14TH INTERNATIONAL EXHIBITION FOR THE ENERGY INDUSTRY

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News Headlines for the month of
NOVEMBER 2010

OGDCL shows remarkable growth in oil, gas production

Tuesday, November 09, 2010 KARACHI: The Oil and Gas Development Company (OGDCL) said on Monday that its level of production is likely to increase by 8,120 barrels per day of oil and 496 million cubic feet (MMcf) per day of gas. OGDCL has recently discovered many new fields in the Kohat region to maintain its momentum of growth, the company said in a press release. Reserves discovered more than seven years ago and could not be brought on production due to litigation, were now being put under active development phase, OGDCL said. With production commencing from these fields, OGDCL would add to its existing level of production, approximately, 8,120 barrels per day of oil and 496 MMcf per day of gas, the press release said. Exploration and production (E&P) industry was not a manufacturing industry, thus normal cut-off date activity for any other industry were not applicable to E&P industry. OGDCL has been consistent in presenting its drilling activities to its Board of Directors and to all other officers by reporting number of wells spudded. Any first time reviewer looking at OGDCL in naivety, without having any background knowledge of the activity pattern and the efforts, which go into generating a prospect and then initiating the drilling, i.e. spud of a drillable prospect, could never appreciate these facts. Being a responsible public sector company OGDCL always sets tough and stretched targets for its technical teams. The prime objective of such goal setting was to accelerate oil and gas exploration to add to the company’s oil and gas reserves and increase oil and gas production and development of new discoveries. Seven wells were drilled in June 2008/09 and seven wells in June 2009/10. “As such, we wish to reiterate that the drilling of wells drilled in June of each financial year is carried over into the new financial year. Hence the seven wells drilled in June 2010, will now be carried over into the next financial year 2010/11,” OGDCL said. During the year 2009/10, the company was able to finalise 40 well locations, out of which 28 were in clear areas, 11 in Uch gas field area, and one in the security dependent area of Zin. In clear areas, OGDCL spudded 22 wells, four wells were spudded in Uch, which makes total number of 26 wells spudded and drilled by the Company. The drilling operations could not commence on other marked well locations primarily due to security concerns. OGDCL participated in drilling of additional 17 wells as a major joint venture partner with other operators such as BP, MOL, ENI and POL. Moreover, 15 ongoing wells from previous years also remained under drilling during this period. During the four months of the current financial year, OGDCL has already spudded 5 wells.

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Hydrocarbons encountered in Makori well

KARACHI (November 23, 2010) : Pakistan Oilfields Limited (POL) on Monday announced that hydrocarbons have been encountered in its exploratory well, Makori East-1, in Tal Block, which is being drilled. In an information sent to Karachi Stock Exchange (KSE), the company said that in the Lockhart Formation, upper 50 meters of the drilled section produced around 3209bbls per day of oil (API gravity 37) and 10.7mmcfd gas during Barefoot DST 32/64 inches fixed choke size at flowing wellhead pressure of 3179 psi. The discovery is made in the uppermost reservoir and drilling will be continued to penetrate and test the deeper prospective horizons, the company said. The full extent of discovery from the well will be known once the well reaches the planned total depth during next three months. MOL Pakistan is operator while pre-commercially working interest of POL is 25 percent. "The initial test numbers are far more encouraging with oil and gas flows are tested at 3209 barrels per day (bpd) with gas production flows of 10.7 million cubic feet per day (mmcfd)," Farhan Mahmood, senior analyst at Topline Securities said. He said that POL would be the major beneficiary as this will increase POL's oil production to around 5800 barrels per day, highest level since December 2007. The company started its Makori East well 01, on August 30, 2010 with a target depth of 4169 meters. The well is situated in Tal block in Khyber Pakhtoonkhwa province in which apart from POL, other listed joint venture partners are OGDC and PPL both having 27.7 percent stake. While drilling the upper section of the well, the discovery is made in the upper most reservoirs and drilling will continue to penetrate test the deeper prospective horizons.

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Country heading fast towards worst gas crisis

ISLAMABAD (November 24, 2010) : Pakistan is heading fast towards its worst gas crisis in a situation of widening of the gap in demand and supply as its 7 major reservoirs, currently contributing 65 percent of gas production, are going to completely dry up by 2014-15. "Pakistan's gas crisis is going to get worse in the next 4 to 5 years as its major gas reservoirs are going to deplete, completely, by December 2015, and there is no visible sign of make-up of the gas reduction during this period", says a latest study conducted on Pakistan's hydro carbon potential. Different studies have been conducted by the government and international agencies to have a clear picture of how much gas reservoirs Pakistan has and how much it needs to meet its rising demand in the next five to ten years. One of the studies conducted by a foreign consultant firm on the request of the government of Pakistan says that Pakistan's gas demand is set to increase by 4 to 5 percent whereas its production, already on the decline, is not going to match its demand. The study says that Pakistan's 7 major gas fields, including Sui gas field, Uch gas field and Qadirpur gas field, are depleting at alarmingly high pace and despite the government's best efforts there could not be any major discovery to make up reduction in growth in the last couple of years. According to the study, Pakistan's gas demand is going to reach up to 5.6 billion cubic feet (BCF) by 2014-15, but production is set to go down substantially from the current level of below 4 BCF. The study adds that Pakistan's ineffective and flawed petroleum policies are contributing to its gas crisis. The government introduced at least three petroleum policies during the last one decade with the objective to attract investment and explore untapped areas for enhancing domestic oil and gas production, but none yielded the desired results, says the study. With the passage of time, Pakistan's exploration and production sector is becoming unattractive for investors, resulting in quick reduction in oil and gas production. Pakistan's gas production has gone down from 5 BCF in 2007 to 3.9 BCF in 2010. This resulted in long hours load shedding besides adding up of the new areas for load shedding during peak winter season. The study also criticises the government of expanding its household consumers' network right at a time when it has no additional gas in the system. It says that the government should revisit its policy of expanding household network of domestic sector without having substantial addition resources to meet rising demand. The study suggests to the government to work out an investment-friendly petroleum policy to boost oil and gas production to help itself make up substantial reduction in gas production.

