14TH INTERNATIONAL EXHIBITION FOR THE ENERGY INDUSTRY

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News Headlines for the month of
JANUARY 2011

12-year ''energy mix'' plan suggested: over $100 billion could be saved on oil & gas import

ISLAMABAD (January 30, 2011) : Pakistan could save over $100 billion being spent on the import of oil and gas, if the government devises an 'energy mix' utilization plan for next 12 years. Pakistan needs to increase nuclear, hydel, coal-based power projects in the country's energy mix, encourage/facilitate private sector participation and foster development of renewable energy sources, energy experts said. Speaking at the Oil and Gas Pakistan Forum 2011 titled "Focusing on energy issues and opportunities to secure Pakistan's future" here on Saturday, the participants discussed strategic insight in all energy related critical issues and opportunities in the energy industry of Pakistan. These indicative numbers are based on studies undertaken by the Energy Expert Group whose policy recommendations once implemented are expected to lead to a minimum of a $100 billion savings over 12 years ($30 billion from oil and $70 billion from gas). To achieve these goals the government should implement the recommendation made by the Energy Expert Group to set up a National Energy Authority. Speaking on the occasion, Mumtaz Hassan Khan Chairman HASCOL Group said the international experience shows that integrated energy planning and implementation is critical for the success of the economy (South Africa experience). The authority must comprise the best professionals from private and public sectors, he added. The authority must have the ability to co-ordinate efforts of all the sectors for implementation of the integrated energy policy and providing an oversight of regulatory issues. The authority will report to the Prime Minister and must be headed by an eminent and recognized industry expert. The experts stressed the need to capitalize on the stabilizing global prices, focus on energy shortages, strategic planning, conclusive decision-making and understanding regional dynamics. They stressed the need for privatization of distribution companies with very strict criteria of pre-qualification, phasing out non-recoverable regions and following benchmark performance against international best practices and standards. Kalim Siddigue President BYCO Petroleum Limited said that the base load must remain in the public sector, mid and peak loads should be in private sector, tap potential of 1000 MW from sugar mills bagasse and coal. He added that the cross border power import should be resorted, phasing-out furnace oil as a base load fuel by 2020, replacement of inefficient GENCOs plants, and hydro capacity of 18,000 MW must be inducted by 2022 for developing an efficient transmission network. The conference adopted following recommendations: Integrated mining policy for power generation to be prepared, pricing mechanism must provide minimum 15% return on investment, independent regulatory body for coal pricing and tariff determination, incentives for investors to be provided eg: infrastructure, fresh water, road, security etc and to increase power generation for Lakhra coal block. The conference was attended by a large of delegates from government, regulatory bodies, prominent oil and gas companies, stakeholders, Diplomats and media persons. The conference was supported by MOL Pakistan, PSO, Eastern Testing Services and the Petroleum Ministry. Deputy Chairman Senate of Pakistan, Mir Jan Muhammad Khan Jamali also attended the conference. Speaking on the opportunities in Balochistan, he said that Pakistan has abandoned natural resources, but we have to capitalize on these resources by devising long term plans and polices to avert energy crises in future. Federal Secretary Petroleum, Imtiaz Kazi highlighted the attractive features of the liberal petroleum policy, including several new initiatives and urged the local and foreign companies to proactively invest in Pakistan for higher productivity. The conference was divided into four sessions, in which the energy experts shared different facts, trends and ideas, including shortcomings were exchanged on topics like; integrated energy plan, alternate energy, power sector reforms, strategic resources and Inter-state pipelines for oil and gas. The eminent speakers included Chairman of Hascol, Mumtaz Hasan Khan; Director of Alternate Energy Board, Irfan Yusuf; President of BYCO Petroleum, Kalim A Siddiqui; President of Balochistan Economic Forum, Sardar Shaukat Popalzai; MD & CEO of Inter-State Gas Systems, Hilal Raza and the MD of Progas Pakistan, Abbas Bilgrami. The 4th Session comprised a productive panel discussion on "Energizing the Country on War Footing". The panel included industry experts like; Imran Akhtar, Joint Executive Director of Ogra; Ejaz A. Khan; Samir Ahmed, MD of NCEL; Dr SNA Zaidi, GM Operations of PSO; Ms Talat Jabeen, Country Manager, Kuwait Petroleum and Hammad Bashir, Director Projects at Nouveau Energy. In his address of welcome, Menin Rodrigues, Chairman of the Conference & CEO of Shamrock Communication (Pvt) Limited appreciated the efforts of the sector specialists and emphasized the emerging opportunities and challenges in fuelling the industrial and domestic sectors of Pakistan.

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Power distribution system: Pakistan and ADB ink $242 million deal on improvement

ISLAMABAD (January 29, 2011) : Pakistan and Asian Development Bank (ADB) on Friday signed an agreement to invest 242 million dollars in improving power distribution system in the country. The signing ceremony was held here at Economic Affairs Division. The agreement was signed by Sibtain Fazal Halim, Secretary Economic Affairs Division and Rune Stroem, country director ADB, while the project agreement was signed by the representatives of all the 8 Distribution Companies (DISCOs). The loan is meant for Tranche-2 of the Power Distribution Enhancement Investment Programme under Multi-tranche Financing Facility (MFF). ADB's total MFF programme is of 810 million dollars (US $800 million OCR and US $10 million ADF). The programme is comprised Multi-tranches and the same will be implemented in ten years period. The objective of the project is to rehabilitate, augment and expand power distribution systems and remove system bottlenecks in the project area. The project shall add 3,380 Megavolt-Amperes (MVA) of transformer capacity, 387 km of new distribution lines, and improve security of supply to customers by moving toward compliance with regulatory security standards governing planning and operation of the distribution system and reliability improvement on the lower voltages. The project is expected to be completed by March 21. Speaking on the occasion the ADB's country director said that energy conservation and energy efficiency is the fastest and cheapest way of increasing electricity supply. "This project will not only reduce electricity lost during delivery to the customers but also improve the quality of service by helping to get rid of technical bottlenecks," he added.

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Development of Thar, Badin coalfield: China Kingho Group delegation visits BoI

ISLAMABAD (January 29, 2011) : A Seven-member delegation of M/s China Kingho Group headed by Executive Vice President Ma Xiaomin, visited Board of Investment (BoI) to explore investment opportunities in Pakistan in coal sector and development of Thar and Badin coal field. During discussion Minister of State/Chairman Board of Investment Saleem H. Mandviwalla stressed that for sustained economic growth, Pakistan needs to develop its indigenous energy resources. Proposed investment in development of Thar coalmines will benefit strategic energy resource, import substitution of expensive raw furnace oil (RFO), lower power tariff for coal-fired power plants, and improve socio economic development in Thar region. It will also lead to job creation and transfer of technology. Director Mineral and Natural resources, Azhar Khan said that Thar coal field in Sindh is spread over more than 9000 sq km and is bestowed with 175 billion tons of lignite coal, which can fuel power generation of over 100,000 MW for more than two centuries.-PR

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US delegates briefed on power, energy sectors

ISLAMABAD (January 28, 2011) : The visiting US delegation led by Senior Economic Advisor of US President David Lipton Thursday visited Finance Ministry and got a briefing on the Power and Energy sectors. During the presentations on Power and Energy sector the delegation was apprised of the sector-wise gas consumption that is 3504 MMCFD, national gas allocation priority policy, and the short and mid term adjustments for the supply of gas to industrial and captive sector. In the presentation price rationalisation and 20% cut in supply to fertiliser was also highlighted to adjust supply demand proportion. In the mid term planning side, the delegation was enlightened by the various projects being undertaken by the government at the moment, that are the exploitation of the domestic resources whereby four gas fields in Sindh are being connected to main supply lines by the year 2013 to generate 300 MMCFD (Million Cubic Feet per Day). Exploration of Balochistan gas fields also on the board, and some positive and good news expected form there, the delegation was informed. Under the long term planning to overcome energy shortages, the Turkmenistan Afghanistan Pakistan India (TAPI) pipeline is on the cards and the delegation was told of Pakistan's concern about its security in Afghanistan and sought American role in its Afghan policy in this regard, for its security. The US Adviser on Economy was briefed about the exploitation of the Thar Coal project and in this regard the concerned Minister said that the project has the capacity to produce 6.5 m/ton/year to generate1200 mw in the initial phase which can be augmented up to 4000 mw in2020. The TAPI project can pump gas to Pakistan by 2016 a quantity of about 1325 mmcfd.-PR

