# Oil, Gas and Refinery Projects update



## ghazi52

*Russian consortium agrees to set up refinery in K-P*









ISLAMABAD: Russian investors representing Inter Rao Engineering and Himmash Apparat, a leading engineering, procurement and construction contractor, through local partner Orpheus have joined hands with Khyber-Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) and they plan to set up a medium-sized refinery in Kohat district.

Considering the crude and condensate production in Khyber-Pakhtunkhwa, which is a leading player amongst other provinces, investors showed keen interest and signed a memorandum of understanding (MoU) for the refinery project in an attempt to ramp up oil production in the province.

According to a statement, a meeting was held between KPOGCL Chief Executive Officer Raziuddin Razi and the visiting delegation of Russian investors, headed by Yaroslav Gavrylendo, Adviser to CEO Inter Rao Engineering and Narovlyanski Alexander, Head of Export of Himmash Apparat, to discuss the way forward for the planned project. The CEO of KPOGCL, which is actively facilitating investments in the oil and gas sector, briefed investors on financial and technical aspects of the project.

“K-P government is fulfilling its responsibility by providing investors with a one-window shop facility and assuring the visiting delegation of full cooperation,” said the statement.

“Letters of Intent have already been issued by the Russian investors through their consortium to the K-P government and they are keen to take this project into the next phase.”

KPOGCL said it was taking all necessary steps for enabling the vision of K-P government to ensure energy security for Pakistan.

According to terms of the MoU, the interested group will undertake a detailed feasibility study for the project. KPOGCL also arranged a site visit for the Russian delegation in Kohat district and showed the potential site for setting up the crude and condensate refinery.

The delegation, while praising efforts of KPOGCL for facilitating new investors, assured it that they would push ahead with the project subject to its approval from Russia.

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## ghazi52

*Ministry invites E&P companies to tap shale gas, oil potential*

ISLAMABAD (APP): Ministry of Petroleum and Natural Resources has invited local and international Exploration and Production (E&P) companies to tap massive Shale gas and oil reserves identified in a study carried out in collaboration with USAID. Accordingly, the Ministry has established a Shale gas and oil centre to facilitate interested companies in knocking the recently compassed 188 TCF gas and 58 BSTB oil technically recoverable resources in lower and middle Indus Basin. "A dedicated Shale gas and oil centre has been established at the Petroleum House, which is now open for all interested E&P companies," official sources told APP. They termed the identification of massive Shale reserves a 'game-changer' and future source for abundant supply of petroleum in the country. A study, completed in collaboration with USAID, had confirmed presence of 3,778 trillion cubic feet (TCF) Shale gas and 2,323 billions of stock tank barrels (BSTB) Shale oil in place resources.

The study covered lower and middle Indus Basin which geographically spread over Sindh, southern parts of Punjab and eastern parts of Balochistan. Total area under the study was 271,700 kilometers, which is 33 per cent of total sedimentary area of the country.

Answering a question, the sources said a consortium of Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) is being formed to undertake pilot project(s) to determine cost of extracting Shale gas and oil.

During the study, a detailed analysis of 124 wells was carried out including laboratory analysis on Shale Cores and Cuttings in the United States.

Objectives of the study were to validate Shale gas resource, estimate initial findings, assess availability of required technology and infrastructure for Shale gas operations and formulate guidelines for the Shale gas policy. The study had further confirmed that basic technology required for Shale gas exploration i.e. horizontal drilling and hydraulic fracturing, was available in the country and being used for conventional and tight gas reservoirs.

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## ghazi52

China *invited to set up oil refinery near Lahore
*
Opening the doors for Chinese investors with lucrative incentives, Pakistan has offered Beijing to invest in setting up a mid-country deep-conversion refinery and laying a gas pipeline from Karachi to Lahore for the transmission of imported liquefied natural gas (LNG) to consumers in Punjab province.

The offer was made during a recent visit of a Chinese delegation, headed by Nur Bekri, Administrator of National Energy Administration. During a meeting, the Pakistani side requested China to set up oil and gas sub-group under the Energy Working Group for facilitating production and supply projects. Consequently, they agreed to establish the sub-group and assess investment opportunities in the oil and gas projects.

The Chinese government is working with Pakistan under the China-Pakistan Economic Corridor (CPEC) programme, but there are no oil and gas production and supply projects.

According to the sources, the representatives of the Ministry of Petroleum and Natural Resources told the visiting delegation that the ministry was ready to work with Chinese companies in a bid to develop oil and gas infrastructure projects on a commercial basis.

Pakistan offered China to pour money into setting up a mid-country deep-conversion refinery near Lahore with the production capacity of 250,000 barrels per day (bpd).

Separately, the government has started work on *a 250,000 bpd deep-conversion refinery, which will be developed in a joint venture arrangement with Abu Dhabi in Karachi*. Pakistan needs another refinery of 250,000 bpd in the mid-country near Lahore.

At present, five hydro-skimming refineries are working in the country and they annually produce only 13 million tons of petroleum products. The remaining demand is met through imports after tenders are floated by Pakistan State Oil and private sector oil marketing companies.

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## Introvert

*China to invest $4 billion in Pakistan to develop petrochemical complex*

China is planning to construct a USD four billion petrochemical complex, that envisions a refinery with 10 million tonnes per year capacity near Pakistan's southern port city of Karachi, industry officials said.

This was disclosed by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Zubair M. Tufail after a meeting with the visiting Chinese delegation led by Li-Jial, Director Tianchen Engineering Corporation (TCC), at the Federation House here on Wednesday.

Li-Jial and Tufail agreed in principle to establish and exchange investment missions to further enhance trade relations between the two countries, Dawn reported.

A Chinese proposal to set up a refinery along with a downstream petrochemical complex near Karachi is advancing steadily as requests for 500-1,000 acres (land) has been submitted to the provincial governments of Sindh and Balochistan, the report said.

The estimated cost of the project is about USD 4 billion, it said.

The complex envisions a number of jetties, a refinery with 10 million tonnes per year capacity, as well as downstream processing facilities for naphtha and its component chemicals.

"Currently we are importing USD 2 billion worth of these chemicals from the Middle East," Tufail said, adding that the complex could help reduce Pakistan's external deficit.

Building of the complex will take four to five years, he said.

Li-Jial said that TCC would like to invest in Pakistan to enhance business opportunities.

China, the "all-weather" friend of Pakistan, had been extending cooperation in different sectors of the country's economy and lately there had been a "sudden jump" in these relations for the mutual benefit of both countries, she added.

China is currently building the China-Pakistan Economic Corridor (CPEC) a part of Chinese President Xi Jinping's ambitious multi-billion Belt and Road initiative.

The USD 50 billion project is a mega network of roads, rail links, power plants and other infrastructure connecting western China's Xinjiang province to Pakistan's southern port of Gwadar.

The FPCCI president said that Pakistan could benefit from the TCC's vast experience in oil refinery, energy, chemical complexes and other projects and explore investment opportunities mutually beneficial to both the countries.

Tufail said both the provincial governments are interested in this project but would depend how they make a land deal with the Chinese investors.

http://timesofoman.com/article/1152...-in-Pakistan-to-develop-petrochemical-complex

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## ghazi52

ISLAMABAD: Ministry of Petroleum and Natural Resources has invited local and international Exploration and Production (E&P) companies to tap massive Shale gas and oil reserves identified in a study carried out in collaboration with USAID.

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## ghazi52

China plans to build Petrochemical Complex near Karachi with 4 Billion Dollars.
KARACHI: A Chinese proposal to set up a refinery along with a downstream petrochemical complex near Karachi is advancing steadily as requests for 500-1,000 acres has been submitted to the provincial governments of Sindh and Balochistan.
The estimated cost of the project is about $4 billion.
The complex envisions a number of jetties, a refinery with 10 million tonnes per year capacity, as well as downstream processing facilities for naphtha and its component chemicals. “Currently we are importing $ 2 bn worth of these chemicals from the Middle East”

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## Introvert

*Polish company to drill 14 oil, gas wells in potential areas*

A Polish oil and gas company, PGNiG, would drill 14 exploration wells in hydrocarbon potential areas during the current year. “The company has planned to step up its exploration and production activities and take the business volume to Rs 100 billion per year,” officials in the company told APP.
They said the company, operating in Pakistan since 1997, would play an important role in meeting Pakistan’s growing energy needs.

Before acquiring the current Kirthar Concession (Block 2667- 7) lies in Dadu district of Sindh, they said, the company operated and carried out exploration activities in four other Concessions namely Khanpur West,Sabzal, Mekhtar and Sabzal South. The Kirthar area and Lasbella in Balochistan zone-III.

They said Rehman Gas Field was discovered in the Kirthar Block in 2009 which started production in 2013. “This was the first- ever gas produced from a “Tight Gas” reservoir in Pakistan,” they claimed.

In 2015, the officials said, the company discovered the Rizq Gas field which was the second Tight Gas Field in Kirthar Block and commissioned the Rehman Production Facility with a capacity of processing up to 40 million standard cubic feet of gas per day (mmscfd) gas.

“PGNiG doubled its production from the Kirthar block when gas from Rizq Gas Field was added to the national grid in November 2016, which helped to reduce the increasing demand-supply gas for natural gas in the country,” they remarked.

Two more development wells have been planned at the already mature Rehman Gas field, an appraisal well on the new Rizq gas Field and an exploratory well to test a potential prospect in the northern side of the block.
They said the company has so far invested more than 125 million dollars in Pakistan, adding that current daily production from the Rehman field stood at 24 mmscfd from four producing wells, which would be increased up to 90 mmscfd gas with full field development.

The officials said the increase in production requires advanced technologies (horizontal wells, multiple transverse hydraulic fracturing, etc) for which an investment of more than $ 300 million would be made.
“PGNiG is in active pursuit to increase its footprint in the Pakistani’s upstream oil and gas sector and is also interested to develop the shale gas deposits here,”

http://pakobserver.net/polish-company-drill-14-oil-gas-wells-potential-areas/

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## Introvert

*China’s GEDI wins $3.58bn EPC contract for Falcon Oil refinery in Pakistan*

Pakistani conglomerate WAKGROUP has awarded a contract worth $3.58bn to China-based Guangdong Electrical Design Institute (GEDI) to build a new deep conversion oil refinery in the Khyber Pakhtunkhwa province.

The contract given for GEDI, a subsidiary of China Energy Engineering Corporation (CEEC), is for engineering, procurement and construction (EPC) of the Falcon Oil refinery project.

According to the parties, the Falcon Oil refinery, which will be built in Dera Ismail Khan, will have a production capacity of up to 100,000 barrels per day of oil.

The objective of the Falcon Oil refinery will be to process 90% of the imported crude oil via Karachi with 10% local crude oil sourced from various oil wells in Karak district. The subsequent petroleum products produced from the full conversion process will be mainly for sale by complying with the mandated EURO-II specifications.

WAKGROUP chairman Waqar Ahmed Khan said: “This new state-of-the-art oil refining complex will have its independent 100-Mega Watt power generation plant, 3.8 million metric tons storage facilities all across Pakistan and 300 plus kilometers network of oil pipe lines.”

The Pakistani oil refinery is likely to be completed in 30 months after commencement of the project work.

It will feature a crude distillation unit, a naphtha hydrotreater unit, a reformer unit, an isomerization plant, a thermal gas oil unit, an effluent treatment plant and all auxiliary units.

CEEC vice president Yu Gang said: “As the strong backup for GEDI, CEEC is willing to provide convenience and support while at the same time implement supervision and provide guidance.

“CEEC and GEDI will insist on the scientific, high efficient, concise and modest philosophy to utilize resources, make technical planning and solution and strictly execute the contract to build the project into a demonstration of China-Pakistan cooperation."

http://refiningandpetrochemicals.en...alcon-oil-refinery-in-pakistan-220817-5905829

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## STRANGER BIRD

*
China to build Asia’s largest oil refinery in Pakistan*







Pakistan and China have agreed to build an oil refinery in Dera Ismail Khan WAK group from Pakistan and Guangdong Electrical Design Institute from China have signed an agreement in this connection in Dubai.

Under the agreement, Asia's largest oil refinery will be established at Yarak area of D.I.Khan in two and a half years at a cost of around 400 billion rupees.
The project will have capacity to refine 100,000 barrels of oil per day.

https://timesofislamabad.com/china-to-build-asias-largest-oil-refinery-in-pakistan/2017/08/23/

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## RPK

STRANGER BIRD said:


> *China to build Asia’s largest oil refinery in Pakistan*
> 
> 
> 
> 
> https://timesofislamabad.com/china-to-build-asias-largest-oil-refinery-in-pakistan/2017/08/23/


http://www.hydrocarbons-technology.com/features/feature-top-ten-largest-oil-refineries-world/

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## ghazi52

*PARCO MID COUNTRY REFINERY. Multan*






Commissioned in the year 2000 and built at a cost of US$ 886 million, PARCO Mid-Country Refinery (MCR) at Mahmoodkot near Multan has added 4.5 million tons per annum *(100,000 BPD) to the country’s refining capacity.* MCR was one of only five refineries built in the world at the beginning of the millennium and, therefore, can be called the latest in terms of generations.

PARCO’s Mid-Country Refinery (MCR) is the country’s most modern and largest operating refinery and employs critical processes involved in refining. The Refinery produces Liquefied Petroleum Gas (LPG), High Octane Blending Component (HOBC), Kerosene, Jet Fuel (JP-1 & JP-4), High Speed Diesel (HSD), Light Speed Diesel (LDO), Furnace Oil (FO) and Sulphur. These products are being delivered to customers through Gantry Operation at MCR as well as via PARCO’s Mahmoodkot-Faisalabad-Machike (MFM) Pipeline System. MCR is capable of producing lead free Motor Gasoline of 90 Octane. . It produces fuel oil with low sulphur content meeting the international standards and has a Sulphur Recovery Unit with tail gas treatment to avoid pollution.

The Refinery has a refining capacity of *100,000 BPD* of a mixed Arabian Light/Upper Zakum/Murban/Das and Indigenous Crude slate, which is transported to the Refinery site by PARCO’s existing pipeline System from Karachi. MCR being a grassroots Refinery, has both primary and secondary processing facilities and supporting infrastructure, which allows the process units to operate in an efficient manner in order to produce the desired slate of products in an economic and flexible manner.

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## ghazi52

*PARCO COASTAL REFINERY (PCR) SITE*






Pak-Arab Refinery Limited (PARCO), an integrated energy company, is a Joint Venture between Pakistan and the Emirate of Abu Dhabi. PARCO owns and operates over 2000 kms of pipeline network, Pakistan’s largest and most modern refinery, marketing, distribution operations and has formed Joint Ventures with renowned international companies and conglomerates. The Company is continually following an aggressive growth strategy and has planned expansions and penetration into new ventures and markets.

Mr. Shahid Khaqan Abbasi and Secretary Petroleum & Natural Resources, Mr. Arshad Mirza, visited PARCO Coastal Refinery (PCR) site in Hub, Baluchistan, 70 km from Karachi .

While briefing the press about the project, Minister stated that this project will have a refining capacity of *250,000 BPD *and will also involve construction of storage, pipelines, marine terminal and development of allied infrastructure. The project is expected to be completed by *2022.* The project will bridge the gap in the demand and supply of refined products, which at present is approximately 13 million metric tons per annum and is likely to increase further due to economic growth.

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## ghazi52

*KPOGCL joins hands with US firm to enhance oil production*








ISLAMABAD - Eying on the target of the production of 2 million barrel oil per day, by 2025, the Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) on Wednesday signed a Memorandum of Understanding (MoU) with the American Halliburton company.

Under the MoU, American Halliburton company would train the KPOGCL workforce and provide it with latest technology software and introduce technology in exploration and production of oil and gas in the province, KPOGCL CEO Raziuddin told media persons here after signing the MoU with Ahmed Kenawi, the senior vice president of Middle East and North America of the Halliburton company.

Halliburton will also train local manpower on latest software and provide on-job training to bring them at par with international standards. “The Halliburton is one of the World’s biggest services companies and its’ come back to Pakistan, especially to Khyber Pakhtunkhwa is a sign of investors’ increased interest and confidence in the country’s improving security and business environment,” Raziuddin said. He said that this company had worked in Pakistan earlier as well and its’ return to Pakistan will send a positive message to other companies who had left the country over last several years, he added.

“We are targeting to achieve crude oil production of two million barrels per day by 2025 which is currently 51,000 barrels a day (53pc of country’s total oil production) which was only 30,000 barrels four-year back,” the KPOGCL CEO said.

“Similarly, natural gas production has been targeted at 2,000 million cubic feet/day (mcfd) by 2025 which is currently at 430 mcfd and three year back it was 330mcfd. He further said that liquefied petroleum gas (LPG) production was only 10 tons/day and now it has been raised to 550 tons/day and by 2025, we are targeting to increase its production to 3,000 tons a day,” he maintained.

Razziuding said that out of 28 active rigs in Pakistan, 11 are working in KP. Estimates show that KP has recoverable reserves of 16 trillion cubic feet of natural gas and more than 1.1 billion barrels of oil. The province has high success rate of drilling, as among each 2.8 wells dug for the oil or gas, one well is successful, whereas world average is one out of ten wells, he claimed.

The KPOGCL chief executive further said that with more and more investment in the sector, it would also bring industrialisation in the province including setting up of fertilisers plants, refineries and other relevant industries that will ultimately help create more jobs, boost provincial and country’s overall economy, reduce dependence on imported oil and save hard-earned foreign exchange. The increased production will also help in social uplift of the province, by allocating more and more royalties for health and education and other uplift schemes, he added.

On the occasion, Halliburton Senior Vice President Ahmed Kenawi, said, “It is pleasure to sign MoU with the KPOGCL under which we will be training the workforce and transfer advanced technology.

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## STRANGER BIRD

*KP to demand right to award oil blocks in CCI meeting *
*





https://tribune.com.pk/story/1487659/k-p-demand-right-award-oil-blocks-cci-meeting/*


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## ghazi52

PM Abbasi inaugurated the country’s second Liquefied Natural Gas (LNG) terminal at Port Qasim in Karachi .
The PM noted that the new terminal had been constructed in just 330 days.
Its third LNG terminal at Port Qasim will become operational in 2018, taking the total installed capacity close to 2,000 million cubic feet per day.

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## STRANGER BIRD

*Puma Energy Announces Joint Venture With Chishti Group in Pakistan*

KARACHI, Pakistan, Aug. 25, 2017 /CNW/ - We are pleased to announce that Puma Energy has entered into an agreement with the Chishti Group to acquire 51% interest in Admore Gas Pvt. Ltd (Admore).

(Photo: http://mma.prnewswire.com/media/548915/Puma_Energy_Chishti_Group.jpg)

Admore is one of the leading independent Oil Marketing Companies (OMCs) in Pakistan with a significant retail network of over 470 sites nationwide. Puma Energy is one of the world's largest independent midstream and downstream oil companies. The acquisition forms part of Puma Energy's global strategy of disciplined investing in fast-growing markets with a high demand for oil products, offering the opportunity to improve local infrastructure, provide supply security and world-class retail propositions to local consumers.

The joint venture will bring Puma Energy branded retail sites, convenience stores and quality product range to the Pakistan market, and undertake a significant investment programme to develop best-in-class supply chain infrastructure in-country to ensure the future needs of our retail business partners and public customers can be met.

Puma Energy's CEO Pierre Eladari said "Puma Energy continues to expand into new markets where its proven business model can deliver value to our customers and shareholders alike. Pakistan is on a firm growth trajectory; growth which will place increasing demands on the downstream oil sector. We, together with our new partner, intend to play an important role in the future development of the industry, working with our new stakeholders in government, business and the public to improve the reliability, standards, service and product offering currently available."

David Holden, the General Manager of the joint venture, said "We have been greatly impressed by Admore's business, its strategic asset base, its customer portfolio and the excellence of its management and employees. We believe we can bring further benefits with our expertise in retail, logistics and our ability to ensure reliable and secure supply of high quality fuels to our customers."

Chishti Group Chairman, Amir Waliuddin Chishti commented: "We believe partnering with Puma Energy will benefit our Admore network, connecting Pakistan to the global market and ensuring security of supply for Pakistan's future growth. We see many opportunities for continued investment in infrastructure and supply to our portfolio of customers."

