as it borders China and India, two fast-growing and energy- starved nations. "Central Asian and Iranian gas can flow to India and China through Pakistan which is the cheapest route for the both," said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt. He said that TAPI pipeline, a 10 billion dollar project which can transport 33 billion cubic meter gas per day while it will benefit over 1.5 billion people, adding the pipeline would benefit a billion more if China starts getting the natural gas to spur its economy. Similarly natural gas from South Paras gas field of Iran will also improve energy situation through a 2775 km pipeline which can also be provided to India. He said that LNG policy initiated by the government had proved successful and now over a dozen local and foreign companies were interested in LNG business which will transform Port Qasim into an energy hub. The companies interested in installing regasification facilities include Lucky Group, Sapphire, Hallmore, Engro, Fatima group, Shell, Pakistan GasPort Consortium, Fauji Foundation, Exxon, Qatar Petroleum, Mitsubishi, Total and H?egh LNG. He said that LNG was the only short-term solution to Pakistan's energy crisis as rest of the other methods to produce energy were either too expensive or too slow. Previous governments had made several attempts to introduce LNG as a source of energy in the country, but only the PML-N government had succeeded in doing so, he said.

Copyright APP (Associated Press of Pakistan), 2017

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DECISION TO INVOLVE PRIVATE SECTOR IN GAS DISTRIBUTION LAUDED

SEP 13TH, 2017 ISLAMABAD: Business community here on Wednesday lauded decision of the government to unbundle gas utilities and involve the private sector in distribution. In a statement, President Pakistan Businessmen and Intellectuals Forum (PBIF) Mian Zahid Hussain said that the move would contain theft and enhance transparency which would result in new local and foreign investments in the energy sector to the tune of billions. He urged the provincial governments for cooperating with the federal government to create a new transmission company and four provincial distribution companies. The decision to involve the private sector in the distribution of gas would result in competition, reduced rates, and best practices as bulk consumers would not be bound to buy gas from a single entity, he added. The proposal has taken care of the domestic consumers who will be not affected by the new arrangement as they would continue to get locally-produced gas. The transmission charges would be fixed by the Ogra to minimize chances of exploitation, he observed. Mian Zahid Hussain said that there was only one terminal operational with 600 mmcfd capacity while some seven terminal would be built in Karachi with a combined capacity of 3600 mmcfd in few years which would end the gas shortfall, he informed.

Copyright APP (Associated Press of Pakistan), 2017

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GOVT STARTS EXTENSIVE OIL & GAS EXPLORATION IN FATA, KP

SEP 6TH, 2017 ISLAMABAD: Government has started extensive oil and gas exploration in different parts of the Federally Administered Tribal Areas (FATA) and Khyber Pakhtunkhwa to achieve self-sufficiency in the energy sector. An oil and gas exploration company has started 'Gravity Survey' in Tal and Biland Khel bloc in North Waziristan Agency, reported Radio Pakistan. Meanwhile, Oil and Gas Development Company Limited has also completed a 2D seismic survey in the FR Bannu.