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826 MW electricity to be added to system by December

ISLAMABAD (January 25, 2011) : Minister for Water and Power Raja Pervez Ashraf on Monday said that 826 MW additional electricity would be added in the system by December this year. Speaking at the "meet the press" here at National Press Club, the minister said that the government has already included additional 1,982 MW in the system during its tenure. He said that the Diamer-Basha dam project would be inaugurated in February this year. He added 4,500 MW electricity will be generated from this project. He said besides changing scenario in the international market, the main reason of energy crises in the country is widening gap between power demand and supply. He said the government is also working on several mega projects including Gunji, Dasu and Neelum-Jhelum power projects to generate additional electricity to meet the country's demand. Pervez Ashraf said around 45,000 people have been arrested on charge of power theft while 150 employees have also been suspended from the services for helping in electricity theft in the country. He said the government is also making efforts to get 750 MW electricity from Iran while a power plant gifted by UAE government will be functional soon. He said for reforms and restructuring of power companies, the government has included professional persons in their boards for efficient working. He said the main reason for delay in the start of rental power projects was law and order situation in past that compelled the investors to quit their work, however after improving the situation, now they are returning back to restart their projects, he added. He said around 700 MW to 800 MW electricity is being produced from rental power projects. He said despite several challenges being faced by the government, it is its endeavour to initiate mega development projects for progress of the country and changing the living standard of common man. Replying to a question, the minister said all credit goes to the present government of Pakistan Peoples Party who contributed a lot for strengthening of democratic institutions of the country. He said other political parties have also played their due role in the parliament for democracy and passed the 18th and 19th amendment besides historical NFC award. He said for the larger interest of the people almost all political parties are working in polite and appropriate manner that shows their maturity. He said now the whole nation is supporting the government in its struggle to protect the country from evil designs of terrorists, who are trying to destabilise the country. On the occasion, the minister announced that electricity connections would be provided to journalists in Media Town within 72 hours after submitting the application. He also announced Rs 0.5 million for National Press Club.

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Chinese company working of solar energy water pump demonstrated

LAHORE (January 23, 2011) : A delegation of Chinese company demonstrated the working of solar energy water pump and drip irrigation system at Mann, a village near Kasur, here on Saturday. On the occasion, Zarai Taraqiati Bank Limited (ZTBL) President Chauhdary Muhammad Zaka Ashraf was also present on the occasion. A large number of local farmers were also there to see the potential of solar energy in agriculture. On the occasion, the Bank President said this is a continuous efforts made by President Asif Ali Zardari and Prime Minister Syed Yousaf Raza Gilani regarding welfare and promotion of the ignored community of farmers. He also said China is a brotherly neighbourly country of Pakistan and it is co-operating with Pakistan in all sectors. "Pakistan is a country whose economy is based on agriculture and there is a fear that shortage of irrigation water will be at its maximum in the coming years. Introduction of such cost saving technologies will add a lot to the national economy," he added. Yuxinlu, head of the delegation of Chinese company Shaanxi Xintong Intelligent Company, told the audience that the solar energy based irrigation can revolutionise the Pakistani agriculture sectors and can go a long way in achieving the food security for the teeming million of Pakistanis.

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Additional 1,000 megawatts hydel power generation: Irsa increases water release from 20,000 to 30,000 cusecs

LAHORE (January 20, 2011) : Though Irrigation canals are likely to remained closed till January 31 for annual repairs and desilting. In spite of this, Indus River System Authority (Irsa) increased water release from Tarbela dam from 20,000 cusecs to 30,000 cusecs on Wednesday to generate additional 1,000MW electricity from hydel power houses at Tarbela, Ghazi Barotha and Chashma. A spokesman of Pakistan Electric Power Company (Pepco) said that the Independent Power Producers' (IPPs) electricity production has fallen from 6,200MW to 5,270MW during the past couple of days. He gave no reason for this fall, but sources say that short supply of gas and oil is the main cause for this decrease in electricity production. About the current power situation, the spokesman said hydel, thermal, IPPs and RPPs produced 10,220MW against the demand of 12,540MW leaving a shortfall of 2,320MW which was being met by load shedding. He said hydel power units at Tarbela, Mangla, Ghazi Barotha etc produced 2,820MW, thermal 2068MW, IPPs 5,270MW and RPPs 62MW. Pepco supplied 750MW electricity to KESC. RAIN WITH SNOWFALL FORECAST OVER THE HILL'S UPPER REGIONS TODAY Meanwhile, the meteorological department has forecast isolated rain with snowfall over the hills and at a few places of Rawalpindi, Malakand, Hazara, Quetta, Zhob division, Gilgit Baltistan/Kashmir on Thursday. In its daily weather forecast, Met office said that weather is expected to be partly cloudy over Punjab province and dry in remaining parts of the country. Weather remained cold and dry in the most parts of the country on Wednesday. Upper regions and hilly areas remained in grip of severe cold. Lowest minimum temperature in the country was recorded at Kalam (KP) - 13.3 degree Celsius on Wednesday. Kalam was followed by Parachinar - 11 C, Chitral and Dir - 4 C, and Kakul - 2.5 C. In Balochistan lowest minimum temperature - 7 degree Celsius was recorded at Kalat, followed by Quetta - 4 C and Samungli - 3.3 C. In Gilgit - Baltistan/Azad Kashmir lowest minimum temperature - 11.4 C was recorded at Skardu followed by Astore 11. C, Hunza - 10 C, Gupis - 8 C, Rawalakot - 5.5 Cand Gilgit - 3 degree Celsius.

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Vestas seeking deal for sale of power turbines

KARACHI (January 20, 2011) : Vestas, the world giant in wind turbine manufacturing is in Pakistan to hit its market with the latest research that this country has unique potential for wind power production. Vestas' president, Sean Sutton, in right now in Pakistan with his team to negotiate deal for sale of power turbines. It is first ever visit of Vestas' president to Pakistan. Sean Sutton is presently negotiating with Fauji Foundation and at least eight other potential buyers for sale of Nestas products. Vestas deal with Fauji Foundation for sale of 100 MW wind turbine is said to be at an advance stage. The two sides are likely to finalise the deal in next couple of weeks or so. We are negotiating deal with Fauji Foundation for sale of 100 MW wind turbine and at least with more than half of dozens potential buyers but since Vestas is listed on the stock exchange we do not want to make any press statement or formal announcement, said one member of Vestas team engaged in negotiation with different interested parties for sale of wind turbines. Vestas is the world major US wind turbine manufacturing company having manufacturing facility in a number of countries including China and India. Vestas Asia Pacific office Singapore deals with Asia markets including Pakistan. Alternative Energy Development Board (AEDB) is facilitating Vestas' delegation meetings with Pakistani public and private sectors' parties interested in setting up wind power generation units. Vestas being a major company of wind power turbine manufacturing is interested in making its entry into Pakistani market feeling that this country has great potential for wind power production. Pakistan's rising power demand and supply gap makes Vestas' entry into Pakistan a big attraction. Australia, Philippine India and many other countries have proved potential markets for Vestas. With around $9 billion annual turnover Vestas is eyeing Pakistani and some other Asian markets and add to its share in global wind power business. Different studies suggest that Pakistan was blessed with huge potential to produce electricity through wind power generation. Its unique east winds corridor, according to a study, on possibilities of wind power production a potential of producing for Pakistani people over 50000 MW electricity. By taking optimum use of wind power production Pakistan can use huge electricity in next couple of years. Experts in wind power say that wind turbines project take around four years to complete and its comparatively cheaper source of electricity production. But since some parties like Pakistan like Fauji Foundation are working on their wind power projects for the last couple of years their projects could be completed in one year or so after singing the deal with Vestas and completing other requirements. AEDB has provided a necessary framework for private parties looking to setup wind power projects in Pakistan to help the government mitigate energy crisis. The experts are taking Vestas' entry into Pakistan as a good omen at this point in time when Pakistan needs coming in of big world giants like Vestas into its market.