About Puma Energy

Puma Energy is a global integrated midstream and downstream oil company active in close to 47 countries. Formed in 1997 in Central America, Puma Energy has since expanded its activities worldwide, achieving rapid growth, diversification and product line development. The company directly manages over 8,000 employees. Headquartered in Singapore, it has regional hubs in Johannesburg (South Africa), San Juan(Puerto Rico), Brisbane (Australia) and Tallinn (Estonia).

Puma Energy's core activities in the midstream sector include the supply, storage and transportation of petroleum products. Puma Energy's activities are underpinned by investment in infrastructure which optimises supply chain systems, capturing value as both asset owner and marketer of product. Puma Energy's downstream activities include the distribution, retail sales and wholesale of a wide range of refined products, with additional product offerings in the lubricants, bitumen, LPG and marine bunkering sectors. Puma Energy currently has a global network of over 2,500 retail service stations. Puma Energy also provides a robust platform for independent entrepreneurs to develop their businesses, by providing a viable alternative to traditional market supply sources.

For further information visit: http://www.pumaenergy.com

About Chishti Group

Chishti Group is a renowned Pakistani conglomerate with a diversified business presence across several industry sectors including Healthcare, Education, Financial Services and Oil marketing. The current annual revenue of the Group is above USD 150mn with an employee base of 3,000. In the healthcare and education sectors, the group is successfully running (i) a 300-bed tertiary care hospital providing healthcare facilities, and (ii) the accredited educational institution which is awarding degree programs in MBBS, BDS, Post Graduate and Nursing care. Its full service brokerage business is a leading player in the Equity, Fixed income and Money Market business and is ranked among the top ten in the country. Having transformed and turned around three loss making businesses (due to its strong commitment with the country, excellent human capital and unmatched business execution capability), the group acquired Admore in 2014. Since then, with over 470 retail outlets, Admore has witnessed a significant improvement in terms of supply, storage and corporate governance in a very short period of time.

SOURCE Puma Energy

http://markets.businessinsider.com/...Venture-With-Chishti-Group-in-Pakistan-520859



https://www.bloomberg.com/news/arti...id-in-talks-to-buy-stake-in-pakistan-retailer

https://www.geo.tv/latest/154522-trafigura-set-to-purchase-admore


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## STRANGER BIRD

*Pakistan signs strategic deal with international group for oil gas exploration*


*




*



*ISLAMABAD:* MoU is signed between the
Oil and Gas Development Company Limited (OGDCL) and MOL Group
for a strategic cooperation initiative to evaluate future Potential business opportunities in international upstream
exploration and production.

The Memorandum of Understanding (MoU) was signed by Graham Balchin, Managing Director/Chief Executive Officer, MOL Pakistan Oil and Gas Company B.V, and Zahid Mir, Managing Director OGDCL, according to a press release issued by the PM’s Media Office
here.

The strategic cooperation would lead to mutual exchange of technical knowledge and industry experiences, allowing for further discussion of potential international upstream growth
synergies and possible partnerships.
Earlier, Chief Operation Officer of MOL Group Dr. Berislav Gaso also called on the prime minister and briefed him about
various successful business ventures of his company in Pakistan.

Berislav Gasco thanked the prime minister for the continued support of the government towards facilitating the company in undertaking profitable business ventures in the country.
He also appreciated investment-friendly policies of the government and expressed keen desire of his company to explore investment opportunities in Balochistan, in addition to the
existing operations at various places in the country.

The prime minister stated that the government was committed
to provide every possible facilitation to the investors for exploring and benefiting from the huge potential existing in the country in various sectors, especially the oil and gas sector.

He also welcomed the desire of MOL Pakistan to extend its operation and undertake business ventures in Balochistan.

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## STRANGER BIRD

*OGDCL unveils plan for overseas oil and gas exploration*








ISLAMABAD: Pakistan Oil and Gas Development Company Limited (OGDCL) on Wednesday unveiled a plan to expand its exploration beyond the local oil and gas fields, in partnership with a global energy conglomerate MOL.

OGDCL and Hungarian MOL Group already have a joint venture in Tal block, which is an oil and gas field located in Kohat district of Khyber Pakhtunkhwa.

The renewed strategic cooperation under an agreement signed between the two companies, however, envisages exploration and production of oil and gas fields in Pakistan, Middle East, African continent and commonwealth of independent states, especially the Russian Federation and Kazakhstan.

“We look forward to expanding our relationship to E&P (exploration and production) opportunities internationally, while continuing to grow our relationship in Pakistan,” Zahid Mir, managing director at OGDCL said in a statement. “Our MOU (memorandum of understanding) is aligned with OGDCL’s internationalisation strategy of developing a footprint outside Pakistan, through cooperation with high quality E&P companies,” Mir added.

Graham Balchin, managing director and chief executive officer at MOL Pakistan Oil and Gas Company BV, a subsidiary of MOL Group, and Zahid Mir, managing director at OGDCL signed the agreement at the Prime Minister Secretariat. OGDCL owns the largest number of recoverable hydrocarbon reserves in the country, accounting for around 60 percent of oil and nearly 40 percent of gas.

Alone during the last fiscal year, the company drilled more than 20 wells and added 18 new wells to its production system. The company’s average daily net saleable production of crude oil stood at 43,989 barrels, natural gas 1,051 million metric cubic feet, liquefied petroleum gas 411 tonnes and sulphur 39 tonnes during the last fiscal year.

https://timesofislamabad.com/ogdcl-unveils-plan-for-overseas-oil-and-gas-exploration/2017/09/14/

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## STRANGER BIRD

*Officials visit proposed site for oil refinery*

KARAK: The officials of Khyber Pakhtunkhwa Oil and Gas Company (KPOGCL) and Frontier Works Organisation visited the proposed site for the oil refinery in Faqeeri Banda area of district Karak.

Sources said that employees of revenue department gave a briefing to the visiting officials on the occasion. They said that the officials of KPOGCL and FWO were briefed by Tehsildar Mehran Ilyas, Gerdawar Mohammad Ayaz, Patwari Mastan Khattak and others.

Sources said that the district government already imposed Section 4 on 4,000-kanal in Faqeeri Banda area of Karak tehsil where the oil refinery would be established. Sources said that requisition of land would be completed soon and work would be expedited to execute the mega project in the district.

They said district government was providing help to the relevant quarters in early fulfillment of legal formalities to start work on the project.

_Published in Dawn, September 14th, 2017

https://www.dawn.com/news/1357578_

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## STRANGER BIRD

*OGDC discovers new gas reservoirs in Pakistan







ISLAMABAD – Pakistan’s biggest gas explorer Oil and Gas Development Co. (OGDC) said Monday evening it has discovered gas reserves from its onshore exploratory well Tando Allah Yar, in District Hyderabad, in southern province Sindh.

The structure of Tando Allah Yar South West #01 was drilled and tested using OGDCL’s in house expertise, the company said in a filing to Pakistan Stock Exchange.

The well was drilled down to the depth of 3250 meters. The well has tested 10 MMscf/day of gas and 72bpd of condensate through 32/64” choke at wellhead flowing pressure of 2440 psi from ‘massive sands” of lower Guru formation, the statement said.

OGDC has been working as operator holding shares of 95% and GHPL has 5% shares. The discovery has opened a new avenue and would add hydrocarbon reserve base to OGDCL, GHPL and the country.

OGDC as of June 30, 2017 have been operating in 58 exploration blocks, the largest exploration acreage in Pakistan, covering 33% of the total awarded acreage, standing at 114,581 sq.km. the company also holds working interest in five exploration blocks operated by other exploration companies.

https://timesofislamabad.com/ogdc-discovers-new-gas-reservoirs-in-pakistan/2017/09/26/*

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## STRANGER BIRD

*
New oil and gas reserves discovered in Pakistan*
*





ISLAMABAD – Pakistan Oilfields Limited has discovered new oil and gas reserves at TAL Block, increasing the hydrocarbon reserves of the country.

POL has been informed by its operator MOL, that hydrocarbon have been encountered in development well Makori East-06, which has been drilled and is currently under testing phase.

Initial information revealed that well has tested 1817 barrels per day of condensate and 4.63 mmscf gas per day.

The production from the well is expected to start from February 2018.

https://timesofislamabad.com/new-oil-and-gas-reserves-discovered-in-pakistan-3/2017/11/07/
*

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## STRANGER BIRD

*A consortium of state-owned Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) is being formed to undertake pilot projects to assess the cost of extracting Shale gas and oil.*
*



*

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## ghazi52

*Project comes on line with start of second LNG terminal*






Prime Minister Shahid Khaqan Abbasi inspects Pakistan GasPort floating storage regasification unit in Karachi on Monday. 

KARACHI: Prime Minister Shahid Khaqan Abbasi inaugurated on Monday the second liquefied natural gas (LNG) terminal at Port Qasim, which was built by Pakistan GasPort Limited with an investment of $500 million to pump gas into three LNG-based power plants in energy-starved Punjab.

He emphasised that electricity shortages had been largely overcome with the import of LNG – the cheapest energy source at present, adding the government was currently working on several power projects.

Pakistan is importing 600 million cubic feet of LNG per day (mmcfd) through its first terminal at Port Qasim which has been operating at 100% capacity over the past two years.

The second terminal will handle another 600 mmcfd, taking total imports to 1.2 billion cubic feet per day (bcfd).

The premier congratulated Pakistan GasPort Chairman Iqbal Z Ahmed on achieving the milestone and said he still had two more to cross.

Terming the LNG terminal a success story, he said the government’s work was not to engage in business, instead it would facilitate the private sector in setting up all new terminals and provide a regulatory framework. He saw a huge potential for investment in the LNG sector because the country had a big market for natural gas.

Abbasi revealed that 1 bcfd of LNG would be required to meet the needs of industries, compressed natural gas (CNG) filling stations, captive power plants of industrial units and power producers.

He pointed out that Pakistan had now become a fertiliser exporter due to gas imports and LNG was the cheapest source of energy at present despite media criticism.

Pakistan is expected to be importing 30 million tons of LNG per year in the next three years as more terminals are coming up. Speaking on the occasion, Ahmed said Pakistan GasPort had completed the terminal despite encountering several challenges.

The company has planned to set up another LNG terminal with a joint investment of $500 million which is expected to start running before the end of next year.

He revealed that they had also planned to set up a liquefied petroleum gas (LPG) import terminal with an investment of $50 million to meet consumer demand.

There had been ups and downs in LPG prices and the establishment of the terminal would help stablise gas rates in the country, he said, while pointing out that the government was also working on setting up LPG air-mix plants.

“The LPG terminal will also help to meet gas demand in remote areas of the country,” he said.

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## ghazi52

Pakistan's second LNG terminal to start operations from Nov 20. 2017
PM Shahid Khaqan Abbasi has inaugurated the second LNG terminal at Port Qasim, built at a cost of Rs 50 billion & LNG Terminal Two was established in a record 330 days.

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## ghazi52

*Pakistan, Russia to sign off-shore gas pipeline deal*






ISLAMABAD: 
Pakistan and Russia have reached an understanding to sign a multi-billion dollar offshore gas pipeline deal in a couple of weeks, ignoring pressure from the United States that has fiercely opposed the building of Iran-Pakistan (IP) gas pipeline for years.

The two sides reached an agreement during the recent visit of Prime Minister Shahid Khaqan Abbasi to Moscow.

The two sides were expected to sign a Memorandum of Understanding (MoU) during the premier’s visit, however, it did not happen due to certain reasons, officials told The Express Tribune. Now, Islamabad and Moscow are set to sign the deal in a couple of weeks.


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## ghazi52

*PAK-ARAB REFINERY LTD. (PARCO)
*
is a Joint Venture between the Government of Pakistan (60%) and the Emirate of Abu Dhabi (40%), through its Mubadala Investment Company.

PARCO’s major business activities are:


Refining
Transportation
Marketing


PARCO has the most modern refinery in Pakistan having a capacity of 100,000 BPD (representing about 25% of the country`s refining capacity), over 2000 kms of cross country pipeline network (including its JV subsidiary Pak-Arab Pipeline Company Limited (PAPCO) with a strategic storage of over one million tons, and a rapidly expanding retail network of TOTAL PARCO (TPPL) – a joint venture with TOTAL of France. With the acquisition of Chevron’s fuel business in Pakistan, TPPL is now the third largest Oil Marketing Company in the country. PARCO is also marketing nationwide LPG under the brand of Pearl Gas and fuel oil under the brand of Pearl fuels. High quality asphalt is also being marketed as Biturox.


PARCO’s record of persistent success and credibility created a strong pull to bring in fresh investments in the time when foreign investors were generally reluctant to come in Pakistan.

*PAK – ARAB PIPELINE COMPANY LIMITED (PAPCO)
*
Pak – Arab Pipeline Company Limited (PAPCO) – is an excellent example of Public-Private partnership. Shell (26%), PSO (12%) and TOTAL PARCO Marketing Limited (formerly known as Chevron Pakistan Limited) (11%) joined hands with PARCO (51%) to build and operate a US$ 480 million cross-country pipeline system for transporting High Speed Diesel from Karachi ports to up-country locations. PAPCO was commissioned in March 2005, comprising 786 Km of 26” dia cross-country pipeline, storage tanks, pumps and other allied facilities. PAPCO has proven immensely successful as the main fuel carrier for the country.

*TOTAL PARCO PAKISTAN LTD (TPPL)
*
TOTAL PARCO PAKISTAN LTD (TPPL) was established in 2001 – a joint venture between PARCO and TOTAL of France – for marketing of consumer petroleum products through its network of retail outlets across Pakistan. After the acquisition of Chevron Pakistan Limited (renamed as *TOTAL PARCO Marketing Limited*) by TPPL,* today, the TOTAL PARCO network is a 50:50 joint venture with *more than 800 retail fuel outlets, plus a lubricants blending and marketing business, making it the *3rd Largest Oil Marketing Company in Pakistan*.

*PARCO PEARL GAS (PVT) LTD
*
PARCO Pearl Gas (Private) Limited (PPGL) is a wholly owned subsidiary of PARCO. PPGL is the largest LPG marketing company in Pakistan, selling around 90,000 metric ton of LPG per annum in cylinders and bulk. It has a nation-wide network of distributors and has expertise in addressing industrial applications through its Industrial and Commercial solutions. The product is marketed nationally under brand name of Pearl Gas. Our vast portfolio covers all the product segments in the market. PPGL has been working towards providing energy solutions, keeping in view all possible dynamics and dimensions in the market.

*PARCO COASTAL REFINERY (PCR) PROJECT
*
PARCO has initiated the development of a grass root 250,000 bpd deep conversion refinery project in the coastal area of Balochistan near Karachi, known as PARCO Coastal Refinery (PCR) as a 100% subsidiary of PARCO. It will be a significant addition to Pakistan’s oil refining infrastructure, for meeting Pakistan’s growing fuel requirements and is expected to be commissioned by 2023.

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## ghazi52

*KARACHI:* The Prime Minister (PM), Shahid Khan Abbasi, said on Friday that we have a 20 percent increase in the demand of gasoline, and 15 percent increase in diesel every year.

He was talking after the groundbreaking ceremony of *Upgrading White Oil Pipeline project* in Karachi. The project is led by Pak-Arab Company Limited which is in the business of construction of oil pipeline network in Pakistan.

PM also said that if the construction goes across the expected lines, it would take 20 months for this project to be completed. The cost of the project would be about Rs15 billion, he added.

“Worldwide transportation of fuel takes place through pipelines,” said Abbas. He also assured to improve the quality of petroleum products in the country in the following years.

Transportation of oil and gas is considered to be less hazardous and more environment friendly, since it reduces the need of oil tankers which emit carbon dioxide and other dangerous gases in the air.


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## ghazi52

Prime Minister Shahid Khaqan Abbasi inaugurated RLNG gas pumping station with 42 inch 1400 km pipeline at Rahimabad near Sadiqabad yesterday.

With the commissioning of the gas infrastructure, volume of the gas available for use has been doubled from 1200 mmcfd to 2400 mmcfd.

The project is part of gas infrastructure development across the country. It is a joint venture of Sui Northern Gas Pipelines Ltd. (SNGPL) and Sui Southern Gas Company Ltd. (SSGC). It also includes construction of 1044 km pipeline by SNGPL and 425 km pipeline by SSGC.


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## ghazi52

*ISLAMABAD:* January 31, 2018....The Government of Khyber Patkhunkhwa on Wednesday signed an agreement with a Russian oil refinery company to refine 20,000 barrel of oil on daily basis in Kohat district.

*As per the agreement, the company would set up an oil refinery in the district at a cost of Rs35 billion.*

The company would pay 10 percent share to the provincial government once it starts operation.

KP Minister Atif Khan said that this would be the first Russian company that would operate in the country.

The consortium is consisted of Inter-Rao Engineering and Himmash Apparat partnered with Orpheus Energy. The Russian delegation was represented by Yaroslave Gavrylenko, Wayne Mitchells and Osman Chaudhry.

KPOGCL Chief Planning Officer (Energy and Power Department) Zainullah Shah and Yoroslav of Himmash signed the deal at a ceremony held at the KP House here.

Pakistan Tehreek-i-Insaf (PTI) Chairman Imran Khan, KP Chief Minister Pervez Khattak and Provincial Minister for Energy and Power Muhammad Atif were also present on the occasion.


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## ghazi52

*Parco adds gasoline storage tank at Machike terminal*

LAHORE (PR): Total *PARCO Pakistan Limited* recently inaugurated the safe construction of a 10,000 m3 large vertical storage tank at its Machike terminal located near Sheikhupura.
The new tank has been constructed to meet the growing demand of gasoline, resulting in the gasoline storage capacity having increased from 6,500 m3 to 16,500 m3 at its Machike Terminal. It has been fitted in a way to receive product from the adjacent pipeline - owned by PARCO- which is pumping gasoline from the mid-country. This will enable the company to lower the number of gasoline trucks on the roads improving further the HSE performance.
The ceremony saw Olivier Sabrié (CEO of Total PARCO) and the senior management of Total PARCO unveiling a commemorative plaque and announcing that the company was committed to enhance its fuel storage capacities across the country to meet the growing customer demand in the country.

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## Maxpane

☺ we are doing fine


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## ghazi52

*Turkmenistan completes its section of TAPI pipeline*

ISLAMABAD: Turkmenistan has completed construction of the gas pipeline in its section under the Turkmenistan, Afghanistan, Pakistan and India (TAPI) project, following which a ground-breaking ceremony is scheduled to be held at the Turkmen border city of Serhetabat on Friday to take the pipeline to Afghanistan.

The grand inaugural ceremony would be preceded by a Steering Committee meeting of the project’s participating countries – Turkmenistan, Afghanistan, Pakistan and India – at Mary City in Turkmenistan.




*We are turning TAPI into reality: PM Abbasi*















ISLAMABAD: Prime Minister Shahid Khaqan Abbasi addressed on Friday the inaugural ceremony of Turkmenistan–Afghanistan–Pakistan–India (TAPI) project in Serhatabad, Turkmenistan.

During his address, the premier appreciated President of Turkmenistan Gurbanguly Berdimuhamadov for converting a mere gas pipeline project into an energy and communication corridor.

“This is a momentous occasion, we are turning TAPI into reality,” said PM Abbasi. “It recreates historical linkages for the region.”


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## Maxpane

Tapai and iran pakistan gas pipeline is crucial for pakistan

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## Menace2Society

The repair bill will run into millions. It will not survive the journey through Afghanistan.


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## ghazi52

*Work on Darra Adamkhel-Hayatabad gas pipeline to start this month*

ISLAMABAD (NNI): The Sui Northern Gas Pipelines Limited (SNGPL) would start construction work on 38-kilometer Darra Adamkhel to Hayatabad gas pipeline during the current month to ensure smooth supply of gas to Industrial Estate Hayatabad, Peshawar. “The company is trying its best to ensure supply of gas to all industries of the estate for which it carried out necessary maintenance of gas pipeline network and all consumer meter stations to ensure uninterrupted supply of the commodity,” official sources told state-run media. During the current fiscal year, they said ample gas had been supplied to all industries including Compressed Natural Gas stations, captive power units and cement industries, which is evident from the fact that consumption of industrial consumers had increased by 904 million cubic feet (mmcf) during the first four months as compared to the corresponding period of previous year.

