14TH INTERNATIONAL EXHIBITION FOR THE ENERGY INDUSTRY

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

News Headlines for the month of
DECEMBER 2013

110 wells to be drilled for oil & gas production

ISLAMABAD - Different oil exploration and production companies plan to drill one hundred and ten wells during the current financial year to enhance oil and gas production in the country. Different oil exploration and production companies plan to drill one hundred and ten wells during the current financial year to enhance oil and gas production in the country. According to officials‚ eleven discoveries of oil and gas have so far been made in the current year. Ministry for Petroleum and Natural Resources is working to award licenses for exploration at fifty blocks. The officials said that the government is encouraging investment in exploring unconventional hydrocarbon reserves including shale gas and shale oil. The USAID has agreed to provide technical assistance for exploitation of shale gas reserves. The government has approved three pilot projects to determine the country’s potential of shale and recoverable reserves.

Copyright The Nation, 2013

Top

'Russia wants to enhance economic ties with Pakistan'

"Russian envoy stressed on technical and economic co-operation between Russian and Pakistan. Investment in energy sector of Pakistan is already being made by Russian companies," said Yuri Kozlov, Head of Trade Representative of Russian Federation during his visit to the Faisalabad Chamber of Commerce and Industry (FCCI). He also pledged to make an all-out effort to remove bottlenecks from the smooth way to promotion of bilateral trade ties, and said as Russia was very keen to enhance the trade and business ties with Pakistan, Yuri Kozlov was finding out opportunities available in Pakistan, particularly for the traders, investors and tourists. He agreed to FCCI proposal regarding the regular exchange of trade information and trade delegations to enhance bilateral trade volume between the two countries. He urged both the countries for technical and economic co-operation as well tourism aspect. Investment in energy sector of Pakistan is already being made by Russian companies, further will also be encouraged, he told. On the occasion, the FCCI president Engr Suhail bin Rashid told that Faisalabad has elevated from 'Textile Manchester' to 'Textile Capital of Pakistan' contributing approximately 50 percent of the total national textile exports. He further added, the volume of bilateral trade between Pakistan and Russian Federation is approx. $432.7 million in 2012, but this is not as high relative to the size of their economies. During the year 2012, our total exports to Russian Federation were USD186.19 million whereas total imports stood at $246.51 million, thus the balance of trade were in favour of Russian Federation. Russia has a huge market and the country depends to a large extent on imports for textile and clothing items, Pakistan's share in Russian imports is insignificant which is $100 million at the moment, which is quite a meager compared to Russia imports about $10.775 billion of textiles and garments, he said. He proposed, exchange of business delegations composed of sector-specific participants or product-specific group of entrepreneurs be organised regularly. At the end of meeting Vice President FCCI Chaudhry Muhammad Asghar offered vote of thanks while Senior Vice President FCCI Riazul Haq presented FCCI shield to the guest.

Copyright Business Recorder, 2013

Top

Installation of 15 megawatts biomass power plant: Indian firm, Punjab government sign MoU

Punjab government and Universal Biomass Energy (Pvt) Limited, an Indian firm, signed a Memorandum of Understanding (MoU) here on Friday for installation of 15MW biomass power plant. The document was inked by Director Universal Biomass Energy (Pvt) Limited Pawanpreet Singh Badal, Secretary Agriculture, Punjab Dr Ijaz Munir and Chief Engineer Energy Department Iftikhar Ahmad Randhawa. Punjab Minister for Agriculture Dr Farrukh Javed was also present on this occasion. From Indian delegation Balour Singh, Sukhbir Singh, Parambans Singh Romana, Kunwarjeet Singh Sandhu and Harshawla attended the ceremony. Chairman Planning and Development Irfan Elahi, Additional Secretary Agriculture Ahmad Ali Zafar, Director General Agri. (Ext. & AR) Dr Anjum Ali and Deputy Director (Mech.) Agriculture Field Abdul Ghaffar Dogar were also present at the occasion. Indian company will be responsible for installation and efficient working of the plant. Company will be involved for provision of technical training also. Plant will be connected to 132-KVA line for power supply to field areas. After period of two years, plant will be handed over to Punjab Government. Dr Farrukh Javed speaking on this occasion said Biomass Energy Projects of Punjab Government will be helpful to come over the energy crisis. He said 1,277MW electricity can be produced by 10.94 million ton available biomass in the Province. Minister declared the event very important towards energy reference. Minister for Agriculture said Punjab Government is seriously taking practical steps to overcome the energy crisis. He said negotiations with other countries are also in process for installation of other biomass power plants. Pawanpreet Singh Badal applauded the measures taken by Punjab Government. He also thanked Punjab Government for hospitality. The delegation departed Lahore via Wahga after five days'' visit.

Copyright Business Recorder, 2013

Top

First in private sector: 84 megawatts Bong Escape power project completed

Pakistan''s first private sector 84MW hydro Independent Power Producer (IPP) New Bong Escape hydrosphere project near Mangla Dam has paved the way for similar projects of 9000MW in the private sector. This was disclosed by S Husnain Haider, Chief Executive Officer, Laraib Energy, which owns the project. Laraib is a subsidiary of Hub Power Company (Hubco). Haider revealed this during a visit of a group of journalists from Islamabad to the site. The visit was arranged by the Asian Development Bank (ADB) Islamabad Mission. The ADB played a pivotal role in the completion of the project. Haider said New Bong Hydropower Project was issued the Letter of Support (LoS) in 1995 and its development went through many ups and downs to changes in government policies and some other factors. "Frequent changes in policies are not only the main reason for the delay in New Bong project but also current energy crisis. Incumbent government is making serious efforts to overcome energy crisis," he added. According to CEO Laraib, Wapda''s main focus was on oil-fired thermal generation instead of hydel generation which is the indigenous resource. "We faced numerous problems in the project which were resolved with the help of the ADB, which had intended to complete the project," Haider continued. The ADB has been associated with the project since 2004, and has provided vital support in the development of Pakistan''s private hydel policy and structuring of the project agreements so as to make Laraib a bankable project and for it to become a template for future development of Pakistan and AJK''s vast hydel potential by the private sector. He said Hubco was invited to the project in 2008 to help Laraib achieve completion of its development activities and provide financial strength to achieve financial close. "A successful partnership between Laraib''s initial sponsors and Hubco, and continuous hard work of the management led to successful completion of the project ahead of the completion date. The project was completed early last year and started commercial operation. However, Prime Minister Nawaz Sharif inaugurated the project later on. Replying to a question regarding loan and equity disbursement, Haider revealed that the ADB extended $37.3 million, followed by IDB, $37.3 million, IFC $35 million, Proparco $26 million, NBP Rs 1.625 billion and HBL Rs 1.625 billion. Current tariff of electricity being generated from New Bong Escape Hydropower Project is 8.5453 cents. The AJK government is being paid 15 paisa per unit to AJK government. The project will be transferred to the GoP free of cost after 25 years. The government will earn Rs 100 million per annum on account of water charges for 25 years. Haider further stated that the government should balance energy mix so that consumer could get electricity at affordable rates.