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ADB to lend International Power $100 million for gas-fired plant

KARACHI (January 19, 2011) : The Asian Development Bank (ADB) said on Tuesday it will lend up to $100 million to UK-based International Power PLC to build a Pakistani gas-fired plant to help address the country's energy crisis. The 404-megawatt power plant in Balochistan is scheduled to be completed by September 2013. Nuclear-armed Pakistan has long struggled to supply enough electricity and natural gas to consumers and industry, with total energy demand often outstripping supply by 22 percent or about 6,000 MW - according to analysts - in summer months. The problem is likely to worsen without new generating capacity, the ADB said, but questions remain whether the new plant will be able to make much difference. "On the face on it, it is a reasonably-sized plant and will help to alleviate the power shortage," Khalid Iqbal Siqqiqui, director at Invest & Finance Securities Ltd, told Reuters. "But again the problem is, will it be able to run? ... There are many plants right now which are idle because there is a shortage of gas." International Power is the single largest private investor in Pakistan's electricity sector.

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Turkish companies keen to invest in energy sector

LAHORE (January 19, 2011) : Managing Director, Pakistan Electric Power Company (Pepco), Rasul Khan Mahsud chaired a high level meeting with Turkish delegation comprising of EA consulting, Tera International group, Saeg Industrial Engineering and Best Transformer at Wapda House, Lahore, here on Tuesday. Mahsud welcomed the Turkish delegation and said that keeping in view the bilateral relations, Pepco would also like to increase the economic equation with Turkish brothers, since there is huge opportunity of investment in the energy sector of Pakistan. He said, "we are well aware of the energy situation and would always prefer for partnership through foreign investment". He appreciated the companies for showing keen interest in investing in thermal power plant, distribution and transmission networking, transformers, and other equipment being used by Pepco in Pakistan. He hoped that joint venture co-operation with private Turkish companies will increase power generation capacity of the country in addition to enhancing efficiency of generation plants and transmission/distribution network. Speaking on the occasion, the delegation said they are keen to invest in the energy sector of Pakistan, especially in provision of transformers besides assistance in generation capacity, distribution and transmission networking. Chief Executive Officer of Best Transformer Turkey, Hydar Sargin gave a presentation about the transformers being manufactured by his company and highlighted the technology, quality system and capacity of transformers being produced. General Manager (Planning) Pepco Muhammad Daud and General Manager (Thermal) Naeem Akhtar gave presentations on NTDC System, Discos, Gencos and overall power sector respectively. The delegation was led by Engin Aydin, President EA Consulting and Hydar Sargin, Chief Executive Officer Best Transformer, Asil Gezen President and Onder Yucer Managing Director, Tera International Group and Cetin Oducncu from Saeg Industrial Engineering. Chief Financial Officer, Pepco Razi Abbas, Member Power Wapda Muhammad Qasim Khan, Managing Director Wapda Foundation, Malik Talib Hussain were also present on the occasion. MD Pepco said that. MD Pepco said the company has ambitious plans for expansion and will take all urgent steps to meet the energy crisis. He said the company is undertaking to develop various projects with maximum private investment. He also said government is considering all alternative resources of energy to fill the demand and supply gap. Earlier, on Monday, the Turkish delegation held a meeting with Chairman Wapda, Shakil Durani at Wapda House, Lahore and discussed various issues pertaining to investment in the energy sector.

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'Hydropower projects offer excellent investment opportunities'

LAHORE (January 18, 2011) : WAPDA Chairman Shakil Durrani has said that hydropower projects in Pakistan provide excellent opportunities for investment due to their high economic rate of return. He expressed these views while talking to a delegation of Turkish investors, visited WAPDA House Monday. The delegation was led by Engin Aydin, President EA Consulting and Asil Gezen, President Tera International Group. WAPDA Member (Water) Syed Raghib Abbas Shah, PEPCO MD Rasul Khan Mahsud and WAPDA Secretary Imtiaz Tajwar were also present on the occasion. Chairman said that WAPDA, in addition to its on-going projects, has planned to start construction work on a number of mega and medium-sized hydropower projects with cumulative generation capacity of about 25,000 MW during the next five years from this year onwards. 4500-MW Diamer Basha, 83 MW Kurram Tangi, 960-MW Tarbela 4th Extension, 4320-MW Dasu, 740-MW Munda and 7100-MW Bunji hydropower projects are to name a few, he added. The Chairman said that the international financial institutions have shown their keen interest in these projects, which reflects their trust in WAPDA. He said that Turkish firms would also be welcomed to invest in these projects. Dilating upon their benefits, he maintained that these projects will not only cope with the increasing demand of electricity and water but also usher in a new era of socio-economic development in the country. The Turkish delegation, dilating upon their companies' areas of interest, said that they are desirous to get involved in Pakistan's energy sector. The matters related to financing the hydropower projects, transformer manufacturing and transmission switchyard and equipment were also discussed during the meeting. Later, a detailed presentation was made to the delegation on the existing and future projects of WAPDA. The delegation was also informed about the facilities vis-à-vis reclamation of transformers available with the WAPDA Foundation.

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Tajik envoy: tender for CASA-1000 energy project to be floated soon: feasibility completed

ISLAMABAD (January 18, 2011) : Feasibility of CASA-1000 energy project has been completed and the tender would soon be floated in international market for construction of the project, Ambassador to Republic of Tajikistan, Zubaydullo N Zubaydov told a press conference on Monday. He said the CASA-1000 project is a cheaper source of energy, which will cost Pakistani consumers only 5 cents per unit and also help meet the growing demand of energy. He said the estimated cost of the project is $6.5 billion. "If the project commences today, it may take three years to complete," he added. The ambassador further said that CASA-1000 would enable power transmission to Afghanistan and Pakistan from Tajikistan and Kyrgyzstan. He negated the impression that security of transmission lines was a major subject of discussion, saying, there is no security threat to their instalments in Afghanistan. Responding to a question, the ambassador said Pakistan has an observer status in Shanghai Co-operation Organisation (SCO). "We wish SCO will extend the status of full member to Pakistan in the upcoming meeting," he said. He said that leaders of both the countries expressed the desire to enhance bilateral co-operation in defence and trade. He said Tajikistan always co-operated with Pakistan in curtailing drug trafficking and sharing information regarding terrorism. Interior Minister Rehman Malik visited Tajikistan along with Prime Minister Yousuf Raza Gilani and exchanged views on these issues. Talking about a recent meeting with Chief of the Army Staff General Kayani, they reached an agreement that all the Tajik students who had illegally entered Pakistan and studying in various non-registered religious Madressahs must be immediately deported. "Out of 400 illegal Tajik students, 300 left for home voluntarily," he said. During their sideline meeting in Turkey and Russia, President of Tajikistan and President of Pakistan agreed to boost bilateral ties. In this connection, President of Tajikistan would soon visit Pakistan. In the upcoming Head of States meeting, both sides might agree to pursue Afghanistan to ink a trilateral trade agreement among Pakistan, Afghanistan and Tajikistan. This would help in expediting the construction of road between Ishkashim-Chitral. "This road link directly binds our two countries and Central Asia, enabling the shortest route for delivery of goods," he said. The idea of setting up a joint ministerial commission would also be on the agenda of upcoming Head of States meeting, he added. Apart from this, Pakistan agreed in principle to operate a direct flight between the two countries. He emphasised that opening of two flights was essential to boost trade between the two countries. He said that a number of Pakistani nationals and tourists who have visited or wish to travel to Tajikistan have significantly increased. "In 2009 our embassy granted 505 visas, so we have issued 810 visas in 2010, which also shows the growing interest of the people of Pakistan in our country," he said. He added that stopping of direct flight operation between Islamabad and Dushanbe by a private airline was a setback for business communities of both sides. He said during 2010, major efforts were focused on deepening and expanding mutually beneficial co-operation in the fields of hydropower, investment, medicine, education, transport & communication, trade, tourism and combating international terrorism as well as implementation of bilateral agreements.

