14TH INTERNATIONAL EXHIBITION FOR THE ENERGY INDUSTRY

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

News Headlines for the month of
NOVEMBER 2013

Hungary wants to invest, promote trade

November 28, 2013 RECORDER REPORT 0 CommentsE-mailPrintPDF Hungary is interested to promote bilateral trade with Pakistan and a trade delegation from Hungary will visit Pakistan in the first half of 2014, said Istvan Szabo, Ambassador of Hungary, while addressing to the members of Faisalabad Chamber of Commerce and Industry (FCCI). He said that various Hungarian companies have invested in Pakistan doing successful business. He said that Hungarian based MOL Pakistan Oil & Gas Company operating since 2004 in Khyber Pakhtunkhwa (KPK), is an indicative of the fact that there exists enormous potential for foreign companies in this sector. He said that there are immense trade and investment potential in Pakistan and he would play its due role with particularly reference to overcome energy crisis. He said that negative perception of Pakistan portrayed by international media needs to be eliminated to mobilise foreign investment inflow into Pakistan. He said that he would play its role for signing of Memorandum of Understanding (MoU) of FCCI with that of Hungarian Chambers of Commerce to increase the bilateral trade of both the countries. He said there are trade and investment opportunities in Information Technology, automobiles, medical and diagnostic equipments and energy sectors. He said that a trade delegation from Hungary will visit Pakistan in the first half of 2014. He said that Hungary is situated in the middle of Europe and easy access to other European markets. He said that industry contributes to 24 per cent, services 70 per cent and agriculture 5 per cent share in Hungary's economy. He hoped that 'Protection of Investment' agreement will be signed between both the countries some time in next year to increase and explore the trade and investment opportunities in both the countries. Earlier, in his welcome address to the Ambassador, Engr. Suhail Bin Rashid, President FCCI said that Pakistan and Hungary enjoy good economic relations and diplomatic ties having fairly long history. He appreciated the financial assistance of Government of Hungary in the wake of the devastating and unprecedented floods in Pakistan in 2011 and earthquake 2005. He said Hungary as a member State of European Union and should help Pakistan for final approval by EU Parliaments for grant of GSP Plus Status to Pakistan as from January 01 2014. He said Hungry is Pakistan's important trading partner. In fiscal year 2012 bilateral trade stood at $47.24 million in favour of Hungry. Pakistan exported $13.42 million worth of goods to Hungry, while imports stood at $33.82 million. He said there are vast prospects of expansion of bilateral trade including joint ventures in textile, agro-based industry, leather goods, oil and gas and Information Technology. Pakistan is known world-wide for all types of leather & leather products, organic as well as inorganic agro-based products & food items, sports goods & surgical instruments. Pakistan could supply all types of textile goods such as ready-made garments, home textiles and knitwear (hosiery) items to Hungary markets. Hungary's vast technical know-how in the fields of oil & gas exploration, chemicals and heavy industries may provide the basis for technology transfer to Pakistan in these areas. He said that Hungarian co-operation in oil and gas sector through Hungarian based MOL Pakistan Oil & Gas Co since 2004 in KPK is an indicative of the fact that there exists enormous potential for foreign companies in this sector. He suggested that more and more Hungarian companies should further enhance its business in the oil, gas and power sector in Pakistan. He said that Pakistan is a country with growing youth of 45 per cent share in the total population of 180 million people and emphasised exchange of vocational and technical training programs to benefit from technological edge of Hungary. He also emphasised on exchange of information on market studies, product demand, business laws and regulation, organise a business delegation to Hungary, single country exhibitions in both the countries and sign of an MoU with Economic Section of Hungary Embassy. Chaudhry Muhammad Asghar, Vice President FCCI presented vote of thanks to the guests. Riazul Haq, Senior Vice President FCCI, Haji Muhammad Shafi, Inaam Afzal Khan, Haji Muhammad Ramzan, Mian Haseeb Ahmed, Director Sitara Group and others shared their views on the occasion. Istvan Szabo, Ambassador of Hungary in Pakistan also visited Saleem Campus of the University of Faisalabad. During the meeting with Major Izharul Ahsan (retd), Registrar, TUF, Professor Dr Mohammad Iqbal Tahir, Advisor to Chairman BOG and other senior faculty members, the ambassador was briefed about the University of Faisalabad, University Medical & Dental College, Madinah Teaching Hospital and other welfare projects running under the auspices of Madinah Foundation. Istvan Szabo said that there is a lot of potential to promote bilateral co-operation in education sector particularly in the discipline of health sciences, between the two countries. He also appreciated the services of Madinah Foundation in health and education sectors. Later, Istvan Szabo visited different departments of Madinah Teaching Hospital and appreciated the services of Madinah Foundation for providing health care facilities to the deserving people, free of cost. Hungarian Ambassador also planted a sapling in the hospital's lawn.

Copyright Business Recorder, 2013

Top

Kohlu, Dera Bugti: OGDCL all set to kick-start exploration activities

State owned Oil and Gas Development Company (OGDCL) is all set to kick-start exploration activities in Kohlu and Dera Bugti where as per estimates oil/gas reservoirs stand at over 22 trillion cubic feet (TCF). Managing Director (MD) OGDCL Riaz Khan said this while talking to Business Recorder here on Tuesday, on the sidelines of Annual Technical Conference (ATC) organised by OGDCL in collaboration with the Society of Petroleum Engineers (SPE) and Association of Pakistan Geoscientists. To deal with the energy crisis on long-term basis, the government was taking all possible steps and for that purpose OGDCL was to start exploration and development work in Kohlu, Balochistan, where as per rough estimates natural gas reservoirs stood at over 22 TCF, he added. He said OGDCL had constructed an 80-kilometer long road which connected Kup -a far-flung area of Kohlu- with the main highway. The area has a huge potentially recoverable oil/gas reservoirs and OGDCL is ready to start exploration activities there. Pakistan currently has total proven reserves of about 27 TCF, Shale Gas Reservoirs stand at 586 TCF, while tight and other low BTU gas reservoirs stand at 51 TCF. He also said that within a year, OGDCL was likely to add some 500 million cubic feet per day (MMCFD) of gas into the system. "The Kohlu exploration block, spread over 2,500 square kilometres, possesses estimated reserves of about 22 TCF. According to preliminary estimates, more than 15.4 TCF reserves are described as ''recoverable''," Riaz added. Earlier, Minister of State for Petroleum and Natural Resources Jam Kamal Khan addressing the participants said the government was taking all possible measures to resolve energy crisis. He said that on short-term basis, the government was to start import of LNG and on long-term basis working out a plan to explore shale gas/oil in the country and according to US Energy Information Administration (EIA) shale gas stands at 586 TCF, while there are over nine billion barrels of shale oil in the country. Lieutenant General Raza Muhammad Khan (Retd), Managing Director Mari Petroleum Company Limited (MPL), said the company had recently started additional exploration and developmental operations in Mari gas field and Ziarat Balochistan. The minister said the government was pursuing a vibrant and investment-friendly policy to attract more investment for the oil and gas sector, adding the country had a potential and rich in natural resources and it needed a commitment and dedication to explore those resources for meeting the energy requirements. He said success ratio in oil and gas sector was highly encouraging and the government would facilitate the investors to give boost to exploration activities in oil and gas sector. Replying to a question regarding Pak-Iran gas pipeline project, the minister said Iran''s deal with world powers would had positive impacts on the project and dispelled the impression that Pak-Iran gas pipelines project had been suspended under external pressure, saying that government''s record testified that it never retracted on its commitments and continued with its projects, accordingly including the project in question. Dr M Saeed Khan Jadoon, Director OGDCL Institute of Science and Technology, and chairman of the conference expressed his gratitude to all the representatives of Exploration and Production (E&P) companies and services providers for the financial and technical support for organising the conference. He said the last year''s ATC''s on "E&P Technology, Innovation and New Frontier" was a great success. He expressed the hope the forum would provide excellent opportunity to academia to directly interact with industry and discuss the prevailing technical issues and problems thus finding solutions for many issues. More than 1,000 delegates from different national as well as international E&P companies, service provider and academia are participating in the conference to discuss topics related to energy industry.

