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News Headlines for the month of
JULY 2010

KESC to get 560 megawatts electricity supply from CCPP at Bin Qasim by 2011

KARACHI (July 31 2010): Karachi Electric Supply Company (KESC) is going to have the electricity supply from its 560 megawatts Combined Cycle Power Plant (CCPP) project at Bin Qasim, by the mid of next year. As two more gas-based turbines has reached the city from France completing the three turbines of the plant, the supply from the important project would be started by June 2011, official sources in KESC said. According to the sources first turbine and associated auxiliaries have already arrived while the installation of different parts of the plant would be started next month. They said that the project containing total four turbines out of which three was gas based while another one was steam turbine. "The three gas turbines have been obtained from GE, France, and the steam turbine will come from HARBIN, China. After the completion of installation, the first turbine will start providing electricity to the KESC power network in June 2011, second in July, third in August on the open cycle the same year while the steam turbine from China will start in March 2012 in combined cycle mode," they added. Through a statement Tabish Gauhar, CEO of KESC, said "With this unprecedented investment into the private energy sector of the country, we now stand vindicated in front of our valued consumers who can see that our commitment to enhance our generation capacity has come true. This is a great moment in KESC's history and this will open a new era in the private energy sector." It is to mention here that, the World Bank had sanctioned at least Rs 27 billion for the project. Beside the utility had also loaned Rs 8 billion from a local banking consortium as mobilisation charges for the project. Though the project was earlier planned to start electricity generation by 2010, it with the delay of almost one year was expected to start supplying power to the city by 2011. The agreement with the Chinese firm, for the project was signed by the previous management of KESC in June 2008. Copyright Business Recorder, 2010

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GoP's fast track initiatives: PPIB seeks to give more incentives to five projects

ISLAMABAD (July 29 2010): Private Power Infrastructure Board (PPIB) is reportedly manoeuvring to extend additional incentives to 5 projects initiated under the GoP's fast track initiatives in 2009, informed sources told Business Recorder. Sources said PPIB has recently initiated two separate solicitations for private power projects of 600 MW through ICB, including a 300 MW project based on furnace oil (RFO) near Chiniot, and another 300 MW project based on coal to be located at Jamshoro, Sindh. However, attracting private sector investment remains a serious challenge - investment for enhancing capacity by 5000 MW by 2014-15 through ICB mode alone, as per procedures prescribed under the Power Policy, given the economic and financial constraints and security situation. The Board projected power shortages during next few years, and explored other options to attract private sector investment for power generation that it suggested may be engineered and/or tapped by proposing that the amendments in the Power Policy should be made so that unsolicited mode with certain revised qualifications and safeguards be reinstated. Following are the salient features of the revised qualifications and safeguards proposed in this respect: (i) evaluation of technical and financial strength by PPIB; (ii) approval by PPIB Board; (iii) issuance of Letter of Intent (LoI) upon submission of performance guarantee at $1000/MW; (iv) tariff determination and issuance of generation licence by Nepra; (v) issuance of Letter of Support (LoS) by PPIB upon submission of performance guarantee at $5000/MW; (v) financial close; and (vi) commercial operations. Moreover, PPIB is processing five private power projects with a cumulative capacity of 777 MW under GoP's fast track initiative, which were initiated by private sector investors/sponsors in 2009. These projects are at an advanced stage of development and are expected to be completed by 2011-12. Sources said sponsors of these projects have already employed and invested significant resources including but not limited to preparation of technical and financially viable proposals, arrangement of financing, identification of potential plant and machinery equipment suppliers, submission of requisite fees to Nepra for issuance of generation licence and tariff determination, etc. According to sources, PPIB has recommended to the government that these projects may also be processed under the revised mechanism. The Planning Commission and National Transmission and Dispatch Company (NTDC) have projected an urgent requirement for additional generation of 5,000 MW in order to bridge short-term power supply demand deficit. Copyright Business Recorder, 2010

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Government added 1708 megawatts to national grid: Gilani

ISLAMABAD (July 28 2010): Prime Minister Syed Yusuf Raza Gilani on Tuesday said the government added 1708 megawatts to the national grid while additional 2000 megawatts are planned to be included during the current year. In his opening remarks at the energy review meeting at PM Secretariat, the Prime Minister said the government was making strenuous efforts to bridge the gap between demand and supply, yet there were several challenges which had to be tackled with a well thought out national approach. The Prime Minister appreciated the public and provincial governments' co-operation for participating in the efforts of power conservation in national interest. He acknowledged both the federal and the provincial governments had shown high commitment in implementing the conservation measures. He thanked the Chief Ministers and their respective teams for demonstrating such support and commitment. Welcoming the Chief Ministers, Federal & Provincial Ministers and other participants in the meeting convened to review implementation of the Energy Summit decisions and evaluate the desirability of their continuity beyond July 31, 2010, the Prime Minister observed that the crisis has imposed heavy costs on economy and people have to endure long hours of loadshedding. "As you know, he added, the country has been in the grip of a persistent energy crisis since the last several years." The Prime Minister mentioned that the Energy Summit was held in April this year to evolve national consensus and mobilise public support for the future energy roadmap of the country, particularly the conservation measures to provide immediate relief in the situation. He said the summit was a major success for the political leadership of this country. For the first time ever national consensus was achieved on the national energy roadmap, he added. Subsequently, he said that the Energy Summit decisions were reviewed on May 10, 2010 and it was decided to reinforce their implementation to ensure immediate relief in energy situation in the country. The Prime Minister pointed out that there are still gaps in implementation of some conservation measures. Notwithstanding these gaps, he added, impact of the conservation measures has been impressive. He observed that the situation this year is better than the last year. He pointed out that about 1500 megawatts electricity is reportedly being saved per day. He mentioned that saving due to Saturday closure is reportedly 500 MW, which has provided the much-needed relief to industry, agriculture and household consumers. He said that in financial terms, the government is saving about $150 billion in operating costs. The Prime Minister apprised the meeting that recently the government of Pakistan jointly evolved an energy roadmap to eliminate loadshedding in the country which will be presented to the Inter-Ministerial Committee of the FoDP in October this year for funding and technical support of the international community. He said government of Pakistan is making strenuous efforts to bridge the gap between demand and supply, yet there are several challenges which have to be tackled with the well thought out national approach. The Prime Minister said the government is making all-out efforts to bridge the gap between demand and supply. He appreciated that the approval of Diamer Bhasha Dam by the Council of Common Interest is a milestone. He pointed out that the Dam will provide 4500 MW of power, in addition to the much needed water storage capacity for agriculture. The Prime Minister said the government announced a Vision Statement for the power sector, which envisages addition of 20000 MW by 2020. He further said that the new vision depends heavily on use of indigenous fuel resources such as coal, hydel, gas and renewable. He hoped that the World Bank would come out strongly in support of this vision with a higher financial outlay. He informed the participants that the government was given the understanding that the World Bank had agreed to provide support for coal-based power projects. He asked the Ministry of Water and Power to provide necessary support for infrastructure development in Thar Coal area. Copyright Associated Press of Pakistan, 2010

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Wind turbines, energy saver lamps: EDB to promote local manufacturing

ISLAMABAD (July 28 2010): Engineering Development Board (EDB) is actively engaged with local engineering industry to promote the up-gradation of local facilities for manufacturing of wind turbines and Component Fluorescent Lamps (energy saver lamps). According to EDB sources, ten entrepreneurs have been identified who can manufacture different parts of windmills. Recently, Descon Engineering has concluded agreement with Nordex, Singapore, which is a renowned name in the manufacturing of wind turbines, as a co-partner for erection of a 50 MW wind plant in Jhampir. The demand of Component Fluorescent Lamps has substantially increased in the wake of enhanced awareness on energy conservation. EDB has recently conducted a study to explore the prospects of local manufacturing of CFLs so as to minimise the cost and promote employment generation. Copyright Associated Press of Pakistan, 2010

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First coal-based powerhouse to be set up in DG Khan

FAISALABAD (July 26 2010): Punjab government has decided to set up first ever coal based 200mw power house near Ghazi Ghat in Dera Ghazi Khan district and called bids from international and national agencies in this regard. A spokesman of the Punjab Mines and Minerals Department told APP here on Sunday that in line with the decentralisation of power, ordered by federal government, the Punjab government has taken a number of steps for generation of power from available sources to overcome loadshedding in the province. He said the Punjab government has accordingly decided to engage consultants of international repute to prepare techno-economic feasibility for the power generation plant. A memorandum of understanding for procurement and supply of 2400 metric ton coal per day from Chamaling, district Lorali, was signed with Balochistan government for use of power generation, he added. The consultants would also conduct a study of the province power demand and the expected plant fact and load factor of the project over the period of next 30 years. The spokesman said site selection near Ghazi Ghat, Dera Ghazi Khan, was given due consideration to accessibility, topographical and general round, soil conditions, effluent disposal, existing power transmission network, he added. He informed that a study of the existing facilities and required infrastructure for undertaking project development and construction at the proposed site, including availability, need for roads and plant equipment transportation is also being conducting besides reviewing coal resources including the review of coal specifications, the proximate and ultimate analysis. Concluding, he said Chamalang coal deposits, if needed, had the potential to supply additional quantity of coal. The project will mitigate energy shortage in Punjab and Balochistan provinces. Copyright Associated Press of Pakistan, 2010