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France's help in overcoming energy crises sought

LAHORE (January 15, 2011) : Punjab Chief Minister, Muhammad Shahbaz Sharif has requested France to extend co-operation in overcoming the serious energy crisis, saying French companies and Punjab government can launch joint ventures for the purpose. He said Pakistan is facing serious energy crisis, which is badly affecting agriculture, industries and other sectors, and hydel power, solar energy and bagasse are the cheapest sources of generation of energy. France should extend co-operation in this regard as this will also provide relief to the masses. He was talking to the French ambassador in Pakistan, Danial Jouanneau here on Friday, disclosed an official. Senior officials of French Development Agency were also present on the occasion. The CM observed that France is extending commendable co-operation in development of various sectors and people of Pakistan highly value French assistance. According to him, France and Pakistan have deep-rooted economic and trade relations and France has always helped Pakistan. Friendly ties between the two countries are strengthening with the passage of time. France is also extending help to Punjab for the uplift of various sectors, which includes water treatment projects in Lahore and Faisalabad. He said Pakistan is facing serious energy crisis, which is leaving a negative impact on national economy. Punjab is the green basket of the country and it needs energy for agriculture, industries and development projects. Punjab government is working on the projects of power generation from alternative sources. There are vast opportunities of hydel and solar energy and generation of power from bagasse and coal and the French assistance in the projects of power generation from these cheap sources will be welcomed, he added. Shahbaz informed that government is working on a 150-megawatt hydel power project at Taunsa Barrage and a number of locations have been identified for hydel power projects in Punjab while conditions are also favourable in south Punjab for solar energy projects. "France should extend co-operation in the projects of generation of energy from solar and hydel power as well as bagasse. The government is implementing a comprehensive programme for the provision of basic amenities to the people and elimination of poverty and unemployment and all out resources are being spent on the welfare and betterment of masses," he maintained. Speaking on the occasion, French Ambassador, Danial Jouanneau said France is extending maximum co-operation for the development of Pakistan while measures are also being taken in this respect in Punjab and co-operation is being extended in various sectors. He mentioned that France also pledged all out help and assistance to Pakistan at Friends of Pakistan Conference held at Tokyo. "A high level French delegation will visit Lahore for co-operation in various sectors and France will also consider help in hydel and solar energy sectors in Punjab," he said.

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Country requires alternative energy resources: Afridi

ISLAMABAD (January 14, 2011) : Federal Minister for Environment Hameed Ullah Jan Afridi said on Thursday that promoting solar energy is the need of hour and all sectors of our economy especially cell phone companies should adopt alternative energy to reduce pressure of energy crisis. While presiding over a meeting on the conversion of all billboards and telephone towers on solar energy here, he expressed that alternative energy resources should be promoted in present scenario, as the country is facing extreme energy crunch by having shortfall of electricity, gas etc, which could only be averted by using alternative resources of energy in different sectors. The minister said that cell phone companies will get benefits by converting on alternative energy although the cost of conversion is high, however in long term, benefits would offset the over all financial impact for this industry. Afridi said that solar operators are playing their role in social and economic sectors and cellular companies have potential to carry out conversion from grid to alternative energy. The minister stressed that all valuable stakeholders have to show their national and social responsibility towards energy conservation for being aware of prevailing situation of energy crises. During the meeting it was also observed that alternative energy especially solar energy should be encouraged in every sector, and the usage of alternative energy will be mandatory for new cellular towers. "Government wants to give incentives through the usage of alternative energy resources, and import duties in this regard would also be reduced at maximum level to make it cost effective", Afridi added. Federal Secretary for Environment, Khawaja Naeem Additional Secretary Kamran Ali Qureshi, Managing Director Enercon Fareed Ullah Khan, representative of Ministry of I.T, IESCO, PTA and cellular Companies were present in the meeting and they exchanged their views in this regard.-PR

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Power generation through nuclear energy: PAEC working to get 8,800 megawatts target by 2030: Dr Ansar

KARACHI (January 12, 2011) : Pakistan Atomic Energy Commission (PAEC) is making all out efforts to achieve the target of generating 8,8000 MW of nuclear power by 2030. This was stated by PAEC chairman, Dr Ansar Parvez at the 11th Convocation of the Karachi Institute of Power Engineering (KINPOE) held at Karachi Nuclear Power Plant (KANUPP) here on Tuesday. He said the government had assigned a task to PAEC for enhancing power generation capacity up to 8,800 MW by 2030, adding that they are optimistic of achieving this very target within the stipulated period, as all the requisite projects and plans are in place for this purpose. "PAEC is following a rigid code of conduct in the area of defence to ensure that the country has a strategic capacity which is strong enough to deter and frustrate the evil designs of any one," Dr Ansar said. He further said the graduates of PIEAS (Pakistan Institute of Engineering and Applied Sciences) and KINPOE had immensely contributed in the strategic programme of the country and hoped that this would continue in future. PIEAS is a degree-awarding institute run by the PAEC, which offers masters up to Ph.D. programs in nuclear power engineering, material engineering, health physics and information technology etc. Dr Ansar said that in addition to defence and power, the PAEC has also been contributing to the socio-economic sector. It has 14 medical centres, which were established across the country and four more are in pipeline. Similarly, our agricultural centres and bio-technology institutes are also making contribution in development of agriculture sector, he added. Earlier, in his welcome address, the Rector PIEAS, Dr Muhammad Aslam, said that this was KINPOE's first convocation after its affiliation with the PIEAS. He further said that PIEAS has a very good reputation for conducting quality degree programmes at post-graduate level. Dr Aslam informed that high qualified faculty and lab facilities have enabled PIEAS to become number one among the engineering institutions in Pakistan. Dr Ansar who is also the chairman of the Board of Governors of PIEAS conferred M.Sc. degrees in nuclear power engineering to 49 graduates along with medal and merit certificates to the position holders. He also enumerated the services rendered by the graduates of the institute in various projects of national importance run by the PAEC.

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17 hydropower projects to be functional by 2017

ISLAMABAD (January 09, 2011) : The Federal Government has lifted certain restrictions on establishing electricity projects of over 50 mw, which will pave the way for setting up 17 hydropower projects in Azad Jammu and Kashmir, Kyber Pakhtunkhwa (KP) and Punjab provinces. All these projects would be functional by the end of 2017. Sources in the Planning Commission said that all bottlenecks had been removed which had halted the construction progress of 5107 mw capacity hydropower projects. These will provide cheap electricity and help bridge the power deficit the country has been facing in the shape of load shedding. Out of total, nine hydropower projects would be located in Azad Jammu and Kashmir with installed capacity of 2154 mw. Each project has different completion date. New Bong Escape Hydropower Project near Mangla has 84 mw capacity and would be completed by the end of 2013. Other projects include Kotli (100 mw), Gulpur (100 mw), Rajdhani (132 mw), Sehra (130 mw), and Patrind (147 mw). Construction work would be completed in 2014. Two projects, Chakothi-Hattian (139 mw) and Azad Patan (222 mw) would start functioning in 2016. The completion date of Kohala hydropower project (1100 mw) is 2017. The cost of these projects would be recovered within five years. Sources said the cash-starved Azad Jammu and Kashmir government is giving priority to these hydroelectric potential, realising that hydropower projects after commissioning are a source of regular income with almost negligible maintenance expenses. According to the AJK Hydro Electric Board (HED), currently AJK is producing 37.6 mw electricity from five hydro power stations with a capacity ranging from 0.4 mw to 30.4 mw. If the identified hydro electric potential of 17,000 mw in AJK is fully utilised it would completely wipe out the energy deficit of Pakistan, besides creating much-needed resources for the development of the liberated valley. The KP government has started reconstruction of seven projects with a capacity of 2233 mw. Madyan (157 mw) and Asrit-Kedam (215 mw) projects would be built on Swat river and would be functional by the end of 2015. Three projects which would be completed by end of 2016 include Kalam Asrit (197 mw) on Swat River, Shogosin (132 mw) and Shushgai Zhendoli (144 mw) near Chitral District. Two more projects Kaigah (548 mw) and Suki Kinari (840 mw) in KP would be completed by end of 2017. Karot (720 mw) near Kotli in Punjab would be completed in 2015.

