14TH INTERNATIONAL EXHIBITION FOR THE ENERGY INDUSTRY

Subscribe to POGEE Monthly Energy Newsletter...
ITS FREE!
[ Subscribe Now ]
 

News Headlines for the month of
AUGUST 2013

GAIL India, Pak firm to ink gas accord

NEW DELHI - The Indian state-run gas utility, GAIL India, will enter into a contract with a Pakistani firm to export natural gas through a pipeline from Punjab, Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi told the Lok Sabha. GAIL plans to import gas in its liquid form called liquefied natural gas on a port in Gujarat or Maharashtra. After converting this again into gaseous state, it will transport the gas through cross-country pipeline network to Jalandhar. From Jalandhar, a 110-km line is proposed to be laid to the international border near Wagah for delivery to Pakistan. “GAIL will enter into the necessary contract for export of regassified-LNG with its Pakistani counterpart based on import of LNG at Petronet’s Dahej (import facility in Gujarat) or Dabhol LNG terminal (in Maharashtra),” she said in a written reply to a question in Lok Sabha. “After regasification at the above terminals, R-LNG will be transported by GAIL through pipelines up to the delivery point located at the international border near Atari,” she said. Pakistan wants to import gas from India to meet its rising energy deficit. Initially, it wants to take 1-1.5 million tonnes of LNG (4-6 million standard cubic meters per day of gas). Pricing and other commercial agreements are being negotiated. Oil Ministry sources said the delivered price of gas will be up to $22.3 per million British thermal unit after including transportation charges and all taxes and duties. Considering imported LNG price of $14.50, the delivered rate will be $15.46 after considering shipping and import duty charges. After re-gassification and service tax, it would cost $17.01 per mmBtu. Further, transportation of gas through trunk pipelines would cost a further $1.75 exclusive of service tax. Then again, $0.5 would be charged for transportation of gas through a dedicated pipeline up to Indo-Pak border bringing the total cost to about $19.54 per mmBtu. A slew of other costs along with Value Added Tax (VAT) is expected to raise the price of gas to a final $22.3 per mmBtu at which it will be delivered to Pakistan, they added.

Copyright Pakistan Today 2013

Top

Import of LNG SSGC’s top priority: MD

KARACHI - Sui Southern Gas Company Managing Director Zuhair Siddiqui has said that import of LNG is company’s top priority. He highlighted different hurdles and issues being faced by the company’s management in this regard. He was giving the presentation to the Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi who visited SSGC head office for the first time after assuming the charge of the ministry. He was also accompanied by the Minister for State Jam Kamal Khan and Federal Secretary, MP&NR Abid Saeed. Federal Minister gave suggestions and instructions to SSGC management for addressing these issues. Focusing on other important developmental projects, MD SSGC informed that in Balochistan, Zarghoon Gas Pipeline Project will be completed during September 2013 and the cost incurred would be Rs 1.458 billion. After completion of the said project around 25 mmcfd gas will be added in SSGC’s system that will be provided to Quetta city. The project consists of around 64 km long pipeline network. The MD elaborated on other gas supply projects, which were completed during recent past or under completion. He said that Jhal Magsi, Sinjhoro, Kunnar Pasakhi, Mehar, Rehman and Nar Baghla gas supply projects were completed against a cost of Rs. 3.432 billion, comprising of 291 km long pipelines that added around 235 mmcfd gas in SSGC’s system. Managing Director informed the guests that during the last 5 years, company has succeeded, for the first time, to bring down its UFG by 2 percent. The Managing Director also explained the progress on SSGC’s Natural Gas Efficiency Project (NGEP). The Federal Minister was also informed by the Managing Director about the huge receivables of Rs. 50.53 billion from KESC and Rs. 16.32 billion from Pakistan Steel Mills which are due since long. MD said that KESC is not acknowledging the late payment surcharge. Later, the Minister and Secretary visited different departments that included 1199 Contact Center, IT’s Geographical Information System (GIS) and Data Storage Centre and expressed their satisfaction over the smooth management.

Copyright the Nation, 2013

Top

OMV finds gas, condensate in Mehar block

OMV, an integrated, international oil and gas company, has announced that it has discovered gas and condensate in Sofiya-2 exploration well in the Mehar exploration licence. The presence of hydrocarbons was proved through wire line logging and testing operations. During testing, 18 million standard cubic feet of gas per day and 1,550 barrels of condensate (gross 4,500 barrels of oil equivalent per day) flowed from the Ranikot formation. Further appraisal work will be required to confirm the size of the discovery, said OMV in a press release. Sofiya-2 exploration well is located in the Mehar exploration licence in Sindh, around 10 km north of Mehar gas and condensate field. OMV Maurice Energy Limited holds a 75% share in the exploration licence. Its joint venture partners are Government Holding Private Limited (5%), Ocean Pakistan Limited (15%) and Zaver Petroleum Company (5%). OMV said the new discovery’s proximity to the Mehar field provided the opportunity of using the Mehar gas and condensate plant for processing. The development of Mehar field is in its mechanical completion phase and production is expected to start in the fourth quarter of 2013. Jaap Huijskes, OMV Executive Board member responsible for exploration and production, said: “We are very pleased with this result. It provides the opportunity to utilise the Mehar gas plant for processing of Sofiya gas and condensate, which should enable cost-effective and accelerated development of this new discovery. The discovery adds value to the Petronas acquisition in 2011, which is an important part of our growth strategy in Pakistan.” OMV (Pakistan) Exploration, a wholly owned subsidiary of OMV Aktiengesellschaft of Austria, started exploration activities in Pakistan in 1991. The first significant gas discovery was made at Miano in Sukkur district in eastern Sindh in 1993, followed by Sawan discovery in 1997. Further discoveries in Latif and Tajjal gas fields were made in 2007. In 2011, OMV Maurice Energy Limited acquired Petronas Carigali Pakistan Limited, which provided access to additional fields – Mehar, Rehmat and Saqib – and exploration blocks. At present, OMV holds interest in eight exploration blocks in Pakistan.