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Nimo Bazgo and Chottic dams: India allows power houses' inspection

LAHORE (July 24 2010): India has agreed to the inspection of disputed Power houses of Nimo Bazgo and Chottic dams which are under construction on the Indus River in occupied Kashmir. It was decided in the second round of talks between Pakistan Indus Water Commissioner Jamaat Ali Shah and Indian Indus Water Commissioner Aranga Nathan held here on Friday. Pakistani Indus water Commissioner, Syed Jaamat Ali Shah told reporter that date and time had been decided for the inspection of disputed power house on the Indus River. Pakistani delegation would inspect the powerhouse during the second week of August. He further said the latest and modern "Monitoring system of river water would be put in place by two sides which would be helpful to resolve "objections" raised by the both sides he added. While talking to the media after the second round of dialogues, Indian Indus Water Commissioner, Aranga Nathan said the dialogue took place in a very pleasant atmosphere. He said "in the first round of talks a positive break through occurred and both Pakistan and India agreed in principle to put in place a telemetry system on the Indus River to record and exchange exact data for the convenience of the both sides. Jaamat Ali said that India has also agreed for the regular inspection of pollution in the Hedaria, Kasure drains and Jhelum River. Interestingly, Indian Indus water Commissioner said "we did not agree on the issue of permanent inspection regarding the issue of pollution of various drains" we will instruct the concerning department for the control of pollution in the embankment of Ravi and Jhelum" he added. In the second day the commissioners had a five-point agenda for the meeting and discussed a formula for water sharing. Both sides emphasised on continuing dialogue to resolve water issues in accordance with the "Indus Water Treaty" between the two countries. The agreement was reached on the first day of their two-day meeting after the Indians "conceded to the utility" of the telemetry system in removing the confusion over water flow. Copyright Business Recorder, 2010

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Qureshi, Mashallah discuss import of 1,000 megawatts power project

ISLAMABAD (July 24 2010): Ambassador of Iran to Pakistan, Mashallah Shakeri called on the Federal Minister for Water and Power, Raja Pervez Ashraf on Friday and discussed various matter of mutual interest and bilateral co-operation particularly import of 1000MW power project by Pakistan from Iran. The ambassador briefed the minister on the recent development on the import of power project and informed the minister about the current status of transmission line from Iran to Gawadar. The ambassador also briefed him about his meeting with Prime Minister Gilani on the import of power project. Both the minister and the ambassador agreed to further expedite the project. They also agreed that delegation of technical experts from both sides would visit each other's country. It was decide that Ashraf would visit Iran next month for further deliberation on the import of 1000MW power project for its early completion. The minister stated that Pakistan is focusing to change its energy mix in the national grid and taking all possible steps to enhance the hydel and alternative energy generation share so that affordable power could be provided to the consumers. He expressed that Iran-Pakistan gas project will also help to reduce the cost of power generation. The ambassador discussed proposed Iran-Pakistan-Turkey rail link, Iran- Pakistan gas pipeline and others matters of mutual co-operation with the minister.-PR Copyright Business Recorder, 2010

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Thar coal field: Zardari asks Sindh to develop infrastructure

KARACHI (July 24 2010): President Asif Ali Zardari has asked Sindh government to begin and expedite work on infrastructure development in Thar coal field to facilitate the upcoming coal-based power projects. He was chairing a meeting, which reviewed the progress on Thar coal field and upcoming power projects at Chief Minister House here on Friday. He also assured his full support to the development of coal field and sponsors of coal-based power projects. Earlier, the President was informed that the bankable feasibility of Thar coal project will be ready by the end of August this year. The meeting was told that the quality of coal has been much better than expected because it contains lower moisture than lignite used in other parts of the world. He was told that the infrastructure development would need more funds than the allocations in PSDP. The total estimated cost of infrastructure development is more than Rs 148 billion. MD TCEB Ejaz Ali Khan along with SECMC Khalid Mansoor gave a detailed presentation with regard to ongoing progress on Sindh-Engro JV Project and said it has entered a critical phase where availability of infrastructure has to match the project time-lines. They said that in the first phase 1200 megawatts of power will be generated from coal and this will be further enhanced to 4000 MW in next phase. Copyright Associated Press of Pakistan, 2010

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KESC, USTDA sign agreement to assess Smart Grid System

KARACHI (July 23 2010): The Karachi Electric Supply Company Limited has signed a Grant Agreement with the United States Trade and Development Agency (USTDA) under which the USTDA has agreed to finance a feasibility study on the implementation of the Smart Grid System in Karachi aimed at cutting down electricity losses, says a Press Release issued here on Thursday. The signing ceremony for the USTDA Grant Agreement was held in Islamabad. Dr Naveed Ahmed, Head of Corporate Strategy at KESC and the American Ambassador to Pakistan Anne W. Peterson signed the agreement. The objectives of the feasibility study is to determine whether a Smart Grid system will help reduce KESC losses to the degree needed to justify major capital investment in the Smart Grid System. The release explained that a smart grid delivers electricity to consumers using two-way digital technology with an information and net metering system and includes an intelligent monitoring system that keeps track of all electricity flowing into the system. The smart grid system, which is an advanced upgrade of previous century's simple electricity dispatch system, also incorporates the use of super conductive transmission lines for less power loss. The study will define parameters including number of meters, technical capability, geographic boundaries, cost, and interfaces of a pilot Smart Grid project. It will also work out its financial performance, support financing, and produce specifications and international tender documents for such a pilot project. The study will also determine the parameters affecting technical losses of the KESC distribution system; establish adequate understanding and characterisation of the issues involved in non-technical losses, says the press release. The project would study the KESC distribution system in order to characterise and quantify the various types of losses, geographic and demographic constraints, and social acceptance issues. It will also design a pilot project covering specified business locations and a defined geographic area, primarily residential area, of Karachi or its suburbs. The study is expected to be completed by May 31, 2011.-PR Copyright Business Recorder, 2010

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Pepco shortlists two foreign firms to supply energy savers

LAHORE (July 23 2010): Pakistan Electric Power Company (Pepco) has short listed two foreign companies to supply 10 million energy savers among lifeline power consumers under $65 million loan from Asian Development Bank and French Development Agency. The company, Fire Fly Lightening Co (Ltd) from China and Beauty Shadow Co Ltd from Hong Kong with financial bids of $0.948/unit and $1.28/unit respectively were short listed out of eight bidders. The tender opening ceremony took place at Wapda House in the presence of Pepco officials besides representatives from the bidders. Technical bidding from eight local and international companies were invited from eight companies in December 2009. Pepco will distribute 30 million energy savers among power consumers through DISCOs and KESC network. The consumers will get free of cost 23Watt energy saver in exchange of two 40/100Waat energy bulbs. These energy savers will have two-year warranty with 10,000 hours life. The energy savers have become popular world wide as a major source of energy saving and they are replacing fast normal energy bulbs. Director General Pepco, Muhammad Khalid told reporters that 30 million energy savers are expected to conserve 1,131MW electricity in Pakistan. Regarding the usage of stock, he said, a stock of 100,000 energy savers was available with Pepco, which is likely to be supplied to hospitals and charity organisations. Copyright Business Recorder, 2010

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'Pakistan should take advantage of indigenous energy resources'

ISLAMABAD (July 20 2010): Pakistan should realise the potential of its indigenous energy sources to reduce effects on global warming and climate change, and to meet the increasing energy demand to keep the industrial wheel moving. Donald Carter, Advisor on Climate Change, SDPI and Shakeel Ahmad Ramay, Head, Climate Change Centre, SDPI said this at a seminar on 'Pakistan's energy policy: renewable vs expendable" organised by Sustainable Development Policy Institute (SDPI) here on Monday. In their joint presentation, Donald Carter and Shakeel Ramay stressed the need that Pakistan should take significant advantage of its indigenous energy resources such as water, biomass waste of agro-based industry, and municipal wastes along with alternative sources like, sun, wind, tidal waves and geothermal materials. In utilising such sources of energy, Pakistan would be able to reduce its contribution to the global Carbon emission main caused of climate change and global warming to improve energy security and reduce the costs incurred on import of fossil fuels as Pakistan meet 65 percent of its energy needs relying on fossil fuels. They said that development of hydel resources could help Pakistan to meet its increasing energy demand in future. Chairing the proceedings, Shafqat Kakakhel, former United Nations Assistant Secretary General, former Deputy-Executive-Director of the United Nations Environment Programme, and member board of governors, SDPI, maintained that there was relationship between climate change and energy, and energy and development. He said that various sectors of the economy lost over 6 billion dollars in 2008 alone due to load shedding and shortage of energy. In addition to these economic costs, there have been tremendous social costs of the on-going energy crisis, he added. He said that tapping the hydral power resources was most viable option besides solar as the cost of solar energy production has gone down by 65 percent in the recent years while nuclear energy option was extremely costly. Copyright Business Recorder, 2010