Copyright Business Recorder, 2013

Top

IP gas pipeline project: Pakistan, Iran decide to hold fast-track talks

Pakistan and Iran have decided to hold fast track discussions on Iran-Pakistan gas pipeline project with the purpose to formulate a road map and a more realistic time schedule for the implementation of this important project, Foreign Office said. "This was one of the important outcomes of a meeting between Sartaj Aziz, Pakistan Prime Minister''s Advisor on National Security and Foreign Affairs and Dr Muhammad Javad Zarif, Foreign Minister of the Islamic Republic of Iran in Tehran on Tuesday," said Aizaz Ahmad Chaudhry, spokesman for the Foreign Office. He said that the two sides agreed that comprehensive technical commercial proposals on the IP gas pipeline would be discussed in Tehran between Inter-State Gas System Ltd of Pakistan and the Iranian nominated company - Tadbir Energy Gaspar Iranian Co in the first week of December. This will be followed by ministerial level discussions, he added. Sartaj Aziz is in Tehran to participate in the 21st Meeting of the Council of Ministers of ten members Economic Co-operation Organisation. The visit of Prime Minister''s Advisor is taking place at a time when Iran and G5 Plus one have reached a deal on Iran''s nuclear programme resulting in the lifting of trade sanctions in petrochemicals with Iran opening the prospect of the withdrawal of the US opposition to the IP gas pipeline project. The US has repeatedly showed its concern over the multi-billion dollar project and also threatened Pakistan of sanctions. However, Pakistan believes that the project does not come under international sanction. According to the spokesman, the two foreign ministers reviewed in detail the bilateral co-operation, regional and global issues and expressed satisfaction over the friendly and cordial relations between Iran and Pakistan. Discussing various areas of co-operation between the two countries‚ both sides emphasised the need to put greater focus on bilateral economic relations, adding that it was agreed to hold the next round of Joint Ministerial Commission in Tehran early next year. Earlier, addressing the ECO Ministerial meeting, Sartaj Aziz reiterated Pakistan''s strong commitment to the aims and objectives of the Organisation. Recalling the ECO''s aim at promoting sustainable economic co-operation, the Advisor remarked that it had a solid programme of co-operation, a forward looking agenda and expanding horizon of activities. He observed that ECO had made reasonable progress and needed to show more proactive approach so that the benefits directly affect the lives of the people of the Region. Sartaj Aziz had separate bilateral meetings with Ahmet Davutoglu, Foreign Minister of Turkey and B Taganov, Minister of Economy and Development of Turkmenistan.

Copyright Business Recorder, 2013

Top

Water, power and gas sectors: USAID, World Bank and IFC increase assistance: Khawaja Asif

Federal Minister for Water and Power Khawaja Muhammad Asif on Sunday said that USAID, World Bank, IFC and OPIC have increased their assistance 4-5 time for water, electricity, petroleum and gas sectors of Pakistan enabling Pakistan to cope with energy crisis more easily. It was the result of Prime Minister Nawaz Sharif's recent visit of United States of America, he said. Talking to media persons here, the minister said, "We are already working on a strategy for overcoming the electricity loadshedding besides under the programme long, medium and short term power generating plans would be undertaken for overcoming the energy crisis in the country and private sector would be encouraged under the programme. Special attention will be focused on long term projects for producing sufficient electricity for catering future needs of the country and these projects would be initiated with the assistance of donor agencies, he said. Apart from this, he said several foreign countries have already showed keen interest in investing energy sector of Pakistan to benefit the people of the country. Khawaja Asif said attractive opportunities are available for the foreign investors in wind, solar and hydel power generating projects of Pakistan and we are motivating the foreign investors avail the bright opportunities in hydel and solar sectors adding that hopefully the foreign investors will avail this advantage. No practical step had been taken by the previous regimes for the development of energy sector. Resultantly, the energy crisis deepened and the common man was facing serious hardships, he said. Asif said the PML-N government was making adequate efforts for strengthening and stabilising the industrial sector because the industrial sector is backbone of the national economy as well as providing employment opportunities to thousands workers across the country.

Copyright Business Recorder, 2013

Top

Energy from coal and solid waste: Chinese firm keen on launching projects in Punjab

Punjab Chief Minister Shahbaz Sharif said that due to the wrong policies and negligence of former rulers, country is facing energy crisis. However, the present government, after coming into power, has taken special steps for generating energy, he added. The CM said that load shedding has reduced considerably after the payment of circular debt of Rs 480 billion. He said that due to the present governmental steps, foreign companies have expressed their keen interest in energy sector in Pakistan. He expressed these views while talking to Li Ren Chao, Chairman China Western Power Company who along with his delegation met him at Chief Minister's office on Saturday. During the meeting promotion of co-operation in energy sector was discussed in detail. Vice Chairman China Western Power Company Wukai, Vice General Manager Du Chong Yang, Chairman KASB Bank, Additional Chief Secretary Energy, Secretary Agriculture, Secretary Planning and Development, Vice Chairman Punjab Investment Board and other senior officials were also present on the occasion. Chairman China Western Power Company evinced keen interest in launching energy projects from coal and solid waste and assured full co-operation to Punjab government. Talking to the Chinese delegation, Shahbaz said that PML-N government is taking special measures for reducing load shedding. He disclosed that work has been started to set up projects for generating energy through coal at Gadani and Port Qasim. He said that Punjab government has planned to set up coal power plants of 100MW each in Lahore, Faisalabad and Multan whereas planning has also been made for setting up coal power plant of 1000MW in Sahiwal.

Copyright Business Recorder, 2013

Top

Hungary''s MOL set to add gas and oil to system

Hungarian Oil and Gas Company MOL is all set to add 28 mmcfd gas and 7,300 barrels of crude oil to the system from Makhori East-III field by the end of January 2014, officials said. Sources told Business Recorder that MOL is the operator of the Tal Block located in the Kohat Plateau, Khyber Pakhtunkhawa. Tal Block is jointly being explored by Pakistan Petroleum Limited (PPL); Oil and Gas Development Company (OGDCL); Government Holdings Private Limited (GHPL) and Pakistan Oilfields Limited (POL). So far, six discoveries have been made in the block, the first in 2002 and the most recent in 2011. Commercial production has commenced from Manzalai, Makori and Makori East fields. Mamikhel and Maramzai discoveries are currently being evaluated through Extended Well Testing (EWT). Officials said within next few months, Pakistan''s local production of Liquefied Petroleum Gas (LPG) is expected to increase by around 700 tons per day (bbl/d), crude oil production likely to cross 100,000 barrel per day mark from current production of around 70,000 barrel per day and natural gas production by 700 mmcfd. About 22,000 barrels per day of crude oil is expected to come into the system from Makori and another 21,000 barrel per day from Nashpa Field being operated by OGDCL. At present, gas production from MOL''s TAL Block is around 320 mmcfd and 8,760 bbl/d of condensate/oil, which accounts for 8 percent and 12 percent of country''s total gas and condensate/oil production respectively; and which enables MOL Pakistan along with TAL Joint Venture Partners to cater almost 100 percent gas demand of KP. In future the production is expected to increase further based on the commencement of EWT production from Makori East-1 and Tolanj X-1. MOL has finalised the installation of Makori Gas Processing Facilities (GPF) in TAL block, which will have a capacity to process 30,000 bbl/d of oil/condensate and 150 mmcfd of gas. After the installation of the gas processing facilities, the company will be producing/extracting up to 300-350 tons of LPG per day. According to industry sources, the TAL Joint Venture (JV) is to install LPG plant at Makori gas field and intends to expand its production/processing facilities to cater for the additional production from existing fields under appraisal and any upcoming discovery from the area. Total local production of LPG stands at roughly 450,000 tons per year of which refineries accounted for 55 percent, while gas fields contribute about 45 percent. "Up to 80,000 tons of LPG is imported, while another 25,000 tons is smuggled into the country from Turkmenistan and Iran," sources said.