Published in The Express Tribune, August 31st, 2013

Top

Oil, gas exploration: pacts signed with 12 companies in five years, National Assembly told

The federal government has signed agreements with six domestic and six foreign companies for exploration of oil and gas during the last five years. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Wednesday informed the National Assembly during question hour session, adding that the government was working on a number of projects to overcome gas shortage in the country. The projects included Enhancement of Indigenous Gas Production‚ Import of Gas from Iran‚ Import of Gas from Turkmenistan‚ Import of LNG from Qatar and Promotion of LPG air mix, he informed. The Minister further said that during last one year a total of 97 oil wells were drilled, including 24 wells by the OGDCL, six by PPL, while other companies' collectively drilled 67 wells. To a question‚ the minister said Pakistan had entered into Gas Sales Purchase Agreement with Iran and Turkmenistan wherein both the countries would supply predetermined quantum of gas as per GPSA. He said, "Pakistan Iran gas pipeline project would be completed within stipulated time, as Pakistan was bound to purchase gas from Iran by January 1, 2015 otherwise the country would have to pay a plenty of $3 million per-day in case of non-compliance with scheduled dates. The Minister said that under the Turkmenistan-Afghanistan-Pakistan-India gas pipeline project, Pakistan was just a buyer and no investment would be made by the country in the project. About the construction of Liquefied Natural Gas (LNG) terminal in Pakistan, the minister said, tendering process was underway and terminal would be operational by November 1, 2014. While replying another question raised by MNA Nisar Ahmad Jatt, the minister said that SNGPL had sustained Rs 15 billion losses on the account of gas theft. The government had introduced comprehensive measures to curb the gas theft and during the past six weeks 300 first information reports (FIRs) had been registered in this regard, he added. He said SNGPL had a backlog of one million gas connection requests from consumers, while 30,000 such requests were lying pending with the SSGCL. This year, the minister informed, OGRA would issue 300,000 new gas connections, however, efforts would be made to enhance the number up to 500,000 in a bid to clear the backlog. The National Assembly Speaker during the question hour session expressed his resentment over an unanswered question pertaining to Ministry of Overseas Pakistan, however, Minister of State for Parliamentary Affairs Sheikh Aftab assured the House that action would be taken against the responsible officials of the ministry concerned.

Copyright Business Recorder, 2013

Top

USAID helps Discos on institutional capacity, development

The USAID Power Distribution Program and Pakistan's Government-owned Power Distribution Companies (Discos) are working together to bring improvements in Discos including the Islamabad Electric Supply Company (Iesco), Peshawar Electric Supply Company (Pesco), Lahore Electric Supply Company (Lesco), Hyderabad Electric Supply Company (Hesco), Quetta Electric Supply Company (Qesco), Sukkur Electric Power Company (Sepco), Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco) and Faisalabad Electric Supply Company (Fesco). Under the USAID Power Distribution Program more than 126 senior and mid-level managers of Discos have participated in the Utility Exchange Programs in eight different countries, including USA, Australia, Malaysia, Philippines, Thailand, UAE, South Africa and Turkey. USAID has conducted eleven exchange programs for energy sector with the express purpose of introducing Discos' leaders to international best practices in Commercial Management, HR & Change Management, Distribution Systems Engineering, Engineering Planning, Financial Management Planning, Customer Services, and Communications. USAID conducted a special Exchange Program to the United Arab Emirates in March 2013 for mid-level women employees from eight Discos in Customer Services and Commercial Management. USAID has also completed over 20 functional and leadership training courses throughout all Discos reaching over 1,300 Disco staff. Training in leadership, finance, accounting, HR, engineering, customer service, meter reading and other areas were provided after a detailed needs assessment determined that the Discos require skill development in these areas. Basic IT training was given to more than 1,000 Discos' staff to promote the use of IT in Discos. Sustainability is critical to long-term success therefore USAID launched Training of Trainers courses to have skilled Discos' trainers fully capable of teaching courses developed by USAID. These trainers will use global standard, modern training methods which increase the knowledge and skill retention of trainees. To further support sustainability, USAID has provided modern training equipment, including multi-media to each purpose-built Regional Training Center of Discos. Organisational Assessment and Restructuring initiative was launched at Mepco focusing on developing proposals and implementation road maps, covering key areas, such as performance management systems, training & development, and employee relations. Power Distribution Program has worked closely with Mepco BOD, management and HR Department to come up with proposals that are based on best industrial practices and tailored to suit the needs of Mepco. The objective is to achieve a better-aligned organisational structure with well-defined responsibilities and accountabilities. This initiative will also serve as a model for other Discos. A change management project has successfully been completed in Pesco. USAID helped improve maintenance processes in subdivisions of Kissa Khawani, Sikandarpura and Chawk Yadgar. The improved maintenance patrolling results were entered in Network Maintenance Application to automate the preventive maintenance process.