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Power generation to be doubled in 10 years

LAHORE, July 17: The government plans to double power generation in the next 10 years by initiating projects that could add a minimum of 20,000MW by the year 2020, said Prime Minister Yousaf Raza Gillani here on Saturday. Inaugurating 225MW Combined Cycle Power Plant at Baloki, he said this “20,000MW addition by 2020 programme” will comprise 6,000MW on hydro; 6,000MW on coal; 5,000 MW on gas, 1,000MW on Naptha and other indigenous fuels and the remainder 2,000MW from alternative energy resources, especially solar and wind. “We will ensure maximum efficiency gains in our generation, transmission and distribution systems,” the premier said. “Moreover, we will add to our conservation drive through induction of energy savers, solarisation of water heating and irrigation pumps. We also intend completing the projects designed to import hydro electricity from Central Asia and other regional countries as part of low – carbon strategies.” Gilani said by focusing on the country’s indigenous resources, Pakistan would not only decrease burden on balance of payments but would also lower the cost of electricity generation and provide relief to its people. Speaking on the occasion, Federal Minister for Water and Power Raja Pervaiz Ashraf has said the government is working to exploit all indigenous resources, reports APP. He said the tariff of power generated by Orient Power would come to around Rs 5.5/kwh which would be the cheapest power in the system other than hydel and would help offset some of the higher cost generation. He said approximately 900 plus MW of new RPPs and IPPs had been added to the system, while another 800MW of IPPs would be commissioning within the next three months, followed by yet another 600MW of IPPs. Not withstanding the fact that loadshedding could not be minimized during last year despite the efforts of the government, he said now the ministry was well on the track of addressing the situation over the coming months in order to provide substantial relief to the domestic and commercial sector consumers besides taking care of the power needs of industrial sector. As a result of the unanimous decisions taken in the National Energy Summit, he said loadshedding for industrial sector was almost zero while the agriculture sector was also getting 10 hours continuous supply. The minister said the president had encouraged the Ministry of Water and Power for initiating work on 32 small dams that would be constructed in all the four provinces. “During his recent visit to China an agreement has been signed for the construction of 1100MW Kohala hydro power project,” he added. The minister said the work on NeelumJhelum Hydel Project of 969MW was in full swing and efforts were being made to complete it one year before the scheduled time while the Khan Khawar hydel project of 72MW was complete and on test run. He remarked that the government had crossed the most difficult period of power sector deficit in the country and after Attock Power, Atlas Power, Nishat Power and Korangi Combined Cycle Power Plant this plant was the fifth IPP which was being launched within a short span of one and a half year. He paid his compliments to CM Shahbaz Sharif for showing greater solidarity with the federal government in public interest towards supporting energy conservation drive. Copyright Dawn, 2010

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Friends’ positive response to energy plan

ISLAMABAD, July 17: The Friends of Democratic Pakistan (FoDP) on Saturday accepted most of the proposals made by Islamabad for augmenting its energy resources. The proposals featured in a report estimated that the country would need at least 22 billion dollars for meeting its energy needs. The study, titled Integrated Energy Sector Recovery Report, was prepared jointly by the government and the Asian Development Bank. It contains recommendations to reform Pakistan’s energy sector and stresses that an investment of $7.7 billion was needed in the sector over three years. This will add an additional 6,700 megawatt to the national grid. The report also identifies a requirement of $14.88 billion in private sector investments for priority projects in the energy sector. The meeting was chaired by Foreign Minister Shah Mehmood Qureshi and it was attended by officials from Australia, Canada, China, Denmark, France, Germany, Iran, Italy, Japan, Republic of Korea, The Netherlands, Norway, Saudi Arabia, Spain, Sweden, Turkey, UAE, the UK, US and representatives of United Nations, the European Union, the Asian Development Bank, the Islamic Development Bank and the World Bank. The recommendations will be presented at an FoDP ministerial meeting in Brussels in October, where countries are expected to negotiate projects with Pakistan for investments and financial support in the energy sector. The Saturday meeting was informed that there is need to focus on energy sector as one of the priority areas because power shortages were creating enormous economic loss to the country. The weak economy was creating hindrances for the government’s efforts to combat extremism and terrorism, while jobless youth were becoming breeding grounds for the extremists. A presentation was given on the Malakand Development Strategy and the PostCrisis Needs Assessment (PCNA). It was emphasised that the PCNA should be completed as soon as possible and the meeting noted that PCNA should help address the root causes of extremism and terrorism. It was informed that the World Bank Multi-Donor Trust Fund for Khyber Pakhtunkhwa, FATA and Balochistan was now operational which would facilitate funding for projects in areas affected by terrorism, militancy and extremism. The meeting agreed to propose a draft agenda for the Ministerial Meeting, namely that includes Integrated Energy Sector Recovery Report, Malakand Development Strategy and Post-crisis Needs Assessment, Institution-capacity Building, and Public-Private Partnership. Meanwhile the U.S. Special Representative For Afghanistan and Pakistan, Richard C. Holbrooke in his address said that there is need to develop Water Sector Task Force under the FoDP. “I also formally propose that the next focus sector for the FoDP should be water,” he said and added that Pakistan faces severe water challenges that hamper its economic development and create internal discord. The participants of the meeting praised the people and security forces of Pakistan who have sacrificed for their opposition to violent extremism Copyright Dawn, 2010

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Multimillion dollar contract for 320 megawatts plant: power ministry's top brass backing GE Energy

ISLAMABAD (July 17 2010): The top brass of the Ministry of Water and Power is reportedly supporting the award of a multimillion dollar contract to GE Energy, without going through the tender process, for the erection and commissioning of 320 MW plant gifted by the United Arab Emirates (UAE), sources close to Shahid Sattar, Energy Advisor, Ministry of Water and Power revealed exclusively to Business Recorder. The UAE has donated a 320 MW power plant comprising the following gas turbines: 05 Nos. frame-5 gas turbines of 16 MW capacity each and 08 Nos. frame-6 gas turbines of 30 MW capacity each. Sources said Abu Dhabi Water and Electricity Authority (ASWEA) awarded the contract to ADAT for dismantling, sea worthy packing, transportation to port and marine transportation to Karachi Port. The dismantled gas turbines are expected to arrive in Pakistan by August 2010 for ultimate installation on the premises of GTPS, Faisalabad. The sources said gas turbines were originally designed and manufactured by GE and were commissioned in Abu Dhabi in 1973-74 and 1994-95. Prior to dismantling the plant, the gas turbines were subject to operational test under supervision of GE representatives. According to Shahid Sattar, a designer and manufacturer of gas turbines, the services of GE for re-erection and guaranteed performance of said power plant at GTPS, Faisalabad would be sought. Consequently sealed offer is invited for erection, civil works, testing and commissioning of gifted power plant at Faisalabad along with supply of additional new equipment/material to make the power plant operationally complete in all respects. The firm has been asked for a bid proposal to accompany a bid bond amounting to 2 percent of the bid value in equivalent rupees to be issued from any scheduled bank of Pakistan, with tentative validity up to December 31, 2010. Upon finalisation and formal signing of the contract agreement, the said bid bond shall be returned, in original, upon submission of a performance guarantee amounting to 15 percent of contract value issued by a scheduled bank of Pakistan. The ministry is of the view that a preliminary scope of work has also been sent to GE Energy for completion of the plant. The financing of the project is intended to be met out of proceeds of USAID funding. The sources said a request for this purpose has already been made to USAID. GE Energy has been requested to submit a technical and financial proposal for re- erection of gifted power plant at the earliest but not later than July 25, 2010. Wapda's Chief Resident Representative at Karachi (CRRK) has a full-fledged establishment at Karachi to take care of all formalities dealing with cargo handling for the importation of various power plants/equipment. Pepco is also using the same facilities for expeditious clearance and transportation of equipment pertaining to its power plants, etc. The transportation of the cargo to be shipped from UAE will also be handled through Wapda's approved transportation contractors on receiving the subject power plant. The contractors have the necessary expertise/resources to expeditiously and safely transport the equipment from the port to any site in Pakistan. The sources said adequate storage area, if required, would be available at Port Qasim. Docking and unloading of the vessels carrying subject power plant will be prioritized in consultation with relevant port authorities to ensure early release of vessels. According to sources, the government will also exempt the plant from necessary third party inspection requirements of gifted equipment and this exemption has been obtained from the Ministry of Commerce, Government of Pakistan vide its letter No 20(10/2006-Imp-I dated 01.07.2010. Copyright Business Recorder, 2010

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'Power generation through steam turbines cost effective'