Copyright APP (Associated Press of Pakistan), 2017

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WATER DRAINED FROM FIRST AQUIFER AT THAR COAL MINING SITE

SEP 7TH, 2017 ISLAMABAD: After reaching 90 meters depth at Thar coal mining site, the Sindh Engro Coal Mining Company (SECMC) encountered first water aquifer which has been drained successfully. "As per expectation, we did not face any difficulty in emptying out the first aquifer as there was not much water in it", said Chief Executive Officer of SECMC Shamsuddin Ahmed Sheikh while talking to APP on Thursday. He said besides mining operation, water extraction process from the second aquifer through pumps from 120 meters depth was also underway. However, he said that the company would have to struggle hard in draining water from the third aquifer as it seemed that underground lake existed above coal reserves. Mr Sheikh said that pumping water from third aquifer would be real challenge as the underground lake is being recharged continuously. "Dewatering will be a continuous process even after mining operation and during extracting coal from the reserves", he said adding that dewatering would be possible only when more water will be pumped out than the amount of water being recharged. He however, was very optimistic to drain the water from third aquifer successfully by extracting more water than that being recharged from the nearby underground lake. To a question, the CEO of SECMC explained that the underground water is highly saline and it would be stored in a water reservoir about 26 kilometers away from the mining site. Meanwhile Chief Operating Officer of the Company, Syed Abul Fazal Rizvi told this scribe that the water drained from the underground at the site would not create problems as it would be utilized at later stage when the two Thar Coal Power projects of 660 MW constructed at the mouth of the mine would start their operational work. "After recycling, this water would be supplied to the power plants for cooling purposes which would be a continuous process", he added. Thar is home to 175 billion tons of reserves, and it is the 7th largest coal reserves in the world, and the largest untapped coal reserves. Coal mining project has been undertaken for the first time with combined efforts of SECMC, the Sindh government and China Power International. The project is also a part of the mega project of China Pakistan Economic Corridor (CPEC). "CPEC was crucial to the development of Thar Coal as it enabled the projects to achieve financial close and move into execution", Shamdudding Ahmed Sheikh said. He informed that work on the coal mining project was going on smoothly and it is hoped that "we will reach at the coal level by end of next year. "As soon as supply of coal to the power plants starts, the commercial operation by the plants would be started and it is expected that by end of next year or early 2019, first unit of the four power plants would start its commercial operation", Sheikh remarked. He explained that besides coal mining operation, work on 1320 MW power plants comprising 4 units of 330MW each, costing $2.1 billion on the mouth of mine was underway as per schedule.

Copyright APP (Associated Press of Pakistan), 2017

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PETROLEUM DIVISION TO EXECUTE RS190MN NEW PROJECTS IN BALOCHISTAN

SEP 7TH, 2017 ISLAMABAD: Petroleum and Natural Resources Division would execute two new projects worth Rs 190 million for coal exploration and evaluation in different localities of Balochistan besides carrying out a survey for underground water in Quetta. "Out of total Rs 190.033 million estimated cost, an amount of Rs 88.023 million has been allocated to carry out two new schemes for coal exploration and evaluation in Nosham and Bahlol Areas of Balochistan, and the underground water survey," official sources told APP. Replying to a question, they said the Division would spend Rs 554.291 million, under the Public Sector Development Programme (PSDP 2017-18), to execute four ongoing and two new projects to step up exploration activities of natural resources for achieving self-reliance in the energy sector. An amount of Rs 415.807 million have been earmarked to acquire four drilling rigs and their accessories for the Geological Survey of Pakistan. While Rs 37.977 million would be spent on appraisal of newly discovered coal resources in Badin and its adjoining areas of Southern Sindh. The funds amounting to Rs 8.992 million would be utilized in exploration and evaluation of metallic and minerals in Bela and Uthal areas of district Lasbella, Balochistan. Similarly, Rs 3.492 million have been reserved for exploration of Tertiary Coal in the Central Salt Range of Punjab.

Copyright APP (Associated Press of Pakistan), 2017

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OGDCL DRILLED 22 WELLS, ADDED 18 IN PRODUCTION GATHERING SYSTEM

SEP 8TH, 2017 ISLAMABAD: The Oil & Gas Development Company Limited (OGDCL) has drilled 22 exploratory, appraisal and development wells, besides injected 18 new wells in its production gathering system during the last fiscal year. "The company also added approximately 1,337,395 barrels crude oil and 9,348 mmcf gas in its pool," official sources told APP. The wells including Qadirpur HRL-II, Kunnar-II, Rajian-9, Nashpa-6 & 7, Unnar-1, Thora Deep- 1 & 2, Pasakhi West Deep-I, Pasakhi East-I, TAY-2, 3 & 4, Dars-I, Dars Deep-I, Dars West-1, 6 Shah-I and Qadirpur-56 have been injected in the existing production gathering system. While, production testing has been completed at wells including Khamiso-I, Qadirpur-57, Sur Qammar-I, Dachrapur-3 and Chutto-I, they added. During the period, the sources said, the company also carried out successful workover jobs with rig at wells including Palli Deep-1, Rajian-2, Kunnar-8 & 10, Pasakhi-5, Pasakhi Deep-6 and Sono-8 to arrest natural decline and revive production from mature wells. As part of preventive maintenance plan, they informed that Annual Turn Around (ATA) of plants were carried out at Sinjhoro, Chanda, Nashpa, Bobi, Uch and Dakhni/Soghri fields. Due to which, the company witnessed an increase of nine percent in its average daily net crude oil production compared to the preceding period. Besides, it completed pressure build-up survey jobs at various wells of Uch, Bobi, Nashpa, Pasakhi, Sinjhoro and TAY fields to induce improvement in the current well flow parameters. Moreover, they said, in line with its production enhancement strategy, the company focussed on completion of ongoing development projects and utilization of latest production techniques to augment oil and gas production from its own and joint venture fields. As a result, the sources said, the OGDCL achieved its highest ever gross crude oil production of 50,354 bbl per day. The company's average daily net saleable production of crude oil is around 43,989 bbl, natural gas 1,051 mmcf, Liquefied Petroleum Gas 411 tons and sulphur 39 tons.