“Peshawar industries’ gas consumption stood at 4,899 mmcf during the period from July-October-2016, while in July-October-2017 at 5,804 mmcf, which shows an increase of 904 mmcf,” the sources said.


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## Maxpane

Hm good decision


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## ghazi52



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## ghazi52

Prime Minister Shahid Khaqan Abbasi inaugurated Liquefied Petroleum Gas (LPG) Plant of Oil and Gas Development Company Limited (OGDCL) at Nashpa, Karak on 8 March 2018.

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## kabooter_maila

ghazi52 said:


> *Turkmenistan completes its section of TAPI pipeline*
> 
> ISLAMABAD: Turkmenistan has completed construction of the gas pipeline in its section under the Turkmenistan, Afghanistan, Pakistan and India (TAPI) project, following which a ground-breaking ceremony is scheduled to be held at the Turkmen border city of Serhetabat on Friday to take the pipeline to Afghanistan.
> 
> The grand inaugural ceremony would be preceded by a Steering Committee meeting of the project’s participating countries – Turkmenistan, Afghanistan, Pakistan and India – at Mary City in Turkmenistan.
> 
> 
> 
> 
> *We are turning TAPI into reality: PM Abbasi*
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> ISLAMABAD: Prime Minister Shahid Khaqan Abbasi addressed on Friday the inaugural ceremony of Turkmenistan–Afghanistan–Pakistan–India (TAPI) project in Serhatabad, Turkmenistan.
> 
> During his address, the premier appreciated President of Turkmenistan Gurbanguly Berdimuhamadov for converting a mere gas pipeline project into an energy and communication corridor.
> 
> “This is a momentous occasion, we are turning TAPI into reality,” said PM Abbasi. “It recreates historical linkages for the region.”


Why the gas pipeline was not routed through northern Afghanistan to Pakistan to J&K. Indians first vacate the occupied land and then get the gas.


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## ghazi52

*Khalifa Coastal Oil Refinery project*

ISLAMABAD: Pak-Arab Refinery Company (Parco) is in the process of preparing a comprehensive feasibility study on the Khalifa Coastal Oil Refinery project, which has remained in doldrums due to paucity of funds after approval in 2007.

According to sources, the company is working on a feasibility study that will be conducted at an estimated cost of $4.5 billion.

It is implementing the project at Khalifa Point, near Hub, Balochistan, which will be a state-of-the-art refinery having production capacity of 250,000 to 300,000 barrels per day (11 to 14 million tons per annum).

Annual consumption of petroleum products in the country is around 24 million tons, of which only 15% is met through domestically produced crude oil while the rest is imported in the shape of crude oil and refined petroleum products.

Locally produced and imported crude is refined by six major and two small refineries in the country.

Byco Oil Pakistan Limited installed an oil refinery in Hub at a cost of $400 million in 2015 with refining capacity of 120,000 barrels per day, equivalent to 5 million tons per annum.

Byco has also installed Single Buoy Mooring (SBM) facility for the transportation of crude oil from ships to storage tanks.

Total Parco Pakistan Limited acquired Chevron Pakistan and with 765 petrol pumps it has become almost equivalent to the size of Shell Pakistan.

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## ghazi52

*Byco Petroleum to set up two more refineries*

KARACHI: Byco Petroleum Pakistan Limited, while re-commissioning its oil refinery, has announced that it will set up two more refineries to capitalise on domestic demand for petroleum products.

Byco re-commissioned a catalytic reformer at its oil refinery, ORC-2, enabling the company to convert 24,000 barrels per day of heavy naphtha into motor gasoline, as per rated capacity.

At the combined current level of crude processing at both of Byco’s Oil Refining Complexes (ORC I & II), ie 75,000 barrels per day, the cumulative motor gasoline production has increased fivefold from 300 tons to 1,500 tons per day.


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## ghazi52

The government has decided to facilitate companies that want to set up refineries along the coastal belt of Balochistan by waving taxes for 20 years, said Ministry of Petroleum and Natural Resources Director General Oil Abdul Jabbar Memon.

The only condition is that the companies should be able to produce 100,000 barrels per day of oil.


Pakistan, with the assistance of the UAE, is setting up a state-of-the-art refinery at Hub, Balochistan with an investment of $5 billion, which will *refine 250,000 barrels per day.*

Byco Vice President Operations Mansoor Shafique Qureshi said Byco had invested much time, effort and resources in the commissioning of the catalytic reformer, which would give additional strategic advantage of producing significantly more high quality motor gasoline.

Byco has planned many additional upgrades and investments and these will be unveiled as they are rolled out. It is already Pakistan’s largest oil refining firm with a design production capacity of 155,000 barrels per day by its two oil refineries, he said.

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## Clutch

ghazi52 said:


> The government has decided to facilitate companies that want to set up refineries along the coastal belt of Balochistan by waving taxes for 20 years, said Ministry of Petroleum and Natural Resources Director General Oil Abdul Jabbar Memon.
> 
> The only condition is that the companies should be able to produce 100,000 barrels per day of oil.
> 
> 
> Pakistan, with the assistance of the UAE, is setting up a state-of-the-art refinery at Hub, Balochistan with an investment of $5 billion, which will *refine 250,000 barrels per day.*
> 
> Byco Vice President Operations Mansoor Shafique Qureshi said Byco had invested much time, effort and resources in the commissioning of the catalytic reformer, which would give additional strategic advantage of producing significantly more high quality motor gasoline.
> 
> Byco has planned many additional upgrades and investments and these will be unveiled as they are rolled out. It is already Pakistan’s largest oil refining firm with a design production capacity of 155,000 barrels per day by its two oil refineries, he said.




This a significant development... Good!


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## ghazi52

*Mari Petroleum, Polish company ink MoU on strategic cooperation*

PR ISLAMABAD - Mari Petroleum Company Limited (MPCL) and PolskieGórnictwoNaftoweIGazownictwo SA (PGNiG), Polish oil & gas exploration company , Thursday signed a strategic cooperation initiative for evaluating future potential business opportunities in local & international upstream exploration & production projects.

The MoU for strategic cooperation was signed by Lt Gen (r) Ishfaq Nadeem Ahmad, MD/CEO MPCL, and Przemyslaw Krogulec, MD PGNiG, at MPCL head office here. The strategic cooperation between the two oil and gas exploration companies envisages exploring business opportunities in upstream exploration and production projects within and outside Pakistan including farm-in opportunities and pursuit of *shale potential in Pakistan.*


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## ghazi52

*PM Abbasi inaugurates Tolanj Gas Processing facility in Kohat*
March 27, 2018







ISLAMABAD – Prime Minister Shahid Khaqan Abbasi says the government is determined to enhance gas and electricity production in the country.

Addressing the inaugural ceremony of Tolanj gas processing facility in Kohat on Tuesday evening, he said all available resources are being utilized to achieve these objectives of development.

Shahid Khaqan Abbasi said Tolanj gas processing plant is the largest gas facility in Khyber Pakhtunkhwa and it will generate twenty million cubic feet gas per day.

The prime minister lauded the role MOL Pakistan for installing Tolanj gas processing plant. He hoped more investment will be made by private entrepreneurs in oil and gas sector.

He also lauded the role of *Khyber Pakhtunkhwa government *for helping in the installation of Tolanj gas processing plant.

Governor Khyber Pakhtunkhwa Iqbal Zafar Jhagra was also present on the occasion.

Tolanj gas processing plant will generate a revenue of $31 million annually. The project has been completed at a cost of $15 million by a private company, MOL Pakistan.


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## ghazi52

*PSO in talks with Power China for new refinery project*









KARACHI: State-run Pakistan State Oil (PSO) is in talks with Power China for a partnership in an estimated $8 billion refining project in the country, industry officials said on Wednesday.

An agreement is expected to be signed ‘very soon’, said an official, however, he had no firm details on the particulars of the agreement.

Prime Minister Khaqqan Abbasi witnessed the signing of memorandum of understanding (MoU) between PSO and Power China for the construction of up-country deep conversion oil refinery and laying of crude oil pipeline during a visit at the Boao Forum recently.

The refinery would likely have a capacity of 250,000 barrels/day (bpd) to 300,000 bpd/day.

Officials said the projects aim to supply uninterrupted crude oil and finished products in Punjab, Khyber Pakhtunkhwa and other parts of the country.

Moreover, the pipeline has been designed to avert accidents and maintain smooth supply to other installed refineries.

“The installation of the refinery in Pakistan would be a good omen for us as nearly 70 percent of the needs of petroleum products have been met through imports,” said analyst Abdul Azeem at Spectrum Securities.

“It would strengthen the earnings of PSO, and in addition would help reduce the volume of the import bill for petroleum products.”

Currently, the country has five refineries having combined capacity of around 404,000bpd.

Analyst Tahir Abbas of Arif Habib Limited said the signed MoU is a non-binding document, “it is yet to see when the project would materialise”. “But the new refinery should have latest technology and produce less furnace oil.”

Currently, the refineries in Pakistan are producing around 25 percent to 40 percent of furnace oil from their product mix, which has resulted in colossal sufferings following a government decision to close down power plants running on furnace oil back in November 2017. Moreover, reliance on furnace oil going forward is expected to reduce significantly as Pakistan has invested huge amounts in alternate and cheap sources of power generation, including coal- and RLNG-based power plants.


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## ghazi52

ISLAMABAD: While extending support to Frontier Works Organisation (FWO), the government of Khyber-Pakhtunkhwa (K-P) has opposed the laying of an oil pipeline from Machike to Taru Jabba (Nowshera) by Inter State Gas Systems (ISGS), a federal government entity.

FWO and ISGS have emerged as potential competitors to build the vital oil pipeline.

A public hearing was conducted by the Oil and Gas Regulatory Authority (Ogra) in Peshawar for the grant of licence for constructing the oil pipeline that was estimated to cost $370 million.


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## ghazi52

*ECC approves incentive package for new oil refineries*







ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) Friday approved a landmark incentive package for setting up modern new Deep Conversion Oil Refinery Projects, anywhere in the country, including expansion of existing refineries of minimum 100,000 barrels per day capacity.

The decision aimed at attracting investment in the country, came at the meeting of the ECC chaired by Prime Minister Shahid Khaqan Abbasi here at the Prime Minister Office.

The package would also be applicable to PARCO Coastal Refinery project (PCR) and comes with a 20-year income tax holiday. It would include exemption from all duties, taxes, surcharges and levies on import, by the refinery project, its contractors or any other persons. It would be applicable on all machinery, vehicles, plant and equipment, other materials and spares and consumables for setting up, operation, maintenance and repair of the refinery.

The package also includes exemption from withholding tax and all other duties, taxes, surcharges, levies and import relating to foreign contractors, subcontractors and their personnel in connection with engineering, procurement, construction, commissioning, operation, maintenance and repair of the refinery. Sales Tax and Excise Duty on supply of locally manufactured building and construction of material, equipment and service for setting up of the refinery would also be exempted.

The meeting decided that the new refinery projects would be given a pricing mechanism which shall be no less favorable than the prevailing mechanism. The new projects would also be facilitated in project infrastructure such as Single Point Mooring (SPM), jetties, sub-sea, land pipelines etc. The package also grants waiver to applicable Development Surcharge on the value of exports under the EPZA Rules 1981 in case the refinery project is set up in the Export Processing Zone.

This decision would facilitate establishment of modern new refineries in any part of the country and would ensure sustained supply of petroleum products to various parts of the country at affordable prices, besides reducing the import bill of petroleum products.


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## ghazi52

One of the largest Oil Refinery is likely to be built near Lahore to cater for the energy needs of the province.

The Chinese company has initiated work on the feasibility for setting up deep conversion oil refinery close to Lahore for catering to the upcountry’s needs. The estimated cost of the mega refinery hovers at $6 billion including the construction of the crude oil pipeline from port city to Lahore.

On the sidelines of Boao Economic Forum recently held in the month of April in China and attended by Prime Minister Shahid Khaqaan Abbasi, Pakistan State Oil (PSO) and Power China for the construction of the upcountry deep conversion oil refinery and crude oil pipeline. The project will help reduce the cost of transporting petroleum products via road from refineries in southern areas and also ensure uninterrupted supply.

Pak-China working group on setting up mega project of oil refinery in Lahore has been set up and to this effect Chinese company has started working on the feasibility study. Petroleum Division (Energy Ministry) has written a letter to the government of Punjab asking for the allocation of 1000-1200 acres of land, a senior official told.

Keeping in view increasing POL needs after the completion of projects under CPEC umbrella, Pakistan is going to install two mega deep conversion oil refineries one at Lahore and other at Khalifa Point, HUBCO and more importantly the government has asked the existing oil refineries to upgrade. Upcountry refinery to be set close to Lahore and Khalifa Point refinery will produce the POL products at par with the Euro-5 products. The Lahore refinery will be having the capacity to refine 250,000-300,000 barrels per day.

To a question, the official said that Lahore refinery will be provided the crude oil through a pipeline that will be laid down either from Karachi or from Somiani port, Balochistan. The experts say the laying of pipeline from Somiani will be more feasible and practical as in Karachi, the congestions of pipeline has aggravated.

The official said that this very vital project will be executed under Public Private Partnership (PPP) mode. By 2030, the demand of the petroleum products in upcountry that include Punjab, KPK, and Northern Parts of the country will inflate up to 60 million tons and it is a wakeup call for the existing refineries to upgrade themselves to cater to the future needs of the country.

More importantly, the financial closure of Khalif Point Refinery has also been achieved. Pak-Arab Refinery Company *(PARCO) *will establish Khalif Point Refinery with a capacity to refine the crude oil up to 300,000 barrels per day.


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## ghazi52

*Total Parco opens 600th service station *






LAHORE: Total PARCO Pakistan Limited (TPPL) inaugurated its 600th new service station concept at the premises of Star Petroleum Raiwind Road, Lahore. The site was jointly inaugurated by TPPL senior management represented by TPPL CEO Olivier Marc Sabrie and Paul Crane, Vice President Retail & Logistics, Total Marketing & Services – Asia Pacific & Middle East and service station dealer Tahir Mahmood Butt. This milestone reflects TPPL’s determination to demonstrate its long-term commitment to the local development of Pakistan.

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## ghazi52

Attock *Oil Group of Companies* in British Era


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## ghazi52

*ExxonMobil acquires 25% stake in offshore drilling in Pakistan*






A study would be conducted in the potential areas allocated to the four companies before undertaking drilling activities. PHOTO: FILE

ISLAMABAD: In a major development, US energy giant ExxonMobil has acquired 25% shareholding in offshore drilling in Pakistan.

Earlier, Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL) and Italian energy firm Eni had 33% stake each in offshore drilling in the country. Now, ExxonMobil has acquired 25% shareholding, reducing the share of all partner companies to 25% each.

An agreement in that regard was signed at the Prime Minister’s Secretariat on Monday among ExxonMobil, Government Holdings Private Limited (GHPL), PPL, Eni and OGDC.

ExxonMobil has vast experience of offshore drilling for the search of hydrocarbons and it will help boost efforts of partner companies for oil and gas exploration in the country.

Offshore drilling has brought a revolution in the US oil and gas market and even shaken the monopoly of Organisation of Petroleum Exporting Countries (OPEC) – a global grouping of major oil producers and exporters.

A new technology in offshore drilling is a major reason behind the boost to shale oil and gas exploration and officials believe ExxonMobil will help bring state-of-the-art technology to Pakistan. The company has been working on oil and gas exploration in different countries and Pakistan has now become part of its expansion plan.

“An agreement has been signed with ExxonMobil that will acquire 25% shares in offshore drilling in Pakistan,” GHPL Managing Director Mobin Saulat told _The Express Tribune._

Another official said a study would be conducted in the potential areas allocated to the four companies before undertaking drilling activities.

In its first assessment, the US Agency for International Development (USAID) estimated that Pakistan had massive deposits of 10,159 trillion cubic feet of shale gas and 2.3 trillion barrels of shale oil – figures that were several times higher than those released by the US Energy Information Administration (EIA).

According to the EIA assessment in April 2011, Pakistan had 206 trillion cubic feet of shale gas in the lower Indus Basin, of which 51 trillion cubic feet were recoverable. However, in June 2013, it revised the estimate upwards to 586 trillion cubic feet, of which 105 trillion cubic feet were technically recoverable.

Apart from this, the EIA saw the presence of 9.1 billion barrels of shale oil that were technically recoverable out of estimated deposits of 227 billion barrels.

In its study, the USAID collected data of 1,611 wells, used 70% of data to prepare the study and sent samples to New Tech Laboratory in Houston for assessment.

Though technology is available in advanced countries for tapping shale reserves, environmental concerns, requirement of a huge quantity of water and high cost of drilling are real challenges. A well requires three to eight million barrels of water. Pakistan has water supplies, but the real issue is its disposal.

Estimates suggest shale gas will cost $10 per million British thermal units, which will come down with the increase in recovery of untapped reserves.


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## ghazi52

*HDIP to upgrade fuel-testing labs *

ISLAMABAD: The Hydrocarbon Development Institute of Pakistan (HDIP) will execute two projects worth Rs270 million for upgrading its testing labs to ensure provision of quality petroleum products to consumers. An amount of Rs220 million had been allocated for upgrading the Karachi Laboratories Complex under the PSDP 2018-19 while Rs50 million had been allocated to upgrade HDIP’s petroleum testing facilities in major cities, officials told APP.

They added that the Karachi lab would be equipped with a complete range of petroleum products’ testing facilities on a par with international standards for maintaining quality fuel supply. Under the second project, the HDIP will upgrade its laboratories in Islamabad, Lahore, Multan, Peshawar and Quetta for testing locally produced and imported petroleum products.


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## ghazi52

*From Gwadar- Kashgar: Crude oil pipeline requires $10 billion investment*

ISLAMABAD: The Frontier Works Organisation (FWO) and foreign investors have estimated an investment of $10 billion in laying a crude oil pipeline from Gwadar to Kashgar that will have transmission capacity of one million barrels per day.

The federal cabinet, in its recent meeting, was informed that engineering company FWO, in cooperation with private-sector foreign investors, wanted to build a crude oil pipeline from Gwadar (Pakistan) to Kashgar (China) and had requested the Petroleum Division to sign a memorandum of agreement that would assure the investors that Pakistan government would not take over the planned investment.


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## ghazi52

*Pakistan, Russia set to sign $10b offshore pipeline deal next week*

ISLAMABAD: In a major breakthrough, Pakistan and Russia are poised to sign a $10-billion offshore gas pipeline deal, a project planned by the latter to capture the energy market of Pakistan.

Sources told The Express Tribune that the cabinet had approved the signing of the gas pipeline laying deal and Pakistan ambassador to Russia had been authorised to ink a memorandum of understanding with Moscow.

The envoy is likely to ink the understanding in Moscow on Monday. Final cost of the project will be assessed following a feasibility study to be conducted by Russian energy giant Gazprom.


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## ghazi52

*1930s: It is the first oil well of Attock Oil company in Khaur distt Attock. 
Attock Oil Refinery -* Rawalpindi


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## ghazi52

*White Oil Pipeline to be completed by first quarter of 2019*
*https://tribune.com.pk/story/1741050/2-white-oil-pipeline-completed-first-quarter-2019/*
The pipeline will have a capacity of 12 million tons of transporting oil from the port city to Machike, a hub of oil depots situated in central Punjab.

SHEIKHUPURA: The new White Oil Pipeline (WOP) will be completed by the first quarter of 2019, which will help strengthen the company’s supply chain process, said Shell Pakistan Limited Managing Director Jawwad Cheema.

Once completed, the pipeline will have a capacity of 12 million tons of transporting oil from the port city to Machike, a hub of oil depots situated in central Punjab.

He further said that the company has decided to make significant investments of Rs5.5 billion besides this project.

“SPL is the largest private shareholder of the multi-grade conversion WOP and the project is the need of the hour for the country’s growing oil demands besides improving the safety standards of oil supply chain,” Cheema said in an inaugural ceremony of inducting 100 new state-of-the-art oil tankers in the company’s fleet at Shell terminal Machike, Sheikhupura on Saturday.

These huge investments come after last year’s incident of Ahmedpur Sharqia.