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Oil, gas projects: Pakistan and Russia ink MoU

ISLAMABAD (November 20, 2010) : Pakistan and Russian Federation have signed a Memorandum of Under-standing (MoU) to pursue joint projects and co-operation in the oil and gas sector. According to a message received here on Friday, the MoU was signed by Federal Minister for Petroleum Syed Naveed Qamar and Russian Minister for Energy S I Shmatko at Moscow. The agreement lays down mechanism and desire of the two countries to co-operate in oil and gas exploration, construction of trans-national gas pipelines, training, technology transfer and other areas of mutual interest. The Russian Government will send a delegation of experts to Pakistan in January next year to meet the counterparts and study the data, legal framework and policy with a view to developing a time-bound roadmap of co-operative projects. The Russian Minister proposed for an Inter-Governmental Framework Agreement to further cement the ties of co-operation between the two countries. He expressed his desire to participate in developing joint ventures with Oil and Gas Development Company Limited (OGDCL) in exploration and development of oil and gas prospects in Pakistan and also offered technology and investment for the purpose. He also showed keen interest in construction and investment in the Iran-Pakistan (IP) Gas Pipeline Project and Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project. Speaking on the occasion, Syed Naveed Qamar expressed his satisfaction over the developing relations between Pakistan and Russian Federation in the field of energy. He was hopeful that Russian co-operation would greatly improve the energy availability in Pakistan. The minister, who is on a short visit to Moscow also met with the Chief Executive Officer of Gazprom Zarubrezhneft Valeriy Gulev and discussed the ways and means to enhance co-operation in energy. Gulev showed his keen interest in co-operation and investment in Pakistan in the energy sector. The Pakistani delegation to the Pakistan-Russia bilateral discussion also included M Naeem Malik, managing director OGDCL, Hilal A Raza, managing director Inter State Gas Systems Limited and Pakistan's Ambassador to Moscow M Khalid Khattak.

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MOL discovers oil, gas reservoir in TAL Block

KARACHI (November 17, 2010) : MOL Pakistan oil and gas company B.V as an operator of TAL Block along with joint venture partners ie Government Holdings (Private) Limited, Oil and Gas Development Company Limited, Pakistan Petroleum Limited and Pakistan Oilfields Limited has made a gas/oil discovery encountered in its exploratory well, Makori East-1, which is located in TAL Block of Khyber Pakhtunkhwa province. The Lockhart formation flowed around 3209 bbls per day of oil per day and 10.7 MMscfd gas per day during Drill Stem Test (DST).-PR

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Crude output likely to grow nine percent, gas six percent

KARACHI (November 13, 2010) : Crude oil production in the country is expected to grow by 9 percent while gas production may rise by 6 percent in the current fiscal year FY11, an analyst said. According to estimates, crude oil production is expected to increase to 26 million barrels (bbls) mainly on account of production enhancement from Mela, Sinjhoro, Maramzai and Mamikhel fields, while gas production is likely to increase to 4,300 mmcfd in FY11. Gas production enhancement of 215 mmcfd would come from Maramzai, Mamikhel, and Sinjhoro and Qadirpur fields. Shahbaz Ashraf, analyst at Arif Habib, said he believes that the current fiscal year FY11 would be a better year, compared to FY10, for the exploration and production (E&P) companies. According to his estimates, the major three listed E&P companies anticipate to post earnings growth of 27 percent on account of rising crude oil prices and production growth. "Earnings growth will be mainly derived from Pakistan Petroleum (PPL) and Pakistan Oilfields (POL), which are estimated to post rise of 41 percent and 27 percent, respectively", he said. He said that the Petroleum Policy 2009 provides 36 percent higher gas price, compared to 2001. According to him, after failure of the 2007 policy, new pricing slabs, up to $100/barrel, are introduced in this policy in contrast to 2001 where there was a cap at $36/barrel. At the current crude price level of $80/barrel, the new policy provides a 36 percent higher gas prices compared to 2001 policy excluding zonal discounts. He said due to strong fundamentals and healthy future prospects, all the three listed E&P companies (PPL, POL, OGDC) stand out among the regional players on different valuation parameters. On average, the E&P sector is trading at one year forward PER and PBV of 8.0x and 2.6x respectively, implying a discount of 40 percent compared to its peers. Furthermore, ROE and dividend yield of 34.7 percent and 7.4 percent, implying a premium of 56 percent. However, he said, the circular debt could be a threat for the E&P sector during FY11. According to him, Pakistan's E&P sector is deleveraged at the moment. However, the inter-corporate debt issue in the energy chain has severely impacted the E&P's dividend paying capacity. Average dividend payout ratio of E&P companies in the sector stood at 53 percent in FY10 compared to 70 percent over the past three years (FY07-FY09). He said that if the issue is not dealt timely, OGDC and PPL could be forced to seek external financing. However, POL seems comfortably placed, and is most likely to stay unleveraged. Crude oil production in the country is expected to grow by 9 percent while gas production may rise by 6 percent in the current fiscal year FY11, an analyst said. According to estimates, crude oil production is expected to increase to 26 million barrels (bbls) mainly on account of production enhancement from Mela, Sinjhoro, Maramzai and Mamikhel fields, while gas production is likely to increase to 4,300 mmcfd in FY11. Gas production enhancement of 215 mmcfd would come from Maramzai, Mamikhel, and Sinjhoro and Qadirpur fields. Shahbaz Ashraf, analyst at Arif Habib, said he believes that the current fiscal year FY11 would be a better year, compared to FY10, for the exploration and production (E&P) companies. According to his estimates, the major three listed E&P companies anticipate to post earnings growth of 27 percent on account of rising crude oil prices and production growth. "Earnings growth will be mainly derived from Pakistan Petroleum (PPL) and Pakistan Oilfields (POL), which are estimated to post rise of 41 percent and 27 percent, respectively", he said. He said that the Petroleum Policy 2009 provides 36 percent higher gas price, compared to 2001. According to him, after failure of the 2007 policy, new pricing slabs, up to $100/barrel, are introduced in this policy in contrast to 2001 where there was a cap at $36/barrel. At the current crude price level of $80/barrel, the new policy provides a 36 percent higher gas prices compared to 2001 policy excluding zonal discounts. He said due to strong fundamentals and healthy future prospects, all the three listed E&P companies (PPL, POL, OGDC) stand out among the regional players on different valuation parameters. On average, the E&P sector is trading at one year forward PER and PBV of 8.0x and 2.6x respectively, implying a discount of 40 percent compared to its peers. Furthermore, ROE and dividend yield of 34.7 percent and 7.4 percent, implying a premium of 56 percent. However, he said, the circular debt could be a threat for the E&P sector during FY11. According to him, Pakistan's E&P sector is deleveraged at the moment. However, the inter-corporate debt issue in the energy chain has severely impacted the E&P's dividend paying capacity. Average dividend payout ratio of E&P companies in the sector stood at 53 percent in FY10 compared to 70 percent over the past three years (FY07-FY09). He said that if the issue is not dealt timely, OGDC and PPL could be forced to seek external financing. However, POL seems comfortably placed, and is most likely to stay unleveraged.