Copyright Business Recorder, 2013

Top

Work on 3.8 megawatts solar plant begins at UAF

The work on 3.8 MW Solar Powered Electricity Generation Plant (SPEGP) at University of Agriculture Faisalabad has been started that will be completed within the span of six months. In this regard, a ceremony was held at the Postgraduate Agricultural Research Station (PARS), Jhang Road, UAF, in which former Austrian Defence Minster Herbert Scheibner was the chief guest. The University is setting the plant in collaboration with Apolo Ampex Pvt Ltd, a multinational company, to produce clean and pollution free installed solar energy of 5.7MW peak load and 3.8MW average running load. The Company is also setting up the green houses on the 21 acres at UAF whereas five major off season crops would be grown. The Austrian team included Member of Parliament Gerhard Huber and Austrian Company CEO Rainer Kertes. Apolo Ampex Ltd CEO Shahzada Khurrum and UAF Dean Professor Dr Muhammad Iqbal were also present on the stage. Addressing on the occasion, Herbert Scheibner vowed to provide their all-out efforts to Pakistan in promoting alternative energy to cope with power outages issue. He stressed the need to enhancing the collaborations between Pakistan and Austria in the various fields including education, energy sector and agriculture. He said in the current century, solar energy is the best option because sun will remain available for thousands of years. Whereas others natural resources are reducing with the passage of time. He said the people of his country are preferring shift to solar energy. Many companies in the area of solar energy are operating in Austria that can help Pakistan in the said projects. In the welcome address, the Vice Chancellor said the electricity to be produced from the solar project on-grid will cost Rs 3.17 per unit at the average for the next 12 years. He said it is totally foreign funded project. The UAF consumes the energy of 2MW. He said the University will have 21 acre solar green houses invested by the said company for the construction of green houses in order to promote the technology. He said these will be largest green houses not only in Asia but also in Europe. Dean Professor Dr Muhammad Iqbal said Pakistan is lying on the solar belt and is suitable for the solar energy (5.5 - 6 kWh/m2/day). He said renewable energy can move the country from its present status to become a truly global industry with the collaboration between government and business. He said UAF has also designed and installed biogas tube well system and off grid power generation (15Kv) for solving the problems of farmers. He said the University has also launched first degree programs of Energy System Engineering, and Environmental Engineering aiming at producing a pool of professionals who would serve the sector. Professor Dr Jalal Arif said that the University is taking all tangible steps in the energy sector in order to make our homeland self-sufficient in the electricity. He hopes the solar energy project will also help in this regard. Gerhard Huber said as many as 40,000 villages in Pakistan are out of electricity. With the promotion of solar energy, the issue can be addressed there. In the end, agreement was inked between the UAF and Apolo Ltd in this regard.

Copyright Business Recorder, 2013

Top

Two micro hydro power plants inaugurated: Khyber Pakhtunkhwa government seeks to restart closed projects, says Imran

Pakistan Tehrik-e-Insaf Chairman Imran Khan on Monday said the Khyber Pakhtunkhwa government is working on a comprehensive plan for hydel power generation to meet the growing energy demand in the province. He was addressing an inaugural function of two micro hydro power generation projects in Kalam, Swat. The project will be functional next summer, he said. "The KP government is also focusing on restarting the closed hydro power projects in the province to supply electricity to other areas of the country," he added. The KP government has planned to start over 300 such micro hydel power generation projects under a comprehensive strategy for meeting energy needs in the province. Khyber Pakhtunkhwa Chief Minister Pervez Khattak, the party members of provincial assembly and notable of the area were also present. Khan said independent nations will be free in their decisions, but unfortunately Pakistani nation is still not free to decide on its own. He added that the issue will be resolved when people would get autonomy. He said the PTI government's manifesto and ideology is to free people. The poverty will not be eradicated until the establishment of good local government system, the PTI chief said. He claimed that PTI-led provincial government will introduce a model local body system with the support of its coalition partners in the province. Under the new LG system, decisions will be made at relevant districts instead of Peshawar, while every village would get their developmental funds and locals will run schools, hospitals, sports and police system in their respective villages, Imran added. Later, the PTI chairman also inaugurated a modern Mother and Child Care Centre at Kalam Swat, while a mobile lady doctor service was also launched for people of Bagh Dari, Swat.