Last year, an explosion occurred after an oil tanker toppled near Ahmepur Sharkia, and the company’s management decided to induct new oil tankers to its fleet.

Soon after the incident, Shell engineers worked with an OEM in China to develop enhanced tank lorry designs that comply with the country’s, international and Oil and Gas Regulatory Authority (OGRA) required fleet standards.

“The company’s sales dropped substantially after the tragic incident as the company removed all trucks from its supply chain, which were not meeting the safety standard,” he said.

“Our marketing share dropped to 11% from 18% due to that incident. Since then the company has been working to improve the safety standards of lorries.”

On a question about the oil terminal in Gwadar, Cheema mentioned that the government of Pakistan was evolving policy for oil city in Gwadar. Once the government will announce the policy, the private sector will come there to invest.

SPL External Affairs Manager Habib Haider said that the multi-grade conversion of the WOP will significantly reduce primary movement of fuel by road.


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## ghazi52

*KARACHI: Minister for Maritime Affairs and Foreign Affairs Abdullah Hussain Haroon on Friday said that ExxonMobil has indicated that it is close to hitting huge oil reserves near the Pak-Iran border, which could be even bigger than the Kuwaiti reserves.*

Addressing business leaders at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the minister said that ExxonMobil — an American multinational oil and gas company — has so far drilled up to 5,000 meters close to the Iranian border and is optimistic about the oil find.

The Government of Pakistan, he said, has already taken an undertaking from the company to set up a generation complex worth $10 billion.

The government is also encouraging Chinese and Western investment in the country, he added.

He further said that there is a need to integrate the Karachi Port and Port Qasim so that they could supplement each other in the larger interest of the country.

On the occasion, he said the Pakistan National Shipping Corporation (PNSC) has sufficient funds for purchasing two vessels but this will be done by next government.

The minister said that there is greater need to have new area for fish harbour because the existing one has many issues and there is shortage of land. However, he regretted that the harbour is not well kept and hoped that the European Union (EU) will give subsidy for new fish harbour.

“Foreign investors are interested in coming to Pakistan, provided we manage to meet their standards and attract them to make investment,” he stressed.

The minister advised that ports should be developed so that they could meet the country’s demand on the basis of its markets and products and fully supported the Karachi Port Trust (KPT) development projects highlighted by KPT Chairman Admiral Jamil Akhtar.

Responding to a question, Mr Haroon said that there was no need to give Pakistani land to foreigners, adding: “There is need that as a nation should take up such projects of national importance.”

Published in Dawn, August 4th, 2018


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## ghazi52

OGDCL* makes oil & gas discovery at Chanda oilfield in* Kohat

The block is operated by OGDC with 72 percent stake along with 17.5 percent and 10.5 percent stake of GHPL and ZPCL respectively

LAHORE: Oil and Gas Development Company Limited (OGDCL) on Monday announced the discovery of crude oil and gas at Chanda oilfield situated in Kohat, Khyber Pakhtunkhwa.

In a notification sent to the Pakistan Stock Exchange (PSX) on Monday, OGDCL said it discovered oil and gas in an exploratory well named Chand X-1 located in district Kohat, Khyber Pakhtunkhwa.

The block is operated by OGDC with 72 percent shareholding along with 17.5 percent and 10.5 percent share of GHPL and ZPCL respectively.

“This is the first discovery of crude oil and gas from Hangu formation in Chanda oil field,” said the notification.


In a comment to Profit, Maha Jafer Butt Director Research Capital Stake said, “The well is already functional and adding to the company’s bottom line.

This addition is not expected to have a huge impact but it does draw attention to the potential existing in the area.”

Head of Research, Arif Habib Limited Samiullah Tariq while speaking to Profit about the oil discovery said: “It will have an impact of Rs0.2 per share, although the discovery isn’t very significant.

It will help in furling more ventures in the country’s oil and gas sector and the discovery size is expected to be 2.2mmcfd of gas and 700bbl per day.”

He added “The discovery has been made in a hydrocarbon-rich area of Khyber Pakhtunkhwa, which has immense potential.

In a comment to Profit, Adnan Sheikh Pak Kuwait Investment Co AVP Research said, “It’s a workover of an old well that was already flowing, the discovery is insignificant considering OGDC produces over 40000 barrels per day, however, this shows the field may still have potential produces.”

The notification added “The structure of Chanda Well number 1 was tested during workover (re-completion) using OGDCL’s in-house expertise and in close collaboration with the teams of GHPL & ZPCL.

The well has tested 700 BPD of crude oil and 2.2 MMSCFD of Gas through 32/64” choke at wellhead flowing pressure of 1150-1200 Psi from Hangu and Lumshiwal formation.“

OGDCL stated in December 1999, “Lumshiwal was tested only 150 bpd of crude oil and 0.86 mmcfd of gas through 32/64” choke at well-head flowing pressure of 160-190 Psi and the additional contribution of 550BOPD and 1.34MMSCFD gas is from Hangu Formation which has been tested for the first time in Chanda structure. The well has been completed to take comingle production from Lumshiwal and Hangu formations.”

OGDCL is an exploration and production company and is engaged in the exploration, development and production of hydrocarbon products.

Its exploration licenses (ELs), and development and production leases (D&PLs) include approximately 60, and over 69 owned and operated joint venture ELs and D&PLs. Its exploratory assets cover an area of approximately 112,453 square kilometres.

OGDCL shares were trading at Rs 150.20, down Rs0.57 (-0.38 percent). KSE-10 index was trading at 40,541.67 points, down 313.10 points (-0.17 percent) at the time of filing this report.


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## ghazi52

OGDCL makes oil & gas discovery at Chanda oilfield in Kohat

Oil and Gas Development Company Limited (OGDCL) on Monday announced the discovery of crude oil and gas at Chanda oilfield situated in Kohat, Khyber Pakhtunkhwa.

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## ghazi52

*$2 billion North-South RLNG pipeline: Pakistan, Russia finalise BOOT agreement*

ISLAMABAD: Pakistan and Russia have finalised the BOOT (build, own, operate and transfer) agreement for laying down $2 billion North-South RLNG pipeline from Nawabshah to Lahore. The draft agreement has been handed over to respective legal teams for converting it into legal language.

A pipeline of 300 kilometers will also be laid down from Karachi to Nawabshah if the need be. Under the BOOT deal, both sides have finalised the payment and invoicing mechanism and reached agreement on operational and termination mechanism.

During the four-day talks, Pakistan was represented by the Inter-State Gas System (ISGS) and Russia by the RT Global.

The talks got underway in Islamabad from October 15 and ended on October 18.

According to the Inter-State Gas System MD Mobin Saulat, the BOOT agreement had been finalised and its draft handed over to the legal team.

The Russian company will hand the project over to Pakistan after 25 years, as it will be executed under the BOOT arrangement.

Asked about the project cost and its transportation fee, Saulat said both side had just completed and finalised the agreement.

He said for Russia will send its commercial team to hold talks with the Price Negotiating Committee (PNC) for the project cost and transportation fee which was already in place.

Saulat said Pakistan direly needed this project to get RLNG that will be injected through private to private model LNG terminals. Three terminals are being planned to be set up in Port Qasim, he said.

Pakistan’s two LNG terminals are currently equipped with the off-take guarantee of 1.2 bcfd re-gasified LNG from the government of Pakistan. However, three private-to-private model based LNG terminals are also in pipeline, which may be operational by 2020.

And on top of that, (Turkmenistan-Afghanistan-Pakistan –India) TAPI is also re-scheduled to be operational by 2020.

Under this project, Pakistan will be importing 1.3 bcfd gas. The main problem will be how to evacuate the gas to various parts of the country and for this purpose both Pakistan and Russia will give the final shape to the BOOT agreement for laying down the much-needed N-S pipeline. The pipeline with diameter of 42 inch will have the capacity to evacuate 1.2 bcfd gas. Asked if the RT Global had come up with a sanctions-free structure during the talks which was inevitable to ensure a smooth sailing of the project, Saulat said the Russians did not bring a sanctions-free structure; however, the had assured that they will send its plan to this effect in two weeks and this would be taken up ministry to ministry level.

Both sides have done maximum work in the last two years towards the agreement but the main stumbling block in the project’s execution is the US sanctions on the Russian company.

ROSTEC, the mother company of the RT Global, is facing sanctions on account of Ukraine issue.

During the parleys starting from today (Monday) the RT Global will also come up with a sanctions-free structure to get the gas pipeline deal done.

Saulat said the Ministry of Defense had been asked to provide the RoW (right of way) for the pipeline project and expressed the hope that the NOC will soon be in possession.

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## ghazi52

*Govt to introduce more exploration blocks*
Published: December 12, 2018


ISLAMABAD: The government will make all-out efforts to increase the exploration acreage by introducing more exploration blocks to ensure energy security, said Petroleum Minister Ghulam Sarwar Khan on Tuesday.

Addressing the annual technical conference held every year by the Pakistan Association of Petroleum Geoscientists and the Society of Petroleum Engineers (SPE) Pakistan, the minister said the country needs sustained growth in indigenous petroleum production and supply to control the huge import bill.

He said, “We are happy to see that companies participated and offered winning bids for exploration blocks in a bidding round, which took place last month. This shows the trust of investors and their interest in future exploration licensing rounds.”

Speaking on the occasion, Petroleum Secretary Mian Asad Hayauddin said, “We need a high level of commitment, technology and financial resources to find and develop these natural resources. The only way to make this happen is that all stakeholders including public and private sector companies as well as government organisations work together as a synchronised and efficient team.”

On the other hand, Conference Chairman Dr Saeed Khan Jadoon said oil and gas are major contributors of energy and require aggressive efforts in research and development work. For the last 60 years, efforts are continuously made to explore conventional oil and gas reservoirs, while unconventional reservoirs are yet to be exploited, he added.

Pakistan Association of Petroleum Geoscientists Chairman Dr Nadeem Ahmad said over the last 10-15 years, replacing reserves and maintaining oil and gas production has remained a serious challenge for the domestic oil and gas industry. “New value is created only through exploration, which is the starting point of petroleum value chain.” Organic growth costs two to four times less than buying reserves or importing oil and gas, Nadeem added.

“Imported crude and refined petroleum products make 82-83% of our total consumption. Domestic crude oil production (89 kbo/d) is 33% of the total crude we use (93 MMbo). Imported gas (200 bcf LNG in FY2018) is 15% of our indigenous gas production. We paid $4.3 billion for the crude oil imports and over $2 billion for gas (LNG) in FY2018.”


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## ghazi52

*Big news' expected as* Pakistan *undertakes oil and gas exploration off *Karachi

Maritime Minster Ali Haider Zaidi on Friday shared pictures of activities at the Karachi port exploration.

Pakistan's new government is hopeful that the country would succeed in exploring vast reserves of oil and gas off Karachi coast.

Prime Minister Imran Khan in his recent speeches also spoke of the natural resources Pakistan can explore in the coming days with the help of some international companies.

Maritime Minster Ali Haider Zaidi on Friday shared pictures of activities at the Karachi port ahead of exploration work.

The minister also posted a picture of ships anchored at the port. "Supply ships transporting equipment to “Mother of All Rigs” docked 230 km off the Karachi coast for exploration of oil & gas arrived at KPT.

He wished best to the ExxonMobil and ENI, the companies who are undertaking the drilling,

"let us all pray for a global discovery. From the looks of it, big news Inshallah," he wrote on Twitter

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## ghazi52



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## Crystal-Clear

Insha Allah

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## Pakistansdefender

Ya Allah Madat. 
Allah se yehi dua ker sakta hain ke gas and oil nikla and logoon tak phunch saka. 
Can anybody tell me, is offshore reserves in sea belongs to Pakistan federal government or Sindh government?

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## truthseeker2010

Here is the "mother ship" the drilling ship saipem 12000 chartered by ENI for pak offshore drilling:

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## ghazi52

World’s Biggest Oil and Gas Company Re-Enters Pakistan After 27 Years

World’s largest oil and gas company ExxonMobil, has re-entered Pakistan after a gap of nearly three decades. ExxonMobil’s offshore deep sea drilling equipment has just reached the Karachi Port.

A source told that ExxonMobil’s offshore drilling equipment includes a SIAPAM mothership with a RIG and three supply vessels docked at Karachi Port.

These ships will start their drilling operations from Jan 6, 230 KM from Karachi coastline in open sea. The drilling activity will be done at a depth of 6200 feet. This is the first operation of ExxonMobil in Pakistan after 27 years, the company exited the country in 1991 after a change in its policy.

ExxonMobil has opened a new venture office in Islamabad on Nov. 27, 2018, to start oil and gas explorations activities in the country.

The company holds a 25 percent interest in Block G located offshore Pakistan which is operated by Eni Pakistan Limited. ExxonMobil is working with its partners and the government of Pakistan.

In Jan 2010, the first attempt was made for hydrocarbon exploration in Pakistan. Shark 1 is the first exploratory well, being drilled in Indus ‘M’ Block, located 87 KM south-west of Karachi. The Block is a joint venture (JV) between ENI with a 70 percent working interest, and PPL holding the remaining 30 percent.


*Liquefied Natural Gas (LNG)*

ExxonMobil and the Pakistani consortium Energas signed an agreement to support the development of a liquefied natural gas (LNG) import terminal and to support securing the supply of LNG.

The agreement is an important milestone for the project, which will help meet the country’s energy needs and drive economic growth by providing a reliable supply of cleaner-burning natural gas.

ExxonMobil is working and cooperating with all the stakeholders to help realize this strategically important project for Pakistan


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## ghazi52

*Abu Dhabi likely to invest $1b in oil storages, pipeline*

January 6, 2019

ISLAMABAD: Pakistan and Abu Dhabi are likely to sign a deal for investment of $1 billion by the emirate in setting up oil storages at Gwadar Port and laying a white oil pipeline during visit of Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan beginning on Sunday.

United Arab Emirates (UAE) had agreed to invest $1 billion through Mubadala, a global investment company. With this capital injection, the total UAE assistance and investment package for Pakistan will rise to $7.2 billion. It also includes a $3.2-billion oil credit facility and $3 billion in cash support for balance of payments.

Abu Dhabi has already invested in Pak Arab Refinery (Parco) in joint-venture partnership with Pakistan government and it is the largest oil refinery in Pakistan. Parco is also setting up a coastal oil refinery in Balochistan and is seeking financing for pouring capital into the project.

However, Pakistan’s government is looking for funding for oil storage and white oil pipeline projects.

Officials revealed that during negotiations with Abu Dhabi authorities in the UAE, Pakistan accorded priority to establishing oil storage facilities at Gwadar Port and building a white oil pipeline between Sheikhupura and Peshawar.

Abu Dhabi agreed to invest in these two projects but Parco management was lobbying to divert the funding to its new coastal refinery project in Balochistan.

The Economic Coordination Committee (ECC) has already approved a tariff for the white oil pipeline. The ECC was told that the quoted composite tariff was about 60% lower than the present trucking rate. It would lead to savings of Rs 100 billion for the national exchequer, bring the cost down for oil consumers and reduce the number of accidents involving oil tankers.

In the past, some oil tankers had met fatal accidents in which hundreds were killed and these could be avoided in future after the laying of the white oil pipeline, which would provide a safe and efficient way for the supply of petroleum products.

Oil tanker owners had also staged strikes in the past by stopping oil supply across the country, sparking widespread concerns. They have also been allegedly involved in oil theft at different depots of Pakistan State Oil (PSO) and power plants.

At present, Pakistan has inadequate oil storage facilities. It has 59 oil marketing companies but only PSO and Shell have storages for petrol and diesel in order to meet any emergency situation.

Officials were of the view that economic activities in Gwadar would swell with the passage of time where the building of oil storages would be a key requirement. The importance of oil tanks grows further, according to the officials, when plans for setting up some refineries in Gwadar are taken into consideration.


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## Maxpane

so no new oil refinery?


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## ghazi52

Maxpane said:


> so no new oil refinery?



Might not be.


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## Maxpane

ghazi52 said:


> Might not be.


so all that fuss and nothing came out . really bad sir


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## ghazi52

*Saudi delegation reaches Gwadar to inspect land for oil refinery*
january 12, 2019



Saudi Minister for Energy, Industry and Minerals Khalid Abdul Aziz D Al Falih. 

A Saudi delegation headed by Saudi Minister for Energy, Industry and Minerals Khalid Abdul Aziz Al Falih arrived in Gwadar on Saturday to inspect the land allocated for a proposed oil refinery, Radio Pakistan reported.

On his arrival, Federal Minister for Petroleum Ghulam Sarwar Khan welcomed the Saudi minister.

Speaking on the occasion, Ghulam Sarwar Khan said that, “Pakistan and Saudi Arabia have a distinctive relationship,” adding that the state-of-the-art oil refinery is the biggest investment project of Saudi Arabia in Pakistan.

Sarwar added that during the upcoming visit of the Saudi crown prince to Pakistan in February, a Memorandum of Understanding (MOU) regarding the oil refinery will also be signed.

Pakistan and Saudi Arabia are likely to ink today an agreement to install the Saudi Aramco Oil Refinery at the oil city located in Balochistan Gwadar district.

Saudi and Pakistani authorities will also sign a memorandum of understanding (MoU) to set up $10 billion oil refinery at the deep seaport which is also the terminal point of the multi-billion dollar China-Pakistan Economic Corridor (CPEC) project.

The Pak Arab Refinery (Parco), a joint venture between Pakistan and Abu Dhabi, is also working on Khalifa refinery project with a total refining capacity of 250,000 barrels per day. At present, Parco is the largest refinery in Pakistan that has refining capacity of 100,000 barrels per day.

Officials said Saudi Arabia and the UAE had announced the same packages for Pakistan and Riyadh was likely to set up a refinery with a capacity of 250,000 barrels per day. At present, the total refining capacity of Pakistan is around 300,000 barrels per day.

The previous Pakistan Muslim League-Nawaz (PML-N) government had allowed the Frontier Works Organization (FWO) to build an oil pipeline from Gwadar to China at an estimated cost of US$10 billion.

Officials believe that Pakistan is going to become a hub of oil trade after setting up these two refineries, which would not only meet Pakistan’s requirement but would also export petroleum products to China.

Annual demand of petroleum products has been forecasted be 50 million tons in 2030 calculated at the GDP growth of 5% because of rising demand of oil due to CPEC activities.

The current demand of petroleum products has been estimated at 29.6 million tons in 2018. In 2029-30, the deficit of petrol and high speed diesel has been estimated to grow to 14 million tons per annum (MTA) and 16 MTA, respectively against the current deficits of 5 MTA and 4 MTA, respectively.

Officials said Pakistan side would also give a list of some other proposed projects to the Saudi delegation. Islamabad wants Riyadh to invest in mineral sector projects like Reko Diq, oil storages in Gwadar and oil pipeline projects in Pakistan.

Pakistan authorities hope that Saudi Arabia would invest US$15 billion in mineral, oil and gas sector projects. Saudi Arabia has also committed annual credit oil facility of US$3.2 billion for three years to support Pakistan’s balance of payment.


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## ghazi52

*After nine years, offshore drilling begins in Karachi ultra-deep waters*
January 12, 2019

ExxonMobil is drilling Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast. 

KARACHI: Pakistan, after a gap of nine years, begins offshore drilling to find estimated huge oil and gas deposits in ultra-deep waters at an estimated cost of over $100 million.

“The drilling is scheduled to commence tonight (Friday),” an official at the ministry of petroleum told The Express Tribune on Friday.

The US firm ExxonMobil, one of the world’s largest oil and gas firms, in collaboration with Italian firm Eni Pakistan Limited, is drilling in ultra-deep waters some 280 kilometres away from Karachi coast.
“Eni Pakistan has estimated nine trillion cubic feet gas deposits,” the official said, adding “ExxonMobil expects oil deposits there.”

They are drilling Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast.

They would drill around 5,800 meters deep from the sea level and are targeting to complete the spud in the next 60 days.

For this purpose, ExxonMobil has brought one major drilling ship, three supply vessels and two helicopters on the site.

Eni Pakistan is the operator of the block, while, Exploration and Production Pakistan BV (EEPP) is drilling the well. Besides, Pakistan state-owned Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) are part of the joint venture. Each of the four firms have a 25% participating interest in the block.