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CNG stations: Argentinean Company discusses prospects with Punjab chief minister

LAHORE (November 13, 2010) : Argentinean Ambassador in Pakistan, Rodolfo Martin Saravia called on Punjab Chief Minister, Muhammad Shahbaz Sharif, here on Friday. The envoy was accompanied by Chief Executive Officer (CEO) of GNC Galileo S. A. Argentina, Osvaldo Claudio Del Campo. Speaking on this occasion, the chief minister said the country is facing problem of gas load-shedding, however setting up of CNG refuelling stations is a good idea and launching of the project should be considered. He added that establishment of state of the art CNG stations should be followed by provision of buses. Shahbaz directed Secretary Transport and Chairman Lahore Transport Company to look into the project with the Argentinean company and present recommendations in this regard. Earlier, GNC CEO briefed the chief minister about establishing CNG refuelling gas stations in Punjab. Khawaja Ahmad Hasaan, Secretary Transport and Secretary Environment were also present on the occasion.

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Funding to energy projects: ''ESDF'' being set up with $1 billion credit line

ISLAMABAD (November 10, 2010) : With an objective to ensuring timely funding to energy projects, the government has decided to set up an Energy Sector Development Fund (ESDF) with a credit line of $1 billion and a guarantee line of another $1 billion. Sources in the ministry of Water and Power said the broader lines of the ESDF were finalised at Pak-US Strategic Dialogue held in Washington DC in September. The Pakistani side presented a detailed case for setting up of ESDF and got it cleared from the US team. The ESDF would be financed by the multinational donors such as the World Bank and Asian Development Bank (ADB). The ESDF would provide fund and non-fund based facilities on commercial terms and competitive rates to primarily the private sector. However, public sector access to funds could be permitted on a case-to-case basis and would follow standardised screening and credit cycle processes. The board of the ESDF would decide, set, and periodically review the maximum exposure limits to the public sector based upon the situation on private sector demand. The ESDF would also provide the following fund-based and non-fund based products. Fund-based: Lending of primarily subordinated credit lines to financial institutions matched by a minimum their own book (recommended minimum 30 percent) exposure in to the energy project; Lending of outlier year credit for tenors beyond the capacity of domestic institutions up to 13 years terms for loans. Direct equity injections into energy projects to be bought out or converted into a loan once financial closure is reached. In order to manage potential conflicts of interest and moral hazard risks, equity injections by the ESDF into a project would automatically bar ESDF from providing any lending or a non-fund based facility entailing the creation of a contingent liability on its books to the same project until the equity is bought out or transformed into debt. Non-fund based: The guarantees for energy projects including corporate and political risk mitigating instruments like partial risk mitigating guarantees issued by international financial institutions and bilateral donor agencies to back commitments by the government particularly for international investors hedging instruments for managing interest rate and currency risks, particularly during the project construction phase.

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Oil consumption up 34 percent in October

KARACHI (November 09, 2010) : After witnessing a slowdown in the first quarter of current fiscal year, the oil consumption in the local market significantly increased by 34 percent to 1.861 million tons in October as compared to the previous month. Furnace oil (FO) and High Speed Diesel (HSD) primarily led the recovery strongly, as their sales were up 29 percent and 59 percent on month-on-month basis, respectively, analysts said. "The inventory pile-up ahead of the resumption of AES power plant and pick up in the harvesting activity were major reasons for the increased sales of FO and HSD, respectively," Atif Zafar, an analyst at JS Global Capital said. Pakistan State Oil (PSO), the most affected by the recent floods, posted the highest recovery of 29 percent on month-on-month basis compared to APL 23 percent and Shell 24 percent. Interestingly, the non-listed oil marketing companies witnessed the greatest spike in sales, rising by an average 74 percent on month-on-month basis. Despite the sharp recovery in October, oil consumption still fell short by 5 percent on year-on-year basis in the first four months of current fiscal year, dragged by a 16 percent decline in August and September after floods.

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More oil and gas discovered

ISLAMABAD (November 06, 2010) : MOL Pakistan has hit a major discovery of oil and gas in Makori east in its Tal block in Kohat district of Khyber Pakhtunkhawa. Initial reports on discovery have confirmed a big reservoir of oil and gas in Makori east in Tal block, but its exact pressure, size and quantity would be reported to director general petroleum concessions of the Ministry of Petroleum once its testing is completed and commercial viability is confirmed in due course of time. This is an important discovery, which will contribute significantly to Pakistan oil and gas production, said the sources. MOL Pakistan is among those lucky oil and gas exploration and production companies, which have got extremely potential area for oil and gas exploration. Since the allotment of Tal block, it has hit a number of exploratory wells in this block. In recent years, Tal block of MOL Pakistan contributed in a big way by keeping Pakistan oil and gas production at a reasonable level. MOL Pakistan is an operator for Tal block with 10 percent shareholding. Its other partners are Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Pakistan Oil Field (POL). Flaring-up of the gas has started at the block and its initial reports have confirmed it as a big discovery. MOL Pakistan' country chief also arranged a party at his residence in Islamabad to celebrate the discovery.

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Khyber Pakhtunkhwa shows potential of 1 billion barrel oil, 4 trillion cft gas

PESHAWAR (November 04, 2010) : The Khyber Pakhtunkhwa is rich in oil and gas reserves as, according to experts, it has the potential to produce one billion barrels oil and four trillion cubic feet gas which, on proper utilisation will not only boost the economy of the province substantially but would also cater to the energy requirements and bring progress and prosperity for the masses. This was stated on Wednesday at Civil Secretariat Peshawar in a meeting of the cabinet committee formed for establishment of a public limited company for oil and gas exploration and production in the province. The meeting, which was chaired by Minister for P& D and Energy & Power Rahim Dad Khan and attended by Minister for Health Zahir Ali Shah, Minister for Higher Education Asad, Secretary Energy & Power Suhail Altaf, Secretary Finance Saeed Ahmed and consultant Razi-ud-Din on special invitation, was further told that despite the presence of immense amount of oil and gas reserves in the province no concrete measures were taken in the past to tap them fully that resulted in affecting the pace of development in the province. After the passage of 18th amendment, beside numerous other departments the oil and gas sector, too, is being transferred to the provinces that requires a mechanism to get maximum benefits out of the available resources of oil and gas in KP. The meeting was informed that success ratio of the drillings for finding oil and gas in Pakistan was 1:4 while this ratio on the international level was 1:9. It is expected that this success ratio in the KP would be much better than the rest of the country due to its richness in oil and gas reserves. Foreign companies can better be swayed to invest in this sector if law and order situation improves in the province. The meeting decided that next meeting of the committee would be convened after Eid-ul-Azha to proceed further for establishing a public limited company for oil and gas exploration in the province, and the consultant was asked to prepare organogram vis-à-vis the head office of the envisaged company, the required staff and their jobs description as well as comparative study of the rental, used and purchased drilling rigs and submit the same during the next meeting of the committee. Addressing the meeting, the Rahim Dad said that KP is affluent in natural resources including oil and gas reserves and all possible measures would be taken to tap them fully for socio-economic uplift of the people of the province. He said the establishment of a public limited company was indispensable in this regard, which would comprise professional and experienced manpower who would work in interference-free environment to give best results.