Copyright Business Recorder, 2013

Top

'More oil and gas reserves discovered in KP'

Speaker Provincial Assembly Khyber Pakhtunkhwa, Asad Qaiser on Friday said that oil and gas reserves had been found at nine more locations near Karak district of KP. Presiding over a high level meeting at Assembly Secretariat, he said that a huge quantity of oil and gas reserves have been discovered at nine out of 10 locations during the explorations and drilling. He said the PTI led provincial government was chalking out comprehensive plan to utilise all those oil and gas reserves in a way that could benefit the people of the province. He said the government was also planning to set up industrial estate, education city and other projects alongside the Peshawar-Islamabad Motorway as the Peshawar city had become densely populated.

Copyright Business Recorder, 2013

Top

Coal based power: two Turkish companies may sign MoU with Sindh government tomorrow

Sindh Chief Minister Syed Qaim Ali Shah has directed the officers concerned to hold meeting in detail, consult and give final touches to the documents of a memorandum of understanding (MoU) between Government of Sindh and two Turkish companies including Sanko Holding A S and Teyo A S which most probably be signed tomorrow at CM House. This he directed while holding meeting with the Abdullkadir Konukoglu President, Zekeriye Konukoglu Vice-President of Sanko Holding A S and Ferudun Korkmaz President of Teyo A S companies and their other representatives from Turkey who called on him at CM House Wednesday night. Advisor to CM for Finance Syed Murad Ali Shah, Chief Secretary Sindh Sajjad Saleem Hotiyana, Secretary Finance Sohail Rajput, Secretary Energy, Principal Secretary to CM Naveed Kamran Baloch, Director General Sindh Board of Investment Muhammad Riazuddin and other were present on this occasion. Chief Minister Sindh Syed Qaim Ali Shah appreciated the offer of the Turkish Companies for producing coal based power up to 10,000MW and added that it would be not only to overcome the power crises being experienced by Sindh province but also to give the leading status to their companies. He said that Sindh has qualitative coal reserves to produce coal based power energy.-PR

Copyright Business Recorder, 2013

Top

TAPI project: parties inch forward

Pakistan, Afghanistan, Turkmenistan and India on Tuesday signed Transmission Advisory Service Agreement (TASA) on Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project in Ashgabat. Talking to Business Recorder from Ashqabad, Mobin Soulat, Managing Director (MD) Inter-State Gas System (ISGS), said four participating countries inked the agreement, which will pave the way for construction of the 1,680km-long TAPI gas pipeline to bring 3.2 Billion Cubic Feet per Day (BCFD) natural gas to the country from Turkmenistan. The MD ISGS said he along with Pakistani delegation reached Turkmenistan on Monday, November 18 to attend the two-day conference of the technical working group of the four stakeholder countries. This will enable the Asian Development Bank to act as transaction advisor to find a technically and financially sound company that could form a consortium to generate the finances for the $7.8 billion TAPI gas line that will span over 1,600 kilometres. Soulat said the ADB representatives also attended the meeting wherein the TASA was signed. The Economic co-ordination Committee (ECC) of the Cabinet has already approved ADB as service advisor for the TAPI gas pipeline following in the footprints of other countries, which had earlier given nod to the ADB to act as advisor. Under TASA, the ADB will be charging a fee of $50,000 per month from the four countries meaning that every country will give over $12,000 per month. The gas line will provide 500 mmcfd gas to Afghanistan and 1.325 bcfd gas each to Pakistan and India. Afghanistan was earlier interested in the transit fee only, but later it signed the GSPA with Turkmenistan on July 2012 for 500 mmcfd gas. The consortium leader will pay $30 million to the Transaction Adviser on the date when the consortium leader assumes the responsibility. The gas will be imported from Yolotan-Osman gas field in Turkmenistan under TAPI gas pipeline of 56 inches. The present cost of the imported gas from Turkmenistan hovers around $13 per mmbtu in Pakistan. To a question, he said that Turkmenistan-Afghanistan and Turkmenistan-India bilateral Gas Sales and Purchase Agreement (GSPA) were signed on May 23, 2012 followed by Turkmenistan-Afghanistan GSPA which was finally signed on July 9, 2013. The Gas Pipeline Framework Agreement (GPFA) was signed on December 11, 2010. TAPI parties agreed to form a Special Purpose Vehicle (SPV) as TAPI Ltd with four designated gas companies from the TAPI countries and proceed with this vehicle to undertake certain pre-project activities, including the selection of the consortium leader. According to sources in the Petroleum Ministry, Russian oil and gas giant Gazprom is keen to lay TAPI gas pipeline project.

Copyright Business Recorder, 2013

Top

Chinese firm, chief minister discuss Thar coal project

A delegation from China Machinery Engineering Corporation (CMEC) discussed matters related to investment in power project and Thar Coal project with Sindh Chief Minister Syed Qaim Ali Shah at a call on meeting here on Monday. The meeting was held with specific reference to the invitation for investment in projects, extended by the Chief Minister during his visit to China. The delegation was offered full assistance and support in connection with the investment of CMEC in power and coal projects in Sindh province. The Chief Minister asked the officials concerned to work out an investment plan and put it up for agreement and implementation as early as possible.

Copyright Associated Press of Pakistan, 2013

Top

Olson, Abbasi lead oil, gas trade mission to Houston

US Ambassador to Pakistan Richard G. Olson and Pakistan Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi led an oil and gas trade mission to Houston from November 14-15, says a press release issued here on Monday. During the two-day mission, nearly 30 private Pakistani companies, state-owned enterprises, and oil and gas officials met with leading US energy companies to identify business opportunities, explain incentives offered by the Pakistani government, and attract investment from the private sector to Pakistan's oil and gas sector. The trade mission delegation comprised officials from the Pakistani Ministry of Petroleum and Natural Resources, heads of seventeen leading Pakistani oil & gas firms, including both state-owned enterprises and private firms, and representatives from the US Department of State and US Department of Commerce. Ambassador Olson commented, "This trade mission represents the strong emphasis the United States places on its trade and investment relationship with Pakistan, and US support for stronger business to business ties between our two countries." The Energy Trade Mission was organised in conjunction with the bilateral US-Pakistan Energy Working Group held on November 12 in Washington, the first of the working groups to meet under the reinvigorated bilateral Strategic Dialogue announced by Secretary Kerry and Prime Minister Sharif in August. The mission follows Prime Minister Nawaz Sharif's official visit to the United States on October 20-23, during which he emphasized the government's focus on reforming Pakistan's energy sector and increasing US-Pakistan ties in the private sector. These efforts build on the sustained and substantial efforts the United States, through USAID, has undertaken to help Pakistan meet its critical energy needs, including adding 1,000 megawatts since 2009 to Pakistan's national grid-enough electricity for more than 16 million Pakistanis. Additionally, the Overseas Private Investment Corporation, the US Government's development finance institution, is in the process of negotiating a $95 million loan to a prospective 50 MW wind power plant in south-eastern Pakistan's Gharo-Keti Bandar Wind Corridor.-PR