The well is being drilled almost after a gap of nine years, as the last exploratory well in offshore area was drilled in January 2010. This is the 18th attempt to find hydrocarbons from deep waters in Pakistan.

“Earlier, Pakistan has drilled 17 times in deep sea. The wells were either found dry or not commercially viable to be operated,” the official said.

Some of the surveyors find the block ‘Indus-G’ similar to Indian offshore Bombay High oil fields, which produces 350,000 barrels per day (bpd) of crude oil, while some define it like wells producing hydrocarbons in the oil and gas rich country, Kuwait in the Gulf.

Exxon Mobil Corporation, through ExxonMobil Exploration and Production Pakistan BV (EEPP), had acquired 25% participating interest in May 2018 in Offshore Indus-G Block.

Pakistan meets around 15-20% of its energy needs through local oil and gas exploration and production, while the rest is met through expensive imports.

The oil and gas imports cost Pakistan around one-fourth of the total import bills per year. The country has emerged as one of the largest gas (liquefied natural gas) importers in the last couple of years at the world level.

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## ziaulislam

Maxpane said:


> so all that fuss and nothing came out . really bad sir


Fuss was about saudi oil refinery


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## ghazi52




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## ghazi52

KARACHI: Pakistan, after a gap of nine years, begins offshore drilling to find estimated huge oil and gas deposits in ultra-deep waters at an estimated cost of over $100 million.

“The drilling is scheduled to commence tonight (Friday),” an official at the ministry of petroleum told The Express Tribune on Friday.

The US firm ExxonMobil, one of the world’s largest oil and gas firms, in collaboration with Italian firm Eni Pakistan Limited, is drilling in ultra-deep waters some 280 kilometres away from Karachi coast.

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## ghazi52

Offshore Drilling has started in Pakistan,

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## Hakikat ve Hikmet

_Insha'Allah_ Pak is going to be the energy hub and router b/w the largest producers and the largest consumers in these parts of the world....

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## ghazi52

Here are the facts about Possible oil and Gas reserves discovery on the Shores of Arabian Sea

1. Pakistan as a consortium of foreign and local companies have started offshore spud work some 230 kilometres from Karachi where reserves are likely to be more than the Sui field.

2. three supply vessels and two helicopters, started drilling work

3. drilling would be carried out at Kekra-1 of the Indus G-block around 5,800 meters deep from the sea level

4. expected to be completed in a period of two months at a cost of $70-$80 million, to be contributed equally by the joint venture partners.

5. joint venture has been formed by ENI, ExxonMobil (that has come back to Pakistan after nearly three decades), Oil and Gas Development Company (OGDC), and Pakistan Petroleum (PPL) to spud the Kekra-1 exploration well.

6. By or before April 2019, the companies will be in a position to assess the potential hydrocarbon flows from this offshore drilling along with their economic viability.

7. Setting up the necessary infrastructure to make hydrocarbon flows commercially available can take 3-5 years

8. Pakistan has drilled 17 offshore wells to date and most failed to reach the target reservoirs.

9. well’s diameter is 18 to 24 inches. Right now they are at depth of 1900 feet, hence its ultra-deep exploration

10. The discovery is anticipated to yield gas flows which can be as big as Sui field, with estimated reserves of 3 to 8 trillion cubic feet (TCF), or 25-40 percent of Pakistan’s total gas reserves.

11. If it will be a successful discovery, then for next 25 to 30 years, Pakistan can use this gas.

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## ghazi52

ISLAMABAD, ( 21st Jan, 2019 ) :After a study made startling revelations about fast depletion of existing hydrocarbon reservoirs in the country, the Petroleum Division has devised a strategy to reinvigorate oil and gas exploration activities by awarding more blocks and providing more incentives in both offshore and onshore drilling.

"On November 26, 2018, as many as 10 new exploration blocks have been awarded through open bidding and the same number of new blocks will be put up for the bidding during first quarter of 2019," official sources told APP.

According to data of the recent study, they feared that the existing deposits would further deplete 60 percent by the year 2027 and underlined the need for stepping up exploration activities in potential areas on war-footing.

"The gap between demand and supply is widening with each passing day, increasing our reliance on imported petroleum products including gas," the sources said.

They said during last five to six years, new exploration licences had not been awarded despite the fact the existing reserves were depleting fast and the country needed some big discoveries.

Replying to a question, the sources said "currently around 72 cases with regard to exploration licences are in litigation, even some are pending since 1989, due to flaws in the system." They said 15 percent needs of the petroleum products were being met through local production, while 85 percent through imports, for which on average $ 18 billion per year year were spent on import of petroleum products including gas.

To reduce import bill and achieve self-sufficiency in the petroleum sector, the sources said a radical and innovative petroleum policy was being worked out to attract local and foreign companies for investment in onshore and offshore exploration ventures in potential areas. The new policy would be finalized, keeping in view future needs of power and industrial sectors, they added.

Besides, they said a mega oil city, consisting of a oil refinery and petrochemical complex, was being set up at the Gwadar deep seaport city in collaboration with Saudi Arabia, world leading companies Exxonmobil and ENI had already started offshore drilling in the Indus-G block


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## ghazi52

*E&P firms pursuing target to drill 90 wells*

ISLAMABAD - Exploration and Production (E&P) companies, operating in different potential areas across the country, are working on ambitious targets of drilling 90 wells and achieving production of 33.50 million barrel (mbbl) crude oil and 1.473 trillion cubic feet (tcf) natural gas during the current fiscal year.

Under the plan, as many as 50 exploratory and 40 developmental wells would be drilled to meet the indigenous production target, official sources told APP.

Indigenous crude oil production meets only 15 percent of total petroleum products requirement of 26.4 million tons, while 85 percent met through imports of crude oil and refined products.


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## ghazi52

*GO and Siemens come together for SAP S/4Hana *

Gas and Oil Pakistan Limited (GO), the fastest growing Oil Marketing Company (OMC) and Siemens came together for SAP S/4Hana Implementation, which will cover the entire gamut of processes. Siemens will extend its services for the implementation as well as on-going support and maintenance of the SAP ERP software. To celebrate the commencement of this project, a signing ceremony was held on January 17, 2019 at GO’s corporate office in Lahore. The ceremony was attended from GO by Director/board member Bilal A Ansari, Chief Operating Officer Zeeshan Tayyeb, Head of Finance Afsar Aamer Ali Khan, DGM – Finance and Company Secretary Zain Jaffery, and DGM – System Field Support and Training Operations Muhammad Aslam. Head of SAP Naukhez Arslan and Tayyeb signed the agreement on behalf of their respective companies.


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## ghazi52

*Saudi Arabian investment in Pakistan*
*Oil, Gas and Refinery Sector*

$11 billion refinery at Gwadar ( $10 billion oil refinery and $1 billion petrochemical complex )

Installation of two regasified Liquefied Petroleum Gas (RLNG) plants with an estimated cost of $4 billion

Petrochemical complex would develop POL by-product at the Gwadar city an ultimate destination of China Pakistan Economic Corridor (CPEC)

The new refinery would have the capacity to filter 200,000 to 300,000 barrels per day, 50 percent crude oil is imported to meet energy needs

*Mega oil city *to be constructed on around 80,000 acres land with the purpose to refine and store imported oil for onward transportation to China using the CPEC route, besides developing fuel supply chain for landlocked Central Asian states . Fuel transportation to China via Pakistan would take just 7 days presently oil vessels take 40 days to reach Western China

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## ghazi52

*Pakistan, Saudi Arabia agree to form JWG for oil projects*

Pakistan and Saudi Arabia on Monday agreed to establish a Joint Working Group (JWG) for setting up $11 billion state-of-the-art oil refinery and petrochemical complex at the Gwadar Port.

The agreement was reached during a meeting between Minister for Petroleum Ghulam Sarwar Khan and Saudi Minister for Energy, Industry and Mineral Resources Khalid Al Falih, a statement issued by the Petroleum Division said.

Additional Secretary Petroleum Dr Tanveer Qureshi, Joint Secretary Tauqeer Hussain, Pakistan State Oil Managing Director Jehangir Ali Shah, Director General (Oil) Jamil Saleem, DG (Minerals) Muhammad Iqbal and Director (Refinery) Babar Majeed were in attendance.

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## ghazi52

*Mari Petroleum to invest $45m in new exploration blocks*

Mari Petroleum Company Limited (MPCL), an oil and gas exploration firm, has acquired two new blocks in Sindh and tribal areas with combined minimum financial commitment of $45.17 million.

“The government of Pakistan had invited bids for 10 exploration blocks for the grant of exploration rights. The company submitted bids for two blocks, ie Wali West block, located mainly in tribal areas, and Taung block, located in Sindh, based on their potential with combined minimum financial commitment of $45.17 million,” the company said in a notification to the Pakistan Stock Exchange (PSX).


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## ghazi52

*PM orders increase in oil reserves*

March 6, 2019







Prime Minister Imran Khan. 

ISLAMABAD: Prime Minister Imran Khan directed the Petroleum Division on Tuesday to increase the strategic oil reserves to provide an uninterrupted supply to the armed forces in the wake of ongoing tensions between Pakistan and India.

Chairing a meeting to review progress on energy-related projects, Khan directed for chalking out a strategy to enhance the strategic oil reserves to handle any war-like situation so that the armed forces could be provided uninterrupted supply to handle the possible aggression by India.

Finance Minister Asad Umar, Petroleum Minister Ghulam Sarwar Khan, prime minister’s advisers Abdul Razzak Dawood and Dr Ishrat Hussain, Petroleum Secretary Mian Asad Hayauddin and senior officers attended the meeting.

The meeting reviewed progress on the petroleum and gas-related projects. During the meeting, an official said, an overview of all gas projects like TAPI, offshore gas pipeline, IP and North-South Gas Pipeline projects was given.

The meeting was informed that Pakistan had sufficient oil stocks in the country and that the oil marketing companies had also been directed to maintain enough stocks to provide oil supply to the armed forces in case of any Indian strike.

On the TAPI project, officials said that it was at an advanced stage and the TAPI Company was going to achieve financial close. The officials said that the project had been inaugurated in Turkmenistan and Afghanistan but Pakistan had yet to hold the inauguration ceremony.

On the Pakistan-Iran Gas Pipeline Project, the officials informed the prime minister that progress on IP project could not be made because of the US sanctions imposed on Iran.

It was also informed that Pakistan and Russia had signed a deal for an offshore gas pipeline project. Under the deal, Russia would conduct a feasibility study to build the project to provide 500 mmcfd to 1bcfd Russian gas to Pakistan.

The meeting was informed that the North-South pipeline project to be laid from Karachi to Lahore to transport imported gas. Officials said that the US sanctions had also caused a delay in implementing this project.

Russia had proposed different structure of companies to implement this project but the issue had not been resolved, officials told the meeting, adding that Russia had also proposed new model of entity to implement the project. The proposal had been forwarded to Law Division to vet the draft.

During the meeting, LNG-related issues also came under discussion. It was informed that the government wanted to set up one more LNG terminal. This terminal, officials said, would be set up by private sector and that no government guarantee would be involved.

It was also informed that the government wanted to build underground gas storages, which could be used in case of emergencies. The Petroleum Division informed the meeting that these storages would help address the issue of gas crisis in the country, especially in the winter season.


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## ghazi52

*Setting up of 3rd LNG terminal ordered*
March 06, 2019






ISLAMABAD: Without a scientific study, the government on Tuesday ordered setting up of a third LNG processing terminal on a fast-track basis for completion before next winter at a new location – Jharri Creek/Chann Wadoo – and approved about Rs1.63 billion supplementary grants for security improvement and facilities for paramilitary forces.

The decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet presided over by Finance Minister Asad Umar.

The meeting was informed that the Ministry of Interior had demanded about Rs2.9bn supplementary grants repaid; replacement of security cameras and payment of rentals for hired vehicles; raising of five additional wings of Pakistan Rangers and their other facilities; and development of e-passport project in Islamabad, but the finance ministry agreed to only Rs1.8bn.

The ECC, however, allowed Rs683 million in view of some other demands in the given regional environment. The meeting also approved Rs769m in technical supplementary grant against four projects funded by International Narcotics and Law Enforcement-Pakistan (INL-P), US Embassy Islamabad for upgradation of Frontier Constabulary of Khyber Pakhtunkhwa Training Centre Warsak, construction of Federally Administrated Tribal Areas Levies Training Centre at Shakas, construction of 10 Fata Levies checkposts and extension of some offices of the Federal Investigation Agency, Islamabad.

The meeting also approved another Rs180m supplementary grant for hiring of commercial banks for marketing of Pakistan Banao Certificates abroad.

The ECC was given a detailed briefing by Ministry of Maritime Affairs on challenges being faced in the movement of LNG ships in the existing channel at Port Qasim that repeatedly hampered normal cargo traffic sometimes for weeks. It was reported that serious traffic congestion was being witnessed at Port Qasim, due to issues arising out of incoming LNG vessels.

According to the briefing, maritime affairs ministry decided in December last year to undertake a scientific study, through a third party consultant, and PQA had initiated the process by inviting applications last month to hire a consultant to undertake LNG Zone study, now expected to be completed in six months.

The ECC was informed that ideally the process of setting up of an additional LNG terminal should begin after the scientific study but given the projected growth in LNG demand in the future, the committee had ordered last month to expeditiously finalise the proposal for establishing an additional terminal on fast-track basis.

The maritime affairs minister said because of the urgency, Jharri Creek/Chann Wadoo appeared to be the most appropriate area for setting up the new terminal as it will have no adverse impact on normal port traffic, since the site was on an alternate channel, away from the main port, which would be connected through pipeline network of about 25km.

Also, the drought/depth at the location was feasible to accommodate large LNG carriers (Q-Flex vessels), thus reducing some charges. Moreover, the proposed site should be developed as a future LNG zone and PQA should be authorised to invite applications for development of one LNG Terminal within twenty months of award of contract. PQA board should also be advised to work out the modalities to ensure safeguarding the interest and with proposed terms and conditions.

The meeting was also explained that existing two LNG terminals at PQA were contracted on take-or-leave basis costing the government more than $0.5m per day, having additional undue financial burden. There was also the need to ensure that the supply of LNG was not interrupted due to war or any other contingency and this should be in the contract that FSRU is not withdrawn by the owner on any pretext whatsoever.

The ECC directed PQA and the Oil and Gas Regulatory Authority to expedite the process of granting licence to ensure that at least one LNG terminal is available by next winter given the available experience in existing terminals. Also, the future terminals would await result of the scientific study of PQA and be contracted without any guaranteed payment by the government, on build-own-and-transfer basis.

The committee approved a request of the Ministry of Energy to allocate up to nine mmcfd gas from Fazl X-1 field, Matiari of Pakistan Petroleum Ltd to SSGCL.

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## ghazi52

*Hascol’s oil storage capacity becomes largest in private sector*

March 7, 2019






Hascol, which also appears to be the second largest oil marketing company in terms of market share, which stands at 13.7% at present, after PSO, which has a market share of 37%, will open 100 more filling stations nationwide in 2019. PHOTO: FILE

KARACHI: Hascol Petroleum Limited has become the largest oil marketing company in the private sector in terms of oil storages nationwide, a top official said on Wednesday.

“Hascol, in collaboration with Dutch company Vitol, has added 232,000 cubic metres of oil storage capacity at Port Qasim (Karachi) with an investment of $65 million,” Chief Executive Officer Saleem Butt told The Express Tribune.

“With this, our oil storage capacity has surged to 28 days (of consumption) from 16 days earlier,” he said, adding that other oil marketing companies had storage facilities for less than 20 days each.

Hascol Terminals Limited, an associated company of Hascol Petroleum Limited, has completed the process of commissioning its storage facility at Port Qasim.

“The terminal…has started operations. First shipment of motor gasoline (petrol) will reach on March 6, 2019 (Wednesday),” said Company Secretary Zeeshanul Haq in a notification to the Pakistan Stock Exchange (PSX) on Tuesday.

“With this, the total installed storage capacity surged to 400,000 tons with us. This has turned Hascol into a company that owns the largest oil storage facility in the private sector and second largest in the country after state-owned Pakistan State Oil (PSO), which manages 1.2 million tons of storage facility,” Butt said.

The latest storage facility at Port Qasim is connected with 700km pipeline of Pak Arab Pipeline Company (Papco) from Karachi to central Punjab. The facility will greatly help in ending blackouts at fuel stations in Punjab. “Sometimes, a three-day suspension in supplies from Karachi to Punjab (via roads) results in blackouts at petrol pumps in Punjab,” he elaborated.

He said it took almost two years to establish the latest storage facility at Port Qasim. Hascol has 49% shareholding while Dutch company Vitol owns the majority 51% shareholding in the facility. National Bank of Pakistan has also played a role in construction of the facility.

“Vitol has 28% shareholding in the overall business of Hascol Petroleum Limited,” he said. The company, which also appears to be the second largest oil marketing company in terms of market share, which stands at 13.7% at present, after PSO, which has market share of 37%, will open 100 more filling stations nationwide in 2019.

Pumps network

At present, the company runs its business at 590 sites and is expected to manage 690 pumps by December 2019.

“We have a plan to add 100 sites every year till we reach 1,200 sites in the country,” the CEO said.

Most of the new pumps will obviously be opened in Punjab as 60% population of the country resides there and 70% of demand for petroleum products comes from the province. “Pumps will be opened in that ratio,” he said.

The demand for petrol was on the rise despite economic slowdown in the country, he said, adding, “petrol sales have surged 9% in the last two months in contrast to 20% drop in diesel sales.”

Lubricant plant by May

Butt said Hascol, in collaboration with foreign firm FUCHS, is in final stages of setting up a lubricant blending plant.

The plant, which is being established with an investment of $20 million, is targeted to start production from May 1, 2019.

Hascol has started construction of a lube oil blending plant to produce FUCHS-branded lubricants and greases in Pakistan.


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## ghazi52

*Govt to Install 26 LPG Plants in Balochistan Worth Rs. 48 Billion*

The federal government has released Rs. 48 billion to establish 26 LPG air-mix plants in Balochistan to meet the gas demand in the province.

Minister for Petroleum Ghulam Sarwar announced this while addressing a Senate session on Friday.

Mr. Ghulam Sarwar informed the upper house that there is no unannounced gas load-shedding in any part of the country.

He said the government was determined to eliminate system constraints so that the issue of low gas pressure can be resolved.

The minister told Senators that the Sui Northern Gas Pipeline Limited (SNGPL) had started injecting RLNG which helped reduce the demand and supply gap of natural gas in the country.

Petroleum minister highlighted the measures his ministry was taking to mitigate gas theft across the country.

It should be mentioned here that the recent gas crisis in the country caused industries in Sindh and Punjab to close down several times in the last couple of months.

Prime Minister Imran Khan had ordered an inquiry into the matter, and the MDs of SNGPL and SSGCL were removed on the recommendations of the inquiry report.

The government had to import Liquefied Natural Gas (LNG) from Qatar to meet the rising demand in the winter season


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## ghazi52

*ExxonMobil Suspends offshore drilling near Karachi Coast due to repairs*

They temporarily halted drilling as their equipment needed repair, Ministry of Maritime Affairs Adviser Mahmood Moulvi told Express TV. “The parts in question will be changed in the next two to three days and subsequently drilling will resume,” he said.

The fault has delayed completion of drilling operations by at least one week. “The company was scheduled to submit a drilling result report on March 7. Now, it will submit the report after March 15,” he said.

The two companies began drilling Kekra-1 well in the Indus-G block on January 11, 2019, which is located 280 km from the Karachi coast.

“Eni Pakistan has estimated nine trillion cubic feet of gas deposits in the offshore well,” an official of the Ministry of Petroleum told The Express Tribune recently, adding that ExxonMobil expected the discovery of oil deposits there.

They undertook the task to drill around 5,800-metre-deep well in the sea for 60 days. For the purpose, ExxonMobil brought one major drilling ship, three supply vessels and two helicopters at the site.

Eni Pakistan is the operator of the block, while Exploration and Production Pakistan BV (EPP) was drilling the well. State-owned Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) are also part of the joint venture. Each of the four firms has 25% participating interest in the block.