Copyright Business Recorder, 2013

Top

Waste-to-energy plant soon at DGK

Punjab Environment Protection Minister Colonel Shuja Khanzada (Retd) has said that the Punjab government is considering every option to overcome the energy crisis; for this purpose, a waste-to-energy plant will soon be installed at Dera Ghazi Khan, which will produce electricity through incineration of garbage. While talking to media on Friday, he also said in this connection, 2,000 tons of garbage from Lahore will be sent to Dera Ghazi Khan. He said the installation of this plant at DG Khan will not only help to overcome the energy crisis but also solve the problems of disposal of garbage collection in Lahore. "The Punjab government is striving to keep clean the environment of the province. It has accorded approval to the project for purifying all the sullage drains, including Hadayara Drain, in Lahore. After proper treatment of sullage water, it will be disposed off in River Ravi so that riverine ecology could be protected," he added. According to him, the government is considering an option of external audit to make police corruption-free and for improvement of law and order situation in the province.

Copyright Business Recorder, 2013

Top

Mangla power station: MoU inked with USAID

The governments of Pakistan and the United States are partnering to improve the operating capacity of Mangla hydel power station and increase electricity output in Pakistan. For refurbishment and upgradation of Mangla station, United States Agency for International Development (USAID) and the Water and Power Development Authority (Wapda) signed a $150 million Memorandum of Understanding (MoU). The USAID Mission Director Gregory C Gottlieb and Wapda Chairman Syed Raghib Abbas Shah signed the MoU on behalf of their respective organisations. This grant funding will be provided to the Government of Pakistan and implemented through Wapda. WAPDA spokesman said under the MoU, USAID will fund the refurbishment of two generators and modernisation of the auxiliary equipment of the power house, which will be completed within five years, and add 70MW to the Mangla station's operating capacity. In addition, life and reliability of the plant will increase for next 40 years. The upgradation and rehabilitation works funded by the USAID will enable the Mangla station to utilise additional water potential resulting from raising of the dam. He said the funding of Mangla station rehabilitation project is the latest example of the US government's long-term commitment to partner with the Government of Pakistan for alleviating the energy crisis in the country. The US government co-financed the completion of the Gomal Zam and Satpara dams and rehabilitation of Tarbela power station that have added 162MW to the national grid.

Copyright Business Recorder, 2013

Top

500MW solar power plant: Punjab government, ZTE sign agreement

An agreement was signed between Punjab government and Chinese company, ZTE, for co-operation in setting up solar power plant, here on Sunday. Chief Minister Punjab Shahbaz Sharif, Secretary Energy, President of Chinese company Yu Yong and other officials were present. Secretary Energy and Vice President of ZTE signed the document. Under the agreement, the Chinese company will set up a 500 megawatt solar power plant. Initially, the Chinese company will establish a 300 megawatt solar power plant which will later be extended to 500 megawatt capacity. ZTE will set up solar power plant in Quaid-e-Azam Solar Park Cholistan and the project will be completed within a year. Punjab government will extend all out assistant and facilities to the Chinese company for this purpose. Addressing the ceremony, Shahbaz Sharif said that Pakistan Muslim League-Nawaz government was taking speedy measures for resolving energy crisis and agreements were being reached with several Chinese companies for launching power generation projects while steps would be taken expeditiously for their implementation. He said that the arrival of Chinese companies and investors to Pakistan after the visit of Prime Minister Nawaz Sharif to China is a good omen and investment by Chinese companies and investors in energy sector augurs well. He said that the co-operation of China in energy sector was a glorious example of Pak-China friendship. The Chief Minister said that five memorandums of understanding were signed with Chinese company, China Harbour Engineering on Saturday for co-operation in energy and infrastructure sector while an agreement has been reached with ZTE on Sunday for setting up solar power plant. He said that electricity was essential for investment in the country. He said that PML-N government would fulfil its promise made to the nation of resolving energy crisis. President ZTE, Yu Yong said that all out co-operation will be extended to Pakistan in energy sector and rapid progress will be made towards implementation of the agreement. Later, Chief Minister Shahbaz Sharif hosted a dinner in honour of the members of ZTE delegation.

Copyright Business Recorder, 2013

Top

PPIB may complete six power projects by 2018

Private Power and Infrastructure Board (PPIB), a subsidiary of Water and Power Ministry, is expected to complete six power projects to inject 1100 MW in the national grid by the end of 2018. According to details, 404 MW Uch-II power project is likely to start its operation by December this year followed by 163 MW Granage Holding in October 2014 and 134 MW Star power project in July 2016. The expected Commercial Operation Date (COD) of 147 MW Patrind hydropower project in AJK is April 2017, 100 MW Gulpur Hydropwer project is December 2017, and 130 MW Sehra Hydropower project at AJK is December 2018. After completion, these projects would produce cheaper electricity for the consumers and help change the current energy mix, said an official. PPIB has already completed 29 power projects and added more than 8500 MW in the national grid. All the private sector hydro IPPs are being processed through PPIB and first hydro power IPP was inaugurated by Prime Minister Nawaz Sharif a couple of weeks ago in AJK. According to the official, future focus of the PPIB is on development of hydropower and coal-based projects and it is working on various projects which are in different stages of implementation. PPIB has completed feasibility study of 3162 MW hydropower projects while study is in process for 1106 MW hydropower projects. Analysts argue that hydropower is the best available option to meet the challenge of projected future energy demand as it is sustainable, reliable, clean, low cost and indigenous thus can be the principal source of energy. As per latest updated documents published by PPIB "Hydropower Resources of Pakistan," the country has potential of 60,000 MW hydropower generation, which could be economically harnessed.