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960 megawatts more power from Tarbela in four years: Wapda chairman

ISLAMABAD (January 09, 2011) : The Chairman of Water and Power Development Authority (Wapda) Shakil Durrani has said that additional power of 960 mw will be generated from Tarbela under new extension plan. He told APP that an estimated $700 million would be spent on the project for which the World Bank was supporting the government of Pakistan. He said, "Engineering consultants have reached Pakistan for the fourth Tarbela extension project which will be completed in four years". After completion of the project, 960 mw additional electricity would be generated from the reservoir, whose existing power generation capacity is 3,400 mw. He said, "Development work is also underway on 969 mw Neelum-Jhelum project, which will be completed in seven years". He said that 10 km tunnel had been constructed at the project site. He said the United States had signed two agreements with Pakistan to provide $66 million for completion of Gomal Zam and Satpara dam projects. Shakil said these dams would provide over 35 megawatts power to nearly 55,000 households in South Waziristan and Skardu, and would be helpful to meet the country's energy needs. He added that out of total amount, the United States would provide $40 million to help complete the Gomal Zam multi-purpose dam in South Waziristan in FATA. He said the project would provide 17.4 megawatts of electricity to 25,000 households, and added that the Gomal Zam dam would have the capacity to store enough water to irrigate 191,000 acres of farmland. He said the United States would also provide $26 million to complete the Satpara multipurpose dam project, located in Skardu in Gilgit-Baltistan. The dam would provide 17.7 megawatts of power to nearly 30,000 households and help end load shedding in Skardu. He said its water storage capacity would irrigate over 15,000 acres of land and provide 3.1 million gallons per day of potable drinking water after completion of the dam. He added that annual agricultural output was expected to increase more than four-fold, generating about $6 million in additional economic benefit to the community each year. He said the two projects would provide energy solutions and improve the quality of life for people in FATA, Tank, Dera Ismail Khan and Gilgit-Baltistan.

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'Wapda to complete construction of five small dams in next eight months'

ISLAMABAD (January 08, 2011) : Five small dams having power generation capacity of 225 MW would be completed during next eight months to help mitigate power shortage in the country. The projects to be completed during the period include Sattpara dam, Gomal zam and Jinnah Hydel Power projects, Chairman Pakistan Water and Power Development Authority (WAPDA), Shakeel Durrani said while addressing the two-day seminar on `Land Acquisition and Resettlement of Mega Hydropower Projects in Pakistan, on Friday. The government has released Rs 6 billion for Mangla uprising projects and payments to the affectees would start from the next month, he said adding that it would increase the storage capacity of the dam by additional 2.8 million acre feet water by next raining season. Durrani said that there was complete consensus among all the stakeholders for constructing the Diamer Basha Dam (DBD) and all outstanding issues including land acquisition, resettlement and rehabilitation have already been settled. The process of land acquisition would continue for next three years and survey to provide all basic facilities for 30,000 affectees of DBD would be completed soon, he added. He said that government has provided Rs 70 billion for purchasing 200 acre land to construct the physical infrastructure besides the donor agencies were also very keen as after a gap of 35 years any maga project was initiated. To a question, the chairman said that 12 MW thermal unit for Neelum Jehlum Hydel Power Project was order to provide power supply for the construction of the project. Besides, he said that an 18 MW thermal unit would also be installed in site of DBD adding that a 18 MW hydel unit would also be constructed to provide electricity.

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7th STG plan prepared for 24 new grid stations

FAISALABAD (January 07, 2011) : The five-year 7th Sub Transmission and Grid station (STG) plan has been prepared to construct 24 new grid stations and up-gradation of 22 grid stations of 66-KVA to 132-KVA, disclosed by Chief Executive Officer Tariq Mehmood Chattha. Chairing a high level meeting at Fesco Headquarters here on Thursday, he said that this plan would be presented to Executive Committee for National Economic Council (ECNEEC) after its final approval. He said that this plan would ensure quality services to the electricity consumers in this region. Chief Executive expressed concern over the delay in the completion of 6th STG and said that a formal request would be made to complete the pending works up to 2012. He also orders to constitute an investigation team to identify the causes of delay. This team would consist of Chief Engineer T&G Sheikh Muhammad Ashraf and Manager Operation Jhang Circle Tofiq Akbar Azad. Continuing Tariq Mehmood Chattha said that demand of electricity was increasing at much faster pace, hence we must expand transmission and distribution system of Fesco. He said that 7th (STG) plan has been prepared to cater to the future need of existing and emerging load centres. He said that new grids would be constructed to give relief to the over loaded grids and ensuring uninterrupted power supply to the existing and new industrial, agriculture and domestic consumers. Briefing the meeting Tariq Mehmood Manager (Planning Scheduling and Co-ordination) said that 7th STG programme has been prepared in line with the maps of 11-KV single line diagram prepared by survey of Pakistan. This program would also cater the future needs of electricity. The 24 most demanding grids stations have been proposed at 132-KV Ludian Wala Jaranwala, 132-KV SPS Canal Road, 132-KV Usman Ghani, 132-KV Aminpur Road, 132-KVMamoon Kanjan, 132-KV Chenab Nagar, 132-KV Chiniot-II, 132-KV Rajana, 132-KV New Sabzi Mandi and 132-KV Bhera and others are included. These grid stations would give much needed relief to the exiting 30 over loaded grids. Chief Executive Tariq Mehmood Chattha also ordered to include 22 grid stations of 66-KV into 7th STG plan for their up-gradation into 132-KV grids. He also directed for the complete computerisation of the Project Management and asked to present a case for the provision of a crane and trailer to GSC directorate. He also appreciated the efforts of Tariq Mehmood Manager planning for preparing this plan with at most diligence and dedication.

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Use of solar water disinfection technology urged

ISLAMABAD (January 06, 2011) : As the country is confronted with energy crises, it is need of the hour to use Solar Water Disinfection (SODIS) technology for Household Water Treatment (HWT), as it is a cost-effective tool to contain microbial contamination. This was the gist of SDPI-SDC Orientation Seminar on "Household Water Treatment (HWT) best practices: Solar Water Disinfection", a project of SDPI in collaboration with Swiss Agency for Development and Co-operation (SDC). Addressing on the occasion Marri, Member Infrastructure Planning Commission said that SODIS household water treatment method would be included in the educational curricula of Pakistan to lay stress on cost-effective technologies for having better drinking water at minimal cost. Dr Shaukat Farooq of Sheladia Associates, Ahmed Sohail, Director National Renewable energy Lab. and Shahid Mehmood Director Community Action Program were among the other speakers. Shahid Mehmood expressed concern over the deteriorated condition of the water distribution system such as pipes etc. He stressed on the need to shift to cost-effective tools, so that people can adapt to better options for their livelihood. Dr Shaukat Farooq said that ultraviolet waves disinfect water and also kill bacteria. Referring to studies, he said that disinfection was most effective at temperatures of 40 to 46 degree centigrade. SODIS is also effective in removing viruses and coliform, he said, adding that standards prevalent in Pakistan for safe drinking water are zero for faecel-coliform and three for coliform. He said absence of faecel-coliform ensures absence of disease-causing bacteria. He asked for further data from universities and NGOs in terms of further research and probing the possibilities in cloudy weathers. Mome Saleem said that SODIS is absolutely free especially in countries with high temperatures whereas other methods are good but have substantive cost. She stressed on incorporating SODIS along with other HWTs in the action plan for drinking water policy 2009 and also suggested the replication of Existing Community Model of Faisalabad promotion of SODIS at national level by relevant ministries such as Ministry of Health, Environment and District government. Shakeel Ahmed Ramay said that where there are lesser energy options SODIS is very economical. There is need of a policy framework for sustained livelihood patterns with government support.