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PSO resuming gas oil imports

SINGAPORE (November 03, 2010) : Pakistan State Oil (PSO) is set to resume spot gas oil imports this month as it sought up to 150,000 tonnes of supplies via tender, a document on its website showed on Tuesday. The state-owned oil company delayed in August the delivery of a few fuel oil and gas oil cargoes after floods reduced domestic demand. In the tender, PSO is seeking up to three 50,000-tonne cargoes of gas oil with 0.5 percent sulphur for November-December delivery. The tender will close on November 10 with bids valid until November 12.

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$120 per ton petroleum levy on locally produced LPG proposed

ISLAMABAD (November 03, 2010) : Member, Gas, Oil and Gas Regulatory Authority (Ogra), has proposed imposition of $120 per ton Petroleum Levy (PL) on locally produced LPG to ensure level playing field for all market players. The imposition of PL on locally produced LPG would result in generating revenue amounting to Rs 4 billion per year for the government. In response to a letter, sent by Prime Minster Secretariat, Member, Gas, Ogra, Mansoor Muzaffar, whose powers are still curtailed as decided by Ogra chairman, has proposed that government should impose PL equivalent to marine transportation cost, plus import incidentals ($120/ton) to reduce the difference between the prices of locally produced and imported LPG. Legal framework for imposing PL on LPG has already been provided by the government through Finance Act, 2008. "By imposing PL, the government will earn around Rs 4.0 billion per annum, at current production level (ie approx 1,300 tons/day) while ensuring level playing field for all market players," he advised in the letter, adding that this "will result in enhancing availability of the product through imports which is not viable due to vast differential of marine cost etc between the locally produced and imported LPG". This initiative will reap the following benefits: (i) enhanced availability of LPG for the consumers benefiting all the stakeholders across the LPG value chain; (ii) availability of LPG for non quota holders as there will be no price differential between landed cost of imported LPG and locally produced LPG, ending pressure for seeking LPG allocation by the non-allocatees; (iii) additional revenue generation of approx Rs 4.0 billion per annum besides increased sales tax at import and subsequent stages; and (iv) price stability for LPG- starved consumers who are in any case paying much more than the international LPG price. Member, Gas said that Ghazanfar Ali Gul, Advisor to Prime Minister on Political Affairs, had forwarded a proposal of LPG Association of Pakistan (LPGAP), in his capacity as an LPG expert, for detailed comments on the proposed mechanism for determination of reasonable consumer price of LPG, and the steps that can be taken to keep the LPG consumer prices in control to make it affordable for the general public. As analysed, the proposals of LPGAP were primarily intended to streamline the LPG supply chain by registration of LPG distributors to bring them in the ambit of regulatory supervision and fix their margin at $1 per 11.8 kg cylinder besides fixing LPG marketing companies' margin at $175 per ton. LPGAP also rightly underscored the need for fast tracking exploitation of Pasaki & Kunnar fields of OGDC and 'TAL' Block of MOL for boosting local production of LPG. It was also suggested by LPGAP that Ogra may amend the licences of LPG producers by obligating them to import 25 percent of their production and sell the mixed product on weighted average basis which will increase product availability and reduce cost of imported gas on exclusive basis. It was also proposed to explore possibility of LPG imports by government of Pakistan and sell the same to the LPG marketing companies at subsidised price according to their respective market share. The proposals of LPGAP were analysed and it was opined that LPG import by government and selling it to marketing companies at subsidised price may not be expedient due to current fiscal deficit being faced by government of Pakistan. The solution of streamlining the LPG business across the country lies in complete deregulation thereof for ensuring level playing field for all stakeholders. "To achieve this end, it may be opined as an LPG expert that the local producers' price may be fixed/notified by Ogra on the basis of published Saudi Aramco CP, while the government may impose PL to ensure level playing field for all consumers," the Member, Gas, Ogra, added.

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Austria seeks to invest in hydel power

ISLAMABAD (November 30, 2010) : Austria has assured to invest in the hydel power, alternate energy development projects and to provide technical assistance in the forthcoming hydro power generation projects in Pakistan. This was assured by Austrian Minister for Economy, Dr Reinhold Mitterlehner during a meeting with Federal Minister for Water and Power, Raja Pervez Ashraf held on Monday in Vienna (Austria), says a message received here. The Austrian Minister said that Austrian companies are already working in Pakistan in energy sector and are keen to expand their business while the new ones are also interested in this sector. He said that Austria would also provide technical co-operation in the hydel power projects. Austria has the expertise in the manufacturing of hydel machinery, and offered Pakistan to consider it for their mega hydel power projects. Earlier, the Federal Minister Ashraf briefed him on the current energy situation and the measures being taken to meet the future water and power requirements. He gave him details of the water and power sector projects being initiated by the government. He said that Pakistan has planned to change its energy mix and now focusing on hydel, coal, wind and solar generation to provide cheaper and reliable power the consumers. The minister said that Pakistan would welcome the Austrian investment, technical co-operation and joint venture projects. As Austria has expertise in the manufacturing of hydel power generation equipment, Pakistan would facilitate the investors and manufacturers of hydel power plant producers, particularly for Terbela-4th Extension hydel power project, he added. Ashraf thanked, the Austrian Minister for co-operation and support in the power sector in Pakistan. He hoped that Pakistan would get benefit the Austrian expertise in the hydropower generation. The meeting also discussed various matters of mutual interest to explore ways and means to further enhance the bilateral relations between the two countries. The minister who is currently on three days official tour to Austria arrived at Vienna the other day and Vice Minister of Economy Josef Mayer and The Ambassador Designate to Pakistan Axel Wech welcomed him at the airport.

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Alternative energy projects: Tuwairqi, Gresham sign MoUs with Slovenian companies