Copyright Business Recorder, 2013

Top

Energy emergency: Khyber Pakhtunkhwa plans 20 hydro power projects

Senior Minister, Khyber Pakhtunkhwa, Siraj-ul-Haq said for overcoming energy shortage the provincial government proclaimed energy emergency in the province and has planned a 20 hydro-power projects with capacity of at least 25,000 megawatt electricity on the rivers. Talking to the delegation of a Turkish Welfare organisation here in his office at Civil Secretariat, the Senior Minister said that beside Federal Government, Punjab, Sindh and Balochistan they have also invited foreign investors for making investment in projects of producing cheap energy to abolish load shedding. He said for this purpose, the investors are being provided with cordial environment. The Senior Minister said the provincial budget is divided in three parts of welfare, development and administrative and the largest chunk of Rs 163 billion is allocated for welfare while Rs 118 billion is for development budget. The development priorities of the provincial government, he said are based on three main principles of the abolition of poverty, extending maximum facilities to people and bringing backward and districts are at par with developed districts of the province. Siraj-ul-Haq said corruption has been eliminated at every level and strict policy has been framed to control the wastage of national resources. The beginning has been started from us and the expenditures of Governor and Chief Minister Houses and Secretariats have been cut down by 50 percent. Similarly, he said medical treatment on national resources abroad has been banned on Governor, Chief Minister, government officials, members of provincial assembly and ministers while for tax reforms a revenue authority has been established, which has assumed the responsibility of collecting Sales Tax on services. The Senior Minister thanked the people and government of Turkey for extending assistance to the people of Pakistan on the occasion of natural disasters, particular flood affected ones and expressed the hope that with the passage of time cordial relations between both countries will further strengthen. He said Turkish relief agency and Al-Khidmat Foundation will establish a Model Village for flood affected persons in which he said the identification of land for 91 houses and formalities have reached to final phase. Similarly, he said that under an agreement between both organisations a joint television channel will also be established in Charsadda while efforts for bringing improvement in Pak-Turk relations and promotion of business activities will also be continued.

Copyright Business Recorder, 2013

Top

Solar power project: Punjab government signs MoU with Chinese firm

A Memorandum of Understanding (MoU) was signed between Punjab government and a prominent Chinese company Norinco International Corporation Limited for setting up a solar power project on Friday. Secretary Energy, Usman Bajwa and Vice President, Norinco International Zhang Shiping signed the document. Punjab Chief Minister, Shahbaz Sharif, Provincial Minister for Energy, Sher Ali Khan, Special Assistant, Arshad Jutt, chief secretary, chairman Nepra, chairman Planning & Development, secretary Energy, officers concerned and senior officials of Norinco International Corporation Limited were also present on the occasion. Under the agreement, Norinco International will set up a 300 megawatt solar power project in Cholistan which will be completed within 12 months. Punjab government will assist Norinco International in identifying the site for the solar power plant in Cholistan. Speaking on the occasion, Shahbaz commended the co-operation of Chinese government and investors in energy sector. He said that nothing could be more important than solution of energy crisis. He said that the nation will be rid of load shedding through speedy completion of power generation projects. Vice President Norinco International, Zhang Shiping while expressing his views said that Chinese people are deeply impressed with the speed of Shahbaz Sharif for the implementation of development projects and he is very much liked in China. He expressed the hope that power generation projects will be completed at the same speed at which metro bus project was executed. Earlier, while addressing a meeting regarding energy crisis, the CM said that the shortage of electricity will be overcome at any cost. He said that energy crisis has made life of people miserable and all-out measures are being taken to resolve this issue. He said that if the departments concerned did not fulfil their responsibilities towards resolving energy problem, they will never be forgiven by the nation. The CM said that solution of energy problem is the top priority of the government as it is essential for putting the economy on the right track. He said that the concerned departments should discharge their responsibilities in an efficient manner and no negligence should be shown in this regard. He also stressed the need for removing the flaws in the power supply system and said that efforts should be made on war footing for the up-gradation of the system. He said that urgent measures are needed for this purpose. He said that concerned departments should perform their duties in a co-ordinated manner. The CM expressed his extreme displeasure over the slow pace of disposal of matters by the concerned departments and directed that no effort should be spared in removing the flaws in the system.

Copyright Business Recorder, 2013

Top

1000 megawatts solar energy plant in Cholistan: Punjab government, Chinese company sign agreement

Punjab government and a Chinese company, TBEA, signed an agreement for co-operation in energy sector during energy conference held here on Thursday. Under the agreement, the Chinese company will set up a 1000 megawatt solar plant in Cholistan. Secretary Energy and Chief Executive Officer of the Chinese company signed the agreement. Speaking on the occasion, Chief Minister Shahbaz Sharif lauded the co-operation of China in energy sector and said that energy problem would be overcome through setting up of power generation projects from alternative sources with the help of friendly countries.