Copyright Business Recorder, 2013

Top

China commits $6.5 billion for nuclear project

China has committed $6.5 billion to finance the construction of a major nuclear power project in Karachi as it seeks to strengthen ties with its strategic partner, officials said. Prime Minister Nawaz Sharif broke ground on the $9.59 billion project last month but officials have provided few details of how they plan to finance it. --- Are Karachiites prepared to live with the risks? Financing documents seen by Reuters showed China National Nuclear Co-operation (CNNC) has promised to grant a loan of at least $6.5 billion to finance the project which will have two reactors with a capacity of 1,100 megawatts each. Two members of the government’s energy team and three sources close to the deal confirmed this. CNNC was not available for comment. "China has complete confidence in Pakistan''s capacity to run a nuclear power plant with all checks in place," said Ansar Parvez, chairman of the Pakistan Atomic Energy Commission which runs the civilian nuclear programme. "As things stand, the performance and capacity of nuclear power plants in Pakistan is far better compared to non-nuclear plants." Parvez declined to give more details of the funding but said it would be completed by 2019 and each of the two reactors would be larger than the combined power of all nuclear reactors now operating in Pakistan. As part of the deal, China has also waived a $250,000 insurance premium on the loan, said two sources in the Energy Ministry with knowledge of the project. They declined to be identified as they are not authorised to speak to the media about the financing. Pakistan and China, both nuclear-armed nations, consider each other close friends and their ties have been underpinned by common wariness of India and a desire to hedge against US influence in South Asia. Pakistan sees nuclear energy as key to its efforts to solve power shortages that have crippled its economy. Pakistan generates about 11,000MW of power while total demand is about 15,000 MW. Blackouts lasting more than half a day in some areas have infuriated many Pakistanis and sparked violent protests, undermining an economy already beset by high unemployment, widespread poverty, crime and sectarian and insurgent violence. Under its long-term energy plan, Pakistan hopes to produce more than 40,000 MW of electricity through nuclear plants by 2050. The United States sealed a nuclear supply deal with India in 2008, irking both China and Pakistan. Pakistan wants a similar agreement with the United States but it is reluctant, largely because nuclear scientist Abdul Qadeer Khan admitted in 2004 to transferring nuclear secrets to North Korea, Iran and Iraq. "There should be no double standards in terms of civilian nuclear deals," Parvez said. "Pakistan has energy needs and the building of two new reactors should convince everyone that international embargoes and restrictions and Indian lobbying won''t stop us." PROLIFERATION FEARS Pakistan carried out its first nuclear tests in 1998, soon after India conducted tests. Both refuse to join the Nuclear Non-proliferation Treaty, which would oblige them to scrap atomic weapons. China has already helped supply two nuclear reactors at the Chashma nuclear power complex in Punjab region, while another two are also under construction with Chinese assistance. China's nuclear co-operation with Pakistan has caused unease in Washington, Delhi and other capitals due to fears about commitment to nuclear non-proliferation rules. China says its nuclear ties with Pakistan are entirely peaceful and come under International Atomic Energy Agency safeguards. It has not given details of the project''s financing but state media has put its total value at $9.59 billion. "Bilateral co-operation in the energy sector is to help ameliorate Pakistan''s energy shortages," Chinese Foreign Ministry spokeswoman Hua Chunying said on Monday. "This accords with the interests of the Pakistani people." Three prominent physicists recently raised questions about the safety, design and cost of the new reactors in Karachi, sparking a national debate. "There is no official information about preparedness for a nuclear accident in Karachi that is available publicly," said Zia Mian, a Pakistani-American physicist who directs the Project on Peace and Security in South Asia at Princeton University. "The only real obstacle that may exist to the new reactors being built is if the citizens of Karachi decide they do not want to live with the risks these reactors create." But Pakistan''s new energy minister has dismissed the critics. "Every 1,000 megawatts of electricity produced through nuclear energy saves you $1 billion in oil imports," Khawaja Asif, the minister for water and power, told Reuters. "If critics can give me alternatives and other platforms to raise money for low-cost, clean power, I''m willing to listen.

Copyright Reuters, 2013

Top

Nuclear energy: cooperation with Pakistan only for peaceful purposes: China

China on Monday reiterated that it will continue cooperating with Pakistan in the civil nuclear energy to solve the power shortage of Pakistan. The co-operation between China and Pakistan on nuclear energy was for exclusively peaceful purposes and in the interests of local people, said a Chinese Foreign Ministry spokeswoman on Monday. China and Pakistan had co-operated on civilian nuclear energy for years, Foreign Ministry spokeswoman Hua Chunying said at a daily news briefing, with regard to construction of a nuclear-power plant in the southern Pakistani port city of Karachi. "Such co-operation is entirely for peaceful purposes, in line with international obligations, and subject to the safeguards of the International Atomic Energy Agency," she said. The work helps to ease Pakistan''s electricity shortage and is in the interest of local people. China will continue to provide assistance within its ability, Hua said. Stressing that China attaches great importance to the peaceful use of nuclear energy, Hua said China co-operates with various countries in this regard on the premise of strict adherence to non-proliferation. Construction of Pakistan''s largest nuclear-power project with the Chinese co-operation was launched in Karachi on November 26. According to local media reports, the Coastal-Power Projects K-II and K-III are designed to produce 2,200 megawatts of electricity when completed in November 2019.

Copyright Associated Press of Pakistan, 2013

Top

Korean company wants to invest in converting tube wells on solar energy

A Korean company of solar energy sector CK Solar Company Ltd expressed its interest to invest in converting tube wells on solar energy in Khyber-Pakhtunkhwa. Conversion of tub wells on solar energy is sustainable saving of electricity in the province. In this regard a delegation of the company called on the head of investment promotion cell and Advisor to Chief Minister Khyber-Pakhtunkhwa Rafaqatullah Baber at his office in Peshawar. The delegation consisted of the company Chief Executive Dr Choi Moon Sok and M. Sooba Khan. Rafaqatullah Baber informed the Korean delegates that in view of the short-fall of electricity in the country the provincial government has decided to convert tube wells in the province on solar energy. He assured the delegation that the provincial government would not only encourage the foreign investors desiring to invest in energy sector including solar energy in the province but would also provide them all the required facilities and security. CEO of the Korean company told that a sister company of his firm viz CK-Water Ltd was also examining the investment possibilities in hydro-power projects in Khyber-Pakhtunkhwa.

Copyright Business Recorder, 2013

Top

China to help establish joint research laboratory at PCRET

China will assist Pakistan in establishing a joint research and testing lab and training centre, worth RMB 1.78 million, on small Hydro Power Plants at Pakistan Council of Renewable Energy Technologies (PCRET) This was disclosed during the meeting of Federal Minister for Science and Technology Zahid Hamid with a 4-member Chinese delegation headed by Dr .Xu Jincai, Deputy Director General, Chinese National Rural Electrification Institute (NREI). The delegation visited the PCRET as a "follow on the project" approved by the Chinese Ministry of Science and Technology under the Pak-China protocol of the 17th Session. Talking to the delegation, the Minister said Pakistan and China enjoy close and cordial relations and there is a need to learn from each others experience and adopt best practices in the field of Science and Technology. "There is great potential to enhance mutual co-operation, business ties and trade between the two countries," he added. The Chinese delegation expressed their willingness for the timely completion of the project and said that their country is interested to further strengthen relations with Pakistan. Secretary MoST, Kamran Ali Qureshi, DG PCRET Dr Khalid Islam, DG PCRET and senior scientists of the ministry were also present during the meeting-PR

Copyright Business Recorder, 2013

Top

Government, industry can jointly end energy crisis: Sarwar

Governor Punjab Chaudhry Muhammad Sarwar stated here while talking to journalists Saturday that after getting GSP Plus status, government and industrialists should collectively find a solution to energy crisis. Governor stated that those restrictions that have been asked by European Union with regard to GSP status were the priorities of their government. He said PML-N Government too wanted that equal rights to women and implementation of International Labour Laws was done. Members European Union David Martin and Sajjad Karin who played a key role in getting GSP status averred that this was a great achievement by Pakistan. They said Pakistan should be aware of the fact that their friends stand by them. Both the European members were given PhD degrees by Punjab University and University of Management and Technology during the day.

Copyright Business Recorder, 2013

Top

We’ll welcome Indian electricity, declares Punjab chief minister

Punjab Chief Minister Shahbaz Sharif has said that Pakistan would welcome Indian offer for supply of electricity to Pakistan at a reasonable rate. He was talking to newsmen after visiting Mahatma Gandhi Power project in Haryana, India that produces 1600 megawatt electricity from local and imported coal. He said that Pakistan would seek co-operation of any country for ridding its people of darkness. He has already visited Turkey, Germany and China for seeking co-operation in energy sector and his efforts have proved useful, he added. He maintained that the basic purpose of his visit to India was to benefit from its experiences in generation of electricity. "As the quality of Indian coal is similar that of found in Pakistan therefore, there is no reason why Pakistan cannot set up a similar plant for meeting its energy requirements," he added. Sharif said during next two days of his current visit to India, he will visit solar energy and coal-based power plants in more Indian cities. The technology is not the exclusive right of anyone and it is a matter of pleasure that the Indian government and power companies have displayed large heartedness towards providing useful information to Pakistan in energy sector. He said that the dream of industrial and agriculture development cannot be realised without overcoming shortage of energy and that is why Pakistan Muslim League-N government is attaching top priority to elimination of loadshedding.

Copyright Business Recorder, 2013

Top

France to establish Hydropower Training Institute at Mangla

Pakistan, France and European Union have signed the Grant funding agreement for the establishment of Pakistan Hydropower Training Institute (HPTI) at Mangla. Ali Raza Bhutta Joint Secretary of Economic Affairs Division (EAD), Philippe Thiébaud Ambassador of France, and Denis CASSAT, Country Director of the Agency French Development (AFD) signed the agreement in the presence of Berend de Groot, Director of cooperation. This grant which has been delegated to AFD by the European Union aims complete rehabilitation of the existing training centre of Mangla and its transformation into a "centre of excellence for hydropower" to increase capacity-building of hydropower public & private operators. This centre will be, upon completion, the only centre in Pakistan in charge of the mission to ensure sound and skilled development of hydropower projects in the country, both at technical and engineering levels. In this context, the synergy of objectives and the actions of European Union and France as Member State permits to promote valuable means to give this project an exemplary dimension. This will contribute to boost renewable energy development and as a means to promote green investments. This is fully in line with the objectives and within AFD's mandate in Pakistan and the European Union's action plan for the Asia Investment facility (AIF). The capacity-building of the HPTI would integrate the latest international preoccupations regarding (i) adaptation to climate change of large dam infrastructures, for more extreme events (droughts and floods), improving the design for resilience, safety and profitability of the hydropower projects; (ii) benefit from carbon finance by presenting eligible projects under Clean Development Mechanism (CDM); and (iii) selection of projects in line with the best environmental and social due diligences, therefore attracting more easily international funding. Besides the Grant of 2.5 million euros provided to the government of Pakistan, France, through Agence Française de Développement (AFD), contributes to address the current national energy crisis. AFD is providing to a main part of the pledge made by the French government at the Tokyo conference of the Friends of Democratic Pakistan in April 2009, ie 300 millions euros in the energy and water sectors (currently committed at 75 per cent ie 225 million euros). To reduce the power demand, AFD is co-financing with ADB a multi-tranche programme on energy efficiency in domestic and industrial sectors. To improve the power supply, AFD is supporting also the development of renewable energies, currently for Jaggran II (68 million euros) hydropower projects (48MW run-of-river hydroelectric power plant on the Jaggran river Neelum Valley in AJK (Azad Jammu & Kashmir), for the Munda / Mohmand hydropower project located in Mohmand Agency (11 millions euros - detailed design studies and initial phase)) and for Harpo hydropower project in the Gilgit-Baltistan Skardu region (50 million euros).