KARACHI (November 28, 2010) : The Tuwairqi Steel Mills Limited (TSML), a subsidiary of Al Tuwairqi Holding of Saudi Arabia, in collaboration with Gresham's Eastern Pvt Ltd, a leading energy and environmental solution provider, has signed Memorandums of Understanding (MoU) with three Slovenian companies namely IBE, Turbo Institute and KIV, for indigenised development of alternative energy projects. The signing ceremony, which was organised by Sindh Board of Investment (SBOI), was held at SBOI head office here on Saturday. Under these MoUs, the Slovenian entrepreneurs will provide new technologies to develop alternative energy resources to meet the rising demand of power, with special focus on reducing the emission of greenhouse gases. Through this collaboration, IBE will provide technical assistance in setting up alternative and renewable energy-based plants, while Turbo Institute will collaborate to provide the technology of small to medium scale turbine, which is effective for hydropower setups on canals and rivers. The KIV is to provide leading European expertise in gasification and power generation from municipal solid waste and various bio-mass sources. These MOUs would not only be beneficial for the country in terms of direct and indirect investment but would also create technical jobs and cost-saving in oil import. In the presence of Zubair Motiwala, Advisor to Sindh Chief Minister for Investment and Younus Dagha, Secretary, investment/DG SBI, these MOUs were signed by Zaigham Adil Rizvi, Director (Projects), TSML; Suhail Hussain, CEO, Gresham's Eastern Pvt Ltd; Uros Mikos, GM, IBE Consulting Engineers; Vladimir Kercan, General Director, Turbo institute and lvo Kreca, GM, KIV. These companies were part of Slovenian trade delegation headed by Dr Leljko Warga, Executive Director-European Operations, GRESHAM's Eastern Pvt Ltd; Dr Stamatovski, CEO, JAPTI and Dr Peter Novak, Dean of Department of Mechanical Engg, chairman of International Refrigeration Organisation. On this occasion, Zaigham Adil Rizvi, Director (Projects), TSML said: "Sindh Board of Investment played a vital role in the endorsement of these MoUs, which are expected to attract investment in this sector." Motiwala said the objective of these MOUs is to attract local and foreign businessmen to invest in Pakistan.

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Local firm manufactures wind turbine

LAHORE (November 26, 2010) : A Pakistani firm has manufactured wind turbine locally and is setting up a pilot project at Jinnah Avenue Islamabad to generate energy with the wind flow of traffic. The firm has requested the Engineering Development Board (EDB) to take up the matter with National Hitghway Authority for setting up of similar projects on the motorways. CEO, EDB Aitazaz A Niazi held a meeting with a committee of the manufacturers formed by the stakeholders and stressed the need of making a beginning for indigenous manufacturing of wind turbine machinery in the country. According to EBD sources Niazi assured them full support of EDB to achieve the goal of indigenization of wind turbine machinery as EDB had prepared National Engineering Exports Development Strategy (NEEDS) and taken up the matter with the Prime Minister to discourage import of machinery which is manufactured locally. It was decided to hold an international workshop on indigenous manufacturing of wind turbine machinery in the beginning of 2011. An assessment of the existing capabilities of local manufacturers for manufacturing wind turbines components and potential for future expansion in capacities along transfer of technology was also made. It was emphasised that speedy transfer of technology can only be made through joint ventures. The meeting also identified the raw materials and its sources for manufacturing of wind turbine components and parts. It was recommended that R&D funds should be established at the earliest for capacity buildings of local manufacturers. The committee decided to meet again by the end this year to finalise the agenda for international workshop. Later CEO, EDB and senior officials of the Board met Managing Director, Alternative Energy Development Board (AEDB) and briefed him about the proceedings of the committee and other related issues.

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Neelum Jhelum Hydropower Project: KUWAIT TO PROVIDE $40M

ISLAMABAD (November 26, 2010) : The Kuwait Fund for Arab Economic Development will provide soft loan of US $40 million for Neelum Jhelum Hydropower Project. To this regard Government of Pakistan and Kuwait Fund for Arab Economic Development here on Thursday signed an agreement. The Neelum Jhelum Project has a total cost of US $2 billion, including foreign exchange component of US $775 million. The foreign exchange component is being financed by many donors. These include Kuwait Fund, Saudi Fund, Abu Dhabi Fund, Islamic Development Bank, Opec Fund and Chinese EXIM Bank, Saudi Fund had signed the agreement for providing soft loan of US $40 million for this project in 2009. The Neelum Jhelum Hydropower Project has an installed capacity of about 1000 MW and will be completed in 2015. Pakistan has good brotherly relations with State of Kuwait. Kuwait Fund has been providing development assistance to Pakistan since 1976. Currently six ongoing projects funded by Kuwait Fund are under implementation. The Government of Kuwait has generously provided relief assistance to Pakistan during earthquake of 2005 and the recent flood. Kuwait provided relief goods amounting to US $10 million. We expect improvement of our bilateral economic relations in future.

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50 megawatts solar energy plant: German power company to start construction work next month

KARACHI (November 24, 2010) : Azur Solar, a German power company, is going to start construction work of 50 megawatt solar energy plant with an investment of $125 million by next month. Muhammad Younus Dagah, secretary investment, Sindh Board of Investment (SBOI) told Business Recorder on Tuesday that the Azur Solar would start the construction work of first ever-solar Independent Power Project with an investment of $125 million in December. He said the solar energy plant would initially generate one megawatt, which would be extended to 50megawatt within six months. To a question, he dispelled the impression that the German Company would provide solar electricity at higher rate, saying that the company has already started negotiations with National Electric Power Regulatory Authority (Nepra) in this connection. He further said the SBOI is also striving to persuade the Azur Solar to manufacture its solar plant by using local resources, which would not only help in providing cheaper electricity to the inhabitants of Sindh province but would also offer lucrative business opportunity to the steel industry. For the purpose, he said, the SBOI is presently busy to create a strong liaison between the German company and steel manufacturers. Dagah said that Sindh government had given go-ahead signal to the German power company by allocating 150 acres of land at Dhabeji to commence the construction activity of 50 MW solar power plant at the earliest. Moreover, he said, the SBOI recently convened meeting with the Director Azur Solar, Uwe Stormer, Dr Sikandar Kohler and Dr Christian Bouda to finalise the modalities of the project. He further said that the German Power Company was keen to perform its social responsibility by establishing ten short-capacity solar power plants in collaboration with the Sindh government at under-privileged Badin district to illuminate 10 schools of the district. It was also worth mentioning here that the Azur Solar had signed a Memorandum of Understanding (MOU) with SBOI in April 2010 to invest $125 million for establishing 50megawatt solar power plant in Sindh.

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Energy sector needs $21.8 billion: US report

ISLAMABAD (November 22, 2010) : Washington has assessed $ 21.8 billion financial requirement for Pakistan's energy sector reforms meant to help it add 6950 MW electricity to national grid in the next three years. The US assessment report forwarded to Pakistan speaks about different projects to overcome its widening energy crisis. It said the government of Pakistan needs at least $7.7 billion for completing six thermal power projects on top priority basis and another $14.1 billion investment should come from private sector for streamlining the energy sector of Pakistan. The report said that Pakistan did identify the reasons which resulted in worsening its energy crisis in recent years but it did nothing to attract investment to change the situation in its favour by completing much- needed energy producing projects. The report said "Pakistan has to ensure steady implementation of energy sector reforms and fast tracking of investment to overcome its energy crisis. It is a daunting task but not an insurmountable challenge. Pakistan needs full support of its international development partners to have desired level of investment for energy sector reforms and overcome energy crisis in given timeframe of three years". According to the US report, Pakistan's energy crisis was identified five years ago. However, lack of concerted focus on essential institutional and governance principles in energy sector, insufficient maintenances and stilted capacity expansion in the recent years has resulted in serious energy crisis in Pakistan. The US administration has also severely criticised the government policy of taking decisions relating to energy projects on political grounds. It said although the government of Pakistan knew well that it was short of gas production, it continued to add new domestic consumers purely on political grounds which is going to widen gas load-shedding during upcoming winter season. The report also questions the government policy of providing gas to some commercial sectors such as fertiliser. It strongly suggests to the government to do away with this policy of preferring one sector over another so that foreign and local investments reaches key projects of energy in the next three years to help come out of energy sector.