The well was being drilled after a gap of almost nine years as the last exploratory well in an offshore block was drilled in January 2010.

“This is the 18th attempt to find hydrocarbons in deep waters in Pakistan,” the ministry official said. “Earlier, Pakistan drilled 17 times in deep sea. Wells were found either dry or not commercially viable to operate.”

Some of the surveyors have found the Indus-G block similar to the Indian offshore Mumbai High oilfield, which produces 350,000 barrels of crude oil per day (bpd) while some compare it with the wells producing hydrocarbons in the oil and gas-rich Kuwait.

ExxonMobil Corporation, through ExxonMobil Exploration and Production Pakistan BV (EPP), had acquired 25% participating interest in May 2018 in the offshore Indus-G block.

Pakistan meets around 15-20% of its energy needs through domestic oil and gas exploration and production while the rest is met through expensive imports.

Oil and gas imports cost Pakistan around one-fourth of the total import bill for a year. The country has emerged as one of the largest gas (liquefied natural gas) importers in the last couple of years globally.


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## ghazi52

PM directs local companies to expedite exploration work in Oil and Gas sectors
 
March 11, 2019







Prime Minister Imran Khan has directed the local companies to expedite their exploration work in the oil and gas sectors.

He was presiding over a meeting held to review issues pertaining to petroleum sector in Islamabad today. 

The Prime Minister directed Petroleum Division to extend every possible assistance to foreign companies working in this sector.

He also directed to digitize all the system and removal of unnecessary hurdles to ensure completion of every project in the oil and gas sector in the allotted time.

Prime Minister said nature has given oil and gas reserves beside other minerals to Pakistan and we can take benefit of these by their exploration and usage.

Imran Khan said unfortunately, previous governments concentrated on import of precious fuel items instead of exploration in the oil and gas reserves. He said this phenomenon affected the industrial sector and also put an extra burden on the masses.

Prime Minister directed to provide complete security to foreign companies attached with exploration of Oil and Gas sector.

It was decided in the meeting to set up a task force for the security of foreign companies in this sector.

The Prime Minister was given a detailed briefing about the unnecessary hurdles in the exploration of oil and gas wells.

The meeting was attended by Finance Minister Asad Umar, Petroleum Minister Ghulam Sarwar, Special Assistant to Prime Minister Iftikhar Durrani, Secretary Petroleum and other senior officials of the Ministry.


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## ghazi52

*Pakistan offer gas fields to foreign explorers, investors*

‘More than 30 onshore gas blocks have been identified and the govt plans to auction a large chunk of them in one or two licensing rounds by the end of 2019’

Pakistan plans to offer dozens of gas field concessions in the coming year to fill in a fuel shortage, a senior official said, with Islamabad hoping a sharp drop in militant violence and changes to exploration policy will attract foreign investors.

Much of the mineral-rich South Asian nation remains unexplored despite gas discoveries dating back to the 1950s. Conventional gas reserves are estimated at 20 trillion cubic feet (tcf), or 560 billion cubic meters, and shale gas reserves, which are untouched, at more than 100 tcf.

Italy’s ENI and US oil major Exxon Mobil are jointly drilling for gas offshore in Pakistan’s Arabian Sea, but many other Western companies have not returned after leaving more than a decade ago because of Islamist militant violence.

Nadeem Babar, head of Prime Minister Imran Khan’s Task Force on Energy Reforms, said that the government was amending its natural gas regulation and drawing up its first-ever shale gas policy, with licensing rounds to follow later this year.

The government hopes improving security in recent years and the country’s extensive pipeline network will attract investors.

More than 30 onshore gas blocks have been identified and the government plans to auction a large chunk of them in one or two licensing rounds by the end of 2019, Babar said in his office in the capital Islamabad.

“I expect in the second half of this year we will be auctioning at least 10, if not 20 blocks for exploration.”

Pakistan’s domestic gas output has plateaued in the last five years, falling to 1.46 trillion cubic feet in 2017/18, from 1.51 trillion cubic feet in 2012/2013, according to an annual report from the Petroleum Ministry.

This has led to severe gas shortages as Pakistan’s population, now at 208 million people, has risen sharply over the same period, driving fuel demand from industries and new power plants higher.

Gas demand was estimated at 6.9 billion cubic feet per day for 2017/18, according to Pakistan’s Oil & Gas Regulatory Authority, nearly 3 billion cubic feet more than daily output.

To help plug the deficit, Pakistan has built two liquefied natural gas (LNG) import terminals, and demand is expected to hit 6.97 billion cubic feet a day for 2018/19, and 7.06 billion cubic feet a day in 2019/20.

But LNG is expensive, so Islamabad wants foreign companies to ramp up domestic exploration.

Babar said Pakistan was also drafting its first shale gas policy and it should be finished this year, with a licensing round in the first half of 2020.

One recent study by the U.S. Agency for International Development (USAID) put Pakistan’s shale gas reserves at more than 100 tcf in the Lower Indus Region alone, enough to meet current demand for at least a few decades.

One of the keys to developing natural gas production is to give investors affordable and reliable access to a pipeline network, Babar said, and such a plan is being drafted.

“The entire mechanism of how the pipeline system is working today is being re-looked at, to make it more deregulated, make it more open access,” Babar said.

Babar said the blocks for auction were “prolific and … (had) good data”, with interested companies including Saudi Arabia’s Aramco, Exxon Mobil and Russia’s Gazprom.

Only about 4 percent of Pakistan’s landmass has been explored, and the success rate, with one out of three wells making a find, is above the international average, he said.

Babar said at least three more offshore blocks have also been carved out near where Eni and Exxon are searching for gas.

“We will be auctioning those … probably next year.”

To address security concerns, Babar said a military or a paramilitary unit will be created to guard companies that are exploring in the riskier parts of Pakistan, with the companies paying the costs.

“A mechanism like what was done in CPEC will be developed,” Babar said, referring to a 15,000-strong army division set up to safeguard Beijing-funded infrastructure projects in the China-Pakistan Economic Corridor (CPEC).

Pakistan also plans to introduce measures that ensure auction rights are unaffected by government or policy changes, to give investors greater regulatory certainty


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## ghazi52

*Govt plans to increase LNG import from Qatar*

Pakistan has decided to increase import of liquefied natural gas (LNG) from Qatar in an effort to ease a widening shortfall in natural gas supplies in the country.

The decision came despite investigation by the anti-corruption watchdog into a previous long-term deal with Qatar for LNG supply to Pakistan for 15 years – an agreement signed during the tenure of previous Pakistan Muslim League-Nawaz (PML-N) government.

At present, Pakistan is importing 500 million cubic feet of LNG per day (mmcfd) from Qatar and has planned to step up imports to 700 mmcfd in order to run the second LNG terminal at Port Qasim at maximum capacity.


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## ghazi52

*10 LPG air-mix plants to be set up in Balochistan*
March 19, 2019





SSGC is in the process of floating tenders to set up 10 liquefied petroleum gas air-mix plants.— AFP/File




ISLAMABAD: Sui Southern Gas Company Ltd (SSGC) is in the process of floating tenders to set up 10 liquefied petroleum gas (LPG) air-mix plants in selected areas of Balochistan to facilitate consumers where natural gas supply does not exist.

As per the instructions of SSGC Board, the process of setting up the first lot of 10 LPG air-mix plant is in progress, Currently, the tendering process through open competitive bidding for the plants is in progress, an official source privy to the petroleum sector developments told APP.

In first phase, he said, as many as 10 sites in different localities of the province including in Uthal, Kharan, Khuzdar, Washuk, Killi Khanozai, Loralai, Killa Saifullah, Zhob, Kech (Turbat) and Muslim Bagh had been identified at the state land and handed over to the company for the purpose.

While in second and third phase, the company would install 23 more plants in selected areas after seeing its financial position and analysing actual data and results of the ten LPG units, he added.

Answering a question, the official said, the SSGC had got five licences from Oil and Gas Regulatory Authority to construct the LPG plants in Uthal, Kharan, Khuzdar, Muslim Bagh and Turbat, while it was actively pursuing for issuance of construction licences for the remaining locations.


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## ghazi52

*Survey to identify suitable site for new LNG terminal*

Ministry of Maritime Affairs will soon launch a geological survey to identify a suitable site for setting up a new LNG terminal in order to meet the growing needs of the country.

Sources in the Ministry told The Nation on Monday that the ECC has assigned it the task so that efforts are accelerated towards awarding the terminal concession at the earliest. The proposed survey, according to the sources, will take into account whether the existing system of FSRU at Port Qasim should be followed or the new terminal should be a land based facility. At present, two terminals are functional at sub-optimal capacity at Port Qasim and both are FSRU facilities


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## ghazi52

*Saudi Aramco team in Pakistan for talks on first LNG deals: *

April 13, 2019






Company does not currently produce LNG and any such sale would be first of its kind. 

ISLAMABAD: A delegation from the world’s largest crude oil producer, Saudi Aramco, is in Pakistan for discussions on what would be its first ever liquefied natural gas (LNG) shipments, said a top Pakistani official.

Pakistan is facing an energy crisis with repeated power blackouts and gas supply outages that led to the sacking of the heads of two of its main gas distribution utilities in January.

The Saudi delegation, which arrived on Thursday, was discussing LNG supplies, Nadeem Babar, the head of Prime Minister Imran Khan’s task force on energy reforms, told Reuters.

“They’re discussing LNG sales. They’re entering this business,” he said. “Aramco is starting an LNG trade operation, and we are in discussion over all aspects, including terms and quantity, etc.”

Aramco doesn’t currently produce LNG, and any such sale would be first of its kind. Aramco didn’t immediately respond to a request for comment.

Saudi Aramco Chief Executive Amin Nasser said in February that Saudi Arabia aimed to export three billion cubic feet per day of gas before 2030 via both pipelines and LNG tankers.

Pakistan’s demand for LNG could more than triple in the next three to five years, the chief executive of Pakistan LNG said last month, adding that Islamabad was expected to negotiate a few more long-term contracts to import LNG into the country.

Last year, Pakistan imported nearly seven tonnes of LNG, data from Refinitiv Eikon showed.

This year, it could grow to as high as 15 million tonnes and to up to 25 million to 30 million tonnes over the next three to five years, said Pakistan LNG Managing Director and Chief Executive Adnan Gilani.

Pakistan LNG is a state-owned company that buys LNG from the international market to supply to the domestic market.

Pakistan’s two import terminals have a regas capacity of 1.2 billion to 1.3 billion cubic feet of gas per day, or about 9 million to 10 million tonnes of LNG a year, according to Gilani’s presentation at the LNGA 2019 conference in Singapore.


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## ghazi52

April 26, 2019
*Kekra drilling process hits another snag*



ISLAMABAD: The spudding, that was to kick start on April 20, 2019 at Kekra-1 well in G-bloc, Pakistan’s ultra-deep sea after pause of 12 days, could not take off as it has hit another serious snag.

The blow out preventer (BOP) that prevents from any blow out or any kick pressure that can result into eruption of fire, has gone out of order and its repair is underway.

Sher Afgan, Additional Secretary and spokesman for Petroleum Division, confirmed the development saying the blowout preventer that is attached with valves at the end of rig has developed serious problems owing to which the drilling could not start on time.

Up till now, the official said, drilling is virtually stopped for the last 18 days and the status will last till the repair process of BOP is completed. However, Ghulam Mustafa, expert of oil and gas exploration and production, did not accept that the blow out preventer takes four to five days for repair, arguing that the BOP cannot be repaired, rather it can be upgraded by changing its affected spare parts and this process does not take more than one hour. He said the drilling machine may have developed other problem that is not being shared.

Earlier, the drilling got stalled on April 8 at the depth of 4,810 meters because of cementing and casing process which took almost 12 days to get completed. Now the issue of blowout preventer has emerged which according to the official of Petroleum Division is being coped with. And once the BOP’s repair is completed, the Mobile Exxon with ENI as operator at Kekra-1 well will start the drilling of the remaining 650-800 meters under second side tracking.

GA Sabri, former secretary of Petroleum Ministry, opined that BOP is one of the important tools that prevents the rig and whole apparatus from any blow out that is caused because of pressure kick that also may lead to eruption of fire. He said that BOP ensures the safety of the machine (rig and whole apparatus). When asked what will happen to the drilling as in May, the sea will turn rough because of high tide, Sabri said according to new weather forecast, monsoon has delayed so the chances of sea to turn rough have got minimised in May which is a good news.

Once the BOP issue is sorted, Kekra-01 well will enter a phase where the operator will, for the first time, begin to receive information that would help determine the well prospects. This would include results from LWD (logging while drilling), salinity testing, potential hydrocarbon traces in mud and rock samples and hydrocarbon kicks.

Time required to drill the remaining depth will depend upon the rate of penetration (RoP). The penetration rate is significantly slower for northern region of Pakistan than the southern region.

“We don’t yet have precedents to form a reliable estimate for the RoP for offshore Indus-G, where Kekra-01 is being drilled. An RoP of 10 meters per hour (generally considered low) would mean that it would take 80 hours or a little more than three days to reach the target depth.’’

After completion of drilling, the operator will likely do wire line logging which could take another three or four days. This will likely be followed by another casing and cementing exercise that can take four to six days. At this stage a substantial amount of information regarding the well prospects will be known, however, the results (discovery or dry well) will require completion of proper testing.


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## Clutch

ghazi52 said:


> April 26, 2019
> *Kekra drilling process hits another snag*
> 
> 
> 
> ISLAMABAD: The spudding, that was to kick start on April 20, 2019 at Kekra-1 well in G-bloc, Pakistan’s ultra-deep sea after pause of 12 days, could not take off as it has hit another serious snag.
> 
> The blow out preventer (BOP) that prevents from any blow out or any kick pressure that can result into eruption of fire, has gone out of order and its repair is underway.
> 
> Sher Afgan, Additional Secretary and spokesman for Petroleum Division, confirmed the development saying the blowout preventer that is attached with valves at the end of rig has developed serious problems owing to which the drilling could not start on time.
> 
> Up till now, the official said, drilling is virtually stopped for the last 18 days and the status will last till the repair process of BOP is completed. However, Ghulam Mustafa, expert of oil and gas exploration and production, did not accept that the blow out preventer takes four to five days for repair, arguing that the BOP cannot be repaired, rather it can be upgraded by changing its affected spare parts and this process does not take more than one hour. He said the drilling machine may have developed other problem that is not being shared.
> 
> Earlier, the drilling got stalled on April 8 at the depth of 4,810 meters because of cementing and casing process which took almost 12 days to get completed. Now the issue of blowout preventer has emerged which according to the official of Petroleum Division is being coped with. And once the BOP’s repair is completed, the Mobile Exxon with ENI as operator at Kekra-1 well will start the drilling of the remaining 650-800 meters under second side tracking.
> 
> GA Sabri, former secretary of Petroleum Ministry, opined that BOP is one of the important tools that prevents the rig and whole apparatus from any blow out that is caused because of pressure kick that also may lead to eruption of fire. He said that BOP ensures the safety of the machine (rig and whole apparatus). When asked what will happen to the drilling as in May, the sea will turn rough because of high tide, Sabri said according to new weather forecast, monsoon has delayed so the chances of sea to turn rough have got minimised in May which is a good news.
> 
> Once the BOP issue is sorted, Kekra-01 well will enter a phase where the operator will, for the first time, begin to receive information that would help determine the well prospects. This would include results from LWD (logging while drilling), salinity testing, potential hydrocarbon traces in mud and rock samples and hydrocarbon kicks.
> 
> Time required to drill the remaining depth will depend upon the rate of penetration (RoP). The penetration rate is significantly slower for northern region of Pakistan than the southern region.
> 
> “We don’t yet have precedents to form a reliable estimate for the RoP for offshore Indus-G, where Kekra-01 is being drilled. An RoP of 10 meters per hour (generally considered low) would mean that it would take 80 hours or a little more than three days to reach the target depth.’’
> 
> After completion of drilling, the operator will likely do wire line logging which could take another three or four days. This will likely be followed by another casing and cementing exercise that can take four to six days. At this stage a substantial amount of information regarding the well prospects will be known, however, the results (discovery or dry well) will require completion of proper testing.




The drillship left end of March ... I am not sure what to make of all these news reports.

I think the article has the timeline wrong .. 
The well probably did impact the BOP (blowout preventive) when the well experienced a kick ... They had to fix it in order to continue the drill.


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## Mega_Man

Clutch said:


> The drillship left end of March ... I am not sure what to make of all these news reports.
> 
> I think the article has the timeline wrong ..
> The well probably did impact the BOP (blowout preventive) when the well experienced a kick ... They had to fix it in order to continue the drill.


Is there any source for news regarding drilling ship have left the site ? Or just another rumour?


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## Clutch

Mega_Man said:


> Is there any source for news regarding drilling ship have left the site ? Or just another rumour?



It's from this live marine map of the drill site. There are only development ships there now such as Pacific Huron and Pacific Gull. However the drillship called Saipem 12000 left end of March.

Click here to see for yourself:
https://www.marinetraffic.com/en/ais/home/centerx:66.116/centery:22.507/zoom:13

If you click on the ships on the map, it will give you the ship details.


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## Mega_Man

Clutch said:


> It's from this live marine map of the drill site. There are only development ships there now such as Pacific Huron and Pacific Gull. However the drillship called Saipem 12000 left end of March.
> 
> Click here to see for yourself:
> https://www.marinetraffic.com/en/ais/home/centerx:66.116/centery:22.507/zoom:13
> 
> If you click on the ships on the map, it will give you the ship details.



And
It's a transport vessel which left for equipments, drilling rig is still there.

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## Clutch

Mega_Man said:


> And
> It's a transport vessel which left for equipments, drilling rig is still there.



I don't see the drillship... How are seeing it?


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## ghazi52

*Qatar emerges as front-runner for LNG deal for Pakistan*






ISLAMABAD: Qatar has emerged as the front-runner for a long-term gas supply deal to Pakistan, a senior Pakistani official said, with the cabinet of Prime Minister Imran Khan set to decide in the coming weeks on an agreement, Reuters reported on Friday.

Pakistan, with 208 million people, is running out of domestic gas and has turned to liquefied natural gas (LNG) imports to alleviate chronic energy shortages that have hindered its economy and led to a decade of electricity blackouts.

Qatar is already Pakistan’s biggest gas supplier after signing a 15-year agreement to export up to 3.75 million tonnes of LNG a year to the South Asian country. That 2016 deal supplied Pakistan’s first LNG terminal.

Emerging as one of the world’s fastest growing LNG markets, Pakistan is looking to secure a long-term supply contracts for its second LNG terminal, which can receive 600 million cubic feet per day (mmcfd) of natural gas.

Pakistan has already signed a five-year import deal with commodity trader Gunvor and a 15-year agreement with Italy’s Eni, but is seeking long-term agreements for about 400 mmcfd.

Pakistan has been negotiating with eight countries with whom it has signed inter-governmental agreements in recent years, including Qatar, Russia, Turkey, Italy, Oman, Azerbaijan, Malaysia, and Indonesia. A Saudi Arabian delegation representing state-owned Saudi Aramco has also shown interest in a gas deal.

The senior Pakistani official told Reuters that state-run Qatargas put forward the lowest bid for a long-term LNG supply contract that would have a price review after five or 10 years.

“Qatar has offered the lowest price,” said the official, declining to say the amount of LNG or the price offered by Qatar.

Pakistan’s cabinet is in the next week or two expected to decide if it will proceed with a government-to-government deal, when it will also decide on the size, he said.

Cash-strapped Pakistan is most likely to go with the cheapest supplier, in this case Qatar, officials have said. However, the government may choose more expensive rates to bolster its relations with a chosen country.

Khan’s cabinet could also choose to put out an open tender for long-term agreements, said the senior official. However, some energy officials believe direct government-to-government deals could offer better rates than tendering.

The Pakistani official added that Saudi Aramco may sign a long-term supply deal with Pakistan, potentially also providing some of the 400 mmcfd available at the second terminal.


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## Clutch

Clutch said:


> It's from this live marine map of the drill site. There are only development ships there now such as Pacific Huron and Pacific Gull. However the drillship called Saipem 12000 left end of March.
> 
> Click here to see for yourself:
> https://www.marinetraffic.com/en/ais/home/centerx:66.116/centery:22.507/zoom:13
> 
> If you click on the ships on the map, it will give you the ship details.




