PLL negotiating LNG deal with Azerbaijan’s company
MAR 27TH, 2018 ISLAMABAD: Pakistan LNG Limited (PLL) is negotiating supply of Liquefied Natural Gas from State Oil Company of Republic of Azerbaijan (SOCAR) after the two countries signed an Inter-Governmental Agreement (IGA) last year. “A Price Negotiating Committee (PNC) has been constituted with approval of Economic Coordination Committee of the Cabinet to discuss LNG pricing issues between PLL and SOCAR,” official sources told APP. Following the agreement, they said Pakistan had nominated Pakistan State Oil Company Limited (PSOCL), Pakistan LNG Limited (PLL), Pakistan LNG Terminal Limited (PLTL), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) for negotiating sale and purchase agreement for petroleum products, LNG supply and establishment of LNG terminals. While, the Azerbaijani side nominated the SOCAR for the purpose. The sources said draft of sale and purchase agreement for petroleum products had been prepared by PSO and negotiations in this regard were expected to start with SOCAR shortly. Answering a question, they said world major players were showing keen interest to invest in LNG sector of Pakistan after seeing immense business potential of the commodity here. “LNG is the cheapest source of fuel and the world’s major players are showing interest to invest in LNG sector of Pakistan by setting up their own terminals and developing transmission network to supply the commodity to consumers,” they said. Before LNG import, they said Pakistan was importing one million ton fertilizer per year and now it was exporting over six million tons fertilizer, besides entire power generation sector was getting smooth gas supply.
Port Qasim power plant to start generation this month
MAR 28TH, 2018 ISLAMABAD: China Pakistan Economic Corridor (CPEC) Project Director, Hassan Dawood Butt has said that 660 megawatt electricity would be added in the national grid from Port Qasim plant during the current month. Talking to APP he said, “First unit of the Karachi Port Qasim has added 660 megawatt electricity in the national grid station, while its second unit will start generation of 660 megawatt during the current month.” “Work on all the CPEC power projects is in full swing, till date about 10,400 MW electricity has been added in the system ,” he added. Sahiwal power plant having installed capacity of 1,320 MW and Port Qasim power project were the important projects under the CPEC, he said. The Project Director said that world super environment-friendly technology has been used in the Port Qasim project. He said around 3,500 Pakistani workers along with 120 technical and mechanical engineers were performing duties in the project. “We are hoping that the strength of the technical and mechanical engineers will reach 450,” he added. He said China’s huge investment has also encouraged foreign investors to invest in Pakistan. He expressed the hope that after overcoming of energy shortfall, the country’s industries would progress and create thousands of jobs for youth.
Rs445.599mn released for petroleum sector exploratory projects in nine months
MAR 21ST, 2018 ISLAMABAD: The government has released around Rs 445.599 million for execution of different exploratory projects of the Petroleum and Natural Resources Division under the Public Sector Development Programme (PSDP 2017-18) during nine months of the current fiscal year. Funds amounting to Rs 554.297 million had been allocated for six major exploratory projects, out of which, Rs 445.599 million have been disbursed till March 16. According to the official data, the government had released 100 percent allocation of Rs 415.807 million for acquisition of four drilling rigs with accessories for Geological Survey of Pakistan. While, Rs 15.191 have been provided for appraisal of newly discovered coal resources of Badin Coal Field and its adjoining areas of Southern Sindh, against the allocation of Rs 37.977 million. Similarly, Rs 3.596 have been released for exploration of evaluation of metallic minerals in Bela and Uthal areas, district Lasbella, Balochistan, against allocation of Rs Rs 8.992 million. The government had reserved Rs 3.492 million for exploration of Teritary Coal in Central Salt Range of Punjab, out of which Rs 1.396 have so far been released. Whereas, Rs 24.023 had been kept for exploration and evaluation of coal in Nosham and Bahlol areas of Balochistan, out of which Rs 9.609 have been released. However, no funds have so far been released for underground water survey in Quetta , for which Rs 64 million had been allocated.
Power consumers likely to get relief of Rs2.19 per unit for Feb
MAR 22ND, 2018 ISLAMABAD: The power consumers are likely to get a relief of Rs2.19 per unit in lieu of fuel price adjustment formula for February 2018. Official sources Sunday told APP that Central Power Purchase Agency Guarantee Limited (CPPA-G) in a petition submitted to National Electric Power Regulatory Authority (NEPRA) sought Rs2.19 per unit reduction in power tariff for the said month. In the petition, the CPPA-G said the actual cost remained at Rs5.06 /kWh against the reference fuel charges of Rs7.2603/kWh. It said per unit cost of electricity production through coal was Rs5.81 kWh per unit and furnace oil Rs10.16 kWh per unit during the said month. Similarly, the cost of nuclear electricity production was Rs1.07 per unit, gas Rs4.71 per unit, and RLNG Rs9.02 per unit while the power imported from Iran cost Rs11.05 per unit. The regulator would hold a hearing on the matter on March 27. Domestic consumers of all public-run distribution companies except K-Electric will benefit from the reduction in the prices of electricity. However, the lifeline consumers and those consumers who were using less than 300 units would not benefit from the reduction.