Copyright Business Recorder, 2013

Top

$167.2 million loan approved for Discos

The Asian Development Bank (ADB) has approved a loan of $167.2 million for eight distribution companies in Pakistan to improve the power distribution system. The investment is part of an ADB''s $810 million Power Distribution Enhancement Investment Programme approved in 2008. The multi-tranche financing facility (MFF) targets investment in priority areas to reduce power losses and increase the reliability of power distribution system. The country''s energy crisis has led to a sharp reduction in investment, badly hurting industry and small businesses; and in 2012 lopped an estimated two percentage points off annual Gross Domestic Product (GDP). The rising costs of imported fuel oil which accounts for over a third of the country''s energy generation are also putting an increasingly unsustainable burden on national finances. Through the MFF facility, ADB has already provided financial assistance for the upgrading of 360 grid stations (66 kV and 132 kV), of which 175 stations have already been completed. The loan is the fourth of the MFF and will increase distribution capacity at 282 grid stations, adding 5,021 megavolt-amperes (MVA) of transformer capacity. The investments are divided among all eight public owned power distribution companies totaling 284 subprojects. The first tranche of the MFF is already completed and has shown satisfactory results across Pakistan. The second and third tranches are on track and due to be completed by September 2015 and December 2016, respectively.-PR

Copyright Business Recorder, 2013

Top

Country possesses hydropower generation potential of 60,000MW: WAPDA

Pakistan possesses an identified hydropower potential of 60,000 MW, said WAPDA Member (Water) Hasnain Afzal, adding that every effort was being made to harness this potential. He was briefing optimum development of water and hydropower resources in the country to a team of PAF Air War College, Karachi during their visit to WAPDA House, here on Tuesday. The team led by Air Commodore Shahid Latif Bajwa, comprised officers from Pakistan Air Force, Pakistan Navy and Pakistan Army including 16 allied officers from different friendly countries. Member (Power) Rizwan Ahmad, NTDC Managing Director Zia-ur-Rehman and senior officers of WAPDA were also present on the occasion. Responding to questions of participants, the Member (Water) further said that 4500-MW Diamer Basha Dam Project, and 4320-MW Dasu Hydropower Project and 7100-MW Bunji Hydropower Project were ready for construction. He apprised the team that the contract of 1410-MW Tarbela Fourth Extension Hydropower Project was already awarded in addition to accelerating pace of work on the under-construction projects including Neelum Jhelum and Golen Gol. Hydel energy being the cheapest source will provide substantial relief in tariff to the consumer which is currently high due to lesser share of hydel electricity in the overall generation, he added. The team was also briefed about power sector reforms, existing power generation capabilities, generation mix, consumption patterns, line losses, and factors behind increase in electricity tariff. The team was also apprised of the government's efforts to overcome the electricity crisis.

Copyright Business Recorder, 2013

Top

US CG inaugurates power distribution centre at Hesco

US Consul General Karachi, Michael Dodman has said that through USAID's 5-year Power Distribution Programme, US was working jointly with government-owned power distribution companies in Pakistan to improve their performance, both in terms of reduction in losses and improvement in revenues and customer services. This, he said while speaking on the occasion of inauguration ceremony of the Power Distribution Centre (PDC) at Hyderabad Electric Supply Company (Hesco) here on Thursday. "Power Distribution Centres have been set up in all nine distribution companies at a cost of US $230 million in the country and those centres would provide real-time access to electricity load data to managers of Pakistan's Electricity grid", he said. Besides this, the load data improvement programme will enable Hesco to monitor the flow of power on their 76 grid stations, he said. This would also help Hesco overcome unscheduled load shedding, said Michael Dodman while addressing the inauguration ceremony. Through this programme and many other programmes, US is providing assistance to Pakistan for reforming the power sector for ending the current energy short-fall in the country, US Consul General said. Chief Executive Office Hesco, Laique Ahmed Khan said that the programme of establishing PDC would enable them to control the grid stations and load shedding in the areas. Besides this, it would help us to identify the load on each grid because a main meter was installed at each grid station, he said. "If any grid station is not working or close due to any reason, through this control system, we will be able to know in seconds not hours as earlier", he said. This would also help us to reduce unscheduled load shedding, line losses and theft also and also help to improve system of Hesco, he said. Different programmes of US including training of staff and enhancing the capacity of other staff caused an increase in efficiency of Hesco by 70 percent, Hesco Chief said. Earlier, briefing over the Power Distribution Control (PDC), Incharge PDC, Raham Ali Otho said that through this control system, there would be no load shedding because they would be monitoring all things happening at grid stations.

Copyright Associated Press of Pakistan, 2013

Top

Energy & mining sector: Turkish company delegation, Shahbaz discuss joint ventures

A delegation of Turkish company dealing in energy and mining sector "CINER Group" called on Punjab Chief Minister, Muhammad Shahbaz Sharif, here on Thursday. Provincial Minister for Minerals Sher Ali Khan, Additional Chief Secretary Energy, Secretary Minerals, Vice Chairman Punjab Investment Board, Executive Chairman CINER Group Nadim Sener and other office-bearers were also present on the occasion. Matters relating to promotion of co-operation and launching of joint ventures in energy and mining sectors were discussed in the meeting. Talking to the delegation of Turkish group, Chief Minister Muhammad Shahbaz Sharif said that Turkey has special expertise in mining and the Punjab government wants to benefit from the experience of Turkey in mining sector so that mineral reserves could be utilised in Punjab. He said that Punjab is rich in mineral wealth and vast reserves of coal exist in Salt Range and other places through which energy can be generated. The Chief Minister said that Turk group can cooperate with Punjab government in utilising mineral resources properly. He said that CINER Group has also expertise in energy generation projects and Punjab government and Turk groups can launch joint ventures in mining and energy sectors. Shahbaz Sharif said that the PML-N government is making sincere efforts for riding the country of energy crisis and steps are being taken speedily for this purpose. He said that agreements have also been made with Turk companies due to which friendly ties between both the countries have enhanced. He said that trade relations between Pakistan and Turkey are strengthening with the passage of time. He said that officials of Punjab government should sit together with Turk group and formulate recommendations about viable projects in mining and energy sectors. Talking on the occasion, Executive Chairman CINER Group Nadim Sener said that his group wants to extend cooperation to Punjab government in mining and energy sectors. He disclosed that his delegation has visited salt range and other places. He was of the view that vast opportunities of setting up small power plants with coal exist in Salt Range and other places and CINER Group will formulate practicable plan of cooperation in mining and energy sectors with consultation.

Copyright Business Recorder, 2013

Top

Shanghai Electric Group keen to invest in power sector

Shanghai Electric Group, which is world renowned investment company, has shown interest to make investment in power sector in the province of Punjab. This assurance was given by vice president Shanghai Electric Group Lv Yachen during a meeting with Punjab Chief Minister Shahbaz Sharif here on Monday. During the meeting, matters regarding co-operation in various energy projects in Pakistan were discussed. Welcoming the offer of investment in energy sector, the Chief Minister assured that the Punjab government would extend maximum co-operation to Shanghai Electric Group and other investors. Chairman Universal Metal Corporation Japan Haseeb Rehman, Chairman Nishat Group Mian Muhammad Mansha, Director Shanghai Electric Zhang Xing, Assistant Director Zhao Hui, General Manager Imran Khan, Additional Chief Secretary Energy, Vice Chairman Punjab Investment Board and other concerned officers were present on the occasion. Welcoming the delegation of Shanghai Electric Group to Lahore, the Chief Minister said Pakistan and China were bound together in strong ties of friendship and their economic relations are strengthening, adding China had extended maximum help to Pakistan in every hour of need. He said Pakistan was facing serious energy crisis and the government was taking speedy measures for coping with this problem. The CM said the government had adopted a comprehensive strategy for development of energy sector and work is in progress on coal, solar, biogas, biomass and small hydro-power projects in the province. He said Punjab government had also evolved a programme to set up a coal-based energy project from its own resources on the pattern of solar project and the co-operation of Shanghai Electric Group would be welcomed. He said Punjab government would provide land to the local and foreign investors for investment in power generation sector and all out facilities would also be provided to them. The CM said that infrastructure development was of vital importance for the completion of energy projects; therefore, transmission line was also being upgraded, while setting up new power projects. He stressed upon Shanghai Electric Group to invest in energy sector in Punjab and assured maximum incentives to the group. Vice President Shanghai Electric Group Lv Yachen said his company wanted to invest in energy sector in Punjab and was also interested in coal-based projects in the province.