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Inauguration of first rental power plant on November 21

KARACHI (November 20, 2010) : The inauguration ceremony of the 232 MW rental power plant (RPP) will be held on November 21 (Sunday) at Karachi Port Trust (KPT). The plant will be formally inducted in the national grid for power generation on Sunday. An official associated with the project told APP here on Friday that the officials of Private Power Infrastructure Board (PPIB), Ministry of Water and Power and the representatives of the Turkey based power ship 'Kaya Bey' will also attend the ceremony. After the ceremony, it will be sailed to the Ibrahim Haideri harbour where it will be connected to the Korangi Thermal Station on November 24, the official said. A Turkish ship carrying the power plant had anchored at the Karachi Port on Thursday. The ship sailed from Tuzla port of Turkey brought the rental power plant with a 232 megawatt power generation capacity, will shift the plant to the Korangi thermal power plant on November 20, Asad Mehmood, the project director and manager associated with the Turkish ship named 'Kaya Bey' told APP. He said that the ship anchored after fulfilling all the formalities of the port and that of the environment department.

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Alternate energy technology: ZTBL, Chinese firm sign MoU

ISLAMABAD (November 17, 2010) : Zarai Taraqiati Bank Ltd (ZTBL) and Chinese firm M/s Xi'an Chaoguang Electronic Technology Co here on Tuesday signed a Memorandum of understanding (MoU) for introduction/promotion of alternate energy technology, ie Solar/LED lights and Nano ceramics lamps. A simple signing ceremony was held here in ZTBL, Head Office which was attended by Banks' executives and five members Chinese delegation led by Xu Shehui President of M/s Xi'an Chaoguang. The Memorandum of Understanding was signed by Xu Shehui while Ms Amna Imran (SEVP) signed on behalf of ZTBL. The MoU is specifically meant for demonstration and experimental purposes only, says a statement issued by the bank here Tuesday. It said that in pursuance of government's efforts to overcome growing energy crisis and day-to-day increase in electricity cost, Zarai Taraqiati Bank Ltd (ZTBL) has taken a lead to apply this technology on experimental/demonstration basis in its offices. The Banks' initiative is aimed at promotion of alternate energy technology in Pakistan, ie, Solar/LED lights for energy conservation to mitigate the ever increasing energy crisis in Pakistan and to develop the image of ZTBL as Green Bank, said the bank's statement. It further said that the current energy crisis require that we should focus on all viable source of energy conservation which could help the Government's initiative to off set the effects of electricity on country's poor people and also to save the electricity bills and other related costs.-PR

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Pakistan, US sign 150 megawatt wind power project

ISLAMABAD (November 15, 2010) : The United States and Pakistan, together with American power company AES Corporation, have agreed to create a public-private partnership to develop a 150 megawatt, $375 million wind power generation project in the Gharo Corridor. Richard C Holbrooke, US Special Representative for Afghanistan and Pakistan, said that this partnership with the private sector would demonstrate the potential of investing in the power sector in Pakistan. He said that the project would produce 150 megawatts of new, 'clean' power, serving some 600,000 homes, and would reduce Pakistan's dependence on imported fuel, saving Pakistani citizens $45 million (Rs 3.8 billion) per year. The agreement was signed by USAID Pakistan Mission Director Andrew Sisson, Pakistan Ministry of Water and Power Secretary Javed Iqbal, AES Country Director Iqbal Sheikh, and Ambassador Holbrooke on behalf of the US Overseas Private Investment Corporation (OPIC). US Ambassador to Pakistan Cameron Munter and Arif Alauddin, Chairman of Pakistan's Alternative Energy Development Board also attended the signing. This agreement is a concrete outcome of the US-Pakistan Strategic Dialogue. At the last meeting of the Strategic Dialogue on October 22 in Washington, DC, US Secretary of State Hillary Rodham Clinton had announced progress towards developing a public-private partnership to "draw on the potential of winds that blow down the Pakistani coastline." The energy working group of the Strategic Dialogue was created to respond to Pakistan's needs in this sector, which is critical to Pakistan's economic and social development. The partnership features investments from the Government of Pakistan and AES, which will leverage a loan from OPIC to develop wind power generation sites. The Government of Pakistan, represented by the Ministry of Water and Power, will own a minority stake in the project through a grant from the United States Agency for International Development (USAID). Pakistan government's shares will be privatised over time, and proceeds from the privatisation would finance future energy projects. The energy sector outcomes of the Strategic Dialogue include USAID programs to rehabilitate 3 thermal power plants--Jamshoro, Muzaffargarh and Guddu--and the Tarbela Dam power station, complete the Gomal Zam and Satpara dams, improve the efficiency of tube-well pumps, support electricity distribution companies and promote efficient energy use.

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Power ship at Korangi: Turkish company submits $80 million guarantee

ISLAMABAD (November 13, 2010) : Turkey-based company, Karkey, has submitted advance payment guarantee, amounting to $80 million, for the power ship dedicated for Pakistan to provide electricity to genco-IV through Karachi Electric Supply Company (KESC) network at Korangi thermal power station. The world's largest power ship, called 'Karadeniz Power Ship Kaya Bey', coming from Turkey to Karachi, owned Karkey Karadeniz Elektrik Uretim AS, will meet power shortage in the business hub of the country, Karachi. "As per the sequence of events, Karkey first submitted the Performance Guarantee in the required amount of $1.2 million before it was issued the Letter of Award, and submitted the Advance Payment Guarantee worth $80 million before receiving agreed advance amount, a company official said here on Friday while taking to this scribe. Guarantees have been issued by Citibank Pakistan and are valid up to 31 December 2010. Moreover, the advance paid by the government is recoverable against monthly rental charges to be paid by the government. Thus, all moneys paid to Karkey to date are fully recoverable. Company official said that Karkey had followed legal modalities for the award of the contract and had procured Request for Proposal (RFP) and submitted valid bid covering required technical and financial credentials. Karkey entered into the Rental Services Agreement in form, which is in accordance with the draft contract attached to the RFP. Even in an IPP payments begin on Commercial Operation, as is the case with the RPPs. The IPPs have a term of 25 to 30 years in which they recover their investment and return thereon. In the case of the RPPs, these are 3 to 5 years contracts and thus cannot be compared with the IPPs. Karkey went through a detailed study and procured approval from the Environmental Protection Authority, Sindh. Earlier, the site allocated to Karkey was Mauripur, which was not feasible on environmental grounds and, therefore, Karkey Rental Services Agreement was amended to accommodate change of site to Korangi, where the power ship is scheduled to arrive during the current month. Karkey is part of the Karadeniz Group, which, for the past 60 years, is well known in Turkey. It is involved in business of energy, finance, tourism and mining. The energy business is conducted through the Karadeniz Energy Group, which was established in 1996 and through its subsidiary or affiliate companies owns power plants of installed capacity of 925 MW, out of which 625MW is installed on power ships. These companies supply electricity to airports (Istanbul, Ankara, Izmir, Antalya), retail markets, banks, GSM operators, metro and rail transportation, the official added.