Copyright Business Recorder, 2013

Top

Shahbaz seeks German cooperation in overcoming energy crisis: PGBF

Lahore's office launched While the European Union Parliament is to decide a potential preferential trade access for Pakistani goods to the European market (GSP Plus) in autumn 2013, German Ambassador to Pakistan Dr Cyrill Nunn launched the Lahore office of Pakistan German Business Forum (PGBF) in a bid to further strengthen ties between Germany and Pakistan. Punjab Chief Minister Shahbaz Sharif was the chief guest at a function held to mark the launching of PGBF Lahore office at a local hotel on Monday. German Ambassador to Pakistan Dr Cyrill Nunn, Dr Masud Akhtar, Chairman PGBF Northern Chapter and Qazi Sajid Ali spoke on the occasion. Punjab Chief Minister Shahbaz Sharif in his address on the occasion sought German co-operation in overcoming energy requirements. He said Germany is generating 22,000MW of electricity through solar and we can get benefit from German technology and experience in this field. Shahbaz said, "We have given vibrant policy for investment in energy sector and no red tapism in this regard would be tolerated." He further said that there are challenges on different fronts but expressed his firm resolve to lead the country as a respectable and dignified country in the comity of nations. He further said the present government is taking sincere efforts to deal with security issues through collective efforts. German Ambassador to Pakistan Dr Cyrill Nunn said both Germany and Pakistan will largely benefit from stronger business ties and the launch of the Lahore office is an important step for the PGBF as well as business communities of the two countries. He said, "Pakistan Business days" are to take place in Berlin and Munich from 30th October to November 1, 2013. A delegation of Pakistani companies will travel to Germany to meet with potential German business partners. He said both Germany and Pakistan are planning to undertake further efforts to foster mutual business relations. Dr Cyrill Nunn said, "We are looking for closer trade ties with Pakistan and looking for opening of European Union markets for Pakistani products."

Copyright Business Recorder, 2013

Top

Pakistan said to have large reserves of shale gas, oil

ISLAMABAD: In a major development, the Energy Information Administration (EIA), the American federal authority on energy statistics and analysis, has estimated fresh recoverable shale gas reserves of 105 trillion cubic feet (TCF) and more than nine billion barrels of oil in Pakistan. These estimates of recoverable hydrocarbon reserves are many times larger than so far proven reserves of 24 TCF for gas and about 300 million barrels for oil. Pakistan currently produces about 4.2 billion cubic feet of gas and about 70,000 barrels of oil per day. A government official said the new estimates appeared to be ‘very very encouraging’ but it had not been shared with the government of Pakistan. He said the shale gas had seen tremendous developments in the United States and a couple of other countries were trying to use the latest technology. Pakistan, he said, was also encouraging exploration and production companies to venture into the fresh horizon. According to a June 2013 estimates of the EIA based on surveys conducted by Advanced Resources International (ARI), a total of 1,170 TCF of risked shale gas are estimated for India-Pakistan region --584 TCF in India and 586 TCF in Pakistan. In case of Pakistan these estimates are backed by proven studies and verified technical data “The risked, technically recoverable shale gas resource is estimated at 201 TCF, with 96 TCF in India and 105 TCF in Pakistan,” said the EIA. The EIA also estimated risked shale oil in place for India/Pakistan of 314 billion barrels, with 87 billion barrels in India and 227 billion barrels in Pakistan. “The risked, technically recoverable shale oil resource is estimated at 12.9 billion barrels for those two countries, with 3.8 billion barrels for India and 9.1 billion barrels for Pakistan,” the EIA said. The southern and central Indus basins are located in Pakistan, along border with India and Afghanistan which are bounded by the Indian shield on the east and highly folded and thrust mountains on the west. The lower Indus basin has commercial oil and gas discoveries in the Cretaceous-age Goru Fm sands plus additional gas discoveries in shallower formations. The shales in the Sembar Formation are considered as the primary source rocks for these discoveries. The EIA said that while oil and gas shows have been recorded in the Sembar Shale on the Thar Platform, no productive oil or gas wells have yet been drilled into the Sembar Shale. About the resource assessment, the EIA said that within 31,320 sq miles of dry gas prospective area, the Sembar Shale in the lower Indus basin had a resource concentration of 83 billion cubic feet per square mile. Within the 25,560 square mile wet gas and condensate prospective are, the Sembar shale has resource concentration of 57 BCF per sq. miles of wet gas and nine million barrels per square mile of condensate. Within the 26,700 square miles oil prospective area, the Sembar Shale has a resource concentration of 37 million barrels per square mile.