Copyright Business Recorder, 2013

Top

Government committed to resolving energy crisis: minister

Government is fully committed to solve the energy crisis as it has become a major challenge that is not only hurting the industrial activities but also badly affecting the country's economy. Government's economic team had fully prepared with pragmatic strategy to cope with all the challenges, which country is facing today, said Chaudhry Abid Sher Ali. He was addressing the textile exporters at Pakistan Textile Exporters Association here on Sunday. He said that elected government led by Prime Minister Nawaz Sharif is determined to overcome all crises through courage and steadfastness. Shortage of energy had badly affected all sectors of life besides economic problems, unemployment and poverty had also increased. The government is working on war-footing to bridge the huge gap between demand and supply and has chalked out a comprehensive strategy to overcome the challenges, in this connection, short, medium and long term projects have been identified. No doubt, energy plays a major role for the socio economic development and crisis ridden industrial sector is facing multiple challenges, he said and added that we could put the country on track to progress and prosperity by ensuring energy to our industrial sector. He hoped that duty free access to European markets would provide strong impetus to the value-added textile exports, would generate significant economic activity in the country and would help Pakistan to build up its capacity to become more effective and competitive actor in international economic relations. Government has finalised a comprehensive strategy to get full advantage of expected GSP plus, he added. He assured that he will make all efforts for immediate payment of pending refund claims of textile exporters as exporters are facing financial crunch owing to this problem. Earlier, Sheikh Ilyas Mahmood, chairman Pakistan Textile Exporters Association welcomed the Minister of State for Water and Power and appreciates the present government's efforts for economic revival and prosperity. Terming energy crisis and shortage of funds as the main hurdles in textile export promotion, he said that huge amounts of textile exporters are stuck up in refund regimes creating severe financial crunch and if that amounts are released, exporters can deploy that capital towards expanding their businesses, which in turn will help Pakistan's export earnings grow. He termed approval of GSP plus status as a milestone achievement of the government and hoped that duty waiver will lead to increase textile exports to EU and will generate significant economic activity in the country. Approval of duty free access to European markets is a good sign for the ailing value-added textile industry which is badly suffering due to various factors. However, much will depend on the availability of a regular supply of gas and electricity, he added. Later PTEA shield were presented to the Minister of State for Water and Power.

Copyright Business Recorder, 2013

Top

Solar and wind energy: Pakistan can benefit from UAE initiative

United Arab Emirates' investment of $15 billion on its Masdar initiative for finding renewable sources of power have succeeded in generating 850MW of solar and wind energy in projects within and outside the country - acquiring a leadership role in providing clean energy to the world. UAE energy experts in collaboration with international partners have been able to generate 100MW of energy in the west of Abu Dhabi, 630MW from off-shore wind energy in the United Kingdom and 120MW in Spain and now was looking for investment opportunities in the world including Pakistan, a top UAE expert Badr Lamki, director of clean energy told APP here. "We will be proud to work in Pakistan as long as there is a commercially viable opportunity," said Lamki when asked if the brotherly country, facing serious energy crisis can benefit from the Masdar expertise and research in producing solar and wind energy. Another expert Dr Nawal Al Hosani, Director of sustainability Masdar and along with Badr Lamki briefed the journalists in detail about various aspects of the Masdar initiative. Masdar is an Abu Dhabi Renewable Energy Company which is working with 50 international partners on renewable sources of the energy on its pilot project at Masdar situated in outskirts of the capital of the country. The energy experts said the reasons behind taking this initiative were to ensure their country continue to play a leading role in providing the world with alternative and clean sources of renewable energy. Masdar pilot project is a strategic initiative of the government, with the objective to invest, incubate and establish the new energy industry for reducing dependence on oil for meeting its energy requirements, said an official of the project while briefing a group of visiting journalists who visited Masdar project here. The pilot project was set up in 2006 and at least fifty companies from across the world were involved to install 50 photo-voltaic panels for utilising the solar energy which after a long endeavours, have been able to produce 100 MW power in western Abu Dubai, that was being used by the capital city and also catered to local requirements of the workers of the project. Besides, twelve electric cars are currently being run by employees by using the power produced by it. These cars can go up to 200 km before being repowered from a local station. In a bid to provide the qualified manpower and engineers for sustaining and enhancing further its efforts, to slash dependence on oil and show the world an alternative to it, UAE has turned the Masdar City Institute into a full-fledge university where 350 students from over 40 different countries of the world were studying different disciplines of engineering like energy systems, micro-systems and advanced materials, biomass-derived fuels and energy efficiency technology. This will provide the country trained manpower to achieve vision of Sheikh Zayed bin Sultan Al Nahyan, the founding father of the country, for ensuring a sustained growth and progress in face of depleting energy resources of the world. Explaining the rationale why the Masdar pilot project and Institute were established by one of the leading oil-producing countries of the world, the head of programme management Steve Severance, told journalists, the UAE leadership realised that oil was not the long term solution to the energy so endeavours should be made to look for renewable and other sources of energy. Secondly a need was felt that the buildings should be constructed and designed in a way they used significantly far less energy than the traditional buildings of the country. For instance, he said, the Masdar city produces its own energy by using solar panels and its buildings consumed 60 per cent less energy than the traditional buildings of Abu Dhabi. He said Masdar project was already working on international wind solar projects in the United Kingdom, Spain and Mauritania which indicated a great potential was there to tap the solar resources of the world including countries like Pakistan.

Copyright Associated Press of Pakistan, 2013

Top

‘Pakistan’s recoverable oil reserves upgraded’

KARACHI: The Pakistan Petroleum Information Service (PPIS) has upgraded Pakistan’s original recoverable oil reserves by five percent to 1,102.57mmbbl, while gas reserves have been cut by one percent to 56.02tcf. Meanwhile, balance oil and gas recoverable reserves stand at 371mmbbl, up by nine percent and 24.74tcf, which is down by seven percent, respectively, as compared to June 30, 2012.These recoverable reserves translate in the remaining oil and gas reserves life of 13 years and 17 years, respectively. The PPIS has notified the country’s oil and gas reserves as of June 30, where the Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) have gained, while anticipated reserves downgrade has materialised for the Pakistan Oilfields (POL). As expected, due to water incursions, the original oil and gas reserves at Manzalai have been downgraded by 72 percent and 69 percent. It said the impact is somewhat cushioned by the booking of oil and gas reserves of 26mmbbl and 107tcf at Makori East. Both Manzalai and Makori are in Tal Bloc. Pakistan Oilfields, Pakistan Petroleum Limited and the Oil and Gas Development Company Limited have respective working interests of 21 percent, 28 percent and 28 percent in Tal Bloc. At Nashpa, oil and gas reserves have been upgraded by 209 percent and 215 percent. OGDCL and PPL have respective working interests of 56.5 percent and 28.6 percent in Nashpa.At Mela, oil reserves have been downgraded by 35 percent, while gas reserves have been upgraded by 77 percent. OGDCL and PPL have respective working interests of 56.5 percent and 28.6 percent in Mela. As far as Adhi is concerned, oil and gas reserves have been upgraded by 22 percent and 13 percent. OGDCL enjoys 50 percent working interest, PPL 39 percent and POL 11 percent in Adhi. In its recent Energy Outlook for Asia and Pacific report, the Asian Development Bank (ADB) had urged the Pakistani authorities to double its efforts for addressing the energy sector bottlenecks that have hit the economic growth, resulting in increase in the unemployment in the country. The ADB said Pakistan is faced with domestic supply shortages of coal, oil and natural gas, as well as shortage of hydroelectric generation capacities. These fuel constraints have severely affected the power sector, leading to a significant decline in the power production.The ADB also said that with continued demand growth, it will be increasingly difficult for Pakistan to meet its demand with domestic sources.