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Chinese co urged to expedite work on hydropower projects

LAHORE (November 13, 2010) : Water and Power Development Authority (Wapda) Chairman, Shakil Durrani has directed Chinese contractor to accelerate work on Jinnah and Allai Khwar hydropower projects in order to start generation of electricity without further delay. He expressed these views during his meeting with a delegation of the contractor - Dongfang Electric Corporation, China - headed by its President Wen Shu Gang, at Wapda House on Friday. Durrani said that it has become all the more important to complete the under-construction hydropower projects on time, as the country direly needs to cope with its electricity requirements. He assured the delegation that Wapda is ready to provide all possible support to the contractor in completing the remaining work of the projects. He also pointed out to the delegation the shortcomings in the work done so far and expressed hope that they would take remedial steps to address these issues. Since floods have receded from Jinnah Hydropower Project area, construction activities should now gain full momentum, he said. Chairman Wapda also emphasised upon completion of civil works of powerhouse of Allai Khwar by January 15, 2011 as agreed with the contractor earlier. However, safety of the engineers and the workers serving on the project be properly taken care of, as this is of paramount importance, he stressed. He hoped that the issues regarding Jinnah and Allai Khwar Hydropower projects would be settled as per the contractual obligations. Wapda Member (Water) Syed Raghib Abbas Shah and other officers were also present during the meeting. It is pertinent to mention that 96-MW Jinnah and 121-MW Allai Khwar Hydropower projects are at advanced stage in August this year when the devastating floods hit the projects and halted activities there.

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Power generating system: US to give $125 million, Germany euro 97 million, National Assembly told

ISLAMABAD (November 09, 2010) : The United States would give $125 million grant while Germany euro 97 million loan to Pakistan for installation of power generating system using different technologies. While responding to questions in the National Assembly on Monday, Minister for Water and Power Raja Pervaiz Ashraf said the government is seeking assistance from developed countries including Germany and the US for installation of power generating system in the country using different technologies. "The US and KFW Bank of Germany are assisting through targeted assistance in alternate energy development and institutional capacity building," he said. In this regard, he said the four generation companies rehabilitation programme including Tarbela Hydropower Plant; Jamshoro Power Plant, Guddu Power Plant and Muzaffargarh are under implementation. In another reply, the minister said Gulf Rental Power Plant installed near Eminabad, Gujranwala has achieved Commercial Operation Date on 29-04-2010 and presently operating at full generating capacity of 62 MW. Pepco was unable to open fuel L/C as required by the contract, despite the fact that the project has been running on full capacity.

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Neelum-Jehlum Hydropower project: Chinese team briefs Zardari

ISLAMABAD (November 09, 2010) : President Asif Ali Zardari has said that the Government will offer incentives to the builders and constructors who complete their projects ahead of the scheduled completion time. This he said during his meetings with Vice Chairman of China Gezhouba Group Corporation (CGGC) Nie Kai and with Senior Vice President of China International Water & Electric Corporation (CWE) Wang Shaofang who separately called on him at Aiwan-e-Sadr on Monday. China International Water & Electric Corporation (CWE) that has built and operating the World's largest hydropower project-the Three Gorges Hydropower Station-evinced interest in building large dams with power houses including Kohala, Bahsha and Bunji on Build, Operate and Transfer (BOT) basis. All these projects are estimated to produce 14,000MW power. It also offered to provide complete financing for building the projects without Government of Pakistan financial equity and informed the President that they have been pursuing their plans with various Government department for past over one year. Secretary Water & Power informed that the Government has approved setting up a ministerial committee to examine all such BOT proposals for building dams and hydro projects in the country. The President advised that the proposals be expeditiously examined so that the work on hydro projects is started without any delay to meet the country's energy needs. The President said that being short of energy Pakistan was stepping up search for out of box, imaginative and bold solutions to meet the country's energy needs by all available modes. He said that Pakistan offers promising opportunities for massive investment in new sources of energy in Pakistan particularly, in the development of wind, solar and hydro energy. He said that the hydro potential of the country needed to be fully exploited and there were tremendous opportunities for the foreign investors especially the Chinese to step forward and invest in this sector for the mutual interest. Nie Kai briefed the President about the progress made by their company on the Neelum-Jehlum Hydropower project and thanked the Government for facilitating them in their professional pursuits. The President said that the Government was attaching great priority towards early completion of hydropower projects especially the Neelum-Jehlum Hydropower project not only to meet the energy requirements but also to provide cheap electricity to the people. He said that all the relevant departments have been advised to accord priority in removing all that obstacles that might hinder the progress. Chairman Wapda informed that early completion of hydro projects like Neelum-Jehlum would make available 5 billion units of power in one year that would step up economic and industrial activity in the country. The President also urged the Chinese companies to consider participating in other mega projects of the country namely the Zulfiqarabad city project and the desiltation of Tarbela Dam. The meetings were attended by M Salman Faruqui, Secretary General to the President, Khalil Ahmed, ambassador-at-large, Kamal Majidullah, SAPM, Shakeel Durrani, Chairman Wapda and other senior officials besides representatives of the Chinese companies.-PR

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Thar coal financing: dedicated wing to be set up at W&P Ministry