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Schneider Electric launches EcoBreeze

KARACHI (January 06, 2011) : APC by Schneider Electric, a global leader in integrated critical power and cooling services, on Wednesday announced the launch of EcoBreeze(tm), a modular indirect evaporative and air-to-air heat exchanger cooling solution, for tackling the energy requirements of today's data centres. With the unique ability to switch automatically between air-to-air and indirect evaporative heat exchange, the EcoBreeze(tm) consistently provides cooling to data centres in the most efficient manner. Available in individual 50kw modules that can be grouped up to four modules (200kw) or eight modules (400kw) of sensible cooling, EcoBreeze effectively reduces energy consumption by leveraging temperature differences between the outside ambient air and the return air to provide economised cooling to data centres. Pat Johnson, Vice-President, Rack and Cooling Solutions, APC by Schneider Electric, said: "The EcoBreeze not only provides multiple types of air economisation, its modular design also allows the unit to adapt to the future cooling needs of a data centre. These features coupled with the fact that the unit uses outside air and is able to automatically switch to the most efficient cooling modes, set the EcoBreeze(tm) apart from other cooling solutions.-PR

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PEW proposes alternate energy development ministry

ISLAMABAD (January 03, 2011) : The Pakistan Economy Watch (PEW) on Sunday proposed a ministry for development of alternate energy in Pakistan. Alternative Energy Development Board (AEDB), staffed with around 100 people and a budget of mere 61.6 million leaves much to be desired, it said. Inefficient state-run corporations are wasting up to 500 billion annually while billions are spent due to political consideration but development of alternate energy has remained a lowest priority, said Dr. Murtaza Mughal, President PEW. We have yet to have an Alternate Energy Policy, he added. Thirty-seven per cent Pakistanis have no grid connectivity while only 20 per cent have access to natural gas. Alternate energy is the only hope for around 15000 villages in that cannot be connected to the power system in the next two decades, he said. He said that weak and understaffed AEDB is dependent on the decisions of many bureaucrats that cannot think beyond fossil fuels - coal, petroleum, and natural gas-that are finite resources. Dr Murtaza Mughal said that surrounded by politics, bureaucracy, red tape, political appointments and influential oil and gas lobbies, the AEDB has become a symbolic institution despite efforts of few individuals who wants to make it a useful entity. Therefore, he said, Pakistan needs a ministry for development of renewable energy to make proper use of its vast usable energy resources. It would improve our energy mix, reduce dependence on oil, save country from oil shocks and reduce environmental degradation, he said. Oil import bill is projected to increase threefold in a decade leaving government with no funds to spend on social sector uplift, he warned. Fossil-fuelled power plants and vehicles emit pollutants like sulphur dioxide, particulate matter, nitrogen oxides, carbon monoxide, toxic chemicals, heavy metals like mercury, chromium, and arsenic which can result in heart disease, asthma, and other health problems, he said. It is responsible for acidification of water resources, damage to aquatic life, leaf damage, and the production of smog. It releases carbon dioxide, which is one of the main greenhouse gases causing global warming, said Dr. Mughal.-PR

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Two new power plants inaugurated

LAHORE (January 02, 2011) : The Federal Minister for Water and Power, Pervez Ashraf, on Saturday regretted giving deadline for end of power load shedding in the country. However, in the same breath he said that the government has hammered out a roadmap to overcome this crisis, and new power plants would bring relief to the public. He was talking to media after inaugurating a 201MW power plant at Raiwind Road. The Minister also inaugurated Kasur Grid Station at Kasur city. He said, "I announced the end to load shedding spans in the country basing on the roadmap prepared by experts; but, load shedding could not be eliminated, thanks to delay in production from power plants." The government is still scrambling to trounce the power crisis in the country, as also it is looking forward to generating 5000 megawatt power, the minister added. Hde said that work on solar energy projects was also afoot. According to him, adverse circumstances hampered timely installation of power plants in the country. However, the development on new power plants was being expedited, and Neelum, Jhelum and other hydel projects are underway, besides the coal projects, which would be cheaper than thermal generation, he added. He said that rising oil prices world-wide had pushed the government to increase petrol and gas prices "but the government is fully aware of public miseries and a relief would be ensured in near future". Meanwhile, protestors blocked GT Road on Saturday against protracted and unannounced spans of outages of electricity and gas in the city. A demonstration was staged in Lahore's suburb of Shahdara against long spells of power and gas closures. The protesters, setting tyres on fire, blocked GT Road at both ends, disrupting the flow of traffic. The traffic stayed blocked for at least two hours from Shahdara-Babu Sabu Interchange. The demonstrators said they would continue protesting until the power and gas crises are brought under control.

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Thar coal development: MoP urged to form sub-group to work with Chinese companies

ISLAMABAD (January 01, 2011) : The Thar Coal and Energy Board (TECB) has urged the Petroleum Ministry to constitute a sub-group for Thar coal development, and forward it to the Chinese companies, official sources told Business Recorder. They said that meetings of energy working group were held on 14th and 16th of December 2010 in Ministry of Petroleum where it was agreed between Pakistan and Chinese counterparts that sub-group meetings can take place more frequently to decide sector to sector issues and projects keeping in view the preparedness of the companies and departments on both sides. According to TCEB Managing Director, the government of Sindh (GoS) is following a proactive strategy and has already finalised a comprehensive project that includes mining, power and infrastructure required for Thar coal development. According to him, the provincial government has initiated a flagship project to develop Thar coalfields. This is a joint venture project for coal mining of 6.5 million tons per annum. In addition the proposal also includes a coal-fired power plant of 1200 MW and construction of water carrier for the plant, along with construction of effluent disposal system. For this, Sindh Engro Coal Mining Company (SECMC) has been formed and it has completed a bankable feasibility by engaging world renowned companies, including RWE of Germany and Sinocoal of China, etc. The first mine and power plant is expected to be commissioned by 2015-16. The estimated cost for the project is $3.6 billion, sources said, adding that three Chinese companies have already shown interest in the project. Since the commitment of Chinese counterpart is already available and the feasibility has been conducted by one of the best Chinese firms, forwarding the project proposal would expedite the processing and sharing of information so that preliminary meetings with Chinese counterparts can take place on fast track basis, sources quoted TCEB Managing Director as saying in a letter to Secretary, Petroleum, Imtiaz Kazi. The proposed subgroup may include representatives from Coal & Energy Development Department, TCEB, and Sindh Engro Coal Mining Company (SECMC), besides representatives of Federal Ministries.

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Oil consumption in 2010 stands at fresh high of 20 million tons

KARACHI (January 11, 2011) : The oil consumption in the country has increased to fresh high of 20 million tons in the year 2010, up 0.5 percent from 2009. This increase was mainly on the back of healthy demand in December 2010 when oil consumption improved by 11 percent on both yearly and monthly basis, analysts said. However, in comparison to the 4 percent on year-on-year basis sales growth in the first half of 2010, demand contracted by 3 percent on year-on-year basis in the second half of 2010 mainly due to heavy floods in July and August 2010, Atif Zafar, an analyst at JS Global Capital said. During the first half of FY11 (July-December 2010), PSO's volumes fell by 10 percent on year-on-year basis whereas, APL and Shell witnessed their sales improve by a respective 14 percent and 22 percent on year-on-year basis, largely due to addition in clientele (Nishat power plants for Shell), he added. "We expect volumes to pick up on the half year basis during the second half of FY11 led by recovery in FO sales", he said adding hence, FY11 volumes should clock in at 20.4 million tons, at par with FY10's volumes. He pointed out that oil sales in December came in at 1.7 million tons, higher by 11 percent on both year-on-year and month-on-month basis. This growth was largely led by recovery in FO and HSD sales, which witnessed an improvement of 6 percent and 13 percent on year-on-year basis, respectively, Atif said. He said that demand for Motor Gasoline (Mogas) maintained its rising trend on account of gas load shedding at CNG pumps (up 32 percent) while JP, SKO and LDO all witnessed pick up in sales during the month. As a result, oil consumption during 2010 stood at a fresh high of 20 million tons. Despite the country's worst ever floods during July and August, the oil consumption declined by only 3 percent on year-on-year basis during the first half of FY11. The worst hits were HSD and FO volumes, due to hampered agricultural/ business activities and inundation of major power plants (92 percent of FO is used for power generation), respectively. With PSO having the largest share in these segments, its overall sales witnessed a decline of 10 percent on year-on-year basis. However, APL and Shell's volumes improved during the period largely due to additions to their client base. PSO's share stood at 65 percent compared to APL's 6 percent and Shell's 15 percent during the period. "Expecting oil consumption to recover in the second half of FY11 post the floods, we anticipate volumes to arrive at 20.4 million tons during FY11, which would be one percent higher from last year", he said.