Copyright Business Recorder, 2013

Top

Crude oil, refined products: Kuwait willing to continue supply on deferred payment

Kuwaiti government has expressed its willingness that it will continue supplying crude oil and refined petroleum products on deferred payment to Pakistan on long-term basis. In a high level meeting held here on Monday between the delegates of Pakistan and Kuwait, the Kuwaiti side was headed by Sheikh Sabah Khalid Al-Hamad Al-Sabah, Deputy Prime Minister who is on a three-day visit to Pakistan. Pakistani side was headed by Finance Minister Ishaq Dar, who requested the visiting delegation to extend crude oil supply to Pakistan on long term basis. On the request of Pakistan, the Kuwaiti Deputy Prime Minister asked Pakistani authorities to prepare a draft proposal and provide it to Kuwait which will be considered, a high-ranking official privy to the meeting told Business Recorder. The official said that the visiting delegation also complained to the Pakistani high-ups that Kuwaiti investors were facing serious bureaucratic hurdles while investing in Pakistan and requested the Finance Ministry to remove the hurdles, so that different Kuwaiti companies wanted to invest in Pakistan can start their ventures. The finance minister assured them that government of Pakistan would make all possible efforts to facilitate the Kuwaiti investors. Kuwaiti team informed the finance minister that state-owned Kuwaiti Exploration and Production firm, Kuwait Foreign Petroleum Exploration Company (KUFPC) wanted to work in oil and gas sector of Pakistan. The visiting delegation also highlighted the issue of prices being offered by the government of Pakistan to exploration and production companies in the latest petroleum policy and said that a number of Kuwaiti exploration and production companies are interested to invest in Pakistan. The KUFPEC on October 12, 2012 signed an agreement with the Ministry of Petroleum to develop and explore the JATI Block. Last year the Exploration License and Petroleum Concession Agreement for Jati Block were signed by the head of the KUFPEC delegation Deputy Managing Director for Operations West, A. Naser Al-Fulaij on behalf of the company.

Copyright Business Recorder, 2013

Top

Certain IPPs to get incentives for conversion to coal

Federal government has approved incentives for some existing Independent Power Producers (IPPs) for converting to coal from Residual Fuel Oil (RFO) that are able to accomplish certain milestones within two years, well-informed sources in PPIB told Business Recorder. On June 28, 2013, three Memoranda of Understanding (MoUs) were signed under the auspices of Finance Division with the IPPs for resolution of circular debt issue. One of the MoUs pertains to conversion of four IPPs, ie, Hub Power Company Limited (1,292 MW), Lalpir Power Limited (362 MW), Pakgen Power Limited (365 MW) and Saba Power Company (Private) (134 MW) from furnace oil to coal within two years after completion of certain milestones. Accordingly, following consultative process with National and Dispatch Company (NTDC) and seller ie the IPPs the guidelines have been prepared. During consultative process NTDC suggested that the capacity payments during down time/tie-up time of reference power plants may be capitalised in the project cost. However, this proposal was not acceded by the IPPs. According to sources, PPIB whose senior officials have been questioned in Rental Power Plants (RPPs), has approved different incentives for the IPPs. The incentives are as follows; (i) new capital injection by IPPs for conversion from RFO to coal would be adjusted through (i) additional non-scalable component, (ii) additional scalable component based on 20 percent Return on Equity; (ii) plants will be designed to use imported as well as local coal as and when available; (iii) for import of coal, construction of a jetty will be allowed. After availability of local coal to meet the full requirements of the converted power plants, open access will be available to the jetty for import of coal. A separate tariff will be provided to cover the investment in the construction of jetty and its operation and maintenance cost; (iv) existing term of the PPAs and IAs will be extended to provide power for another period of 20 years after completion of conversion of the plant from oil to coal; (v) capital cost required for refurbishment/expansion of existing plant and equipment to extend its life for utilisation after conversion to meet the 20-year term shall be considered part of capital injection; (vi) upon conversions, the existing Fuel Supply Agreement (FSAs) with respective IPPs shall stand terminated and; (vii) adjustment of existing fuel cost component, initially for imported coal similar in specs to local coal, based on - new heat rate, new fuel cost, calorific value of new fuel and any other factor dictated by the introduction of new technology/with fuel change. The government has also decided that fuel cost component will again be readjusted when local coal will be available. Cost of local coal will be adjusted based on the pricing determined by Thar Coal & Energy Board as already approved by the ECC. The GoP will allow adjustment of existing O&M component. The sources further stated that adjustment of dependable capacity without any adverse impact on existing debt servicing & return on equity for previous investments which will be continued up to the original term of the Power Purchase Agreement(PPA); "All commissioned IPPs that are in operation and intend to convert their plants from RFO to coal will submit a petition to Nepra as per Nepra requirements, rules and standards," the sources continued. The sources said the GoP will issue policy guidelines within 30 days after which IPPs will submit the tariff petition to Nepra within 60 to 90 days and Nepra will determine the tariff within 45 days; security documents will be amended within 45 days thereafter. The sources said, power purchaser and PPIB are authorised to make all necessary amendments to the security documents related to the conversion from RFO to coal. The conversion process will be completed within maximum of two years after signing of security documents; The government has also agreed to the demand of IPPs that capacity payment based on existing tariff will continue during downtime period, which will not exceed six months for each unit.