Copyright The News, 2013

Top

‘Pakistan to import LNG from Qatar by Nov 1’

Minister says PSO and Qatari gas to start contract talks next week ISLAMABAD: Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that 400 mmcfd LNG will be injected in country’s system by November 1, 2014 and to this effect Pakistan and Qatar are going to hold talks from next week for LNG supply contract on government-to-government basis. The officials of Qatar Gas Company and Pakistan State Oil (PSO) will kick start a dialogue next week for supply of LNG. The minister stated this while briefing media persons here on Thursday evening. Abbasi said that he along with his secretary met with his Qatari counterpart recently in Doha on December 7 and held a fruitful dialogue on LNG issue.The minister said Qatari government had earlier asked Pakistan to first show seriousness by establishing the terminal to import LNG then it would initiate the talks for LNG export to Pakistan. During the visit, we told the Qatari authorities that LNG terminal services contract had been given to EVTL and it would soon finalise LSA (LNG services Agreement) with Sui Southern. Then EVTL will establish on terminal the plant with capacity to import 690 mmcfd LNG. The minister said that so far no price for LNG had been discussed with Qatar as in the talks to be initiated from next week it would first be assessed as to how much Qatar was willing to give LNG and how much Pakistan was able to ensure the take in. The international players, the minister said, considered Pakistan a bigger market for LNG, so the government of Pakistan would also seek LNG from any other country which would come up with affordable prices. The minister claimed that if the existing power plants which could be run on gas were provided full gas to them, then the existing electricity load shedding would be reduced by 50 percent. And if the diesel and furnace oil get replaced as fuel by LNG in the power plants, the country will be saving $ 1.25 billion annually. To a question about import of LNG from the US, the minister said during his recent visit to the US, he along with his official team visited an LNG plant which was meant to import LNG but it was now being converted into LNG exporting plant. He said that the US would be able to export LNG from 2016 and the US had committed to export LNG from the said plant to India, Japan and China by 2018. The minister said that at present the gas demand had swelled up to 8 bcfd, whereas the gas production stood at 4 bcfd and onshore no big oil and gas find was imminent to meet the country’s energy needs. However, huge discovery is estimated to be found in ultra deep off shore drilling and to this effect offshore drilling is going to be initiated in March 2014. To a question the minister said that it had become difficult to cater to gas needs of domestic sector in Punjab as the gas deficit was increasing. He said gas load management was being handled on day to day basis and when there would be surplus gas after catering to needs of domestic sector in Punjab, then first priority to provide gas was to be Industrial sector. About CNG sector, the minister said if this sector was willing to use LNG for its business, then it could import 290 mmcfd LNG through the EVTL plant as it would have extra capacity to import 290 mmcfd LNG. To a question, he said the government would absorb the line losses of the LNG to be transported through the pipeline. About the ongoing strike of petrol pumps in various pockets of the country for not increasing dealers’ margins, the minister said that the government was going to initiate talks in the light of the study of PIDE. However, the minister said that he was personally in the favour of deregulation of petrol and diesel.

Copyright The News, 2013

Top

OGDC MD briefs NA body: exploration activities on six projects expedited

Oil and Gas Development Company Limited (OGDCL) on Tuesday informed the National Assembly Standing Committee on Petroleum and Natural Resources, presided over by Ijaz Virk that the company has expedited exploration activities and currently is working on six projects. Managing Director OGDCL, Riaz Khan, gave a detailed presentation regarding-down the memory lane, industry position, five years at a glance, exploration, drilling and production activities as well as human resource and corporate social responsibilities of the OGDCL. The projects which are being developed include Unar, Pasakhi, Deep and Tando Allah Yar Field Development Project (KPD-TAY), Sinjhoro, Uch-11, Jhal Magasi, Nashpa Mela and Sara West. Committee members were of the view that that local population of the oil and gas fields' areas was being ignored and they are not given employment in those fields. The member pointed out that majority of the share of employment was being given to the outsider instead of locals. The members also noted that employees of oil and gas fields are paid very low remuneration by the contractors and overtime and late payments are not paid to them as well. Standing committee members demanded that Minister for Petroleum may enquire into the matter and report be submitted to the committee within one week. The committee directed that province-wise break-up of employees may also be provided. A member of National Assembly, from Kohat, stated that crude oil from Shakar Dara, Kohat is being exported illegally. Therefore, Ministry of Petroleum and OGDCL may constitute a committee to enquire into the matter. MNA's Malik Ihtebar Khan, Afzal Khkhar, Rana Afzaal, Saqlain Bokhari, Khalid Javaid Warraich, Shaharyar Afridi, Nizar Khattak, Pir Bux Jonejo, Jam Kamal Khan, Minister of State for Petroleum, and Shahid Khaqan Abbasi, Minister for Petroleum attended the meeting.

Copyright Business Recorder, 2013

Top

Oil pipeline proposed

ISLAMABAD, Dec 3: Australian company Dew Resource Ltd, which provides project development and leadership services in the energy sector, has proposed to build a pipeline to transport 36,000 barrels crude oil per day from Kohat to Attock Refinery in Rawalpindi and other refineries. The firm’s CEO Colin Roberts met Board of Investment Chairman Muhammad Zubair on Tuesday, seeking the board’s help in carrying out a feasibility study for the 250km pipeline project from Kohat oilfield to Attock Refinery and other oilfields in the country. The pipeline would be built on the basis of build, own and operate (BOO) procedure. At present, crude oil is being transported by tankers, considered as a risky and expensive mode of transportation. Mr Roberts informed BoI chairman the pipeline would increase strategic oil storage capacity, make transportation safe, create jobs, and stimulate foreign direct investment (FDI) in the north-west Pakistan to the tune of $75 million. He said the laying of pipeline would improve delivery time of crude oil transportation and minimise the risk of delays due to road blocks, processions and civil unrest. Mr Zubair informed the delegation about the government’s new policy initiatives and its top priority to overcome the energy crisis.

Copyright The Daily Dawn, 2013

Top

LNG to be imported on fast-track basis, says Abbasi

Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi, on Saturday stated that the government is all-set to initiate import of 400 Million Cubic Feet per Day (MMCFD) Liquefied Natural Gas (LNG), on fast-track basis, to deal with energy crisis being faced by the country. Addressing a Round Table Conference (RTC), he said though the energy crisis is a complex issue; however, the government has the political will and determination to resolve the issue. Abbasi and the Special Assistant to the Prime Minister for Water and Power, Dr Musadik Malik, addressed the RTC and touched on all aspects of the energy crisis. They highlighted government strategy to overcome the crisis on short and long term bases. The consensus at the RTC was that Pakistan had the resources and the will to overcome the energy crisis. Abbasi said, all-out efforts would be made on war-footing to mobilise the available sources to overcome the crisis, adding that the government believes in integrated approach to the problem and for the first time the ministries of petroleum and natural resources on the one hand and water and power on the other are co-ordinating in a bid to overcome the energy deficits. He said there are no short-cut solutions but what we have to do is to take up immediate issues on priority basis and "in my view LNG is one short-term solution to our gas deficit problems." He said import of gas through pipeline is right course, but he pointed out that there was danger of sanctions regarding Iran Gas Pipeline. EU will automatically impose sanctions in case the project is operational and the US can follow suit, he said and added, however, as a result of recent agreement between Iran and the six world powers, the US has adopted somewhat soft attitude towards Iran and in that perspective Pakistan would try to go ahead with Iran Gas Pipeline project after getting Washington''s assurance. Abbasi said the government doesn''t want to shy away from the realities but keep the people informed about the real situation in the realm of energy, adding that in the coming months, Punjab would have to bear gas cuts especially the industrial sector and that would be unavoidable in view of domestic demand. Dr Musadik Malik said the government wants to provide low cost energy to the people because most people in Pakistan cannot afford high tariffs. He pointed out that the cheapest power can be obtained from water resources and the government is determined to complete not only mega projects like Bhasha and Dasu dams, but would also undertake medium size and small projects. The government is also encouraging private sector to undertake projects of wind and solar energy. Pakistan has vast coal resources and the government wants to exploit these, he said, adding that Gadani project has been taken up on urgent basis which will generate large quantity of power, while efforts are afoot to complete Thar Coal Project. Vice President of Federal Chamber of Commerce & Industry (FPCCI), Muhammad Ali Sheikh, said in Pakistan''s energy sector, industry is the largest consumer and accounts for around 58 percent of total consumption. Transport comes next with 22 percent and according to available data Pakistan''s present power generation capacity is 22,500 MW but actual power generation hovers around 15,000 MW. Shahbaz Zaheer, Director Shahzad International Group of Companies, a petroleum exploration company, said that Pakistan is rich in vast untapped gas and petroleum resources and we need to exploit them, urging private companies to move towards Balochistan, Sindh and Khyber Pakhtunkhwa in their quest for energy discoveries. Ali Murtaza Abbas, political Advisor, MOL Group, also called for opening up Fata and Khyber Pakhtunkhwa with regard to gas and oil exploration. After seismic studies of various regions, we can find new reservoirs, he said. Quoting a US energy information agency, He said Pakistan currently holds estimated reserves of 105 TCF. He called upon the government and the private sector to make joint efforts so that energy crisis could be overcome. Sohail Hayderi, Chief Operating Officer of the Saif Energy, said that IPPs played quite a useful role in assisting the country''s power sector. However, some vested interests keep spreading rumours and maligning this role of the IPPs, regretting that certain media circles try to paint negative picture of IPPs without justification, he said. Iqtidar Saeed, General Manager, Fauji Fertiliser Company said there is vast scope for wind power projects in Pakistan. The FFC has installed wind power plant which is successfully functioning, producing low cost power, he said. Senator Razina Alam Khan, Zuhair Siddiqui, Managing Director, Sui Southern Gas Company, Mubashar Majeed Bajwa, Chief Executive Officer, Rousch (Pakistan) Power, M. Naeem Ghori, Dy. General Manager, OMV Pakistan, Inam ur Rehman Siddiqui, Resident Manager, The Hub Power Company, Waheed Hamid and FFC and Naseem Mustafa Ansari, Manager Business & Corporate also participated in the discussion.