LAHORE (July 17 2010): Power generation through steam turbines is one of the solutions to high cost electricity and acute power shortage. Chief Executive Officer Mian Suhail Hussain of a private turbine manufacturing firm stated this while giving a presentation on power generation through steam turbine at the Lahore Chamber of Commerce and Industry. The LCCI Acting President Ijaz A Mumtaz said that the sole objective of the presentation was to introduce the new technologies to its members so that they could be well versed with fast changing global advancements. Mian Suhail Hussain said that there was a dire need to adopt alternate means of electricity generation in the face of worst-ever electricity crisis. He said that use of biomass or coal to generate electricity by using steam turbines and high pressure boiler is a solution to energy problem. He said that through this system the industrialists could generate cheaper energy to ensure uninterrupted power supply as it carries no transmission or distribution losses. He said that power generation with steam turbines is not only environment friendly but also curtails dependence on national grid. He said that in conventional power generation the losses are up to 65 percent, while through co-generation the losses are only 10 percent. Elaborating the point, Mian Suhail Hussain said that co-generation or electricity through steam turbines does not produce electricity, it merely converts heat to electrical energy. He said that co-generation can be done in wood and agro industries food processing, pharmaceutical, pulp and paper, refineries, textile, steel, cement, glass and ceramic sectors. Mian Suhail said that through back pressure turbine electricity could be produced at the rate of Rs 1.80 per unit to Rs 2.50 per unit while through condensing turbine, the rate of power produced is Rs 3.50 per unit to Rs 5 per unit. In his remarks, the LCCI former President Mian Anjum Nisar said that investment in right technology was a prerequisite to be competitive in the global market. He said that industrialists should also ensure energy audits of their respective industrial units so that they could plug the wastage of electricity. He said that this technology is the cheapest for the industries utilising both steam and electricity for their in-house processes and its cost is recoverable in three years time an Anjum Nisar said that the most encouraging factor is that biomass fuels including rice husk, corncob, wood and cotton wood are available in abundance in the province. Copyright Business Recorder, 2010

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National grid to have another 1500 megawatts by December

LAHORE (July 11 2010): Minister for Water and Power, Raja Pervez Ashraf has said the national grid will have another 1500MW by December 2010 which would help curtail the shortage of electricity. Speaking at the Lahore Chamber of Commerce and Industry, here on Saturday, the minister said that seven projects have already been commissioned within one year. While another 1500MW will be added into the national grid by the end of this year, thus reducing the power supply-demand gap. He said that work on Neelum-Jhelum project is in progress and hopefully would be completed in stipulated time frame. The minister said that like many other countries in the world, Pakistan is also facing energy crisis. He said that the government believes in the policy of facilitating the investors, and desires to join hands with the private entrepreneurs. The government's attitude was positive and responsive to the investors, and they wish to facilitate them and extend co-operation for development of power sector in Pakistan. He added that in order to make electricity affordable, an energy mix was utmost necessary, and therefore the government was spending all its energies on the use of indigenous resources like hydropower and local coal at Thar, as well as imported coal. The minister said the government was working hard to end energy crisis and hopefully the electricity situation would improve soon in the country. He said that the Prime Minister Gilani would convene another Energy Summit soon. The LCCI Acting President Ijaz A Mumtaz said that water scarcity and energy crisis have hit Pakistan badly calling for exploitation of all the available resources for the production of required amount of electricity. He said that the way in which they were used to handle all resources and national affairs, this catastrophic occurrence was bound to take us over. Nature's endowment of water blessings upon Pakistan had always been envied by the world at large. The current government has announced two holidays a week and the early closure of markets but by taking these measures the energy shortage could be controlled for the time being but this was not a permanent solution of the problem. Referring to the Islamabad conference an equivalent supply of energy was to be supplied in all major cities of the country, but still the supply of 650MW or more to Karachi has not been cut short to 350MW, as per decision. It is of great concern for the industrialists that why there was unscheduled loadshedding when the schedule was already given by the government. Quick and urgent measures should be taken to stop prolong and unscheduled loadshedding, he said. The government should make long-term planning for the permanent solution of electricity shortage. There was a need to exploit all the available resources for the production of required amount of electricity, he said and added that there were many alternate sources to produce electricity. Copyright Business Recorder, 2010

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Work on Ghabir dam yet to start

ATTOCK, July 10: Work on the construction of Ghabir Dam in Talagang tehsil has not been started despite inauguration of the project by President Asif Ali Zardari about six months back. The foundation of the dam was laid on January 21 and it was scheduled to be completed by September 2014. The dam is to be constructed on Ghabir Nullah near Danda Shah Bilawal village at a cost of over Rs7 billion. A visit to the project site showed no sign of construction activity except lining of lime stones which had been marked on the inauguration day. Locals claimed that even the foundation stone laid by the president had been taken away by some government officials the very next day of the ceremony. Sources said even holding of the inaugural ceremony of the project was premature as it was held even before the award of project's contract. To be built under the supervision of Small and Medium Dam Organsitaion, Wapda, the dam will store flood water of the nullah for irrigation of 34,483 acres of arid land and generate 50 kilowatts of electricity. The dam will have the storage capacity of 66,203 acres feet of water which will help the government in fulfilling its plan of exploiting land and water resources of the country for agriculture development, hydropower, flood control and socio-economical uplift of the local people. The PC-1 was approved on September 3, 2009, by the Executive Committee of the National Economic Council (Ecnec) after which tenders for construction of the dam were invited. When contacted, Wapda spokesman Rana Abid said contract of the mega project had almost been finalised and the construction work would be started in a few days. He also said that the project would be completed within the stipulated time. Copyright Dawn, 2010

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Australia to help Pak in energy, agri sectors: HC

Islamabad—Australian High Commissioner to Pakistan Timothy George on Wednesday said that his country was keen to further expand business and commercial ties with Pakistan. During his visit to Zarai Taraqiati Bank Limited (ZTBL), he said that his government would provide possible help in economic, energy, agriculture related challenges faced by the people of Pakistan. “Most significantly we would focus on development of agriculture sector besides other areas of cooperation as it has very good working relationship with Pakistan and its people for years”, he added. We want to further develop bilateral trade relation, specifically looked towards promotion of technology and extend necessary cooperation in agriculture sector, he added. Earlier ZTBL President Zaka Ashraf gave a presentation on banks’ operational performance and its proactive role in the development of agriculture sector. The bank chief said that ZTBL has increased the disbursement from Rs.56 billion to RS.78 billion registering an increase of Rs.22 billion. He informed that ZTBL was planning to expand its outreach which was direly needed for the overall development of the agriculture sector. He further said ZTBL was the major financial institution in the agriculture sector and have been exploring new avenues of investment in the agriculture sector so as to introduce technology, increase production and farmers’ income and hence helped to alleviate rural poverty . The bank has made strategic five year plan, he said adding that under the plan bank would encourage lending for water conservation projects, development of model villages, lending for edible oil crops to reduce the import bill of Rs. 111 billion. He further said that the bank has set a credit target of Rs.80 billion for this year and ZTBL wanted to provide credit with technology. For this we have to share the experience and knowledge of other countries and therefore invited number of delegations from World Bank, ADB, China , Australia and USA . The Australian High Commissioner expressed that Pakistan and Australia will work together to meet the food security challenges as Pakistan has lot of resources and potential in this area. Copyright Pakistan Observer, 2010

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Energy efficiency promotion: Pakistan and France sign 20 million euros agreement

ISLAMABAD (July 10 2010): Pakistan and France on Friday signed 20 million Euros agreement to promote energy efficiency in residential lighting and free distribution of 30 million compact fluorescent light bulbs (CFL) to the Pakistani households. The agreement corresponds to the first tranche of $1.1 billion Energy Efficiency Investment Programme co-financed by French Development Agency (AFD) and Asian Development Bank. Secretary Economic Affairs Division, Sibtain Fazal Halim, Daniel Jouanneau, Ambassador of France to Pakistan and Yves Terracol, Country Director of the French Development Agency signed the agreement. After its implementation, the project is expected to lead to a 1,100 MW reduction in peak demand, thus saving Pakistan 1,315 million Euros in investment that would have been necessary to meet the demand. The free CFL bulbs will be of excellent quality, with a life span of 10,000 hours and with specific markings so that they cannot be resold on the market. The overall cost of the project is estimated at 61 million Euros, of which 20 million is financed by AFD. The expected fall in energy consumption will not only lower energy bills of both households and public consumers, but will also lead to a reduction in green house gas emissions of 1 million tonnes of carbon dioxide (CO2) per year, allowing the country to benefit from 21.2 million Euros worth of carbon credits over an eight-year period. A Financing Framework Agreement (FFA), covering the whole programme was also signed by the Secretary EAD and AFD Country Director. The programme has been launched by the government to help tackle the present energy crisis and prevent future crisis. As a member of the group of Friends of Democratic Pakistan, France is very sensitive to the welfare of the Pakistani population and is committed to implementing projects providing sustainable development for the Pakistani people. France pledged 300 million Euros during the FODP summit in Tokyo last year. The exceptional potential of Pakistan in terms of hydropower encourages both Wapda and AFD to jointly engage in other projects in the near future. The rehabilitation of the Jabban power plant in the Khyber Pakhtunkhwa province has already been approved and will be followed by other projects aimed at addressing Pakistan's energy crisis. Copyright Associated Press of Pakistan, 2010

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Businessmen welcome Chinese investment in energy sector