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Pakistan to sign Tapi gas line agreement on April 30

ISLAMABAD (January 30, 2011) : Pakistan will sign Gas Sales/Purchase Agreement (GSPA) on the multibillion dollars Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project on April 30, 2011. "We stand nowhere regarding gas import projects as we have already lost opportunity to import gas from Qatar due to inaction," Hilal A Raza, Managing Director (MD) of Inter-State Gas Systems (ISGC), said while addressing the "Third Oil and Gas Pakistan 2011 Forum" here on Saturday. He said that Energy Minister of Qatar had informed two years back that Pakistan had lost opportunity of gas import from Qatar due to delay in the project. India may still avail option to rejoin Iran-Pakistan (IP) gas pipeline project," he said, adding that first flow of gas from Iran is expected in 2014. He said that TAPI gas pipeline project had been reactivated and four countries--Turkmenistan-Afghanistan-Pakistan and India (TAPI)--will sign GSPA on April 30 this year. "First flow of gas will commence in 2016. We are negotiating TAPI gas pipeline project. However, financing will be a critical issue." "Gas import projects are being delayed due to inaction on the part of bureaucracy. Therefore, those held responsible should be made accountable," he said, adding that import of 4 billion cubic feet gas was planned. But that would not be enough to meet domestic requirements. The Chief Executive Officer (CEO) of Progas, Abbas Bilgrami, said: "We have lost chance of import gas from Qatar that had waited for ten years to materialise the project". He said that Pakistan required consistent policies to secure investment in energy sector. He said that imported natural gas would be cheaper than liquefied fuel and, therefore, it would boost the economy. The Managing Director (MD) of Byco Refinery, Kalim A Sidiqui, said that Byco Group has one refinery and was working on setting up another refinery in Balochistan with 120,000 barrels per day output. That would be the largest one in the country. The new refinery will start production in the current calendar year. "Our group has taken initiative to set up plant to use naptha to produce gasoline. Naptha is being currently exported in raw shape," Sidiqui said, adding that "we have also planned petrochemical complex which would consume the whole naptha being produced in the country".

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12-year ''energy mix'' plan suggested: over $100 billion could be saved on oil & gas import

ISLAMABAD (January 30, 2011) : Pakistan could save over $100 billion being spent on the import of oil and gas, if the government devises an 'energy mix' utilisation plan for next 12 years. Pakistan needs to increase nuclear, hydel, coal-based power projects in the country's energy mix, encourage/facilitate private sector participation and foster development of renewable energy sources, energy experts said. Speaking at the Oil and Gas Pakistan Forum 2011 titled "Focusing on energy issues and opportunities to secure Pakistan's future" here on Saturday, the participants discussed strategic insight in all energy related critical issues and opportunities in the energy industry of Pakistan. These indicative numbers are based on studies undertaken by the Energy Expert Group whose policy recommendations once implemented are expected to lead to a minimum of a $100 billion savings over 12 years ($30 billion from oil and $70 billion from gas). To achieve these goals the government should implement the recommendation made by the Energy Expert Group to set up a National Energy Authority. Speaking on the occasion, Mumtaz Hassan Khan Chairman HASCOL Group said the international experience shows that integrated energy planning and implementation is critical for the success of the economy (South Africa experience). The authority must comprise the best professionals from private and public sectors, he added. The authority must have the ability to co-ordinate efforts of all the sectors for implementation of the integrated energy policy and providing an oversight of regulatory issues. The authority will report to the Prime Minister and must be headed by an eminent and recognised industry expert. The experts stressed the need to capitalise on the stabilising global prices, focus on energy shortages, strategic planning, conclusive decision-making and understanding regional dynamics. They stressed the need for privatisation of distribution companies with very strict criteria of pre-qualification, phasing out non-recoverable regions and following benchmark performance against international best practices and standards. Kalim Siddigue President BYCO Petroleum Limited said that the base load must remain in the public sector, mid and peak loads should be in private sector, tap potential of 1000 MW from sugar mills bagasse and coal. He added that the cross border power import should be resorted, phasing-out furnace oil as a base load fuel by 2020, replacement of inefficient GENCOs plants, and hydro capacity of 18,000 MW must be inducted by 2022 for developing an efficient transmission network. The conference adopted following recommendations: Integrated mining policy for power generation to be prepared, pricing mechanism must provide minimum 15% return on investment, independent regulatory body for coal pricing and tariff determination, incentives for investors to be provided eg: infrastructure, fresh water, road, security etc and to increase power generation for Lakhra coal block. The conference was attended by a large of delegates from government, regulatory bodies, prominent oil and gas companies, stakeholders, Diplomats and media persons. The conference was supported by MOL Pakistan, PSO, Eastern Testing Services and the Petroleum Ministry. Deputy Chairman Senate of Pakistan, Mir Jan Muhammad Khan Jamali also attended the conference. Speaking on the opportunities in Balochistan, he said that Pakistan has abandoned natural resources, but we have to capitalise on these resources by devising long term plans and polices to avert energy crises in future. Federal Secretary Petroleum, Imtiaz Kazi highlighted the attractive features of the liberal petroleum policy, including several new initiatives and urged the local and foreign companies to proactively invest in Pakistan for higher productivity. The conference was divided into four sessions, in which the energy experts shared different facts, trends and ideas, including shortcomings were exchanged on topics like; integrated energy plan, alternate energy, power sector reforms, strategic resources and Inter-state pipelines for oil and gas. The eminent speakers included Chairman of Hascol, Mumtaz Hasan Khan; Director of Alternate Energy Board, Irfan Yusuf; President of BYCO Petroleum, Kalim A Siddiqui; President of Balochistan Economic Forum, Sardar Shaukat Popalzai; MD & CEO of Inter-State Gas Systems, Hilal Raza and the MD of Progas Pakistan, Abbas Bilgrami. The 4th Session comprised a productive panel discussion on "Energising the Country on War Footing". The panel included industry experts like; Imran Akhtar, Joint Executive Director of Ogra; Ejaz A. Khan; Samir Ahmed, MD of NCEL; Dr SNA Zaidi, GM Operations of PSO; Ms Talat Jabeen, Country Manager, Kuwait Petroleum and Hammad Bashir, Director Projects at Nouveau Energy. In his address of welcome, Menin Rodrigues, Chairman of the Conference & CEO of Shamrock Communication (Pvt) Limited appreciated the efforts of the sector specialists and emphasised the emerging opportunities and challenges in fuelling the industrial and domestic sectors of Pakistan.

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Khalifa Refinery project: IPIC, Parco may ink deal to form ''KCRC'' in March

ISLAMABAD (January 19, 2011) : Abu Dhabi oil giant International Petroleum Investment Company (IPIC) and Pak Arab Refinery Limited (Parco) are expected to sign 'participation agreement for formation of company' to execute multi-billion dollars Khalifa Coastal Oil Refinery project in March 2011. While briefing National Assembly Standing Committee on Petroleum and Natural Resources, Parco Managing Director Rasheed Jang said the paper for formation of company had been submitted to Board of Directors of Parco in a recent meeting and lawyers of IPIC were examining them. "We are hopeful that participation agreement for formation of company will be signed in March," he added. MD Parco said that circular debt issue was a major hurdle in refinery project and claimed that it was to receive Rs 28 billion from PSO. Sources said Khalifa Coastal Refinery Company (KCRC) would be formed to carry out multibillion dollar project. The proposed refinery would have the capacity to process 13 million tons oil per annum. The government has allotted 1000 acres land for KCR project. The IPIC had suspended work on KCR in January 2009 due to global recession and a row over management issue with Islamabad. Total cost of KCR has been estimated at around $6 billion. Parco was to hold 24 percent shares and IPIC the other 76 percent in the refinery to be built in the coastal area of Hub, Balochistan. Parco is a joint venture of the government of Pakistan and IPIC. Abu Dhabi oil giant IPIC representative had expressed reluctance to resume work on multi-billion dollars KCR project due to circular debt in the 126th meeting of the Board of Directors, chaired by Naveed Qamar, Minister for Petroleum and Natural Resources on October 7, 2010. Parco's Board of Directors (BoD) in the 121st meeting held on October 5, 2009 had granted approval for initial funding of $500 million for KCR. It had also approved immediate release of $13 million to kick off subcontracting work related to the implementation of the KCR project. "After approval of funds by Parco, IPIC management decided to go ahead with the project in December 2009, but the circular debt issue became the major reason for delay in the project," sources said. An accord on implementation of the Khalifa Coastal Refinery Project was signed at the Prime Minister House in Islamabad on November 13, 2007.