Copyright Business Recorder, 2013

Top

Engro offers most competitive price to import LNG on fast-track basis

With the energy crisis that is severely affecting the country, Engro Corporation subsidiary Elengy Terminal Pakistan Limited (ETPL) has bid for the fast track LNG contract to import up to 3MTPA of LNG or 400MMSCFD of RLNG (Natural Gas) for the next fifteen years. Over the last 7 years, Engro's investments in Pakistan have exceeded the $1.8 billion mark with the company continuing to make strategic investments in sectors that can help avert the looming energy crisis. The LNG issue-one of the most controversial issues in Pakistan's energy space-has been delayed several times, much to the detriment of the progress of the country, where the energy deficit has increased alarmingly, consequently limiting economic growth and power supply to the nation. Gas shortage is estimated to be between 1.5bcfd and 2bcfd and two tenders for LNG import-that could have helped the aggravating energy sector-have already been scrapped this year. Unfortunately, however, there is incorrect and misleading information in certain sections of the media with regards to the bidding process and the award of the tender. As a background, ISGS had issued a tender on August 15 for the development of LNG Import Infrastructure on a fast track basis. On October 14, only two bidders had submitted their techno-commercial proposal in a single stage two envelope process, which saw ETPL gaining a technical score above the threshold limit as per vetting of their technical proposal by a third party international consultant, QED (It is pertinent to mention that QED in previous LNG rounds was approved by our competitors who cited no objection) The other bidder PGPL (Pakistan GasPort Limited) has been disqualified as their technical proposal did not meet the requirements of the RFP which requires: i. A 42-inch branch pipeline (required by the RFP) which has not been mentioned in the proposal. This has significant cost and timeline impacts in terms of first gas date which is 11 months from signing of the LSA ii. The EPC contractor by PGPL does not have the capacity and the experience to undertake projects of such nature and complexity Subsequently, the price proposal of the technically qualified bidder was opened on Wednesday in Islamabad, which in this case is only ETPL. After its disqualification, PGPL, is now issuing complaints against QED, although they had approved of them previously. The ETPL tolling price for importing LNG is less than $0.70 (USD) per mmbtu which is an extremely low price relative to international benchmarks, and much lower than the submitted price of $2.5 per mmbtu by TI Pakistan and PGPL consultant Munawer Baseer. In Indonesia tolling price is $1.8 per mmbtu for handling LNG at a floating terminal and $1.2 per mmbtu for a land terminal. Average tolling price (based on 2010) in North America was $0.73 per mmbtu, $0.87 in China, $0.81 in Europe, $0.89 in South Korea and Japan and $0.72 in the Middle East. This cross section analysis shows that ETPL's price is extremely competitive and reflects ETPL's focus on ensuring affordable LNG to the nation. It is important to emphasise, that EPTL's bid is fully compliant with the RFP. In the press, incorrect information has been shared by vested interests with certain sections of the media, highlighting that China Harbour Engineering Co Ltd (CHEC) was blacklisted by World Bank. This, however, is not true and the objection is not relevant. The company in focus - China Harbour Engineering Co Ltd (CHEC)-has never been blacklisted by World Bank. In fact one of its sister companies, China Road and Bridge Corporation, was debarred by World Bank for "road and bridge contracts" for the duration of January 2009 to January 2017 (Refer to World Bank website) but not CHEC. In the LNG project, CHEC is associated with ETPL as an EPC contractor only to participate in the Fast Track LNG project at Port Qasim, which is a marine terminal and does not fall in the category of "road and bridge" contracts. Moreover, it is pertinent to mention that the Section 33 of ISGS LSA highlighted in media refers to companies that are the bidders whilst CHEC is not the bidder in this case but rather a joint venture partner or part of the consortium of ETPL. The World Bank sanction is therefore not applicable in this case nor is the project financed by World Bank. It is also important to note that, CHEC made a Joint Venture with Pakistan GasPort Limited (PGPL) to participate in the tender of Integrated LNG Terminal project and again qualified without any objection. Furthermore it is important to highlight that Engro takes health, safety and environment as an important core value in all our business transactions. Accusations have been made that ETPL's site is not conducive to importing LNG. However, a quantitative risk assessment was conducted by Lloyd's Register UK which reviewed hazard identification, navigational simulations and dispersion modelling in 2011. It has not only approved the site in terms of LNG operations and safety, but cites certain operational advantages of it. Moreover ETPL is committed to comply to all safety regulations in PQA and have agreed to third party vendor assessment. Lastly, Engro Corporation will vehemently defend its position from false accusations from third parties and competitors who aim to malign our reputation and create confusion in the public domain. As a Pakistani multinational our commitment is towards making Pakistan an energy sufficient country by religiously following the highest international ethical practices.-PR

Copyright Business Recorder, 2013

Top

First international coal moot underscores alternate energy sources

The first international coal conference was jointly organised by University of Sindh and Mehran University of Engineering & Technology in a bid to get new ideas from different scholars and experts regarding the proper utilisation of coal reserves which are available in Thar some kilometers away from Jamshoro and to prepare recommendations consisting of the opinions of national & international experts, which will be sent to the government so that it may move ahead in the light of the report to finalise the strategy on alternate energy. Besides some fifty local and foreign scholars and experts, Sindh University Vice Chancellor Professor Dr Nazir A Mughal, PVC of Thatta campus Dr Sarfaraz Ahmed Solangi, Imran Halepoto, Dr Naeem Tariq Narejo and Vice Chancellor Mehran University Professor Dr Aslam Ukeli attended the conference. Dr Mughal on the occasion said, "Pakistan is fortunate country as it is the fifth largest country in the world, which has coal reservoirs of 184.123 billion tons in Thar and other parts." "At today's prices, this is worth over US $25 trillion. Other reserves in Sindh are at Lakhra, Jharruck, Badin, and Indus East. The coal producing areas in Balochistan are Duki, Sor Range, Harnai, Mach, Ghamalomg-Bahlol, and Pir Ismail Ziarat, etc. In NWFP the coal producing area is Hangu where resources are about 50 million tons but production is practically nothing. The situation in the province of Punjab is that there is a potential reserve of between 230-250 million tons while production is less than half a million tons. The coal areas are in the Eastern and Central Salt range and in Surghar Range," he maintained. He said that Pakistan is producing about 5 percent of its energy from coal, the coal-based electric power generation is only 1 percent in Pakistan while it is 77 percent in China, 70 percent in India, 70 percent in Kazakhstan, and over 52 percent in USA. One MW generation of electricity consumes about 10 tons of coal per day. If 2000 MW is produced daily from coal, the requirement per year would be less than 7.50 million tons, which is just peanut compared to the reserves in Thar, he informed. The Turkish experts on coal said, "Pakistan is categorised in the list of developing nations with the added supreme advantage of being in the exclusive nuclear club. This position is unique but it has brought about difficult times for the country, especially after the May 1998 nuclear test. Today, the nation's economic progress is hostage to an infrastructure scenario that is deteriorating, insufficient and inefficient. Today, the country is facing electricity shortage, dwindling gas reserves, and utter neglect of water conservation." They said that Pakistan is one country where despite financial wizards, pragmatic economists and policy planners, the country becomes susceptible to foreign influence and is not able to extricate itself from this domination. The 1999-2008 eras may have been a mini economic success story, but the most negative downside had been the government's policy to put a break on new power projects, they added. They further stated, "Pakistan now has to do some serious soul-searching. It is time to look within rather than wait for dole from outside at horrendous terms or wait for China to park some of its petty cash to boost Pakistan's forex reserves. It is time to take out the shovels and start digging. It is time for people in power to look to the future and transform the vain slogans into reality. It is time to build the infrastructure on an imperative basis." The experts observed, "Pakistan today needs electricity; thermal power is expensive and the country has to submit to the vagaries of international price mechanism. Hydro-electricity is still hostage to provincial distrust and is embroiled in parochialism. Alternate energy, such as wind power, bio-fuel, or solar energy is still victim to indecision. The immediate solution lies in utilising coal for producing energy."

Copyright Business Recorder, 2013

Top

Energy from coal and solid waste: Chinese firm keen on launching projects in Punjab

Punjab Chief Minister Shahbaz Sharif said that due to the wrong policies and negligence of former rulers, country is facing energy crisis. However, the present government, after coming into power, has taken special steps for generating energy, he added. The CM said that load shedding has reduced considerably after the payment of circular debt of Rs 480 billion. He said that due to the present governmental steps, foreign companies have expressed their keen interest in energy sector in Pakistan. He expressed these views while talking to Li Ren Chao, Chairman China Western Power Company who along with his delegation met him at Chief Minister's office on Saturday. During the meeting promotion of co-operation in energy sector was discussed in detail. Vice Chairman China Western Power Company Wukai, Vice General Manager Du Chong Yang, Chairman KASB Bank, Additional Chief Secretary Energy, Secretary Agriculture, Secretary Planning and Development, Vice Chairman Punjab Investment Board and other senior officials were also present on the occasion. Chairman China Western Power Company evinced keen interest in launching energy projects from coal and solid waste and assured full co-operation to Punjab government. Talking to the Chinese delegation, Shahbaz said that PML-N government is taking special measures for reducing load shedding. He disclosed that work has been started to set up projects for generating energy through coal at Gadani and Port Qasim. He said that Punjab government has planned to set up coal power plants of 100MW each in Lahore, Faisalabad and Multan whereas planning has also been made for setting up coal power plant of 1000MW in Sahiwal.