Power Division seeks amendment to Wheeling Electric Regulations, 2016
MAR 20TH, 2018 ISLAMABAD: Ministry of Power Division has submitted reference with National Electric Power Regulatory Authority (NEPRA) to bring amendment in Wheeling of Electric Power Regulations, 2016 aimed at removing existing hurdles in sale and purchase of at least 1 MW or more electricity in the country. According to the reference sent to the power regulator on March 16, hurdles were identified in sale and purchase of the electricity by the all stakeholders after consultation. The power division in its recommendations has recommended that the Regulation should be limited to wheeling on dedicated feeders of 132 Kv and 11Kv. The the wheeling should be limited to licence of the distribution company and no inter distribution Company (DISCO) trade be allowed for the time being. Any interested consumers utilizing this regulation should be allowed to retain utility connection for which relevant charges would be paid to them, the recommendation further said. It said that in case of non-utilization of the energy by the buyer, banked energy should be allowed for a month after that the seller should either sell the energy to another buyer (other than DISCO) or shut down the plant. It would be mandatory to buy this energy. “In case the bulk consumers are taken out from the consumer base, of a distribution company the displaced capacity charge should be added to the wheeling charge for a period of one year or new tariff determination whichever is later,” the reference further said. Copyright APP (Associated Press of Pakistan), 2018
GRA issued 21 gas regulation licences since 2002
MAR 19TH, 2018 ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has so far issued around 21 licenses to different companies pertaining to regulated gas sector since 2002. The permits are meant for transmission and sale of gas to various entities in different parts of the country, the OGRA said in its annual report for the year 2016-17. The authority granted diverse licenses to different companies including Sui Northern Gas Pipelines Limited, Sui Southern Gas Company Limited, Mari Petroleum Company Limited, Pakistan Petroleum Limited, Oil and Gas Development Company Limited, Fauji Fertilizer Company Limited, Engro Chemicals Pakistan Limited, Central Power Generation Company Limited, Fatima Fertilizer Company Limited, Foundation Power Company Limited, Star Power Company Limited, Star Power Generation Limited, Engro Fertilizer Limited, ETPL, Universal Gas Distribution Company, Gaseous Distribution Company and Fauji Oil Terminal and Distribution Company. Giving the regulatory regime overview, the report said, the regulatory functions of natural gas sector were transferred to the OGRA on March 28, 2002 with the objective to break the public sector monopoly, open the natural gas transmission and distribution to private sector and promote competition in the midstream and downstream oil and gas sector. Since then, the authority has been performing functions like grant of licenses for regulated gas sector, formulation of rules, regulations and procedures for the conduct of licencees, determination of revenue requirement petitions of SNGPL& SSGCL, monitoring and enforcement of rules, regulations and applicable licence conditions, resolution of disputes and complaints lodged by the consumers, pipeline capacity allocation, licensing of low pressure (flare) gas and for sale of re-gassified liquiefied natural gas.
SNGPL starts installation of pipelines for UC Bajna
MAR 18TH, 2018 OGHI: Sui Northern Gas Pipelines Limited (SNGPL) Saturday started the installation of gas pipelines for Union Council Bajna with the cost of 6 billion rupees. PMLN local office bearer, Saqib Bostan briefing the media on the occasion said that the mega project would change fate of the people of living in UC Bajna. He said that PMLN has fulfilled the demands of deprived citizenry by spending a huge amount of Rs. 6 billion for basic amenity of sui gas. He further said that all credit for this mega project goes to Capt. R Safdar who has played vital role for initiating the project, its grant allocation and release of the funds. Saqib Bostan maintained that the project would be completed well before forthcoming general elections 2018. He also urged people to select PMLN in next coming elections owing to its record development work including Hazara motorway, sui gas and electricity provision schemes. Hazara was neglected by PTI provincial government and not a no single mega-project was kicked off in the area, he added.
OGDCL makes five discoveries in 2016-17, working to drill 28 wells this year
MAR 16TH, 2018 ISLAMABAD: Oil and Gas Development Company Limited (OGDCL) has drilled 22 wells including 12 exploratory/appraisal and ten developmental during the last fiscal year, besides injecting approximately 1,337,395 barrels crude oil and 9,348 mmcf gas in its pool from 18 new wells. “This year, the company has set a target to drill around 28 wells, out of which 17 are exploratory and 10 are developmental including a Shale gas and oil. The company is confident to meet the target,” official sources told APP. Besides, it has set a target to drill around 28 oil and gas wells during the current fiscal year, and in the first quarter it has injected five new wells producing 4,133 barrels crude oil and 891 mmcf gas in its production gathering system, they said. The company, the sources said, being cognizant of the country’s increasing energy demand, in the first quarter of year 2017-18 has added production of five newly operated wells namely Pakhro-I, Dachrapur-3, Chanda-4 and Qadirpur-58 and HRL-12 in the system. They said the OGDCL’s crude oil production had reached 42,529 barrels per day (bpd) in first quarter as compared to the same period of the corresponding year 2016-17, showing 6 percent growth. Similarly, production of Liquefied Petroleum Gas (LPG) witnessed 73 percent surge during the period under review. The production has increased from 342 tons per day (tpd) to 590 tpd, the sources added. The company drilled two new development wells namely Mela-6 and Qadirpur HRL-14, while it made two oil and gas discoveries in districts Sukkur and Hyderabad of the Sindh province. Replying to a question, they said the company in an effort to explore new oil and gas reserves continued with its seismic data activities and acquired 181 sq. km of 3D and 49 Line Km of 2D seismic data during the period.