Copyright Dawn, 2013

Top

IP gas line project: 'Pakistan section will be laid in 2 years'

The government on Monday informed the National Assembly that it will take around 24 months to lay its section of Iran-Pakistan (IP) gas pipeline project if things remained normal, while the deadline will expire by the end of December 2014 - the timeline for the first flow of gas. Minister of State for Petroleum and Natural Resources Jam Kamal Khan while responding to question of Sheikh Rashid Ahmed told the Lower House that the government is committed to laying its section of pipeline, but it will take 24 months, adding that as per IP agreement $3 million plenty will be imposed on Pakistan per day for not laying the pipeline with the stipulated time. He said Iran will supply 33 percent gas to Pakistan in first phase, 60 percent in second phase and 100 percent in third phase as per agreement. Admitting that Pakistan is yet to start construction of IP pipeline, the minister told the house currently the project is in implementation phase and bankable feasibility study , front end engineering design , route reconnaissance and detail survey, social environmental impact assessment, installation of concrete marker on row have been completed. He said that the target of first gas flow is end of December 2014. He said that the government has committed provision of funds necessary to meet financial obligations of IP project, adding that as per latest Cabinet decision, it had been conveyed that funds collected through Gas infrastructure development Cess shall be utilised for the same coupled with ES $500 M financing provided by Iran. The House was informed that the pipeline will start from the onshore gas processing facility at Assaluyeh in Iran, to traverse a distance of 1,150 km up to the Iran-Pakistan border, which will be built and operated by Iran. Iran has already completed a 900-km portion of 56-inch diameter pipeline from Assaluyeh to Iran Shehr. The remaining 250 km up to Pakistan border is under design, and is expected to be completed in two years time. The Pakistan section of the pipeline is to be laid close to the Makran costal highway from Iran-Pakistan border up to Pakistan off-take point at Nawabshah covering a distance of over 781 kms. To another question, Jam Kamal Khan informed the House that the government is planning to accelerate the exploration of natural gas in different parts of the country and the related areas will be provided special incentives to overcome the gas shortage in the country. He said that a policy is under consideration to provide gas to the gas producing areas. He said that in the natural gas projects jobs will be provided to the qualified and skilled human resources of the areas. The minister said that 36 exploration licenses were issued to various petroleum companies for exploration of oil and gas in the country during the last five years. He said the exploration licenses were awarded through open competitive bidding process on the basis of best work programme. Minister of State for Parliamentary Affairs Shaikh Aftab Ahmad while replying to question told the House that work is under way on the Faisalabad-Multan Motorway M-4 project and will be completed by the end of next year. He said 58 percent works has been completed on 58 kilometres Faisalabad-Gojra section while 20 percent work has been completed on the 57 kms Khanewal-Multan section.

Copyright Business Recorder, 2013

Top

MoU signed to develop 6,000 megawatts of Thar coal-based plants

A memorandum of understanding (MoU) was signed between Sindh Engro Coal Mining Company Ltd (SECMC), China Power International Holding Ltd (CPIH), and Sino Sindh Resources (Pvt) Ltd (SSR) here on August 2 to develop 6,000MW of Thar coal based power plants in Sindh. CPIH is a wholly-owned core enterprise of China Power Investment Corporation, one of five State Power Corporations in the People's Republic of China. The principal business of CPIH is to develop, construct, own, operate and manage large power plants. Currently, the company is managing power plants with a generation capacity of more than 23,000 MW. SSR and SECMC are the developers of Thar Coal Mining Blocks-I and Block-II, respectively. According to the MoU, the parties have reached an intention of jointly developing, within the next 10 years, coal-fired power projects with a total installed net capacity of 6000 MWs in Sindh, Pakistan, which will be expected to use lignite coal mined from Block 1 and Block 2 in the Thar Coalfields. CPIH will be the majority shareholder and will be responsible for implementation and execution of the power projects subject to the signing of the formal agreement and the approval of Pakistan Government. The power projects will be developed in five phases of 1200 MWs each with a configuration of 2 x 600MW. Coal mining will be independently developed by SSR and SECMC for Block 1 and Block 2, respectively, who will supply coal based on the coal demand created by the power projects developed by CPIH. Thar coalfields contain the world's seventh largest coal reserves - estimated at 175 Billion Tons, capable to produce 100,000 MW for the next 200 years. Thar lignite is indigenous, abundantly available, and ideally suited to produce electricity giving it distinct advantage over imported coal. Price of Thar Coal is set on a "cost plus" basis and is not linked to international energy price movements, thereby, insulating the end consumer of electricity in Pakistan from the vagaries of international coal price movements. Thar coal also has the advantage of economies of scale, which will result in a progressively lower coal price and predictable electricity price as the mining operation scales up and more power plants are added. Most importantly, utilisation of Thar coal for power generation will result in huge foreign exchange savings versus any other imported energy resource.-PR