Copyright APP (Associated Press of Pakistan), 2017

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GAS COMPANIES SETTING UP OVER 60 LPG-AIR MIX PLANTS

SEP 8TH, 2017 ISLAMABAD: The government has planned to set-up over 60 Liquefied Petroleum Gas (LPG)-air mix plants in selected areas to facilitate consumers where natural gas supply does not exist. Two state companies, Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), would establish the plants in their respective far flung areas at an estimated cost of Rs 1353.29 million. "The companies will set up the LPG-air mix plants and supply lines using their own funds," official sources told APP. The companies would set up 30 air mix plants each on their respective transmission network in the areas of Azad Jammu & Kashmir, Chitral, Gilgit-Baltistan and backward areas of Balochistan. The setting up of the LPG-air mix plants would save these areas from the rapid deforestation, they added. Recently, they said, the Economic Coordination Committee (ECC) has also approved setting up of LPG-air mix plants at Murree (Kurbagla, Dewal, Company Bagh and Tret), Awaran and Bella. Answering a question, the sources informed that private sector had also been allowed to establish their own LPG-air mix plants for housing colonies subject to fulfillment of all codal formalities required for the purpose.

Copyright APP (Associated Press of Pakistan), 2017

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PPL SPENDS RS6.3BN UNDER CSR OBLIGATION IN SIX YEARS

AUG 25TH, 2017 ISLAMABAD: The Pakistan Petroleum Limited (PPL) has spent around Rs 6.322 billion under Corporate Social Responsibility (CSR) obligation in different oil and gas producing districts across the country during the last six years. The company carried out welfare schemes amounting to Rs 844 million, Rs 1,100 million, Rs 1,070 million, Rs 1,226 million, Rs 1,090 million and Rs 992 million in years 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16 respectively, official sources told APP. Giving break up, they said, the PPL spent Rs 1,164 million in health sector, Rs 1,239 in education sector, Rs 1,112 million for water schemes, Rs 306 million for infrastructure development, Rs 1,872 for provision of free gas to Sui Town, disbursed donations amounting to Rs 101 million, provided Rs 237 million relief to flood affected people and used Rs 291 milliion under the Petroleum Concession Agreement (PCA) during the period. They said the company's welfare schemes were in progress under PCA obligation in 10 blocks including Khuzzdar, Kalat, Barkhan, Kharan East, Kharan West, Kharan, Margand, Nausherwani, Habi and Bela West to extend maximum facilities to locals.

Copyright APP (Associated Press of Pakistan), 2017

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PPL SPENDS RS6.3BN UNDER CSR OBLIGATION IN SIX YEARS

AUG 25TH, 2017 ISLAMABAD: The Pakistan Petroleum Limited (PPL) has spent around Rs 6.322 billion under Corporate Social Responsibility (CSR) obligation in different oil and gas producing districts across the country during the last six years. The company carried out welfare schemes amounting to Rs 844 million, Rs 1,100 million, Rs 1,070 million, Rs 1,226 million, Rs 1,090 million and Rs 992 million in years 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16 respectively, official sources told APP. Giving break up, they said, the PPL spent Rs 1,164 million in health sector, Rs 1,239 in education sector, Rs 1,112 million for water schemes, Rs 306 million for infrastructure development, Rs 1,872 for provision of free gas to Sui Town, disbursed donations amounting to Rs 101 million, provided Rs 237 million relief to flood affected people and used Rs 291 milliion under the Petroleum Concession Agreement (PCA) during the period. They said the company's welfare schemes were in progress under PCA obligation in 10 blocks including Khuzzdar, Kalat, Barkhan, Kharan East, Kharan West, Kharan, Margand, Nausherwani, Habi and Bela West to extend maximum facilities to locals.