Correction:

I have stated on this forum on multiple times that the Saipem 1200 drillship has left the drill site end of March early April. 

I may have been wrong. I wish to retract that statement. 

Apparently the ship is back at the site as per the latest GPS update by Marine Traffic Website. 
Here is the drillship latest GPS location: https://www.marinetraffic.com/en/ai...22.50478/zoom:10/mmsi:311030700/shipid:373247 

Ship info: https://www.marinetraffic.com/en/ai...msi:311030700/imo:9437359/vessel:SAIPEM_12000

I am not sure if the ship returned back to the location or it never left. 

I apologize for the mistake or any misdirection. 

Regards,
Clutch

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## AsifIjaz

No worries mate.
It takes a lions heart to admit an oversight or mistake specially when you know it will be jotted down and used as a refernce for years to follow.
You spent ur valuable time to search and then share information with us, so no harm done. Please kepe up the good work.
Have a good day bro


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## ghazi52

*ExxonMobil discusses LNG needs, offshore drilling with Ali Zaidi*

Apr 30, 2019






ISLAMABAD: A delegation of oil and gas giant ExxonMobil called on federal Minister for Maritime Affairs Ali Haider Zaidi in Islamabad on Tuesday, the ministry’s official Twitter account reported.

ExxonMobil chairman Alex Volkov, along with his team, held productive discussions with the minister relating to LNG requirements in Pakistan and the offshore drilling project off the coast of Karachi, the ministry wrote on Twitter.







Pakistan, with assistance of the US-based oil and gas exploration firm ExxonMobil and Eni Pakistan Limited, started offshore drilling in ultra-deep waters near Karachi coast earlier this year in an attempt to find huge oil and gas reserves estimated to be worth over $100 million.


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## CrazyZ

ghazi52 said:


> *ExxonMobil discusses LNG needs, offshore drilling with Ali Zaidi*
> 
> Apr 30, 2019
> 
> 
> 
> 
> 
> ISLAMABAD: A delegation of oil and gas giant ExxonMobil called on federal Minister for Maritime Affairs Ali Haider Zaidi in Islamabad on Tuesday, the ministry’s official Twitter account reported.
> 
> ExxonMobil chairman Alex Volkov, along with his team, held productive discussions with the minister relating to LNG requirements in Pakistan and the offshore drilling project off the coast of Karachi, the ministry wrote on Twitter.
> 
> 
> 
> 
> 
> 
> 
> Pakistan, with assistance of the US-based oil and gas exploration firm ExxonMobil and Eni Pakistan Limited, started offshore drilling in ultra-deep waters near Karachi coast earlier this year in an attempt to find huge oil and gas reserves estimated to be worth over $100 million.


Story has some inaccuracies, Alex Volkov is an Exxon VP. $100 million figure seems inaccurate. Do you think Exxon would send such a high level delegation for $100 million. Fingers crossed. Get them to help with shale hydro carbon extraction as well.

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## ghazi52

*Pakistan bullish on oil, gas discovery at Kekra-1*


Led by US oil and gas company Exxon Mobil, a consortium consisting of Italian ENI, Oil and Gas Development Company and Pakistan Petroleum Limited is currently conducting offshore drilling at the block. The joint venture of Indus-G block spud an exploratory well – namely Kekra-1 – in ultra-deep water on 13 January, 2019. The well will be drilled up to the total depth of 5,660 meters in ultra deep waters, which is currently at 4,810 meters.

“Drilling has been entered in the phase where it will be easy to estimate that there is any oil or gas,” an official statement said.

Minister for Petroleum Omar Ayub Khan said the government would give all assistance to international investment. The government will defend free and safe investment in the country. The minister said employment would be generated after exploration.

Irtiza Syed, president of Exxon Mobil said the Exxon Mobil is interested in drilling of more offshore blocks and in LNG imports into the country. The company could also help in making of environmental friendly policy for offshore drilling.

The entry of Exxon Mobil in Pakistan is a positive signal for the exploration and production sector of the country. The petroleum division of ministry of energy has already drafted Pakistan Offshore (Exploration and Production) Rules 2019 and Model Production Sharing Agreement 2019, which will be submitted to the cabinet for approval. The government has already waived duties and taxes on import of drilling equipment to encourage indigenous exploration and production of energy resources as the country is confronted with widening gap in energy demand and supply.

The Oil and Gas Regulatory Authority (Ogra) said the gap between the supply and demand is expected to increase to the tune of 4,600 million metric cubic feet / day in FY 2022/23 and 6,700 mmcfd by the FY 2027/28. The country currently produces around 4,000 mmcfd of natural gas – accounting for 48 percent share in the primary energy mix – against demand of more than 6,000 mmcfd. The demand-supply gap of gas during FY2017/18 was 1,447 mmcfd. The gap is expected to rise to 3,720 mmcfd in the next fiscal year starting from July 2019.

“The possible gap would be bridged through enhancement in indigenous gas exploration and production through incentivising the sector, import of interstate natural gas – through development of cross-country gas pipelines – and increased import of liquefied natural gas,” the Ogra said in its latest state of petroleum industry report.


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## ghazi52

US energy giant ExxonMobil has expressed interest in drilling more offshore blocks in search for hydrocarbon reserves and is also looking to make investment in the liquefied natural gas (LNG) sector in Pakistan.

At present, ExxonMobil is drilling an offshore well namely Kekra-I as part of a joint venture with Italy’s Eni, Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL).

In a meeting with Federal Minister for Petroleum Division Omar Ayub Khan on Tuesday, a delegation of ExxonMobil said they were optimistic that energy resources would be discovered at Kekra-I. The delegation was headed by ExxonMobil LNG Market Development Chairman Alex Volkov.

ExxonMobil President Irtiza Syed briefed the minister and Special Assistant to Prime Minister on Petroleum Nadeem Babar about offshore drilling, saying Eni and ExxonMobil had started work on Kekra-I in January 2019.

He revealed that ExxonMobil was interested in drilling more offshore blocks and in LNG business. Apart from this, ExxonMobil could help Pakistan in framing an environment-friendly policy for offshore drilling.

The minister said Pakistan government would provide all assistance to international investors, adding that after completion of exploration work on Kekra-I, employment would be generated.

The joint venture is drilling Kekra-I well in ultra-deep waters in the Indus-G block. The well will be drilled up to the depth of 5,660 metres and the joint venture has so far reached the depth of 4,810 metres. The drilling has entered the phase where oil and gas deposits
can be estimated.
The entry of ExxonMobil into Pakistan is a positive signal for the exploration and production sector of the country. The Petroleum Division has drafted Pakistan Offshore (Exploration and Production) Rules 2019 and Model Production Sharing Agreement 2019, which will be sent to the cabinet for approval.

In a bid to woo foreign investors, the government has waived duties and taxes on the import of drilling equipment.

The ExxonMobil delegation also met President Arif Alvi at Aiwan-e-Sadr, who was briefed about the company’s ongoing and future investment projects in Pakistan.

The president appreciated ExxonMobil’s entry into the LNG business and encouraged the company to make further investment in the upstream petroleum sector by taking benefit of the liberal foreign investment policy of Pakistan.

The president also underlined the need for collaboration between foreign investors and local partners by forging joint ventures


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## ghazi52

*Pakistan oil and gas discovery: PM Imran raises hopes with new statement*






ISLAMABAD: Prime Minister Imran Khan has once again raised hopes that Pakistan can hit major oil and gas reserves in offshore drilling.

Speaking at the PTI's 23rd foundation day ceremony, the prime minister talked about the alleged corruption of the PPP and PML-N which he said has brought the country's economy to its current state.

While he vowed to correct the course, the premier said the PTI government would offer no NRO to the opposition parties.

During his speech, the prime minister said the country was blessed with everything that is considered vital to put any country on the path to prosperity. 

Apart from sharing his future plan to uplift the economy, he said he was still hopeful that Pakistan would discover major gas reserves in offshore drilling being carried out in the Arabian Sea.

He said the nation could receive a good news within two weeks. The prime minister asked the nation to offer special prayers so that the expectations attached to the drilling project come true.

Imran Khan said, if found, the gas reserves would be enough to meet Pakistan's needs for the next 50 years.


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## ghazi52

*Final phase of drilling at Kekra-1 continues*






ISLAMABAD: At last the drilling at Kekra-1 well in G-bloc, Pakistan’s ultra-deep sea has begun after a long pause of over almost 23 days and entered the final phase by reaching the depth of 5,148 meters and will reach at the required depth of 5,460 meters within days, a senior official told The News.

The joint venture headed by ENI is operator comprising Exxon Mobile, OGDCL and PPL started the drilling on January 13, 2019 at the cost of sunk money of $75 million, which has increased to $90 million so far.

When the drilling reaches the depth of 5,460 meters, the official said, the operator will likely do wire line logging which could take another three or four days. This will likely be followed by another casing and cementing exercise that can take four to six days. At this stage a substantial amount of information regarding the well prospects will be known, however, the results (discovery or dry well) will require completion of proper testing.

Spokesman for the Petroleum Division Additional Secretary Sher Afgan confirmed that the drilling has entered the final phase and reached the depth of 5,148 meters and only 312 meter is left to be spudded as it has to reach almost 5,500 meters. He said after reaching the required depth the operator will get the specimen that will be sent to Italy for information if there is a reservoir of oil and gas in the well or not.

The last snag hit the drilling when the blowout preventer (BOP) that prevents from any blow out or any kick pressure that can result into eruption of fire, had gone out of order and its repair took some days and then its testing took the reasonable time. Before it, the drilling stopped on April 8 because of the cementation and casing continued owing to which the drilling could not start.

So far the drilling witnessed many upheavals starting from January 2019 up till now and it has got delayed by one month as it was earlier scheduled to get completed by April end which is now rescheduled up to the middle of May at the maximum.

The drilling was initiated with 19 percent probabilities, which, according to the experts, get reduced when side tracking starts taking place. In Kekra-1 well case, second side tracking was underway. Officials said when side tracking process is initiated, this means that first plan of drilling was not well worked out.

Earlier when at Kekra well vertical drilling reached at depth of 4,799 meters on February 21, a high pressure was felt causing huge mud loss and because of unsafe operation the well was plugged by March 23. Then the first side tracking started and when it reached down to 3,100 meters, it again met failure, which is why the hole was also blocked. After that the second side tracking began which is still underway and may reach at the required depth within days.


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## ghazi52

*The new LNG supply agreements will help Pakistan save approximately $2.5bn in 10 years’*

The government has convinced Qatar to supply 400 million cubic feet per day (MMBFD) of Liquefied Natural Gas (LNG) to Pakistan on low rates under fresh agreements, which would be signed in the near future

Sources in the Petroleum Division told Pakistan Today that the government has convinced the Qatari government to supply LNG at cheaper rates, as compared to the rates and terms and conditions of LNG deal signed by the Pakistan Muslim League-Nawaz (PML-N) government.

They said that both the sides have almost settled major terms and conditions of the new LNG supply agreements, adding that both countries would sign two agreements in this regard.
“One agreement will remain effective for 10 years while the second agreement will remain functional for 15 years. With the new LNG supply agreements, Pakistan’s national exchequer will save approximately $2.5 billion in 10 years,” said sources. “Qatar is likely to provide LNG to Pakistan at 11.5pc of crude oil price under the new ten-year agreement, while it may also provide LNG for 15 years to Pakistan at 11.25pc of crude oil price.”

Sources said that the government, by securing fresh LNG deal with Qatar, has achieved great success in controlling the country’s energy crisis.
They also informed that the team, which had held meetings with Qatari officials to secure fresh LNG deals, has informed Prime Minister Imran Khan that the federal cabinet should grant its necessary final approval only after reviewing the offers of other countries regarding the supply of LNG to Pakistan.

They said the problems for former finance minister Miftah Ismail and former PM Shahid Khaqqan Abbasi are likely to increase in the National Accountability Bureau (NAB), which is currently probing the previous LNG deals and has recommended the Interior Ministry to place seven names allegedly involved in the scam on exist control list after securing strong evidence against the accused.

It is pertinent to mention that the PML-N government had inked LNG supply deal with Qatar for 15 years at 13.37pc of crude oil price. Former petroleum minister Shahid Khaqqan Abbasi had managed to get the federal cabinet’s approval for LNG supply agreement with Qatar at 13.80pc of crude’s price.
According to the documents available with this scribe, Pakistan LNG Limited (PLL) has proved that Pakistan was receiving each LNG cargo from Qatar at an expensive rate, around Rs 200 million more than the rates of private commodity lenders.


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## ghazi52

*Petroleum minister reviews pace of drilling activities*

KARACHI: Minister for Petroleum Omar Ayub Khan and Special Assistant to the Prime Minister on Petroleum Nadeem Babar visited the offshore Indus G-Block Kekra-I to review pace of drilling activities on Friday.

According to Radio Pakistan, they appreciated the drilling pace which has entered its final phase.

The offshore drilling is a joint venture of ENI, Exxon Mobil, Oil and Gas Development Company Limited and Pakistan Petroleum Limited, which is being carried out at estimated exploration cost of 75 million dollars.

This newspaper on Monday reported that the drilling at Kekra-1 well in G-bloc, Pakistan’s ultra-deep sea has been resumed after a long pause of over almost 23 days and entered the final phase by reaching the depth of 5,148 meters and will reach at the required depth of 5,460 meters within days


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## ghazi52

Umer Ayub, Ali Zaidi & Nadeem Babar Visited Kekra-1 site

At the Kekra 1 site. Aboard the Saipem 2000 Oil Rig Ship. Operated by Eni and Exxon.

Before Eid ,the news of the offshore drilling results will reach the public

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## ghazi52

*ExxonMobil keen to drill more offshore wells*

US energy giant ExxonMobil has expressed interest in drilling more offshore blocks in search for hydrocarbon reserves and is also looking to make investment in the liquefied natural gas (LNG) sector in Pakistan.

At present, ExxonMobil is drilling an offshore well namely Kekra-I as part of a joint venture with Italy’s Eni, Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL).

In a meeting with Federal Minister for Petroleum Division Omar Ayub Khan on Tuesday, a delegation of ExxonMobil said they were optimistic that energy resources would be discovered at Kekra-I. The delegation was headed by ExxonMobil LNG Market Development Chairman Alex Volkov.


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## ghazi52

*Pakistan’s new oil tanker arrives at Karachi port*






KARACHI: MT Khairpur, the new oil tanker acquired by Pakistan National Shipping Company (PNSC), has reached Karachi port, bringing the number of oil cargo vessels in the company's fleet to six, a statement said on Saturday.

The PNSC said the South-Korean-made ship, known as a clean product tanker, having a capacity of 75,000 DWT (LR-1 category), was built in 2012, then reconditioned and upgraded in accordance with the requirements of the national shipping company.

Speaking after the inspection of the vessel, Federal Minister for Maritime Affairs Ali Zaidi said another oil tanker had been added into PNSC’s fleet and it would provide relief in the freight Pakistan had to pay for oil imports.

Zaidi said exploration and drilling activities in the sea were on and a depth of 5392 meters had already been reached. “Confirmed details regarding oil and gas reserves would be received within two weeks,” the minister added.

The minister said Pakistan had to repay $9.09 billion this year, while a sum of $27 billion had to be repaid in next two years. “PTI (Pakistan Tehreek-e-Insaf) government only approached (IMF) International Monetary Fund so that loans taken by previous governments could be repaid,” Zaidi said.

He further said the government could not provide relief in the rates of electricity and gas, as this would compel the government to take more loans. Talking about the circular debt, the minister said the issue would be resolved by 2022.

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## AsifIjaz

Good going, a few more LR1 or LR2 tankers and we can save alotttt of cash. PNSC is on the rt path. alhamdullilah

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## ghazi52

*Kekra-1 well in deep sea: 150 metres more drilling required to find reservoir*






ISLAMABAD: After reaching the required depth of 5,474 metres in deep sea at Kekra-1 in G-bloc, ENI, the operator, still needs to go 150 metres more deeper and it will take two days more. After that there will be testing process to know what the reservoir factually has, either gas or oil or both and at what quantum. It will take at least one week more, Special Assistant to Prime Minister on Petroleum Nadeem Babar told The News.

After going down 150 metres more, the Drill Stem Test (DST) is to start that will provide the information or data telling what exactly lies in the reservoir. The DST by definition is a temporary completion of a well bore that provides information on whether or not to complete the well. The zone in question is sealed off from the rest of the well bore by packers and the formations’ pressure and fluids are measured.

However, the other senior official told that there are positive indications of gas shows,but more drilling is required for more tests that include DST. The official said DST is part of drilling too. “The joint venture headed by ENI is operator comprising Exxon Mobile, OGDCL and PPL started the drilling on January 13, 2019 at the cost of sunk money of $75 million which has increased to over $100 million so far.”

To a question, the official said that at this stage a substantial amount of information regarding the well prospects will be known, however, the results (discovery or dry well) will require completion of proper testing.

The last snag hit the drilling when the blowout preventer (BOP) that prevents from any blowout or any kick pressure that can result into eruption of fire, had gone out of order and its repair took some days and then its testing took reasonable time.

Before it, the drilling stopped on April 8 because of the cementation and casing continued owing to which the drilling could not start. To a question, blowout preventer is now 100 percent fit for performing and to this effect one week testation remained underway.

So far the drilling witnessed many upheavals starting from January 2019 up till now and it has got delayed by one month as it was earlier scheduled to get completed by April end which is now rescheduled up to the third week of May at the maximum.

The drilling was initiated with 19 percent probabilities which, according to experts, get reduced when side tracking starts taking place. Earlier, when at Kekra well, vertical drilling reached at depth of 4,799 meters on February 21, high pressure was felt causing huge mud loss and because of unsafe operation the well was plugged by March 23. Then the first side tracking started and when it reached down to 3,100 meters, it again met failure, which is why the hole was also blocked. After that, the second side tracking began and the drilling reached at the required depth.


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## Mega_Man

Inna lillah...
https://timesofislamabad.com/18-May...the-results-are-shocking-for-pakistan-sources
Another test for Pakistanis.
InshAllah we will find another way to fix our economy.


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## Maxpane

*Offshore drilling near Karachi completed and the results are shocking for Pakistan: Sources*
*18 May, 2019*







*SHARES*





*ISLAMABAD – **Offshore drilling in Kekra 1 expected oil field near Karachi have been completed and the results are shocking for Pakistan, Sources have revealed. *

*No reservoir of oil and gas was found from the sea after drilling, revealed sources.*


Meeting between PM Imran Khan and President Donald Trump possible
They said that the testing process had been completed after the drilling. “No reservoir of oil and gas could be found from sea,” they disclosed.

The sources said that Prime Minister Imran Khan had been informed about the results. An amount of Rs14 billion has been incurred on drilling up to 5,000 meters during four months.

PAF Chief held important meeting with PM Imran Khan
Pakistan, after a gap of nine years, began offshore drilling to find estimated huge oil and gas deposits. The US firm ExxonMobil, one of the world’s largest oil and gas firms, in collaboration with Italian firm Eni Pakistan Limited, drilled in ultra-deep waters some 280 kilometres away from Karachi coast.

They drilled Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast. For this purpose, ExxonMobil had brought one major drilling ship, three supply vessels and two helicopters on the site.

Indian Army resorts to unprovoked fire at LoC, Pakistani boy martyred
Besides, Pakistan state-owned Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) were part of the joint venture. Each of the four firms have a 25% participating interest in the block.

It was the 18th attempt to find hydrocarbons from deep waters in Pakistan. Some of the surveyors had found the block ‘Indus-G’ similar to Indian offshore Bombay High oilfields, which produces 350,000 barrels per day (bpd) of crude oil, while some define it like wells producing hydrocarbons in the oil and gas rich country, Kuwait in the Gulf.

Exxon Mobil Corporation, through ExxonMobil Exploration and Production Pakistan BV (EEPP), had acquired 25% participating interest in May 2018 in Offshore Indus-G Block.