Copyright Business Recorder, 2013

Top

Italian businessmen briefed on investment opportunities

Pakistan offers unmatched business opportunities for foreign investors and the government is extending all possible incentives to them to attract Foreign Direct Investment (FDI). This was stated by Board of Investment (BoI) Chairman Mohammad Zubair during a meeting with an Italian business delegation, here on Wednesday. The meeting organised by BoI was aimed at assisting the delegation in identifying areas where investment opportunities exist in abundance within Pakistan. Italian Ambassador Adriano Chiodi Cianfarani was also present on the occasion. The main objective of the meeting was to open up new markets in different sectors between the two countries. After the meeting, BoI arranged different B2B meetings for business delegates and counterparts for creating mutual understanding regarding investment in different sector of economy. The Chairman BoI said Pakistan and Italy enjoy cordial relations in multiple fields. However, it is important to enhance volume of investment and trade between the two friendly countries. The Chairman, BoI said both the countries share commonality of views on a number of regional and international issues. While expressing gratitude to Italian business delegation for their visit to Pakistan to explore business opportunities, he said that their visit would pave way for future trade between the two countries. He also thanked the Italian Ambassador for attending the meeting. The Italian Ambassador welcomed the BoI initiative of holding meeting with Italian investors. He said that such meetings would provide a platform for foreign investors to come and know about business opportunities in different sectors of Pakistan. He stressed that the government will take all possible initiatives to enhance trade volume and FDI, adding that both the countries are enjoying friendly trade and diplomatic relations. He maintained that the Italian investors are interested in oil & gas, power and agriculture sectors. During the meeting a number of presentations were made by BoI, other departments, ie, OGDC on Oil & Gas, NHA on highways & motorways, HMC on heavy machinery industry, PPIB on power sector and PASDE on gems and stone sector, highlighting the investment opportunities to attract more investment from Italy in these sectors. The participants from different chambers also attended B2B meeting and stressed the need for promoting investment in joint ventures.

Copyright Business Recorder, 2013

Top

Government urged to produce 50 percent of total energy from coal

The government should start 50% production of total energy from coal, said President of the Faisalabad Chamber of Commerce and Industry (FCCI), Engr. Suhail Bin Rashid. Commenting over Energy Crisis, he stressed that Government also focused 15% of total energy production from bio-fuel within next 3-4 years, the project of LNG import should also be start soon to overcome energy crisis in the country. Paki-Iran gas pipeline is also very crucial and Government should also complete working on war-footing bases, he further added. "We have vast potential to construct larger dams in the country; running water can also be utilised for power generation. We are wasting precious water resources without utilisation of them into the sea which can be fruitful for cheap power generation. If Government urge low sulphur diesel of local oil refineries for power generation then oil import bill can reduce up to 30-40% within next few years, he added. Exempt sectors should also be in tax net in this regard, he proposed parliamentary legislations to bring exempt sectors in the net. Undue powers of tax official should also be withdraw to facilitate the tax payers because they have different harassment authorities. He urged the Government to reduce non-development expenditures and the acquisition of loans from banks should be stopped. Moreover, the tax rate should be brought down to single digit. He proposed the export promotion for the SAARC, OIC, ASEAN and D-8 Member countries, including the non-traditional markets. Agri sector is very important in the country's economy; so, high technology would be utilised to maximise agri output, which can be helpful for local and exports as well. He appealed the Government to implement recommendations to bring economic prosperity in the country.

Copyright Business Recorder, 2013

Top

Energy sector main focus: Nawaz woos Turkish investors

Prime Minister Nawaz Sharif on Monday invited Turkish businessmen to invest in the fields of telecommunication, energy, housing, textile, tourism, infrastructure and transportation sector and assured them full support and security to their investment. Addressing Business Forum jointly organised by Pak-Turk Business Forum, Board of Investment, Nawaz asked Turkish entrepreneurs to explore the possibility of investment in the energy sector in Pakistan, which offers wide-ranging potential in hydel, coal, nuclear and alternative sources. Nawaz said noted Turkish businessmen have expressed the desire to invest in Diamer-Bhasha and Bunji dams‚ Lahore-Karachi Motorway and Gaddani Power Park. Nawaz said the economic prosperity is the high priority of his government. He said Pakistan is working on an ambitious programme of infrastructure development in which we would welcome Turkish investment. He said the programme includes construction of motorways‚ highways‚ airports‚ theme parks and economic corridor linking Pakistan and China. He said Board of Investment is also working with Pak-Turkey Business Council in promoting co-operation in textile‚ automobile and communication sectors. He said there is vast potential in tourism development also and Turkish firms can join their Pakistani counterparts for this purpose. Nawaz recounted the incentives that Pakistan offers to foreign investors, including repatriation of capital‚ profit‚ and tax breaks‚ concessions in custom duties and special economic zones where one window facility has been offered. The prime minister said economic prosperity of people remains the top priority of the present government. He said our economic framework is based on sound macroeconomic policies and accelerated economic growth; alleviate poverty and creating new jobs. Addressing Pakistan-Turkey Business Forum‚ Turkish Prime Minister Recep Tayyip Erdogan said Turkey attaches great importance to its relations with Pakistan. He said Turkey will take benefit of investment opportunities in Pakistan. Erdogan said with the visit of Turkish businessmen to Pakistan‚ a new chapter of trade will be opened between the two countries. He said Turkey wants to enhance trade volume with Pakistan. He said his country will increase co-operation with Pakistan in different fields, including agriculture and tourism. Speaking on the occasion Finance Minister Ishaq Dar invited Turkish businessman to invest in telecom sector. He said they had the opportunity to invest two to three billion dollars in three telecom licences which the government is planning to auction in March 2014. Dar said due to the economic policies of the government the economy of the country has started showing positive signs. He said the government is planning to generate 20,000 MW power in next five years. He said due to positive policies of the government forex reserves are improving. Dar said in future the government will not allow any power plant to run on furnace oil and it is also trying to balance the energy mix with more focus on more power generation from hydel, wind and coal energy. Speaking on the occasion Punjab Chief Minister Shahbaz Sharif said Turkey has made tremendous progress under the leadership of Recep Tayyip Erdogan. He said due to the tireless efforts and struggle of Turkish people, government and the prime minister, Turkey has become a great economic power of the world. He said economic development of Turkey is the result of dynamic leadership and struggle of Turk leader Recep Tayyip Erdogan for which he salutes Turkish leadership. Shahbaz said historic, cultural and brotherly relations exist between Pakistan and Turkey and people of both the countries are bound together in strong ties of brotherhood. He said hearts of the people of Pakistan and Turkey beat together. That is why, during the worst flood in the history of Pakistan in 2010, not only Turkish Prime Minister visited flood-hit areas but thousands of Turk businessmen celebrated Eid-ul-Fitr and Eid-ul-Azha with Pakistani flood victims, he added. The Chief Minister said not only this but Turkish Prime Minister and his wife visited Istanbul, Ankara, Konya and other cities and collected $100 million for Pakistani flood victims. Shahbaz said that he had never seen such a glorious example of brotherhood in his life. He said Turkish government, its leadership and people have always stood with Pakistan in every calamity, including floods or earthquake. He said they have always helped Pakistanis like a family which we can never forget. Shahbaz said he had visited Turkey four times and when he met Turkish leadership, it always mentioned the co-operation and help of Muslims of subcontinent during Tehrik-e-Khalafat whereas Turk brethren have helped Pakistan more in every hour of distress. He said though brotherly and friendly relations exist between Pakistan and Turkey yet it is need of the hour that these relations should be converted into economic co-operation. The Chief Minister said Turkey which was called "sick man" of Europe has now become modern Turkey under the leadership of Tayyip Erdogan. He said we can also make progress by benefiting from the development and technology of Turkey. Shahbaz said he considers himself a student of Turk model but sometimes it happens that students take a lead upon the teacher. He said Turkey completed metro bus project in Istanbul in two and a half years whereas we have completed the splendid metro bus project in a record period of only 11 months. He thanked Turk Prime Minister for visiting Pakistan and providing an opportunity to host Turk brethren.

Copyright Business Recorder, 2013

Top

Nigeria to help Pakistan in coping with energy crisis: HC

Nigerian High Commissioner Dauda Danladi on Saturday said that Nigeria will help Pakistan cope with energy crisis as it has the natural gas reserves of 184 trillion cubic feet. He along with UAF VC Professor Dr Iqrar Ahmad Khan inaugurated the flower exhibition set up by Institute of Horticultural Sciences at the University of Agriculture Faisalabad. He also called for increasing the trade among the both countries in order to get benefit from each other experience. He said that we will import the goods from Faisalabad, Sialkot and Lahore. He said that trade volume among the both countries is standing at 500 million dollar. Efforts are afoot to raise it to 1,000 million dollars. He said that the President of Pakistan Mamnoon Hussain along with the delegation would visit Nigeria to discuss the areas of mutual interest. He appreciated the efforts of the UAF students for arranging the flowers in the beautiful ways. He also said that academia collaboration between the both countries would be strengthened.