KARACHI (November 07, 2010) : Federal Ministry of Water & Power will establish dedicated wing in the Ministry to exclusively deal with infrastructure development for Thar and seek international financing for it as per the decision of the Council of Common Interest. This decision was taken at the 10th meeting of Thar Coal Energy Board (TECB) held at Chief Minister House here on Saturday. The meeting was chaired by Chief Minister Sindh Syed Qaim Ali Shah. Raja Pervez Ashraf Federal Minister for water power and other board members also attended the meeting. The meeting decided that TCEB Act would be immediately presented to Sindh Assembly to evolve the organisation on permanent basis and board approved to shift TCEB funding from ADP scheme to grant in aid basis. The Board also approved the revised structure for executive arm of TCEB. The Board approved issuance of TCB for four blocks of Thar coal and also approved issuance of Expression of Interest (EOI) for infrastructure development schemes to attract international financing. Speaking on the occasion, Chief Minister Sindh Syed Qaim Ali Shah said that the coal reserves of Thar will play a vital role in resolving the constant energy crisis in the country in the long and the short term and will also ensure the much needed positive paradigm shift in the demand and supply cycle of energy and power sources in the country. Managing director TCEB informed the board that the incentives package for thar coal has been approved in the ECC meeting held on 15 October 2010. Board appreciated the role of its vice chairman & federal minister for finance for getting it approved by ECC. Chief Minister Sindh said that it is one of the major milestones achieved by this board and it is landmark incentive package to promote investment for thar coal. Detailed progress update was shared by M/s Sindh Engro Coal Mining Company for Block II and Dr Samar Mubarakmand on Block V. Khalid Mansoor apprised the TCEB that on August 31, 2010 Sindh Engro Coal Mining Company (SECMC) completed the 'Bankable Feasibility Study' for a 6.5 million ton/annum coal mining project which will supply coal to fuel a 1,200 MW power plant, also to be set up by Engro Powergen limited. It was told that SECMC has engaged a number of internationally renowned consultants from Germany, China, Pakistan and the UK to evaluate the technical, environmental and social, feasibility of the project. The study confirmed that 2 billion tons of coal reserves existed in Block II, which can generate 5000 MW for the next 50 years. The coal quality in terms of heating value, moisture, ash and sulphur content is superior to that being used in Germany and Greece for power generation. Dr Samar shared the progress update on Underground Coal Gasification (UCG) project in Block V. He informed the TCEB that UCG operation is initiated by drilling two adjacent boreholes into the coal seam and injecting pressurised oxidants like hot air into the coal seam, igniting the coal seam and recovering the combustion gases through adjacent borehole. The connectivity between the injection and producer wells is made by special linking techniques such as reverse combustion of coal. He informed that estimates of coal reserves has been established, selection of site for camp, gasifier, surface structure for gasifier gas handling plant and power generation completed, assessment of coal under UCG gasifier and life of gasifier done temporary at Islamkot has already been established. Land (about 17 acres for project and 10 acres for colony) has been acquired from Government of Sindh at Mungo Bheel & Bhamnil Bheel (Islamkot). Power supply arrangements from high tension electricity lines of HESCO to colony site have been made. Similarly, design of Prefab Colony completed, layout plan of camp is prepared and contract has been awarded and construction work is in progress and it is expected to be completed in 90 days. Design of underground gasifier has been completed and contract for the drilling of gasification wells has been awarded to Geological survey of Pakistan (GSP). GSP has mobilised its establishment and machinery at Islamkot and the project site. Drilling rig and ancillary equipment has been tested and made operational and drilling for first well is complete. Design work of control system has been completed. Design and layout for plant buildings have been completed and order for construction on repeat order basis has been placed. Test burn of this UCG project will start March 2011 which will produce power from 3 to 5 MW which will further be scaled up to 100 MW in one years time. The participants of the meeting included Murad Ali Shah Minister Finance Sindh, Ms Rubina Saadat Qaimkhani MNA, Jam Mehtab Dahar Minister Revenue & Relief Sindh, Jam Saifullah Dharejo Minister Irrigation & Power Sindh. Asad Ali Shah Member TCEB, Ghulam Ali Shah Pasha Chief Minister Sindh, Ajaz Ali Khan Managing Director TCEB & Secretary C&EDD, Khalid Mansoor CEO SECMC, Dr Samar Mubarak Mand Member Planning Commission of Pakistan.

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Energy and infrastructure sectors: Punjab government, Chinese company to sign MoU

LAHORE (November 05, 2010) : Punjab government and a Chinese company will sign a memorandum of understanding (MoU) within a day or two for Cupertino in energy and infrastructure sectors. This was stated by Punjab Chief Minister Shahbaz Sharif during talks with a Chinese delegation led by senior vice President China International Water and Electric Corporation Wang Shao Feng here on Thursday Fiaz Ahmad Chairman Welt Konnect Trantech Group, Chairman P&D, Secretary Commerce, Chief Executive Officer Pak-China Bureau, Chief Engineer Irrigation were also present on this occasion. Sharif said that Pakistan is facing severe energy crisis including shortage of 5,000MW electricity, which is leaving a negative impact on the economy. He said that Punjab government is working on various alternative sources of power generation and China Electric Water Corporation should extend Cupertino in energy and infrastructures in Punjab. He said Punjab government is working on Hydel power project for generating 120MW energy at Tounsa Barrage and a comprehensive strategy has been evolved in this regard. Senior Vice President China International Water and Electric Corporation, Wang Shao Feng said that deep friendly relations are existed between Pakistan and China and the people of China and Pakistan are like brothers. He said that his Company is already working on a number of projects in Pakistan and it is willing to work jointly in energy sector in Punjab.

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Identifying energy projects: USTDA, EMG hold meeting with Wapda

LAHORE (November 04, 2010) : An 8-member delegation of the United States Trade Development Agency (USTDA) and Energy Marketing Group (EMG) held a meeting on Wednesday at Islamabad with Pakistan Water and Power Development Authority (WAPDA). The objective of the meeting was to identify the energy projects for USTDA funding for feasibility studies, technical assistance and capacity building activities. Speaking on the occasion, WAPDA Chairman said that it is imperative for Pakistan to harness indigenous energy resources, hydel and coal in particular, to cope with the increasing demand of electricity. This will not only help inject low-cost electricity in the national grid but also culminate into socio-economic development of the country. He said that the Government has devised a multi-ferrous plan for exploiting these resources to bridge the gap between demand and supply of electricity. The Chairman further said that Pakistan highly values the US assistance for supplementing the efforts to overcome the energy crisis. He expressed the hope that the US would continue supporting Pakistan in this regard. The delegation was informed that WAPDA is fully fine- tuned on optimal utilisation of the hydropower potential, which stands at about 60,000 megawatts (MW). The delegation was apprised that over half a dozen hydropower projects of more than 1400 MW accumulated generation capacity are in the construction phase, three projects of about 4800 MW are available for initiating construction work, another five mega projects with a total capacity of 13200 MW are in the detailed engineering design phase,while feasibility studies of several projects with thousands of MW of generation capacity are also in progress. A detailed deliberation was also made to the delegation about 740-MW Munda Dam Project on Swat River. The delegation was informed that WAPDA is executing this multi-purpose project on priority, as it would help control floods, ensure availability of irrigation water and provide low-cost hydel electricity. In response to WAPDA's advertisement regarding Expression of Interest (EoI) for consultancy services for detailed engineering design and preparation of tender documents for Munda Dam, a number of renowned companies have shown their interest for the purpose. Rehabilitation of Warsak Dam and upgradation of Mangla Power House, treatment of saline water and installation of treatment plant as a pilot project was also discussed.

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