Copyright Business Recorder, 2013

Top

Livestock Census of 2006-07: Punjab can generate 27,600 megawatt-hours of electricity through biogas

Punjab can generate 27,600 megawatt-hours of electricity per day from biogas even half of its biogas potential is utilised, according to the official documents on Livestock Census of 2006-07. As natural gas reserves are fast depleting in the country, Punjab is planning to exploit biogas as an alternative energy source to meet the growing demand. A number of projects are about to begin in next couple of months to convert tubewells from diesel to biogas and also help people install biogas plants to meet energy needs. The official documents show that there were 34.5 million animals in Punjab and their daily dung amounts to an average of 690 million kilogrammes. A copy of the documents is available with Business Recorder. If Punjab collects only half of its animal dung, it could produce 17.25 million cubic metres of gas per day through the installation of 5 million family-size biogas plants, which could meet the cooking needs of around 30 million people. The documents reveal the province can also generate 27,600 MWh per day from the gas by installing small and medium-sized power plants. Iftikhar Ahmad Randhawa, chief power engineer for the Punjab Power Development Board told Business Recorder on Saturday that Pakistan's energy demand over the next 15 years is expected to grow at a rate ranging between 4.4 to 6.1 percent per annum. "The demand for energy is likely to be in the range of 115 to 148 million tonnes oil equivalent by 2021-22," he said. In a bid to bridge the gap between supply and demand, Randhawa said the Punjab government is planning to convert 100,000 tubewells in different districts of the province from diesel to biogas in next three years. He said the Planning and Development Department Punjab has also released funds for the project. Randhawa claimed that each farmer who runs a tubewell engine of 16 horsepower to irrigate land can save up to Rs 325,000 and 2.88 tonnes of fuel annually, if the engine is converted to biogas. "Four units (kWh) of energy generated through renewable resources will save one litre oil import," he added. Biogas is generated by putting biomass - including animal or human excreta, and organic waste from forestry, industry, hospitals or hotels - into a digester. Under anaerobic conditions, microorganisms convert the biomass into methane gas, which can be used to heat cooking stoves, drive engines or produce electricity. Aamir Anjum, an engineering consultant for a private power company, said that a village with 1,000 cows could easily generate 200 kilowatts, which would be sufficient to meet its electricity needs. "If the government fully exploits all the potential available for the biogas, it can meet around 23 percent of the country's total energy consumption," he added. Biogas has become a popular source of energy in developed and developing countries, including the United States, Germany, Austria, Britain, China, Nepal, Bangladesh and Sri Lanka. Compressed biogas is also being used to run vehicles in Switzerland and Sweden. Arshad H Abbasi, an adviser on water and energy at the Sustainable Development Policy Institute, said the country is facing worst gas shortages because of a large gap between supply and demand. "The total production of natural gas is 4.24 billion cubic feet per year while the demand varies between 6 to 6.75 billion cubic feet," he said. He said the available natural gas reserves are likely to end in next 10 to 12 years if we fail to find alternative energy resources to meet the growing demand. "Pakistan's total of 63 trillion cubic feet of explored natural gas reserves now stand at only 21 trillion cubic feet," he added. The Punjab government converted some 50 tubewells from diesel to biogas last year in a successful experiment. Around 1,500 family-size biogas plants were also set up in rural areas to help families use alternate energy.

Copyright Business Recorder, 2013

Top

French company wants to set up solar power plant

French Diplomat Eric Noitakis has said that a French solar giant has shown interest in putting up a mega solar power plant in Pakistan. The Head of the Economic section of the France Embassy in Pakistan was talking to the Lahore Chamber of Commerce & Industry (LCCI) President Engineer Suhail Lahsari on Friday. Eric Noitakis said that he has a commitment with a solar company to invest in Pakistan's solar sector and he wanted to share this commitment with the business community of Pakistan because this shows that foreigners are also looking at Pakistan positively. He said that Parco, a subsidiary of French Donor Agency AFD, could fund up to $15 million for the private sector projects in Pakistan and it is a great opportunity for the private sector to get funding for their viable projects. He also urged the LCCI to send a delegation from Punjab to France in starting of 2014 for enhancing the bilateral trade. In the second half of 2014 a French business delegation would visit Pakistan. He said that regional trade is very important therefore, Pakistan and India should promote their bilateral trade as it is the best way to change the mindset of people in both countries. Speaking on the occasion, the LCCI President Engineer Suhail Lashari assured to take the lead for a business delegation to France. He said that the LCCI wanted to ink MoU on mediation with Paris Chamber of Commerce for resolving the disputes between Pakistan and French businessmen. He told the diplomat that we are going to start video conferencing in Lahore Chamber to promote interaction with all other cambers of the world. He said that the Mediation Centre has been established to help private sector companies to resolve disputes quickly and easily since in commercial court cases are often expensive and take a long time. It will avoid full-scale court procedures and dramatically reduce the time and cost of resolving disputes. The LCCI President said that Pakistan and France are not only steady trading partners but have been substituting great gestures of love, respect and co-operation in other fields of life. He said that considering the size of Pakistan's consumer market which is over 180 million and the extravagant style of spending by the rich class, French companies should take Pakistan as a potential market for their brands. He said that four kinds of weather and varied types of terrain widen the range of French products to be marketed in Pakistan. More than half of our population consists of youth who are brand conscious and also inclined to follow the fashion trends. So, I think more and more French brands can be introduced in Pakistan to tap such a huge fraction of society. He said that catalogue exhibitions, exchanging trade information and organising franchising exhibitions could play a vital role to enhance the bilateral trade. Pakistan exports comprise of textile clothing and hosiery items, bed and kitchen linens, appliances used in medical sciences, floating docks and light vessels, footwear, carpets, rice and leather goods. Whereas we import turbo-jets, turbo-propellers and other gas turbines, aircraft parts, electric generating sets, rotary converters, medicament mixtures, colza seeds and natural milk products. Lashari said that Pakistan has the potential to export quality fashion garments to France particularly made of finest leather. Likewise we can supply sports goods, organic fresh fruits and vegetables etc. Other products which can be imported from France are pharmaceuticals, electro-medical apparatus, machinery parts and remelting scrap etc. Tourism is another important area in which both countries can cooperate with each other for its promotion. He said that French multinationals could find the favourable environment for long-term investment in Pakistan. The success attained by French brands like Total and LU on the basis of the strength of their products has proved that there is enormous potential of Foreign Direct Investment in Pakistan. Apart from that, there are several areas in Pakistan in which French firms can venture independently or in partnership with public and private sectors. Energy and transport can be most lucrative sectors for French investors amidst other fields like telecommunication, chemicals, automobiles, shipbuilding and defence. To further expand commercial and economic ties, it is necessary that both countries should have access to each other's markets. This will definitely lead both sides to a more strengthened and stable economic partnership, he added.