ISLAMABAD (July 09 2010): The Islamabad Chamber of Commerce and Industry (ICCI) Thursday lauded the resolve of China to invest around $10 billion in the power sector of Pakistan, saying this would be a huge support to rid Pakistan of the ongoing energy crisis and great economic losses. Chairing a meeting of businessmen, Karim Aziz Malik, Acting President ICCI said signing of agreement on economic and technical co-operation, and four MoUs will create more beneficial results for the economies and people of both the countries. He said Pakistan is endowed with plenty of coal, hydro, wind and solar energy potential, however, due to lack of capital and technology, the country could not exploit these energy sources. This is an area where China can help Pakistan by making maximum investment to fully exploit available energy sources, he added. He, in this regard, termed China's investment in different power projects in Pakistan like investing $2.6-billion at Kohala Hydel project to produce 1200 MW and $8-billion in Bunji Dam to produce 7000 MW, crucial to strengthen Pakistan. Malik said Pakistan also offers unique investment opportunities, which include low cost and hard working labour, liberal incentives and access to huge markets of countries in the region. Therefore, China should take advantage of these opportunities by investing more in Pakistan. He hoped that the current visit of President Asif Ali Zardari to China would open up many new avenues of friendship and co-operation between the two countries. Expressing views on the occasion, businessmen said China has now become the second largest trading partner of Pakistan, which shows its great interest to supporting latter's economy. They said that China has made phenomenal progress in all sectors of the economy, and close co-operation with it will further significantly improve the economy. Copyright Associated Press of Pakistan, 2010

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Zardari urges China to invest in energy

BEIJING (July 08 2010): President Asif Ali Zardari on Wednesday met the leaders of a dozen of China's corporations specializing in defence, petroleum, banking, industrial and construction sectors to further Islamabad's quest for attracting Chinese entrepreneurs to invest in Pakistan in return for liberal economic incentives and security to Chinese manpower. The corporate leaders with whom the president met separately in the State Guest House included the chief executive officers and their delegations of the EXIM Bank of China, the Three Gorges Dam Project Corporation, China Northern Railways Corporation, China Northern Industries Corporation (NORINCO), China Petrochemical Corporation (SINOPEC Group) Sinotruk, Tebian electric and Apparatus Stock Co, Sinohydro Corporation and Industrial and Commercial bank of China. Briefing the journalists presidential spokesperson Farhatullah Babar said that the president informed the corporate leaders that Pakistan had a Free Trade Agreement with China in goods, services which ensured full security to Chinese investment in Pakistan. He said that low cost and hard working labour together with liberal incentives and access to huge markets of countries in the region Pakistan offered unique opportunity to Chinese investors to invest in Pakistan. The president thanked the Chinese corporations already doing business in Pakistan and said that the true potential of business partnership between the entrepreneurs of two countries had yet to be fully realised. Zardari said that despite adverse geopolitical situation and global financial crisis Pakistan had maintained steady growth. To sustain this growth Pakistan had embarked on private-public partnership mode of development model, which was most suited to investors in infrastructure and energy sectors. Farhatullah Babar quoted the president as saying that the government planned to launch a mega housing project in the country to overcome housing shortage particularly for the government employees. For this purpose high rise apartment buildings are planned to be constructed in major cities of the country which will be given to public officials on mortgage basis. The president invited Chinese builders and construction companies to form consortiums with Pakistani firms on the basis of equity partnership. He said that the state partnership in the project could be in the form of land and some other essential inputs and facilities. The president said that Pakistan was facing acute power shortage and intended to add tens of thousands of megawatts of power to its national grid in the next 25 years through combined hydro, coal, gas, nuclear and renewable energy sources. The president apprised the corporations dealing in alternate energy of the enormous potential of solar and wind energy in Pakistan and invited them to join in partnership with Pakistani entrepreneurs. Meanwhile talking to media persons, the president of the EXIM Bank Li Rougu said, "He discussed long term co-operation between the two countries in financial sector" with emphasis on expanding co-operating in banking sector. The Chairman of China's Three Gorges Corporation Cao Guagjing after meeting with Zardari said, "We are in agreement with government of Pakistan to develop hydro and other means of power generation including wind energy". The Director General International Water and Electric Corporation who was also part of the delegation and according to Chinese investors, said that in the coming years, Chinese companies intended to make investment of around $10 billion in power generation sector. The Chairman China Poly Technology Zhang Liansheng said that he had inform Zardari that his company was fully interested in making investment in big way in energy sector. He said that president had invited a delegation of his company to visit Pakistan and see for themselves the vast potential of investment his country offers. The Chairman Sino-Hydro Liu Qitao told the media after meeting with President that his company has presence in Pakistan for two decades. The Sino-Hydro specialises in building the infrastructure for power and irrigation projects. He pointed out that the Sino-Hydro will carry out a big irrigation project by building Darwat dam. Copyright Associated Press of Pakistan, 2010

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Pakistan needs large investment in energy sector: Prime Minister

ISLAMABAD (July 08 2010): Prime Minister Syed Yusuf Raza Gilani on Wednesday urged the Ministries to work in an institutionalised manner and enhance co-ordination to achieve optimal results despite resource constraints. He said that Pakistan needs large investment in the energy sector. He asked the Ministries of Food and Agriculture and Water and Power to finalise operational plans and identify potential areas of co-operation with the US to reap maximum benefit through this co-operation. The Prime Minister while chairing a high level preparatory meeting in connection with the forthcoming Pakistan-US Strategic Dialogue here at the PM Secretariat on Wednesday said energy and food security are key sectors where Pakistan can seek the US assistance. He asked the Ministry of Food and Agriculture to work out a foolproof strategy to enhance exports of agricultural products like marketing of mangoes and other fruit in the United States. The Prime Minister reiterated his direction to the Ministry of Agriculture to install 1100 tube wells in Balochistan being offered under the US agriculture support programme for the uplift of agricultural production in the province. He asked the Ministry of Water and Power that a clear mechanism ought to be worked out in advance through consultation with the Balochistan administration for collection of electricity charges from the tube wells to be installed under this scheme. Finance Minister Abdul Hafeez Sheikh apprised the Prime Minister that potential areas of co-operation with the US have already been identified in the fields of food, agriculture, livestock, water and power, IT, education, social sector and public diplomacy. Minister for Water and Power Raja Pervez Ashraf gave a detailed account of the projects identified in the energy sector for co-operation with the US. The Minister said that out of the pledged 32 medium and small dams, the operational plans for construction of first scheme of 12 dams, 3 each in Sindh, Punjab and Balochistan, and 2 in Khyber Pakhtunkhwa, have been prepared. He also apprised the Prime Minister of the progress of the negotiations with the US about thermal, wind power projects and revamping/rehabilitation of the energy sector projects. He further said that the preparatory work on installation of two plants gifted by the UAE at Faisalabad and Multan to cater for the needs of the textile industry has also been finalised. Minister for Food, Agriculture and Livestock Nazar Mohammad Gondal gave a detailed presentation both on bilateral (Pakistan & USA) and trilateral (Pakistan, USA & Afghanistan) co-operation programmes. He said that his ministry is seeking co-operation of the US Government in the fields of development of wheat with special focus on UG-99 research, development of a cotton variety resistant to cotton leaf curl virus, livestock production development with special focus on foot and mouth disease, high efficiency irrigation system, watershed management, small and medium dams and re-invigoration of extension system to enhance agriculture production and achieve food self-sufficiency. He also informed the Prime Minister that Pakistan has offered to partners with the US on President Barack Obama programme for Global Food Security. The meeting was also attended by the Secretaries Finance, Food and Agriculture, Water and Power, Principal Secretary to the Prime Minister and other concerned senior officials. Copyright Associated Press of Pakistan, 2010

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Power supply in Balochistan to be ensured soon: Minister

ISLAMABAD (July 08 2010): Federal Minister for Water and Power, Raja Pervez Ashraf has said that concrete steps are being taken to ensure smooth power supply in Balochistan. He made these observations while talking to Nawab Aslam Raisani, Chief Minister Balochistan who called on him here on Wednesday along with his five members of provincial cabinet and discussed various issues related to supply of electricity in the province. The Chief Minister and his Cabinet members briefed the meeting on the electricity related issues in Balochistan and discussed various measures to resolve it at the earliest and prospects of new power plants through geothermal, wind and solar. He also informed that the agriculture sector of Balochistan is facing difficulties due to shortage of power supply and asked the minister to make necessary arrangements for maximum uninterrupted supply to the agriculture sector as it is only source of income of mostly population of Balochistan. The minister said that work on Dadu Khuzdar 220 KV double circuit line and Dera Ghazi Khan-Lora Lai 220 KV is underway which, after completion in June 2011, would generate about 600 MW additional electricity for the consumers of Balochistan. Agreement between Iran and Pakistan has been finalised for import of 100 MW electricity from Iran for Gwadar, he said adding coal-run power plant has been proposed through joint venture of Pepco and government of Balochist an in the province. Ashraf further said that ongoing electricity shortages partly due to sabotage activities by miscreants in Balochistan would be resolved in next 6-8 days and informed that Sibi-Quetta Transmission line would be restored by July 10. He also informed the delegation that a project of 250 MW has also been proposed in Shaikh Manda in Quetta, adding that 14 grid stations would be set up in various localities of Balochistan financed by Asian Development Bank (ADB). He said some of existing grid stations and transmission lines would be upgraded for system improvement. The minister said that different electricity improvement projects in Balochistan are underway which would resolve the problem of loadshedding shortly besides rendering additional electricity. The chief minister thanked the minister for the electricity improvement plan and assured that security would be provided for protection of power installation and transmission lines in Balochistan. He also said that government of Balochistan will support the proposed power plants in the province. The meeting was attended by Provincial Ministers Mir Asim Kurd, Syed Ihsan Shah, Amanullah Shams, Zamurk Khan, Mir Sadiq Umrani, Shahid Rafi, Secretary Ministry of Water and Power, Riaz Ahmed Khan Advisor, CEO NTDC and senior officers of Ministry of Water and Power. Copyright Associated Press of Pakistan, 2010