Copyright Business Recorder, 2013

Top

Prime Minister invites Qatar''s energy firms for investments

Prime Minister Nawaz Sharif on Friday invited Qatar''s petroleum and gas companies to invest in Pakistan''s oil and gas exploration and production sector. Talking to Sheikh Falah Bin Jassim Bin Jabor Al-Thani, Chairman Board of Directors of Doha Group, the PM said Pakistan''s vibrant economic sector offered an investment-friendly environment to Qatar''s investors. The PM said Qatar was a principal player in the world energy market especially in the export of liquefied natural gas (LNG) and Pakistan would welcome co-operation with Qatar in the energy sector. He said both the two countries had great potential to increase the existing level of bilateral trade. "We wish to promote, diversify and strengthen relations in all fields of our bilateral relations," PM added. PM Sharif said Pakistan attached great importance to its close and cordial relations with Qatar and values its contribution to regional peace and stability. He expressed good wishes for the Emir of Qatar and said that under his sagacious stewardship, Qatar had played its positive role in the region.

Copyright Associated Press of Pakistan, 2013

Top

Mehar Gas development project comes on stream soon

The Mehar Gas Development Project in the interior Sindh has come on stream. According to the reliable sources, the formal inauguration of the plant shall shortly be taking place. The development owned by OMV and constructed by SPEC Energy DMCC has the capacity to cater for 30mmcfd of sales gas and 3300bpd of condensate. Production and sale of condensate have already started from the facilities. The OMV had acquired Mehar Exploration License and development and production lease as part of the acquisition of the entire share capital of Petronas Carigali (Pakistan) Ltd (renamed after acquisition to OMV Maurice Energy Limited) in July 2011. The Mehar development included the drilling of one additional production well, completion of three production wells, and the construction of a central gas and condensate processing plant in Mehar. Gas will be exported via a 60km pipeline to the SSGCL network; condensate will be sold to the Parco refinery. Stabilised condensate will be trucked to Karachi until completion of a condensate pipeline, which is currently in the final planning phase. OMV's joint venture partners in Mehar are GHPL (25 per cent), OPL (11.8 per cent) and ZPCL (4 per cent). The new discovery's proximity to the Mehar field provides the opportunity of using the Mehar gas and condensate plant for processing. The Mehar field development is in its mechanical completion phase; production start-up is expected in Q4/13. It will provide 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.

Copyright Business Recorder, 2013

Top

Thar coal project: More fiscal incentives sought

Sindh Engro Mining Company has sought more fiscal incentives for Thar coal power project as compared to imported coal and requested the federal government to take the project as national project. Talking to media on Wednesday Shamsuddin A Shaikh, Chief Executive Officer (CEO) Sindh Engro Coal Mining Company (SECMC) said that they stressing on the Minister for Planning and Development Ahsan Iqbal to include Thar coal project in top 3-4 projects for Chinese support. "As International Financial Institutions (IFIs) have refused to extend financing to develop Thar coal reserves, China has sought a sovereign guarantee prior to extending loans for the project," he added. He said that SECMC required $ 1.2 billion for Thar coal mining and power projects. He said that no IFI was ready to extend financing due to environmental issues of coal and credit history. "We have requested GoP to list Thar coal amongst the top 3-4 priority projects to secure financing from China. Pakistan should include Thar coal project in Pak-China Economic Corridor project as China is the only country ready to extend financing for the project," he added. SECMC was a joint venture with Sindh government with the former holding 49 percent whereas the latter owned 51 percent shares. "Now, SECMC wants to keep 26 percent shares and Pakistan State Oil (PSO) will get 23 per cent shares to develop Thar coal," Shaikh said adding that SECMC had established a wholly owned subsidiary- Thar power company to set up a 600 MW power plant utilising coal from Thar Block-2. He maintained that PSO had signed MoU for investment in SECMC and federal government should initiate mining at Thar through equity investment by one of its public sector enterprises to remove skepticism among investors. He said that conversion of coal can be either on imported or on coal primarily from Thar. It is important that conversion policy should have superior incentives for use of local coal to encourage use of indigenous resources and save precious foreign exchange. "All new and conversion projects based on imported coal should be subject to blending of Thar coal of at least 20 per cent to scale up mining at Thar," he said. He also stated that power policy 2002 needs to be amended to include Thar based power projects enabling PPIB to issue requisite Letter of Intent (LoI) for Thar based plant. Shaikh said that Pakistan's power sector suffers from shortage as well as expensive energy mix. Pakistan's effective power generation stands at 16,000 MW, which is currently short by approximately 5,000 MW, which will further worsen as power requirements increase to 26,000 MW by 2020. "Pakistan's energy mix is neither sustainable nor affordable as approximately 40 percent of power generation is dependent on imported fuel. It is, therefore, imperative to curb our dependence on expensive imported fuel and develop indigenous resources that can help provide energy security. Import of coal is very risky as its prices cannot be predicted coupled with our currency devaluation which would again take us back to the current unsustainable position," he added. Contrary to general perception, he said that quality of Thar lignite compares favourably with other lignite being used around the world for power production. Among four established quality measures of coal which are heating value, sulphur, ash and moisture content, Thar coal is superior in three quality aspects as compared to lignite currently being used in Germany, India and Bulgaria for power generation, he concluded.

Copyright Business Recorder, 2013

Top

IP gas pipeline: Islamabad, Tehran for fast-track Implementation

Pakistan and Iran have decided for fast-track implementation of the IP gas pipeline project and to formulate a roadmap to address the challenges with effective co-ordination and co-operation, said Foreign Office here Tuesday. According to Foreign Office spokesman Aizaz Ahmad Chaudhry, this was agreed during a meeting between Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi with his Iranian counterpart Bijan Namdar Zangeneh at the Ministry of Petroleum at Tehran, Monday. The United States has been opposing the project and advising caution in proceeding with a project that would take one a half years to complete. "The US policy on Iran is well known. We have made it clear that it is best to avoid activity that may be sanctionable under US or international sanctions," a US official said. However, Pakistan has repeatedly expressed its commitment to pursue the project in order to meet the energy requirement despite the US pressure. During the meeting in Tehran, Aizaz Ahmad Chaudhry said that it was also agreed that a meeting will be held shortly between the experts of both sides to review parameters for accelerating work on IP gas pipeline project. The two ministers also reviewed in detail the bilateral co-operation and expressed satisfaction over the friendly and cordial relations between the two brotherly countries, he added. Discussing various areas of co-operation‚ he said that the two sides also emphasised the need to put greater focus on bilateral economic relations. Shahid Khaqan Abbasi accompanied by Abid Saeed, Secretary Petroleum and Mobin Saulat MD of the Pakistan''s Interstate State Gas System arrived in Tehran to discuss the IP gas pipeline issue with his counterpart and reiterated Pakistan''s assurance to fulfil its contractual obligation as the project is of immense importance to meet the energy needs of the country, the spokesman added. Under the agreement, signed in June 2010, Iran would provide 750 million cubic feet per day (mmcfd) of gas to Pakistan for 25 years, which may be extended by five years and volumes may rise to 1 Billion Cubic Feet per Day (BCFD).

Copyright Business Recorder, 2013

Top

ADB loan for coal-fired power projects: Nawaz congratulates ministers, officials

Prime Minister Muhammad Nawaz Sharif congratulated Ministers and Officials of the Ministries of Finance, Water and Power, Economic Affairs and Foreign Affairs on achievement of a major diplomatic and economic victory when the policy board of Asian Development Bank approved $1.2 billion for two coal-fired power projects at Jamshoro, Sind which will add 1,320MW to the national grid. Prime Minister expressed that the success is remarkable, particularly in view of sustained opposition of developed countries in recent years opposing financing of coal power projects due to environmental considerations. "Ever since coming to the government, I have taken it up as a personal challenge to convince important capitals regarding the need to view Pakistan's case differently due to extreme energy shortages and high average cost which can only be brought down by installation of hydel and coal based power plants", said the Prime Minister. The Prime Minister appreciated the understanding of Board of Governors of ADB. Moreover, Ministry of Finance and Ministry of Water and Power have been directed to proceed with the conclusion of agreements swiftly and expedite the implementation process. It is important to note that the Jamshoro coal fired power project will not only add to much needed power to the national grid but will also open up the window for bilateral, multilateral and concessionary financing for Gadaani Power Park and other conversion projects. Prime Minister also expressed confidence that this progress will also provide a lease of life to the possibility of use of world's second largest coal reserves at Thar, Sindh. "As an elected Prime Minister of Pakistan, I am on track to deliver on the promise in bringing the cost of electricity in next three to five years," said Muhammad Nawaz Sharif.-PR

Copyright Business Recorder, 2013

Top

MOL to double gas production in Khyber Pakhtunkhwa

The officials of MOL Pakistan assured Chief Minister Pervez Khattak that they will soon double their production of natural gas in the province which will on the one hand contribute to controlling the deficiency of energy while on the other hand the revenue/income of the province. The assurance was affirmed in a meeting when the Islamabad based Ambassador of Hungry, Istvan Szabo, the Managing Director of MOL Pakistan Ferenc Juhasz and Political Advisor to MOL Pakistan Ali Murtaza Abbas called on the Chief Minister at the Pakhtunkhwa House, Islamabad. MNA Dr Imran Khattak and Senator Adnan Khan were also present on the occasion.