Copyright Business Recorder, 2013

Top

Solar power plants: Punjab government signs three MoUs with German firm

Three Memorandums of Understanding (MoU) were signed between the Punjab Government and a German company, Energiequelle Gmbh, for co-operation in energy sector on Friday. Under the agreements, the German company will set up a 100-megawatt solar power plant in Sahiwal as well as one plant each of biogas and biomass. The installation work of 100-megawatt solar power plant would be completed in four months. Punjab Chief Minister Shahbaz Sharif, head of the delegation of the German company Helmut Fugemann, other officials of the German company, Co-ordinator to Chief Minister on Energy Shahid Riaz Gondal, Additional Chief Secretary Energy and concerned officers were present at the signing ceremony. Additional Chief Secretary Jehanzeb Khan, Secretary Agriculture Munir Ijaz and head of the delegation of the German company signed the agreement. Speaking on the occasion, the Chief Minister welcomed the agreements between the Punjab government and the German company for co-operation in energy sector. He said the Punjab government is making serious efforts for the implementation of power projects so that energy crises could be resolved in the country. "Agreements have been signed with several foreign companies for overcoming loadshedding and their implementation would substantially reduce energy problem in the country," he added. According to him, special incentives and facilities are being offered for investment in energy sector. A number of foreign companies have shown interest in setting up projects in Quaid-e-Azam Solar Park being established in Bahawalpur. Work is being carried out speedily for provision of infrastructure and other facilities in Quaid-e-Azam Solar Park. The project of Quaid-e-Azam Solar Park would generate new job opportunities in the area. The leader of the delegation of the German company, Helmut Fugemann said his company wants to promote co-operation with the Punjab government in energy sector and initially a 100-megawatt solar power plant would be established in Sahiwal. He also expressed interest in setting up solar power plant in Cholistan. He said efforts would be made for production of the equipment of the solar power plant in Pakistan, which would result in transfer of German technology to the country.

Copyright Business Recorder, 2013

Top

US to help overcome power shortage: working group meets today

The fifth US-Pakistan Energy Working Group, part of the strategic dialogue framework, will meet in Washington today (Tuesday) to foster co-operation in energy sector and help Pakistan overcome power shortage. The energy working group, reenergized during Secretary Kerry’s August visit to Pakistan, will be co-hosted by Ambassador Carlos Pascual, US Special Envoy and Co-ordinator for International Energy Affairs and Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi and Water and Power Minister Khawaja Asif. According to the notice to the press released by the office of the spokesperson of US Department of State, the working group will foster co-operation in Pakistan’s energy sector, including power generation, renewable energy, gas, and reform priorities. "The United States and Pakistan have worked closely and on a sustained basis to better develop and diversify Pakistan’s energy sector, a key priority of the Pakistani government and people," the spokesperson said. The United States has supported increased energy generation, improved distribution, management, revenue collection, and policy reforms. Since October 2009, the United States has helped add 1,000 megawatts of capacity to Pakistan’s grid - enough to supply electricity for more than 16 million people.

Copyright Business Recorder, 2013

Top

Khyber Pakhtunkhwa chief minister calls to expedite work for setting up solar houses

Khyber-Pakhtunkhwa Chief Minister Pervez Khattak directed the authorities to accelerate work on setting up solar power houses in the province. He said the solar power houses consumed comparatively less time and resources and produce cheaper electricity for good, which also served the purpose of the energy emergency declared by K-P government soon after coming at the helm of affairs. He said while chairing a meeting about establishment of solar power houses in various parts of the province at Conference Room of CM Sectt Peshawar. Besides the Senior Minister for Energy & Power Sikandar Sherpao Khan, Chairman Standing Committee in K-P Assembly Mian Khaliqur Rehman, Additional Chief Secretary Khalid Pervez, Secretary Finance Syed Said Badshah Buhari, Secretary Energy & Power Sahibzada Saeed, the meeting was specially attended by a delegation of Chinese Government state owned company CCS (China Com Service) led by its CEO Yuan Qiang. On this occasion the company offered to CM installing 50 MW Solar Power Plants at three different places in Swabi, Nowshera and Charsadda or wherever his govt suggested with a bulk investment of 120 million dollars. The CEO while giving a formal invitation of China visit to CM to see such power houses and explore numerous alternate energy options there as well as assured that more power houses would be set up in DIK, Lakki Marwat and other southern districts after success of this project entailing billions of investment. He told that CCS is scheduling a Solar Energy Programme for K-P on subsidised terms for improving local energy conditions and meeting its crash energy plan. The experts said that one mega watt (MW) solar electricity will cost approx Rs 200 million to be a onetime big expenditure and it will require two acre plot for installation. Pervez Khattak said his govt is already working on setting 12 MW solar power house at Gadoon Swabi with cost of $40 million that is with the energy issue prevalent in the country and that is badly affecting economy of our province. The authorities told the meeting that following directives of the CM, implementation process on the declared energy emergency has been expedited to overcome the crippling load shedding and power crises. In this regard 2 hydro-power houses of Machai and Ranolia would start functioning in next couple of weeks producing 20MW electricity. Similarly work on 4 major power stations with 457MW power capacity has also been started including 150MW Sharmai, 144MW Shahshkai, 132MW Shogosan and 31MW Koto hydro projects. Survey for 200mw thermal power house near the gas reservoirs of Kohat and Karak is also underway. Additionally, a 12MW MSW2E Programme is being set up in Rashakai using a 9,500 sq km area of waste collection in alliance with UNHABITAT. Similarly alternate renewable energy sources are being explored. A comprehensive plan is being chalked out to exploit wind power for electricity wherein it is decided to launch a pilot 10MW wind power project in the province. A report on 2MW pilot biogas mass power plant by disposing the garbage and solid waste of cities is also being actively reviewed. A model Jetropha Farm is being established to estimate the biodiesel production capacity of the province. A model oil refinery is being established at Kohat that will yield 40 thousand barrel oil products daily. A documentary agreement with PSO has been budget to deal signed for the purpose. Similarly a plan is evolved to electrify 100 villages having no access to national grid that would be linked with solar system. Green Secretariat plan is also being launched to minimise power usage in govt offices. For the purpose the Civil Sectt Peshawar will be shifted to solar energy after proper energy audit. Likewise all the street lights are being converted into solar system under joint collaboration of Energy and Local Government departments to save heavy expenditures and avoid PESCO disconnections. Under a special initiative to meet energy emergency, BoK will release soft loans to local manufacturers and importers of solar panels/equipment to promote its production and business in the province. The Chief Minister made it clear that though the provincial govt was in hurry to launch and complete energy projects to overcome the problem and cater power supply needs of people yet it would take every step carefully rather than wasting the precious resources. He said KP govt besides the friendly countries has openly invited all the federal and provincial governments of Punjab, Sindh, Balochistan as well as overseas Pakistanis to invest here in energy sector whereas a secure and congenial atmosphere would be provided for the purpose, he concluded.