Copyright APP (Associated Press of Pakistan), 2017

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PETROLEUM DIVISION TO EXECUTE RS190MN NEW PROJECTS IN BALOCHISTAN

AUG 26TH, 2017 ISLAMABAD: Ministry of Energy's Petroleum Division would execute two new projects worth Rs 190 million for coal exploration and evaluation in different localities of Balochistan besides carrying out a survey for underground water in Quetta. "Out of total Rs 190.033 million estimated cost, an amount of Rs 88.023 million has been allocated to carry out two new schemes for coal exploration and evaluation in Nosham and Bahlol Areas of Balochistan, and the underground water survey," official sources said. Answering a question, they said the ministry would spend Rs 554.291 million, under the Public Sector Development Programme (PSDP 2017-18), to execute four ongoing and two new projects to step up exploration activities of natural resources for achieving self-reliance in the energy sector. An amount of Rs 415.807 have been earmarked to acquire four drilling rigs and their accessories for the Geological Survey of Pakistan. While Rs 37.977 million would be spent on appraisal of newly discovered coal resources in Badin and its adjoining areas of Southern Sindh. The funds amounting to Rs 8.992 million would be utilized in exploration and evaluation of metallic and minerals in Bela and Uthal areas of district Lasbella, Balochistan. Similarly, Rs 3.492 million have been reserved for exploration of Tertiary Coal in the Central Salt Range of Punjab.

Copyright APP (Associated Press of Pakistan), 2017

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GAS COMPANIES TO SPEND RS64.2BN ON REINFORCING TRANSMISSION NETWORK

AUG 23RD, 2017 ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) would spend around Rs 64.209 billion on upgradation of transmission and distribution network in their respective areas during the current fiscal year. "The gas utility companies have planned to invest Rs 12,702 million on transmission projects, Rs 43,045 million on distribution projects and Rs 8,462 million on other projects bringing the total investment of Rs 64,209 million," official sources told APP. Besides, the companies would provide approximately 414,723 new gas connections during the period, while National Assembly Standing Committee on Petroleum and Natural Resources has recently recommended that the two state companies - SNGPL and SSGCL - would give two million gas connections during the fiscal years 2017-18 and 2018-19. Answering a question, the sources said SNGPL issued 1.5 million new connections since the Pakistan Muslim League-Nawaz (PML-N) government came into power in 2013, and hopefully the figure would reach 2.5 million till completion of its tenure. Whereas, new connection on SSGCL network is granted without any delay and "there is almost no such pendency," they added. The sources said with the import of Liquefied Natural Gas (LNG), the energy situation had improved across the country, which is the cheapest alternative fuel and the only available remedy to meet the country's energy needs especially when the existing natural gas reserves were depleting. During July 2016 to February 2017, the sources said, the companies provided 360,465 domestic, 339 commercial and 20 industrial connections across the country. While, they spent Rs 17,925 million on transmission projects, Rs 11,183 million on distribution projects and Rs 14,925 million on other projects. The companies laid 814 kilometer gas transmission network, 4,153 kilometer distribution and 1,162 kilometer service lines and connected 104 villages and town to gas network. The sources said around 48 percent energy-mix needs of the country are 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.