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ADB considering to provide $100 million for Uch-II Power Project

FAISALABAD (July 08 2010): Asian Development Bank is considering to provide $100 million for Uch-II Power Project. According to an update project report of Asian Development Bank said that the project will be developed under the 2002 Power Policy and will be undertaken according to a 25-year Build, Own, and Operate (BOO) structure. The tariff has been approved by the National Electric Power Regulatory Authority (Nepra)-Pakistan's power sector regulator. Project report revealed that the project addresses Pakistan's growing energy deficit by adding 404 MW (11 percent of forecast 3,500MW, shortfall) power generation capacity and promote higher energy efficiency in the country's power generation mix by commissioning a combined cycle power plant fuelled by a low BTU gas. The project by using domestic gas decreases reliance on imported oil and diesel fuel for power generation, thereby relieving pressure on precarious foreign exchange reserves. In addition, the project stimulates employment and economic growth in Balochistan. The project continues to produce treated water at the contracted capacity of 400,000 cubic metres per day. This represents about 34 percent of the current total water demand in Chengdu city. ADB's support for the Project is in line with the Pakistan Country Strategy and Programme Update, Country Partnership Strategy (CPS), and GoP's strategic emphasis on energy sector development. The Project Uch-II intends to build, own and operate a 404MW power plant within in the premises of Uch Power Station.Uch-2 will comprise of a combined cycle arrangement featuring two gas fired combustion turbines, two heat recovery steam generators and single steam turbine along with ancillary equipment and services. Low BTU gas will be used as fuel for the combustion process. The process, ancillary operations and facilities proposed for the power generation for the expansion project will be similar to the existing plant set up, report added. According ADB report, Pakistan, like most developing countries, faces a shortfall of power which is expected to continue. Brisk pace of economic activity, rising levels of income of people, the double digit growth of large scale manufacturing, higher agricultural production and village electrification programme have all resulted in higher demand of power in Pakistan. The prevailing scenario implies that there is an urgent need for additional power generation capacity. The proposed project will help towards achieving this objective, however, the scale and nature of the project requires that potential environmental effects due the proposed project are evaluated, mitigation measures required to minimise or obviate these impacts be assessed, implemented and monitored. Copyright Business Recorder, 2010

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Korean team shows interest in wind energy

KARACHI (July 05 2010): A delegation of Fusion Solar Consortium from Korea led by Choy Nimpal called on Sindh Chief Minister, Syed Qaim Ali Shah at the CM House here on Sunday. Besides other issues, the delegation discussed investment in wind and solar energy generation and low cost housing sector, said a statement. The head of the delegation told Syed Qaim Ali Shah that the consortium intends to invest in sectors of wind and solar energy generation and low cost housing schemes. The delegation also showed interests in low cost housing schemes like "Behen Benazir Basti." Talking to the delegation, Sindh CM said that keeping in view the power shortage in the country, Sindh government has decided to provide incentives and encourage those investors who want to invest in Thar Coal Project and the projects of generation of electricity through wind and solar energy. All necessary facilities will be provided to the interested investors in this regard, he added. Special Assistant to Sindh CM for Low Cost Housing Scheme, Zia Islam, Principal Secretary to Sindh CM, Syed Suhail Akber Shah, Sindh Secretary for Alternative Energy, Mir Hussain Ali and members of the consortium were also present. Copyright Associated Press of Pakistan, 2010

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KESC's 560 megawatts combined cycle power plant: first gas turbine arrives from France

KARACHI (July 04 2010): The first gas turbine of Karachi Electric Supply Company's (KESC) 377 million dollar 560-megawatt Combined Cycle Power Plant at Bin Qasim, called BQPS-2, arrived in Karachi while two more gas turbines are scheduled to land in the middle of this month. According to official sources in KESC the shipments of associated auxiliaries have already landed and the ground work is in full swing. Installation of the turbines will commence in August. First gas turbine of the plant will start providing electricity to the KESC power network in June 2011, second in July, third in August on the open cycle mode the same year. The combined cycle operation will start in March 2012. According to work details, the Environmental Monitoring Plan has been initiated. Detail Design Engineering Review is in progress. Pilling work for gas and steam turbines has been completed, foundation of GT-1 has been poured, intake and outfall channel work and fuel oil tank foundation works are in progress with rapid pace. Steel structure of the fuel tanks and gas turbine building has also arrived. According to sources Harbin, a Chinese firm had started the initial works, like soil testing and other initial works on long-delayed 560 MW power project, which would cost the utility over Rs 32 billion. The works on the important project was delayed for the non-payment of the mobilization charges from the public utility, since the contract for the combined cycle plant was initially signed in June 2008 between KESC and Harbin. The works on the plant later started last year after the payment by the company Earlier, Al-Jomaiah, the previous management, the sources claimed, had also vacated the site and road for the proposed power plant, and made the arrangements to host around 400 Chinese engineers and other staff. The project, according to the company's official sources, was being financed through a combination of equity funded by shareholders and long-term loans provided by the Asian Development Bank, the International Finance Corporation and a syndicate of Pakistani banks comprising National Bank of Pakistan, Habib Bank Limited and Standard Chartered Bank. Initial letters of credit for the project were opened by a consortium of banks including the long-term lenders, Dubai Islamic Bank and Faysal Bank. The World Bank, according to sources, had sanctioned at least Rs 27 billion while the utility had also loaned Rs 8 billion from the local banking consortium as mobilization charges for the project. According to company's sources the three gas turbines were manufactured by GE, France, and the steam turbine from Harbin, which was also the Engineering Procurement and Construction (EPC) Contractor for this project. When ABRAAJ Capital took over KESC in the third quarter of 2008, one of the most important targets was to expedite the construction of the 560 MW Plant on war footings. This plant can be described as one of the most economical as well as most efficient combined-cycle projects in Pakistan, as compared to other projects being constructed using the same technology. The project is to be built under a fixed price formula, and will follow World Bank environmental guidelines, they added. In a statement Tabish Gauhar, Chief Executive Officer of KESC, said "We are determined to aggressively deliver on our commitment to improve electricity supply situation for the people of Karachi. The BQPS-2 is the biggest under-construction thermal power project in Pakistan. With the addition of 560 MWs, our flag ship Bin Qasim Power Station would overtake our competitors to stand as the country's largest thermal power complex with installed capacity of 1820 megawatts." Copyright Business Recorder, 2010

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German firm to set up solar energy unit in Multan

LAHORE (July 02 2010): The Punjab government signed a Memorandum of Understanding (MoU) with a German firm Azur Solar and under the agreement, the German firm will set up a 50MW solar energy unit in Jalalpur Pirwala, Multan. The MoU was signed at Chief Minister's Secretariat on Thursday. Senior executives of the German company, Senior Advisor, Sardar Zulfiqar Ali Khan Khosa, Member National Assembly, Muhammad Baligh-ur-Rehman, Member Provincial Assembly, Mian Muhammad Nauman, Secretaries of Irrigation and Commerce departments and other officers concerned were also present at the MoU signing ceremony. Vice Chairman Punjab Board of Investment, Pir Saad Ahsanuddin and Director of the Company Uwe Stoermer signed the document. Punjab Chief Minister, Shahbaz Sharif said that Pakistan was facing energy crisis, which was adversely affecting agriculture, industries and other sectors. The chief minister said that the Punjab government was working on alternate sources of power generation and a separate department had also been set up for this purpose in the province. The chief minister further said that energy was of key importance for the development of industrial and trade sector and in view of this fact measures were being taken at federal and provincial level to cope with the energy crisis. He said that there was a vast scope of benefiting from solar energy and after Multan. The German company should consider setting up solar energy plants in other areas as well. He said that the Punjab government had provided a conducive atmosphere for investment in the province and all projects were being completed in a transparent manner while all out facilities were being provided to the investors. The chief minister said that an autonomous and vibrant Punjab Investment Board had also been set up for encouraging and facilitating investors. Copyright Business Recorder, 2010