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Timelenders, ADGAS sign training contract

KARACHI (January 15, 2011) : Leading Pakistan and UAE based training and development organisation Timelenders signed a two year training contract with UAE's natural and petroleum gas operator ADGAS (Abu Dhabi Gas Liquefaction Company) in Abu Dhabi, on Thursday. According to the contract, Timelenders will train the officers of ADGAS in next two years on its flagship Strategic Time Management course and it is another milestone after adding value to over 400 officers at region's leading telecom operator Etisalat in the recent past, says Yameenuddin Ahmed, Head of International Operations at Timelenders. Yameenuddin from Timelenders and Hussain Ali Daiban (Learning Resources Team Leader ADGAS) signed the contract, while Sabeer Kohinoor was also present in the meeting. Hussain and Yameen believe that Timelenders courses will bring positive changes in the ADGAS officers and the trainings will contribute to the vision of ADGAS of having capable, efficient and highly qualified people to sustain its years of successful operations. The agreement is inline with the Timelenders vision of facilitating individuals and organisations to unleash their potential through worthy and powerful visions, says Suleman Ahmer, the founder and CEO of Timelenders. ADGAS is the subsidiary of UAE based world's sixth largest oil and gas group ADNOC (Abu Dhabi National Oil Company) with 92,200 million barrels liquid and 198,500 million cubic feet natural gas reserves world-wide having 70 percent shareholding of ADGAS with other shareholders including the Japanese Mitsui & Company, British Petroleum and French operator Total.-PR

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Accelerating oil, gas exploration will mitigate energy shortfall: Naveed

ISLAMABAD (January 13, 2011) : The Federal Minister of Petroleum and Natural Resources Syed Naveed Qamar has expressed the need for accelerating oil and gas exploration and production to mitigate the energy shortfall in the country. Energy is the basis of growth and welfare and all out efforts are needed to expedite Exploration and Production activities in the country, Syed Naveed Qamar said while talking to Dr Elmar Colins, the General Manager of OMV Exploration and Production Pakistan who called on him on Wednesday. Dr Elmar briefed the Minister about the activities of the company in Pakistan. The Minister directed the concerned officials present in the meeting to take appropriate steps to facilitate and streamline E&P companies operating in Pakistan so as to bring the much needed hydrocarbon resources on stream and meet the energy shortage of the country. OMV GM Dr Elmar Colins expressed his optimism on development of unconventional resources of Tight Gas, once the properly laid down policy is put in place. The GM also expressed his commitment to far-reaching social responsibility, as an integral part of business philosophy and in the creation of vital infrastructure in its areas of operations. Syed Naveed Qamar also lauded company's generous contribution for relief of flood victims. The OMV is Austria's largest listed integrated oil and gas industrial company, which is involved in exploration activities in Pakistan since 1990. OMV had made a gas discovery at the Miano gas field followed by another significantly larger Sawan gas discovery. The company has an active exploration programme in Pakistan in different concession areas. OMV Pakistan is producing gas from its Miano and Sawan fields in districts Sukkur and Khairpur in Sindh, and contributes significantly to Pakistan's gas production.

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Exploring unconventional gas reservoirs: ENI to form joint venture with PPL

ISLAMABAD (January 12, 2011) : The oil and gas exploration company ENI has expressed interest to invest in exploring unconventional gas reservoirs in a joint venture with Pakistan Petroleum Limited (PPL), Business Recorder has learnt. Ministry of Petroleum will table 'tight gas policy' before the Council of Common Interests (CCI) in its next meeting in a bid to provide incentives to exploration companies enabling them to carry out activities for exploring unconventional reservoirs. The Managing Director, ENI, Paulo Giraudi, stated this at a meeting with the Federal Minister of Petroleum and Natural Resources, Syed Naveed Qamar on Tuesday and briefed him on the status of ENI activities in the country. The Petroleum Minister said that the tight gas policy would soon be tabled before the Council of Common Interests (CCI) forthcoming meeting paving way for ENI and other interested companies for development of the much needed unconventional reservoirs. ENI will form joint venture with PPL to carry out activities in exploring tight gas reserves to enhance indigenous gas reserves for overcoming energy crisis in Pakistan. "Though ENI has found one offshore well dry but we are still interested in carrying out more exploration activities in offshore," MD ENI said. Meanwhile, according to a statement Naveed Qamar lauded the company's valuable contribution in meeting the much needed energy requirements and oil and gas assets development in the country. He expressed satisfaction over the on-going exploration and production being carried out by ENI and emphasised further acceleration in the face of growing energy demands of Pakistan. Naveed Qamar expressed his desire to see the E&P companies expanding their operations by bringing more investment in upstream E&P sector. Syed Naveed Qamar discussed progress in the three offshore blocks where the company is engaged in its operations and reiterated that the government had formulated Petroleum policy 2009 to provide more incentives in terms of pricing mechanism and regulatory framework for development of Pakistan's vast onshore and offshore sedimentary areas. The minister also appreciated the efforts ENI has undertaken for long-term support to the families of the victims of plane crash that took place a few months ago, as well as for the company's generous contribution for flood relief. Giraudi thanked the minister for his support and assured continued co-operation on his behalf.

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Implementation of IP project by SSGC, SNGPL under study

ISLAMABAD (January 01, 2011) : The government is considering to allow Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeline (SNGPL) to jointly implement the Iran-Pakistan (IP) gas pipeline project due to funds being easily available from international investors and low operating costs, sources told Business Recorder. They said that the government has been working on two options: to implement the project by Interstate Gas Company Limited (ISGCL), or by SSGC and SNGPL jointly with respect to operating cost of 1000 mmcfd. Funds provision to ISGCL entails a number of issues, like provision of equity, which would delay overall implementation of the project. However, the Ministry of Petroleum has proposed that ISGCL be compensated for its operating cost, and be reimbursed the actual cost of gas, by SSGC and SNGPL. "As the capital expenditure would be incurred by SSGC and SNGPL, the cost of financing would be borne by them," sources said, adding that as the pipeline network would be used by SSGC and SNGPL, no charges for the pipeline network will be taken from ISGCL. As one option, if the project is implemented by ISGCL, the company is likely to be given a return on equity (ROE) of 15 percent in $ terms (net of tax). Since the financial structure of ROE guaranteed companies is front-loaded and financial charges including principal repayments are taken as a passthrough item, it is estimated that average operating cost in the first ten years would be around Rs 70 to Rs 80 per 1000 mmcfd. This may increase with the depreciation in the value of the rupee against $. The current cost of SSGC is around Rs 15 per 1000 mmcfd, or Rs 5 per 1000 mmcfd after financial charges. In the second option, if the project is to be implemented by SSGC and SNGPL jointly, which currently own 100 percent of ISGCL equity, they would be responsible for implementing and financing the project. They will be given a return as per current tariff formula on the capital expenditure. The gross return is 17 percent in rupee terms before financial charges and tax. After adjustment for financial charges and tax, the return would be lower. The cost per 1000 mmcfd under this financing structure would come to around about 40 percent of the cost incurred by ISGCL to implement the project. "Therefore, keeping in view the cost comparison, it would be appropriate to allow SSGC and SNGPL to jointly implement the project," sources said, adding that the government of Pakistan can give its guarantee for raising funds by these two entities. Another factor which supports the implementation of the project by SSGC and SNGPL is the current international interest rate, which is around 5-6 percent for fixed long term loans.

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