Copyright Business Recorder, 2013

Top

Korean investors show interest in renewable energy sources

Korean investors have shown their keen interest in investing in Pakistan in the field of wind power, bio-energy and other renewable energy sources. The interest of investment has been shown by Joonwoo Choi, General Manager of Samsung C&T who called on Chairman Board of Investment, Mohammad Zubair here on Thursday. Representatives of Korean company discussed in detail the new investment prospects in Pakistan. Joonwoo Choi apprised that Samsung C & T Corporation's Trading & Investment Group desired to participate in the field of energy and environment that were likely to serve as drivers for future growth of Pakistan. The key areas of interest were wind power, bio-energy and other renewable energy sources, they added. The BoI chairman highlighted the investment incentives to the Korean investors and said that 100 percent equity and repatriation of capital, profits, royalty etc were allowed to the foreign investors. He further informed the visiting businessman about the establishment of SEZs for foreign investors. He said that the SEZs would have basic utilities and infrastructure of international standard, which would lead to reduce the cost of doing business, increase in industrial productions and exports, creation of jobs and enhance the rate of return to the developers and investors of the SEZ. The Chairman BoI also invited Samsung C&T to open a liaison office in Pakistan for pursuing their future interests in various sector. The Samsung C &T Company is one of the world's finest construction & engineering companies and interested in investing in the construction of Kohat Tunnel. Currently it is providing the leading role in the construction of several worlds' largest building projects such as Malaysia's PETRONAS Tower and the Burj Khalifa in the United Arab Emirates.

Copyright Business Recorder, 2013

Top

Australian companies invited to invest in energy sector

Australian Parliamentary Secretary for Foreign Affairs, Senator Brett Mason, on his two-day visit to Pakistan, held separate meetings with Sartaj Aziz, Adviser to the Prime Minister on National Security and Foreign Affairs, Syed Tariq Fatemi, Special Assistant to the Prime Minister on Foreign Affairs and Jalil Abbas Jillani, Foreign Secretary. During the meetings, the two sides discussed regional developments including peace and reconciliation process in Afghanistan and agreed to working closely for regional stability and development. They agreed to enhance bilateral co-operation, with a focus on trade and investment opportunities in Pakistan. In Senator's meeting with the Advisor, a wide-range of bilateral issues including trade, security, development co-operation, education and investment were discussed. The Adviser thanked the Australian Government for its development assistance to Pakistan, particularly towards human capital and development in agriculture and livestock. He invited Australian companies to invest in energy-sector and assist in water-management. The Senator highlighted that his country was working closely with Pakistan under various economic and development assistance programs including building skills and capacity of our security officials. He expressed his Government's interest to established linkages between the educational institutions of the two countries to enhance people-to-people contact. The visit of the Australian Parliamentary Secretary underlines the importance Australia attaches to its relations with Pakistan and is part of regular high level contacts between the governments of the two friendly countries.-PR

Copyright Business Recorder, 2013

Top

Qatari, Chinese companies to install four coal-based 2,600 MW power plants: PM

ISLAMABAD: Qatari and Chinese companies will jointly install four coal-based power plants at Gaddani (Balochistan) and Port Qasim, generating a total of 2,600 megawatts cheap electricity in Pakistan. Prime Minister Muhammad Nawaz Sharif welcomed the investment in energy sector during a meeting with the Qatari and Chinese delegations, which called on him here at the Prime Minister House on Tuesday The Prime Minister said that two projects, each one of 660 MW, would be set up at Gaddani and two at Port Qasim. Welcoming the Qatari and Chinese delegations, the Prime Minister expressed his pleasure over foreign investment in power projects in Pakistan, which is facing acute energy crisis and the completion of these projects, he said, would go a long way to overcome the problem. The Prime Minister said that for the time being imported coal would be used in the projects till Pakistan's coal was ready for mining. He assured the delegations that the government would provide full assistance in commissioning of the projects.

Copyright APP (Associated Press of Pakistan), 2013

Top

Work on Khyber Pakhtunkhwa hydel power projects in progress

Senior Minister, Khyber Pakhtunkhwa, Sikandar Hayat Khan Sherpao has said that work on hydel power projects worth Rs 5 billion is in progress to electrify far-flung areas of the province. These projects would collectively generate hydel power of 50 megawatts and would be completed by the end of the next financial year. He was speaking on the occasion of the inauguration of a locally manufactured T-34 Hydel Turbine at Khanpur Dam, district Haripur on Monday. He said the coalition government was sincerely working on energy action plan under which power projects for generating upto 2,500MW electricity would be implemented. The turbine is manufactured by Chief Executive, Chitral Engineering Works, Chaudhry Akhtar, who has 28-year experience in the hydel sector. The turbine has the generation capacity from 25 kilowatt to one megawatt. Akhtar Chaudhry has so far manufactured up to 500 turbines including T-32 and T-33, which had proved successful in Chitral. On this occasion, the senior minister paid tributes to the products of Akhtar Chaudhry in hydel power sector and appreciated his services and experience. "Such productive work is the reflection of the talent of the province and leaving no ambiguity behind that our people are hardworking and intelligent," he added. He said the government would fully support such talented persons to give opportunity to the hardworking and talented people to come forward in that regard. He further said energy crisis was top problem of the time, adding that in wake of such situation the provincial government after coming into power declared energy emergency in the province. The senior minister directed the Managing Director Pakhtunkhwa Hydel Development Organisation, to sit with those introducing services in hydel sector of the province and take measures for the resolution of problems faced in that regard.

Copyright Business Recorder, 2013

Top

Husk-based 4 megawatts power generation unit being set up at Engro Eximp

Husk-based power generation unit of 4 mega watt being set up by Engro Eximp, a subsidiary of Engro Corporation at its modern integrated rice processing complex, is near completion and will start functioning by the middle or end of the current month. This was disclosed by the Engro Eximp Agriproducts Manager Seed Business and R&D, Abid Ilyas Dar during a briefing to a delegation of the Agricultural Journalists Association (AJA), the other day. The delegation was led by AJA President Almas Khan and Secretary General Imran Adnan for an orientation tour of the biggest modern integrated rice processing complex set up at Muridke near Lahore by the Corporation. Abid Ilyas Dar said that the total in house power need of the processing plant is 2.5 to 3 mega watt and the husk based plant is not only sufficient to meet this requirement but will produce 1 mega watt surplus power. To a question, he said that at present they don't have any plan to sell the surplus to national grid but it can be added to it. Giving the details about the rice processing plant, he said that the facility is located on 67 acres of land, commissioned in 2011 with an initial cost of Rs 4 billion. It can process the rice at the speed of 24 tons per hour ie, two processing lines of 12 tons per hour each. While it also has storage capacity of 66,000 tons of dried and clean paddy in aerated silos. He said that the Corporation had set up this plant with a vision to become one of the leading Basmati rice players in the world. Eximp started its rice exports in 2008 with the European markets and since 2009 it is also developing Middle Eastern markets with export to UAE, Oman and Saudi Arabia. Dar said that the business model of the company relies on developing long-term relationships with Basmati growing farmers through providing value added services including initiatives like farmers' registration, speedy payments and premium on quality. The company has an extensive field force of advisory and procurement staff working directly with the farmers. It is also providing high quality certified seeds to the Basmati growers and also conducts research and development work on technologies, which can readily help the farmers in areas of water conservation, crop management technology and yield enhancement.

Copyright Business Recorder, 2013

Top

Shahbaz invites German businessmen to invest in power sector

Punjab Chief Minister Mian Shahbaz Sharif has invited the German companies to invest in the sector of power production in Pakistan scrambling to overcome the intense power crisis. Addressing a ceremony held in connection with Pakistan Day Conference, Shahbaz noted the provision of assistance of machinery and plants, instead of engineering technology, will comparatively be beneficial for the country. Pakistan and Germany enjoy enduring bilateral relations, the Chief Minister noted encouraging the German businessmen to come to Pakistan as the country could offer attractive atmosphere for international investors after the promulgation of requisite criterion.

Copyright Business Recorder, 2013

Top

EVENT PARTNER
CONFERENCE SPONSOR