Copyright APP (Associated Press of Pakistan), 2017

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POLISH COMPANY TO DRILL 14 OIL, GAS WELLS IN POTENTIAL AREAS

AUG 18TH, 2017 ISLAMABAD: A Polish oil and gas company, PGNiG, would drill 14 exploration wells in hydrocarbon potential areas during the current year. "The company has planned to step up its exploration and production activities and take the business volume to Rs 100 billion per year," officials in the company told APP. They said the company, operating in Pakistan since 1997, would play an important role in meeting Pakistan's growing energy needs. Before acquiring the current Kirthar Concession (Block 2667- 7) lies in Dadu district of Sindh, they said, the company operated and carried out exploration activities in four other Concessions namely Khanpur West, Sabzal, Mekhtar and Sabzal South. The Kirthar area and Lasbella in Balochistan zone-III. They said Rehman Gas Field was discovered in the Kirthar Block in 2009 which started production in 2013. "This was the first- ever gas produced from a "Tight Gas" reservoir in Pakistan," they claimed. In 2015, the officials said, the company discovered the Rizq Gas field which was the second Tight Gas Field in Kirthar Block and commissioned the Rehman Production Facility with a capacity of processing up to 40 million standard cubic feet of gas per day (mmscfd) gas. "PGNiG doubled its production from the Kirthar block when gas from Rizq Gas Field was added to the national grid in November 2016, which helped to reduce the increasing demand-supply gas for natural gas in the country," they remarked. Two more development wells have been planned at the already mature Rehman Gas field, an appraisal well on the new Rizq gas Field and an exploratory well to test a potential prospect in the northern side of the block. They said the company has so far invested more than 125 million dollars in Pakistan, adding that current daily production from the Rehman field stood at 24 mmscfd from four producing wells, which would be increased up to 90 mmscfd gas with full field development. The officials said the increase in production requires advanced technologies (horizontal wells, multiple transverse hydraulic fracturing, etc) for which an investment of more than $ 300 million would be made. "PGNiG is in active pursuit to increase its footprint in the Pakistani's upstream oil and gas sector and is also interested to develop the shale gas deposits here," he remarked.

Copyright APP (Associated Press of Pakistan), 2017

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SSGCL TO PROVIDE GAS TO OVER 137 VILLAGES THIS YEAR

AUG 15TH, 2017 ISLAMABAD: Sui Southern Gas Company Limited (SSGCL) will provide natural gas to over 137 villages of Sindh and Balochistan provinces during the current fiscal year. "Under the PM's Global Sustainable Development Goals Programme, SSGCL is working to lay around 490 kilometers gas pipelines to gasify 119 villages in Sindh and 18 villages in Balochistan by laying 77 kilometer network lines," official sources in Ministry of Petroleum and Natural Resources told APP. The company would spend Rs 1616.243 million in 119 villages of Sindh and Rs 630.043 in 18 villages of Balochistan for the purpose, they said adding that detailed engineering surveys were carried out in some localities while in some villages it had requested for approval of additional funds. "All these projects are being executed on recommendations of Parliamentarians and notables of the areas for provision of gas," the sources said. Answering a question, they said the two state companies - SNGPL and SSGCL - had laid around 6,129 kilometer transmission network in their operational areas during the last fiscal year. "The companies laid 814 kilometer gas transmission network, 4,153 kilometer distribution and 1,162 kilometer service lines and connected 104 villages and town to gas network," they added. The sources said the gas companies have provided 360,465 domestic, 339 commercial and 20 industrial connections across the country during the last year. Besides, the companies invested Rs 17,925 million on transmission projects, Rs 11,183 million on distribution projects and Rs 14,925 million on other projects bringing total investment to about Rs 44,033 million. Replying to a question, the sources said Pakistan has an extensive gas network of over 12,202 km transmission, 119,736 km distribution and 32,823 service gas pipelines to cater to the requirement of more than 8.4 million consumers across the country by supplying about 4 billion cubic feet per day natural gas. To another question, they said the companies would set up over 60 Liquefied Petroleum Gas (LPG)-air mix plants in selected areas where natural gas supply does not exist.

Copyright APP (Associated Press of Pakistan), 2017

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GILGIT BALTISTAN TO GET LPG AIR MIX PLANT

AUG 7TH, 2017 ISLAMABAD: Prime Minister Shahid Khaqan Abbasi on Monday said a Liquified Petroleum Gas (LPG) Air Mix plant would be established in Gilgit Baltistan to benefit 10,000 energy consumers. In a meeting with Chief Minister Gilgit Baltistan Hafiz Hafeez ur Rehman here at the PM Office, the Prime Minister said the LPG plant would significantly reduce usage of forest wood. The Prime Minister said the government was determined for the socio-economic uplift of Gilgit Baltistan and would continue to extend all out support. The Chief Minister congratulated the Prime Minister on assuming his office and extended him invitation to visit Gilgit Baltistan. He also apprised the Prime Minister on the status of various ongoing development projects in Gilgit Baltistan.

Copyright APP (Associated Press of Pakistan), 2017

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