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Pakistan-Iran pipeline

Pakistan to construct 780-km, 42 inch diameter pipeline KARACHI: Pakistan will construct about 780-km, 42” diameter pipeline from the border, traversing along the Makran Coastal Highway to connect with its existing gas transmission network at Nawabshah, said Naim Sharafat, MD, Interstate Gas Systems (Pvt) Ltd (ISGS) here on Wednesday. Briefing the Senate Standing Committee for Petroleum and Natural Resources about the status of the Iran-Pakistan Pipeline project, he said almost 665-km of the pipeline will pass through Balochistan while about 115-km of the pipeline will be laid in the Sindh province, he said. This was the first Senate Committee meeting held at SSGC since Iran and Pakistan inked the historic agreement in Tehran in June 2010 for the supply of natural gas to Pakistan from 2015. The meeting was chaired by Sabir Ali Baloch, the Standing Committee Chairman. Naim Sharafat, MD, ISGS who was accompanied by his CFO Mobin Saulat dilated on the salient features of the 1,150 km pipeline, which will connect Iran’s South Pars gas field with Balochistan and Sindh provinces. The estimated cost of Pakistan segment is $1.2 billion to be incurred over a 4-year period, Mr. Sharafat added. He further explained the project is planned to be funded at a debt-equity ratio of 70:30 requiring an equity investment of $373 million and debt financing of $872 million. Mr Sharafat said the project’s debt portion is expected to be secured from a combination of domestic and international financiers including Sindh and Balochistan governments, SSGC, SNGPL, OGDCL, PPL, PARCO and NBP (whose contribution will be $190 million or 51% of equity structure) as well as potential private investors including Petronas and Gazprom (whose contribution will be $183 million or 49% of the equity structure). MD, ISGS stated that under the Gas Sale and Purchase Agreement (GSPA), Pakistan will import 750 mmcfd gas with a provision to increase it to one billion cubic feet a day (bcfd). The senators suggested that the stakeholders in the routes traversing the pipeline must be taken into confidence, majority of which are remote and less developed areas, with clear-cut assurances for the provision of new schools, hospitals and vocational training centres. In response to the senators’ queries, MD, ISGS said that being one of the largest infrastructure projects the country has ever seen, the IP project will create new job opportunities in the provinces of Balochistan and Sindh, thus improving the income level and the standard of living of its citizens. In response to the senators’ apprehensions, Mr. Sharafat stated that Iran-Pakistan Project’s GSPA was broad enough to allow force majeure relief in the event the project is hampered due to UN sanctions on Iran. MD, ISGS said that in case the project does not materialize, an LNG terminal will be set up in Gwadar to allow re-gasified LNG to the system. Explaining the current status of the project, MD, ISGS said that a detailed route survey was in progress to pave way for the engineering and design of the pipeline facilities.

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OGIL granted exploration licence

ISLAMABAD (July 29 2010): The government on Wednesday granted an exploration licence to Oil and Gas Investments Limited (OGIL) for Block No 2667-12 (Baran) located in Sindh. The latter will make an initial investment of $5.2 million at the exploration stage. Kamran Lashari, Secretary Petroleum and Natural Resources, Mohammad Naeem Malik, Director General (DG) Petroleum Concessions and Aurangzeb Ali Naqvi, CEO OGIL signed the Exploration Licence and Petroleum Concession Agreement on their respective sides. Addressing the signing ceremony, Federal Minister for Petroleum and Natural Resources Naveed Qamar said that government had awarded 32 exploration licenses to oil and gas exploration companies within a short span of seven months. "Record exploration efforts are being made and within just seven months time the 32nd block license is being signed today," he said. The minister urged the local as well as multinational companies to come forward to invest in oil and gas sector in Pakistan. "We will welcome local companies and multinationals and encourage working with dedication and zeal," Qamar said, adding that the government top priority was to explore the indigenous resources to meet the country's requirements. Petroleum Concession Director General Mohammad Naeem Malik said the company will make investment of $5.2 million at the exploration stage. The investment would exceed manifold for a successful discovery, the DG said, adding that Block No 2667-12 (Baran) was mainly located in district Dadu, Sindh (and partially in Lasbela and Khuzdar districts of Balochistan) with an area of 2475.26 sq kms. Aurangzeb Ali Naqvi, Chief Executive Officer, OGIL maintained that his company would be executing on the programme in three years time. OGIL is a local petroleum exploration and production company. OGIL is also the working interest owner in two exploration blocks namely Jhangara and Safed Koh.

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Gas discovered in Sujawal block

ISLAMABAD (July 08 2010): Mari Gas Company Limited (MGCL), a petroleum exploration and production company, has made a significant gas / condensate discovery with its tested maximum flow rate of 11.5 MMSCFD in Sujawal X-1 in the Sujawal Exploration Block located in Sindh. This success of the Sujawal Block will be addition of an indigenous source to nation's gas reserve base, which would result in saving of foreign exchange. The first exploratory well was spud in on February 6 this year and drilled down to a depth of 3,000 meters in Lower Goru Formation of Cretaceous age. Based on the wire-line logs, drilling data and geological information, the well was tested using drill stem testing methods. As a result, the Sujawal X-1 discovery was made in the Lower Goru Sands (Upper Sands) which tested maximum gas flow rate of 11.5 MMSCFD and condensate of 70BBLD with well-head pressure of 2270 Psi at 32/64" choke size. The discovered gas has a heating value of 1024 BTU/Cu.Ft and condensate API gravity is 51.7 @ 60F. MGCL is a major exploration and production company of the country. Besides this Sujawal discovery, the company has made four earlier gas/oil discoveries over the last five years viz. (i) Mari - Sui Main Limestone, (ii) Mari - Pirkoh Limestone Formation, (iii) Ziarat Field and (iv) Koonj-1A. Cognisant of the increasing gap between the country's energy demand and supply shortages and in acknowledgement of government's endeavour in resolving this crisis, MGCL feels obliged to play its part in the country's efforts in enhancing its indigenous resources. MGCL presently operates two development and production leases, seven exploration blocks and has joint venture interest shares in six other exploration blocks. The company has also acquired working interest in one overseas Oman exploration block.

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Thar coal can play crucial role in economic uplift: Hafeez

ISLAMABAD (July 03 2010): "Thar coal can play a crucial role in the economic development of Pakistan. The present government has an unwavering commitment to exploit coal for the benefit of national economy, particularly overcoming the energy shortage." Federal Minister for Finance, Dr Abdul Hafeez Shaikh stated this while chairing the meeting on the Thar Coal Energy Project here on Friday. Dr Hafeez Shaikh further stated that the government would use all possible resources to solve the problem of energy shortage, which is hampering the process of economic development. He said that whereas the countries like Australia, China and USA are using coal as a major source of energy, it is quite unfortunate that despite having the 7th largest coal reserves in the world, no one took the initiative to use this source of energy. He assured the participants of the meeting of his ministry's full support in development of this project. Earlier, the meeting was briefed by the Thar Coal and Energy Board about the background, significance and potential of the project, along with updates on the progress. The meeting was attended, among others, by the senior officials of Ministries of Petroleum, Finance and Water and Power, Planning Commission, Thar Coal Energy Project, Thar Coal Energy Board and representative of the Government of Sindh.-PR

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Additional oil and gas in fifth well of Raijan Oilfield discovered

ISLAMABAD (July 27 2010): OGDCL has recently found additional oil & gas in the fifth well drilled in the Raijan Oilfield, resulting into the 100 percent increase in oil production from this old field discovered in 1993. Consequent to new 3D seismic interpretation, professionals from Exploration Prospect Generation and Reservoir Management Departments finalised the location of Raijan Structure to test the north-east ward extension of the structure and to enhance the oil production from the field. Well was located at a distance of 1,700 meters in the northeast of Raijan well No 1. Raijan well No 5 was spudded on December 13, 2009 and was drilled down to 3,667 meters in Khewra Formation of Cambrian age in six months. After Logging, four potential reservoirs (Khewra, Jutana, Torbra and Sakesaer) were identified. Keeping in view the good reservoir quality of Khewra, well as directly completed in Khewra Formation, other three reservoirs are yet to be completed/evaluated. After completion, well flowed 1,200 barrels of oil and 1.15 MMCFD of 1/2" choke size with Well Head Flowing Pressure of 500 Psi. The higher reservoir pressure and good production data revealed that this is an un-drained lobe having higher API of 28 degree. With the addition of oil production from Raijan-5 the total field production has jumped to 2,400 barrels oil per day from 1200 barrels oil per day. The earlier estimates of recoverable reserves by D&M (Canada) in 2006 were to the tune of 8.104 million barrels oil. Out of these OGDCL has already produced 7.35 million barrels of oil by June 30, 2010, which indicates that recoverable reserves are far more as compared to earlier calculated reserves. The results of Raijan-5 will definitely upgrade the estimated reserves and producing life of the Raijan Field.-PR

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OGDCL may undertake overseas projects

ISLAMABAD (July 25 2010): Oil and Gas Development Company Limited (OGDCL) may take part in overseas exploration projects with two foreign oil and gas exploration companies - Italian based ENI and Statoil Company Norway. In a presentation given to the National Assembly Standing Committee on Petroleum and Natural Resources on Friday, OGDCL revealed that it was trying to extend exploration activities in other countries including Libya, Yemen, Oman, Iraq, Syria, China, Mali, Mauritania, Guinea, Angola, Mozambique, Sudan, Eritrea, Indonesia (West Timor) and Bangladesh. "Presently OGDCL is in negotiations with two foreign companies namely ENI and Statoil to take part in their overseas projects," OGDCL officials said. Italian company ENI has been operating in Pakistan since 2000 and holds shares in 7 production licences. Statoil delegation comprising three senior executives visited OGDCL in the first week of June to jointly explore hydrocarbon resources in Pakistan. "During the meeting overseas joint ventures in oil and gas exploration projects were also discussed," sources added. Statoil is among the top 10 exploration and production companies in the world and working at present in 40 countries world-wide. It showed an interest to invest in exploration and production sector of Pakistan. The delegation was given detailed briefing about various sectors including geophysics and geological studies/structure presence of hydrocarbon resources and energy requirements of the country.