Copyright Business Recorder, 2013

Top

OMV increases gas production in Pakistan

Austrian energy group OMV AG said two fields in Pakistan will contribute over 10,000 barrels of oil equivalent (boe) per day to its production total in 2014. Development of the Latif gas field has been completed, OMV said in a statement on Friday, while phase 1 full production at the Mehar gas condensate field will come on stream by the end of 2013. OMV had proven oil and gas reserves of approximately 1.12 billion boe and production of around 303,000 boe per day as of year-end 2012.

Copyright Reuters, 2013

Top

Foreign investors urged to exploit energy sources in Sindh

Sindh Chief Minister Sindh Syed Qaim Ali Shah said that Sindh has good potential of indigenous sources of energy and has floated many opportunities of investment to generate coal, wind and solar-based energy in Sindh. The Sindh CM called foreign investors to come forward, invest and exploit the untapped sources of energy for the betterment of both sides. This he said while talking a delegation of the Shanghai Electric Company which called on him in the leadership of Shanghai Electric Company's Vice President, LV Yachen at the CM House, said a statement on Friday. Sindh CM said that Sindh has potential of coal resources up to 99 percent, wind potential up to 90 percent and gas sources up to 70 per cent in addition to potential of solar energy. He said that Sindh has huge indigenous sources and it could bring the country out of the energy crises alone as such his government was actively working on energy production. He said that we have 12 blocks in Thar coal area out of which we have leased out four blocks of Thar coal to the international standard companies and have sought expression of interest (EOI) from the international companies to lease out other four Blocks of Thar coal in January 2014. He said we have floated another coal based power project at Keti Bandar aimed to generate 6000 mega watt of electricity in phases with installation of two power plants with a capacity of 660 mega watts each in phase-I. This project has also a component of laying 200 kilometres railway line for transportation of coal from Thar Coal Mines, provision of a Jetty to import coal till the transmission of Thar coal is matured and laying power transmission lines from project area to Jamshoro and Karachi, he said. He informed the delegation that Sindh has huge potential of more than 20,000 mega watts in wind energy and the government has floated another project for investment in this sector in which 18 companies have expressed their interest out of which 8 are Chinese. In addition to that Sindh has good potential in Solar Energy as well, he added. He said that he had recently visited China, to discuss and deliberate with the Chinese investors to invest in Sindh where the environment is conducive, labour is available at cheap rate and government is providing all incentives and other facilities to investors. He asked the delegates to avail the opportunities of investment in above projects and assured them of full support. He said that China has the expertise and technology to generate power and we want to avail their expertise in energy sector. Advisor to Sindh CM for Finance, Syed Murad Ali Shah said that it was PPP government that discovered 180 billion tons of coal reserves in Thar area in 1991 and initiated steps for coal based power projects in 1995-96 to overcome the power crisis but unfortunately the succeeding govt did not pay heed to this important project. He said that PPP has again taken this Thar Coal power project into hand since 2008 when it came into power and since then lot of work has been done and we are going for mining of 6.5 million tonnes of coal annually from next year. Subsequently the province will generate 600MW power in two phases during 2015 with joint venture of a local and Chinese company, he said. Vice President of Shanghai Electric LV Yachen while talking on the occasion said that his company has expertise to generate power through coal, nuclear, gas and hydro etc. He said that they have come here to look for opportunities of investment and avail the same. Elaborating the strength and achievements of his company, he said that they intend to contribute for the development of Pakistan and Sindh as they consider them their good friend. Sindh Chief Secretary Sajjad Saleem Hotiyana, Secretary Energy Agha Wasif Abbas, Secretary Finance Sohail Rajput, Secretary to CM Sindh Rai Sikandar, MD Thar Coal and other officers were also present on this occasion.

Copyright Associated Press of Pakistan, 2013

Top

Service tolling contract: SSGC negotiating $2 billion LNG deal with EVTL

Sui Southern Gas Company (SSGC) Limited Board of Directors is likely to approve LNG Supply Agreement (LSA) in next few weeks for which it is negotiating a contract with Engro Vopak Terminal Limited (EVTL), officials said. According to sources in the Ministry of Petroleum and Natural Resources, SSGC board is negotiating a $2 billion service tolling contract with EVTL for the import of Liquefied Natural Gas (LNG) for 15 years. A senior SSGC official who is part of the negotiation team between SSGC and Engro talking to Business Recorder said that the board of directors is likely to allow the SSGC to ink the LSA with EVTL. Engro Vopak Terminal Limited (EVTL) to be modified which will be ready by June, 2014. The LSA is being negotiated and will be settled in six weeks, then the board of directors of SSGC would examine it and upon satisfaction the summary for the formal approval will be sent to the Economic Co-ordination Committee of the Cabinet. The board of directors of the Inter State Gas System (ISGS) on November 21 recommended to SSGC to accord a formal approval to award $2 billion services contract to EVTL. The government is to start negotiations on the LNG supply agreement with Qatar. Federal Minister for Petroleum and Natural Resources Shahid Khan Abbasi has said Pakistan wants to import up to two Billion Cubic Feet (BCF) of LNG, and on fast track basis 200-400 million Cubic Feet per Day (mmcfd) will be imported between November and December 2014. According to the minister, the government wants to start first import flow of LNG by November 1, 2014. Sources said $1.4 billion 1,250 kilometres long pipeline from Karachi to Lahore will be laid down to transport the two billion cubic feet per day LNG after it is transformed into gas to Punjab and upper parts of the country. Punjab is facing acute gas shortage and as per initial plans of the government it was decided that from December 1, 2013 there will be no gas available to industrial, commercial and CNG sector till February, but due to better weather conditions the management has not completely suspended the gas supply to any of the sectors. The government will only cater to the gas needs of domestic consumers in January and February.

Copyright Business Recorder, 2013

Top

Gas extension projects big assets of Khyber Pakhtunkhwa: Governor

Khyber Pakhtunkhwa Governor Engineer Shaukatullah has said that the natural gas extension projects in the province are an asset and to make them beneficial to the people is indeed a great achievement on part of the gas companies. Talking to Arif Hameed, Managing Director of Sui Northern Gas Pipelines who accompanied by General Manager, Distribution North, Amir Nasim, Senior Engineer Shafqat Virk and Peshawar based General Manager Arbab Saqib called on him at Governor's House on Wednesday, the Governor noted with appreciation, the keen interest of management of the company in ensuring timely completion of the ongoing natural gas extension projects. Meanwhile, the Governor was also apprised about working of the organization with special reference to pace of progress on the ongoing natural gas extension projects.

Copyright Business Recorder, 2013

Top

Hungarian envoy meets chief minister Punjab

Ambassador of Republic of Hungary, Istvan Szabo met Punjab Chief Minister Muhammad Shahbaz Sharif here on Tuesday. Matters of mutual interest and promotion of bilateral relations as well as co-operation in energy and other sectors were discussed in the meeting. Talking to the Hungarian ambassador, Punjab Chief Minister Shahbaz Sharif said that there is a need to promote trade relations between Hungary and Pakistan. He said that Hungry can cooperate with Punjab in steel, automobile industry, tourism and other sectors. Punjab government is working on a massive project of water supply to the people and Hungary should also consider co-operation in this project. He said all facilities are being provided to investors under one roof in Punjab. Hungarian envoy said that Pakistan is of great importance to Hungary and there is a need for promoting mutual co-operation between the two countries. Wife of Hungarian envoy Amelia, Hungarian diplomats, chairman Planning and Development and secretary Industry, secretary Information and vice chairman Punjab Investment Board were also present on the occasion.

Copyright Business Recorder, 2013

Top

OGDCL discovers oil and gas in Sindh

Oil and Gas Development Company Limited (OGDCL) has discovered gas and condensate oil from Exploratory Well Saand, which is located in Tando Allahyar, Sindh province. OGDCL is the operator of joint venture of Nim block having 95 percent share as an operator and Government Holding Private Limited (GHPL) 5 percent. The structure of Saand Well No 01 was delineated, drilled and tested using OGDCL's in house expertise. The well as drilled down to the depth of 2651 M, targeting to test the hydrocarbon potential of lower Goru Formation, whereby reserves of hydrocarbon have been found at Saand Well 01. The Zone has tested 5.84 MMCFD of gas and 65 BPD of condensate oil through 32/64 choke.-PR

Copyright Business Recorder, 2013

Top

EVENT PARTNER
CONFERENCE SPONSOR