Copyright Business Recorder, 2013

Top

TRL expresses 'total commitment' to set up refinery

In a major announcement, Trans Asia Refinery Ltd (TRL) has expressed its "total commitment" to build the most complex refinery in Pakistan, aims at producing more than 100,000 barrels a day and four million tons of petroleum products every year. The refinery will be located at Port Qasim, Karachi. In a major boost to the country's economy, TRL signalled the end of previous delays with an undertaking that "the investors have decided to push the project forward in the interests of all parties and the people of Pakistan". TRL's determination to see the project through to completion is demonstrated by two important initiatives announced on Monday. First is the appointment of Descon to undertake a complete "health check" inspection of the TRL refining equipment. The second is a newly-completed restructuring of TRL management to ensure the project proceeds with all possible haste. Sultan Al Ghurair, the new CEO of TRL, said he was delighted to have Descon onboard in order to develop the project further. Descon is the leading Engineering and Construction Company of Pakistan. The company said that since the refinery had been delayed for some time, they will perform a health check of critical equipment before the EPC contractor is finalised. The TRL project is a direct investment of Al Ghurair Investment LLC, a UAE-based family conglomerate and one of the most diverse industrial groups in the Middle East. As the majority shareholder, Al Ghurair will play an important role in the future supply of fuel to the nation of Pakistan. When completed, the refinery will annually produce 80,000 tons of LPG, 455,000 tons of Naphtha, 410,000 tons of Motor Gasoline, 422,000 tons of Jet Fuel, 1,000,000 tons of Gas Oil - from which 630,000 tons will be treated Diesel - 1,050,000 tons of Fuel Oil and 200,000 tons of Bitumen. All the products of the refinery are in high demand in Pakistan. The refinery will create at least 350 direct jobs and several thousand indirect job opportunities for Pakistani workers. CEO Sultan Al Ghurair said: "Our parent company and major shareholder, Al Ghurair Investment LLC, has always been about creating long lasting relationships - and TRL is committed to carrying on that tradition. Al Ghurair looks forward to playing a part in the future prosperity of Pakistan and its people - and the TRL refinery is proof of that commitment".

Copyright Business Recorder, 2013

Top

Russian company keen to convert furnace oil power plants to coal

A Russian Engineering Company, JSC Technopromexport, has expressed "keen interest" in the conversion of existing furnace oil power plants to the coal fuel plants. In this connection, a delegation of Technopromexports Company headed by Deputy Director General called on Minister for Water and Power Federal Khawaja Muhammad Asif at Islamabad and gave a detailed presentation on the company profile and its completed projects in Pakistan. Company had already constructed three Thermal Power Stations of 210 megawatts (MW) each in Muzaffargarh which are capable of functioning on liquid and gas fuel. Khawaja Muhammad Asif, Minister Water and Power, welcomed the Russian Technopromexport company to operate in Pakistan and said that we have to convert our furnace oil power plants to the cost effective coal fuel. He said to the delegation that a provision of electricity at affordable cost to the common and industrial sector is our government's top most priority and every possible options will be explored to achieve this. He directed the official concerned to look into the details of this proposal of the JSC Technopromexport and make necessary arrangements to materialise it.

Copyright Associated Press of Pakistan, 2013

Top

Gadani Power Park Project: first coal-fired plant to be set up by government, says Prime Minister

Prime Minister Nawaz Sharif announced on Thursday that China had agreed to set up four coal-fired power plants of 660 MW each at Gadani Power Park Project in Balochistan. The first power project would be set up by the government of Pakistan itself. Ten power plants would be established at Gadani power park project at a cost of more than Rs 50 billion. The government would establish a jetty seven kilometres deep into sea, he said. The Premier made this announcement during his visit of the site of Gadani Power Park Project on Thursday. Federal Ministers Ishaq Dar, Pervez Rashid, Governors and Chief Ministers of Sindh and Balochistan, state minister Abid Sher Ali, local leaders of PML-N and others were present on the occasion. Nawaz said the federal government would itself establish the first power plant at the park to attract local and foreign investors. The park envisages establishment of ten coal-fired power plants with an aggregate capacity of 5200 MW but the Prime Minister desired that its capacity should be enhanced to ten plants in order to generate 6600 MW. He also gave instructions for expeditious implementation of different phases of the project. The Prime Minister said the project would cost millions of dollars and create massive economic and employment opportunities for the backward and far-flung regions of Balochistan and Sindh. Nawaz said, "We will have to plan for the next 25 to 30 years to meet a demand of 50‚000 MW of electricity. For this purpose‚ we will need four or five more such parks". He said a proposal was being considered to set up of an LNG terminal at the power park. The Prime Minister said the country now produced some 16000 MW of electricity which was the highest in the history of the country. However‚ the demand had also increased and there was still a shortage of 3,000 MW. The Prime Minister said the proposed six-lane Lahore-Karachi Motorway Project would also help accelerate the pace of economic development in different areas of the country. Earlier, Chief Minister Balochistan Abdul Malik Baloch welcomed Nawaz Sharif and said that the country would be free from electricity loadhsedding as the Prime Minister was blessed with an energy vision. Now, its our responsibility to work with the federal government and project the power projects, according to him. He said that local influential people like Mohammad Saleh Bhootani and Sardar Kamil are here, they are supporting the cause of government, he hoped that with the establishment of power park project, local people of Bela district would be given priority in jobs and other assignments. On the occasion, Secretary Water and Power gave a briefing to the prime minister about the project saying that almost all things are ready for this project, foundation stone can be laid in April 2014.

Copyright Business Recorder, 2013

Top

EVENT PARTNER
CONFERENCE SPONSOR