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Electricity from Thar coal resources: UK-based company completes pre-feasibility report

KARACHI (July 23 2010): The Oracle Coalfields PLC, a UK based public company, holding an exploration licence for Block VI, Thar coal field, has completed the work programme and verified suitability of Thar coal resources for the production of electricity, said a spokesman of Thar Coal and Energy Board here on Thursday. The coal resource in Block VI, he said has been verified under internationally recognised measurement Ore Reserve Committee (Joint) standard. The block hosts a JORC resource of 1.4 billion tonnes under the measured resource category. According to the spokesman pre-feasibility report was completed and the company is now proceeding with the completion of the definitive feasibility report, which targeted to be completed by the end of year. Further fieldwork is underway. This, he said was with particular reference to hydrogeology and sub-crop drilling leading to the completion of Mine Design for an open-pit mining operation. The company has appointed internationally reputed consultants to oversee the work programme and completion of feasibility report to bankable status. Oracle Coalfields had also entered an MoU with Karachi Electric Supply Company (KESC) earlier in the year to supply sufficient coal to meet the requirements of KESC to initially set up a 300 Mwe power plant in Thar, taking it up to 1,100MW.

Copyright Associated Press of Pakistan, 2010

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OGDCL, joint venture partners drilling strikes gas

KARACHI (July 17 2010): Oil and Gas Development Company (OGDC), together with its joint venture partners Tullow Pakistan (Development) Limited, Mari Gas Company and Saif Energy Limited has discovered gas from its exploratory well Sheikhan 01, located in District Kohat of Khyber Pukhtoonkhwa. According to an information sent to Karachi Stock Exchange on Friday, the Sheikhan Well 01 was spudded on November 12, 2009 and drilled down to the depth of 2810 meters, targeting potentials of Kingriall, Datta, Shinwari, Samanasuk, Lumshiwal, Hangu and Lockhart formations. Due to sub-surface structural complexities, Kingriall and Datta formations were not encouraged down to drilled depth. Significant reserves of gas have been found at Sheikhan Well 01. Lumshiwal formation has produced 15mmcfd gas through 32/64 inches choke size at wellhead flowing pressure 2500psi. The gas is of good quality with 96 percent methane and 1041 BTU/SCF heating value. The discovery will add to hydrocarbon reserves base of the company and joint venture partners.

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SSGC initiates Rs 25 billion programme for controlling UFG

KARACHI (July 10 2010): Sui Southern Gas Company (SSGC) has formally initiated Rs 25 billion five year programme for controlling the company's unaccounted for gas (UFG) or line losses. The World Bank will provide funding of $115 million for this project, out of which $105 million has been earmarked for gas pipeline and affiliated infrastructure improvement and $10 million for appliance efficiency pilot project. The company's unaccounted for gas (UFG) or line losses has increased to 8 percent, three percent higher than the benchmark set by the Oil and Gas Regulatory Authority (Ogra). The 50-year old pipelines and theft are two major causes of the company's UFG, managing director of SSGC Dr Faizullah Abbasi said while talking to selected media persons here on Friday. He said that the company's increasing line losses or UFG are mainly due to ageing gas supply infrastructure, losses in gas measurement, gas theft and inefficient utilisation of gas by end-users. About the area-wise UFG situation, he told that the company is facing 41 percent line losses in Karachi, 30 percent in the other parts of Sindh and 29 percent in Balochistan. He said that a comprehensive five-year programme has been prepared which is focused on replacement of old pipeline and betterment of pipeline infrastructure, introduction of automatic pressure management and improvement of measurement system. He said that some major steps for controlling UFG include replacement of approximately 3,350 kilometres gas pipeline and other affiliated tasks like pressure management, overhead leakage rectification, measurement system improvement and prevention of gas theft. He said that the company has prepared short-term, medium term and long term strategies for controlling UFG. He was optimistic that after proper implementation of the short and medium term components of the UFG reduction strategy, the UFG situation will improve and the company will be able to bring down UFG substantially. He pointed out that the major portion of current year budget of SSGC has been allocated for reduction of UFG. The current year budget has been declared as "UFG-Budget" as all non-development spending has been cut and more funds allocated for controlling UFG. He said that the company would have to pay Rs 3 billion, as penalty this year as the UFG level is three percent higher than the Ogra benchmark. He pointed out that the company has distributed the network in small operational units to further improve its performance and to control UFG. He mentioned that Karachi has been divided into three zones and under these zones small operational units have been formed to provide better services with minimum line losses. He said that board of directors of the company has constituted a committee to monitor UFG situation. "We have set up a permanent and efficient system to monitor UFG situation in different zones on permanent basis so that proper measures can be taken in this regard", he added. Regarding administrative steps, he said small units have been set up with the objective to ensure consumer satisfaction and to control UFG. Responding a query, he said that increasing consumer network could not be a cause to further increase UFG ratio.

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PSO unveils E-10 fuel

KARACHI (July 06 2010): Pakistan State Oil (PSO) has launched its environment-compatible and consumer-friendly E-10 fuel in Punjab. The sale of E-10 fuel will be available at select PSO retail outlets in all major cities and towns of Punjab including Lahore, Islamabad, Rawalpindi, Sheikhupura, Gujranwala, Sialkot, Jhelum and Mirpur-Azad Kashmir, said a press release issued here Monday. The launch of E-10 fuel will serve as a cost-relief to the inflation-stricken masses, as it offers price economy and saving of Rs 2.50 per litre than normal unleaded motor gasoline. Furthermore, the widespread use of eco-friendly fuel will help the country reduce its dependency on imported gasoline. PSO's E-10 is a blend of ethanol and gasoline, which consists of 10 percent ethanol dissolved in normal gasoline. The E-10 has tested positive to produce less carbon-mono-oxide emissions that help reduce pollution in the environment. The high level of octane present in E-10 improves a vehicle's engine performance and prevents engine knock. Another advantage of E-10 is its ethanol content that is primarily plant fuel derived form organic compounds, which acts like a cleaner solvent and ensures longer life of the engine. Moreover, E-10 offers extra mileage and derivability per litre of the fuel consumed. Managing Director PSO, Irfan Qureshi hailed the launching of E-10 in Punjab and said that the launch is testimony to PSO's commitment to deliver economical and environmentally friendly solutions to the energy needs of the country. He said customer response to E-10 fuel in Sindh, in terms of pricing and benefit, has been phenomenal. E-10 is a green fuel that helps the engine operate better and reduces the burden on the consumer's wallet. "We at PSO are optimistic that E-10 fuel will achieve a similar response in Punjab and satisfy our consumers", he said adding "We further plan to extend our E-10 reach to 100 retail outlets, nation-wide".-PR Gas discovered in Sujawal block ISLAMABAD (July 08 2010): Mari Gas Company Limited (MGCL), a petroleum exploration and production company, has made a significant gas / condensate discovery with its tested maximum flow rate of 11.5 MMSCFD in Sujawal X-1 in the Sujawal Exploration Block located in Sindh. This success of the Sujawal Block will be addition of an indigenous source to nation's gas reserve base, which would result in saving of foreign exchange. The first exploratory well was spud in on February 6 this year and drilled down to a depth of 3,000 meters in Lower Goru Formation of Cretaceous age. Based on the wire-line logs, drilling data and geological information, the well was tested using drill stem testing methods. As a result, the Sujawal X-1 discovery was made in the Lower Goru Sands (Upper Sands) which tested maximum gas flow rate of 11.5 MMSCFD and condensate of 70BBLD with well-head pressure of 2270 Psi at 32/64" choke size. The discovered gas has a heating value of 1024 BTU/Cu.Ft and condensate API gravity is 51.7 @ 60F. MGCL is a major exploration and production company of the country. Besides this Sujawal discovery, the company has made four earlier gas/oil discoveries over the last five years viz. (i) Mari - Sui Main Limestone, (ii) Mari - Pirkoh Limestone Formation, (iii) Ziarat Field and (iv) Koonj-1A. Cognisant of the increasing gap between the country's energy demand and supply shortages and in acknowledgement of government's endeavour in resolving this crisis, MGCL feels obliged to play its part in the country's efforts in enhancing its indigenous resources. MGCL presently operates two development and production leases, seven exploration blocks and has joint venture interest shares in six other exploration blocks. The company has also acquired working interest in one overseas Oman exploration block.

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