@niaz @Imran Khan @Clutch @The Accountant @Indus Pakistan @Khafee @MastanKhan

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## PakSword

Maxpane said:


> *Offshore drilling near Karachi completed and the results are shocking for Pakistan: Sources*
> *18 May, 2019*
> 
> 
> 
> 
> 
> 
> *SHARES*
> 
> 
> 
> 
> 
> *ISLAMABAD – **Offshore drilling in Kekra 1 expected oil field near Karachi have been completed and the results are shocking for Pakistan, Sources have revealed. *
> 
> *No reservoir of oil and gas was found from the sea after drilling, revealed sources.*
> 
> 
> Meeting between PM Imran Khan and President Donald Trump possible
> They said that the testing process had been completed after the drilling. “No reservoir of oil and gas could be found from sea,” they disclosed.
> 
> The sources said that Prime Minister Imran Khan had been informed about the results. An amount of Rs14 billion has been incurred on drilling up to 5,000 meters during four months.
> 
> PAF Chief held important meeting with PM Imran Khan
> Pakistan, after a gap of nine years, began offshore drilling to find estimated huge oil and gas deposits. The US firm ExxonMobil, one of the world’s largest oil and gas firms, in collaboration with Italian firm Eni Pakistan Limited, drilled in ultra-deep waters some 280 kilometres away from Karachi coast.
> 
> They drilled Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast. For this purpose, ExxonMobil had brought one major drilling ship, three supply vessels and two helicopters on the site.
> 
> Indian Army resorts to unprovoked fire at LoC, Pakistani boy martyred
> Besides, Pakistan state-owned Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) were part of the joint venture. Each of the four firms have a 25% participating interest in the block.
> 
> It was the 18th attempt to find hydrocarbons from deep waters in Pakistan. Some of the surveyors had found the block ‘Indus-G’ similar to Indian offshore Bombay High oilfields, which produces 350,000 barrels per day (bpd) of crude oil, while some define it like wells producing hydrocarbons in the oil and gas rich country, Kuwait in the Gulf.
> 
> Exxon Mobil Corporation, through ExxonMobil Exploration and Production Pakistan BV (EEPP), had acquired 25% participating interest in May 2018 in Offshore Indus-G Block.
> 
> @niaz @Imran Khan @Clutch @The Accountant @Indus Pakistan @Khafee @MastanKhan



Saanday ka teil bhi nahi nikla?

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## Khafee

Maxpane said:


> *Offshore drilling near Karachi completed and the results are shocking for Pakistan: Sources*
> *18 May, 2019*
> 
> 
> 
> 
> 
> 
> *SHARES*
> 
> 
> 
> 
> 
> *ISLAMABAD – **Offshore drilling in Kekra 1 expected oil field near Karachi have been completed and the results are shocking for Pakistan, Sources have revealed. *
> 
> *No reservoir of oil and gas was found from the sea after drilling, revealed sources.*
> 
> 
> Meeting between PM Imran Khan and President Donald Trump possible
> They said that the testing process had been completed after the drilling. “No reservoir of oil and gas could be found from sea,” they disclosed.
> 
> The sources said that Prime Minister Imran Khan had been informed about the results. An amount of Rs14 billion has been incurred on drilling up to 5,000 meters during four months.
> 
> PAF Chief held important meeting with PM Imran Khan
> Pakistan, after a gap of nine years, began offshore drilling to find estimated huge oil and gas deposits. The US firm ExxonMobil, one of the world’s largest oil and gas firms, in collaboration with Italian firm Eni Pakistan Limited, drilled in ultra-deep waters some 280 kilometres away from Karachi coast.
> 
> They drilled Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast. For this purpose, ExxonMobil had brought one major drilling ship, three supply vessels and two helicopters on the site.
> 
> Indian Army resorts to unprovoked fire at LoC, Pakistani boy martyred
> Besides, Pakistan state-owned Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) were part of the joint venture. Each of the four firms have a 25% participating interest in the block.
> 
> It was the 18th attempt to find hydrocarbons from deep waters in Pakistan. Some of the surveyors had found the block ‘Indus-G’ similar to Indian offshore Bombay High oilfields, which produces 350,000 barrels per day (bpd) of crude oil, while some define it like wells producing hydrocarbons in the oil and gas rich country, Kuwait in the Gulf.
> 
> Exxon Mobil Corporation, through ExxonMobil Exploration and Production Pakistan BV (EEPP), had acquired 25% participating interest in May 2018 in Offshore Indus-G Block.
> 
> @niaz @Imran Khan @Clutch @The Accountant @Indus Pakistan @Khafee @MastanKhan


@Tps43 @ali_raza Pls note


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## Maxpane

PakSword said:


> Saanday ka teil bhi nahi nikla?


nahn janab wo bhi nahn nikla in k bakul. kasam se dil toot gaya ha



Khafee said:


> @Tps43 @ali_raza Pls note


sir werent you saying that there is a huge reservoir ? sir what happened?

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## Clutch

Maxpane said:


> *Offshore drilling near Karachi completed and the results are shocking for Pakistan: Sources*
> *18 May, 2019*
> 
> 
> 
> 
> 
> 
> *SHARES*
> 
> 
> 
> 
> 
> *ISLAMABAD – **Offshore drilling in Kekra 1 expected oil field near Karachi have been completed and the results are shocking for Pakistan, Sources have revealed. *
> 
> *No reservoir of oil and gas was found from the sea after drilling, revealed sources.*
> 
> 
> Meeting between PM Imran Khan and President Donald Trump possible
> They said that the testing process had been completed after the drilling. “No reservoir of oil and gas could be found from sea,” they disclosed.
> 
> The sources said that Prime Minister Imran Khan had been informed about the results. An amount of Rs14 billion has been incurred on drilling up to 5,000 meters during four months.
> 
> PAF Chief held important meeting with PM Imran Khan
> Pakistan, after a gap of nine years, began offshore drilling to find estimated huge oil and gas deposits. The US firm ExxonMobil, one of the world’s largest oil and gas firms, in collaboration with Italian firm Eni Pakistan Limited, drilled in ultra-deep waters some 280 kilometres away from Karachi coast.
> 
> They drilled Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast. For this purpose, ExxonMobil had brought one major drilling ship, three supply vessels and two helicopters on the site.
> 
> Indian Army resorts to unprovoked fire at LoC, Pakistani boy martyred
> Besides, Pakistan state-owned Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) were part of the joint venture. Each of the four firms have a 25% participating interest in the block.
> 
> It was the 18th attempt to find hydrocarbons from deep waters in Pakistan. Some of the surveyors had found the block ‘Indus-G’ similar to Indian offshore Bombay High oilfields, which produces 350,000 barrels per day (bpd) of crude oil, while some define it like wells producing hydrocarbons in the oil and gas rich country, Kuwait in the Gulf.
> 
> Exxon Mobil Corporation, through ExxonMobil Exploration and Production Pakistan BV (EEPP), had acquired 25% participating interest in May 2018 in Offshore Indus-G Block.
> 
> @niaz @Imran Khan @Clutch @The Accountant @Indus Pakistan @Khafee @MastanKhan



That was unexpected for sure!!

Goes to show our impulsive not fact based opinions are harmful.

Our media are the biggest bunch of morons making idiots of the general population. Our politicians feed the population pipe dreams and our gullible folks eat it up.

I always said wait for the official report before making any conclusions.

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## Maxpane

Clutch said:


> That was unexpected for sure!!
> 
> Goes to show our impulsive not fact based opinions are harmful.
> 
> Our media are the biggest bunch of morons making idiots of the general population. Our politicians feed the population pipe dreams and our gullible folks eat it up.
> 
> May be God knows we are not ready for any sort of riches because we are too corrupt as a nation.


sir i hope that the source proves wrong this time

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## Khafee

PakSword said:


> Saanday ka teil bhi nahi nikla?





Maxpane said:


> nahn janab wo bhi nahn nikla in k bakul. kasam se dil toot gaya ha





Maxpane said:


> nahn janab wo bhi nahn nikla in k bakul. kasam se dil toot gaya ha
> 
> 
> sir werent you saying that there is a huge reservoir ? sir what happened?


https://defence.pk/pdf/threads/size-of-new-oil-reserve.610099/


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## zulu

@Khafee so the game starts  btw nice dp

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## Khafee

Clutch said:


> That was unexpected for sure!!
> 
> Goes to show our impulsive not fact based opinions are harmful.
> 
> Our media are the biggest bunch of morons making idiots of the general population. Our politicians feed the population pipe dreams and our gullible folks eat it up.
> 
> I always said wait for the official report before making any conclusions.





Maxpane said:


> sir i hope that the source proves wrong this time


In excess of US$100m were spent on this exercise, and this news. 

Kiya samjhay?

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## ali_raza

Khafee said:


> @Tps43 @ali_raza Pls note


this can’t be true cos just now IK was again talking about gas reserves 
if this was the case he wouldn’t be talking about it again and again

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## Clutch

Clutch said:


> That was unexpected for sure!!
> 
> Goes to show our impulsive not fact based opinions are harmful.
> 
> Our media are the biggest bunch of morons making idiots of the general population. Our politicians feed the population pipe dreams and our gullible folks eat it up.
> 
> I always said wait for the official report before making any conclusions.



I wonder why is the drill ship and all the support ships still there if the well came up dry???
https://www.marinetraffic.com/en/ais/home/centerx:66.114/centery:22.503/zoom:16

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## Maxpane

Khafee said:


> https://defence.pk/pdf/threads/size-of-new-oil-reserve.610099/


thqnk you sir . sir i already read your thread where you said that 27 billion bpl but dnt get it when this news comes out that there is nothing

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## Khafee

PakSword said:


> Saanday ka teil bhi nahi nikla?


Btw, just out of curiosity, hypothetically speaking, IF "saanday ka teil" nikaljata, what would you do?

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## Clutch

ali_raza said:


> this can’t be true cos just now IK was again talking about gas reserves
> if this was the case he wouldn’t be talking about it again and again




IK needs to stop being so impulsive and then have to back peddle everytime


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## Imran Khan

Maxpane said:


> *Offshore drilling near Karachi completed and the results are shocking for Pakistan: Sources*
> *18 May, 2019*
> 
> 
> 
> 
> 
> 
> *SHARES*
> 
> 
> 
> 
> 
> *ISLAMABAD – **Offshore drilling in Kekra 1 expected oil field near Karachi have been completed and the results are shocking for Pakistan, Sources have revealed. *
> 
> *No reservoir of oil and gas was found from the sea after drilling, revealed sources.*
> 
> 
> Meeting between PM Imran Khan and President Donald Trump possible
> They said that the testing process had been completed after the drilling. “No reservoir of oil and gas could be found from sea,” they disclosed.
> 
> The sources said that Prime Minister Imran Khan had been informed about the results. An amount of Rs14 billion has been incurred on drilling up to 5,000 meters during four months.
> 
> PAF Chief held important meeting with PM Imran Khan
> Pakistan, after a gap of nine years, began offshore drilling to find estimated huge oil and gas deposits. The US firm ExxonMobil, one of the world’s largest oil and gas firms, in collaboration with Italian firm Eni Pakistan Limited, drilled in ultra-deep waters some 280 kilometres away from Karachi coast.
> 
> They drilled Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast. For this purpose, ExxonMobil had brought one major drilling ship, three supply vessels and two helicopters on the site.
> 
> Indian Army resorts to unprovoked fire at LoC, Pakistani boy martyred
> Besides, Pakistan state-owned Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) were part of the joint venture. Each of the four firms have a 25% participating interest in the block.
> 
> It was the 18th attempt to find hydrocarbons from deep waters in Pakistan. Some of the surveyors had found the block ‘Indus-G’ similar to Indian offshore Bombay High oilfields, which produces 350,000 barrels per day (bpd) of crude oil, while some define it like wells producing hydrocarbons in the oil and gas rich country, Kuwait in the Gulf.
> 
> Exxon Mobil Corporation, through ExxonMobil Exploration and Production Pakistan BV (EEPP), had acquired 25% participating interest in May 2018 in Offshore Indus-G Block.
> 
> @niaz @Imran Khan @Clutch @The Accountant @Indus Pakistan @Khafee @MastanKhan


hamari to kismat hi kharab hai BC

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## Maxpane

Khafee said:


> In excess of US$100m were spent on this exercise, and this news.
> 
> Kiya samjhay?


sir mujhy laga ap shiekh ho i meam arabi shiekh but ap tu pakistani lagty ho . sir kuch paley nahn pari bat. 100 million dollar zaya kar diye but kuch nahn nikla


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## zulu

Sir woh camel ka charah aab 3 months aur khilna pary gaa aap ko  


Imran Khan said:


> hamari to kismat hi kharab hai BC

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## Maxpane

Imran Khan said:


> hamari to kismat hi kharab hai BC


sir g dil chota mat karen

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## Khafee

Clutch said:


> IK needs to stop being so impulsive and then have to back peddle everytime


Reminds one of that aunty, who became a popular meme, "bik gai hai gormint"

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## ali_raza

Khafee said:


> Btw, just out of curiosity, hypothetically speaking, IF "saanday ka teil" nikaljata, what would you do?


he would use to it to repair some of the deficiencies



Clutch said:


> IK needs to stop being so impulsive and then have to back peddle everytime


there is something about it.
cant be smoke without fire


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## Clutch

Khafee said:


> In excess of US$100m were spent on this exercise, and this news.
> 
> Kiya samjhay?




Oil and gas exploration is an expensive endeavor.... It's always risky. You cannot assume you have a hydrocarbon pool based upon seismic data. That is what we did. 

You have to drill the well and then test it to confirm anything. The whole nation was jumping up and down based upon faulty information.

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## Imran Khan

zulu said:


> Sir woh camel ka charah aab 3 months aur khilna pary gaa aap ko


main usko bech raha hoon mandi main qurbani se phly . kon 3 months khilay .

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## zulu

exxoon ka CEO ko khud aata hai also showed interest in more ventures but forget all about it aaj aap ka baat ka mod laag raha hai so @Khafee hazrat yeh ISB main chal kiya raha haii kuch tu idea dy dain ??pehli dafa State going to act as state ?before eid??as hum tu samjhy thy ramzan thanda jaye ga 


Khafee said:


> Reminds one of that aunty, who became a popular meme, "bik gai hai gormint"


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## Khafee

Clutch said:


> Oil and gas exploration is an expensive endeavor.... It's always risky. You cannot assume you have a hydrocarbon pool based upon seismic data. That is what we did.
> 
> You have to drill the well and then test it to confirm anything. The whole nation was jumping up and down based upon faulty information.


No the intel was solid.


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## ali_raza

Khafee said:


> Reminds one of that aunty, who became a popular meme, "bik gai hai gormint"


haha can u translate her in arabic
هذا حكومه كلهم باع هذا غبون كلهم جمعو اشان قص علينا اولاد قحبه.

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## Imran Khan

Maxpane said:


> sir g dil chota mat karen


bhai aik to ruppia itna sasta ho gya oper se koi good news nhi mil rahi

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## Khafee

zulu said:


> exxoon ka CEO ko khud aata hai also showed interest in more ventures but forget all about it aaj aap ka baat ka mod laag raha hai so @Khafee hazrat yeh ISB main chal kiya raha haii kuch tu idea dy dain ??pehli dafa State going to act as state ?before eid??as hum tu samjhy thy ramzan thanda jaye ga


Everybody is forgetting the Centcom Cmndrs visit, and the goodies he brought.

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## H!TchHiker

NAB k case bana chaeya Noon league pa...jab tail he nai tha to thaika q dya...

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## PakSword

Khafee said:


> Btw, just out of curiosity, hypothetically speaking, IF "saanday ka teil" nikaljata, what would you do?


main tou kuchh nahi karta, a lot of people in Pakistan need that to become a "man" enough to take right and brave decisions..



H!TchHiker said:


> NAB k case bana chaeya Noon league pa...jab tail he nai tha to thaika q dya...


hahaha...

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## Maxpane

Imran Khan said:


> bhai aik to ruppia itna sasta ho gya oper se koi good news nhi mil rahi


baat tu sach ha 
mager 
baat ha ruswai ki


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## CHACHA"G"

*Today PM IK said WE may find Gas reserve (big enough for 50 years) … He said this today in Peshawar while speaking fund raising party for SKH. *
I will believe PM , instead of some source (5th gen warrior).. 
Please Pray for Pakistan...…. 
@Khafee , @zulu , @Imran Khan

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## PakSword

ali_raza said:


> haha can u translate her in arabic
> هذا حكومه كلهم باع هذا غبون كلهم جمعو اشان قص علينا اولاد قحبه.


hahaha @ aulaad e qahba.. lolll

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## zulu

Not everyone but sir goodies detail hum gareeb civilians ko kahan pata chalti hain  btw @Imran Khan bhai selling his camel he bought in anticipation interested to buy ? 


Khafee said:


> Everybody is forgetting the Centcom Cmndrs visit, and the goodies he brought.

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## Clutch

Khafee said:


> No the intel was solid.




How so?... If don't do a Drill Stem Test and then a Well Test Flow & Buildup .... How can any sort of reserves potential be established?

Pakistani politicians, media, and population were jumping up and down on the news of a "kick" experienced while drilling to say the well hit oil and gas. The kick is due to a high pressured formation (could be an aquifer) and not having the appropriate mud weight.... Not really a confirmation of oil or gas.


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## Khafee

zulu said:


> Not everyone but sir goodies detail hum gareeb civilians ko kahan pata chalti hain  btw @Imran Khan bhai selling his camel he bought in anticipation interested to buy ?


Sorry, I only buy thoroughbred horses.

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## Salza

Imran kHan has made fool of himself... Now wait and watch he will be ridiculed in media and social media as well


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## Khafee

Clutch said:


> How so?...


Bhai wardi otarwaogay?


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## Maxpane

hope the source is wrong

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## CHACHA"G"

Dunya news giving this bad news now...… just watched it...………

I will still wait for official news...….. Just like I waited for discovery news

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## zulu

Sir duwa tu yehi karni chahye jo hu Allah ki barkat aur rehmat ky sath hu agar uss ka hukum na millay tu uss main bhi kuch acha for all of us.ISB ka @Khafee sy iss liye hi poch raha thaa 100 ki poori file bani pari hai pooray saboot un main sy over 70 still in Pakistan 200 billion dollar kha ky baithy hain.halka hath bhi daloo sakon sy 50 tu nikal aain gy but State ka hosla nahi par raha so its brings me on serious question.How anyone can think any such discoveries brings good to us jab oper itny chor baithy hain khanyy ko ???Nigeria main bhi tu yeh ho raha hai naa ?

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## Imran Khan

Maxpane said:


> hope the source is wrong


wo sirf achi khabar ke hoty hain


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## Salza

Every channel is giving this as breaking news... Minister of petroleum has just confirmed the findings


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## CHACHA"G"

Imran Khan said:


> wo sirf achi khabar ke hoty hain


ab camel ka kiya karo gai ………………………………………….. califton is still there..

Dil kay arman ansoo main beh gaye……… hum amir hotay hotay reh gaye…….
sada tail chori ho giya ………..

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## Maxpane




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## Imran Khan

CHACHA"G" said:


> ab camel ka kiya karo gai ………………………………………….. califton is still there..
> 
> Dil kay arman ansoo main beh gaye……… hum amir hotay hotay reh gaye…….
> sada tail chori ho giya ………..


bhai qurbani per bechny ka program hai .

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## Khafee

zulu said:


> Sir duwa tu yehi karni chahye jo hu Allah ki barkat aur rehmat ky sath hu agar uss ka hukum na millay tu uss main bhi kuch acha for all of us.ISB ka @Khafee sy iss liye hi poch raha thaa 100 ki poori file bani pari hai pooray saboot un main sy over 70 still in Pakistan 200 billion dollar kha ky baithy hain.halka hath bhi daloo sakon sy 50 tu nikal aain gy but State ka hosla nahi par raha so its brings me on serious question.How anyone can think any such discoveries brings good to us jab oper itny chor baithy hain khanyy ko ???Nigeria main bhi tu yeh ho raha hai naa ?


Something like Nigiera has happened.

Kekra1 is 280km south of Khi, who is going to go and check whats happening in the middle of the Arabian sea.

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## CHACHA"G"

Khafee said:


> Something like Nigiera has happened.
> 
> Kekra1 is 280km south of Khi, who is going to go and check whats happening in the middle of the Arabian sea.


Dil tot giya hai sir g..

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## zulu

Do i need to point u out about recent and every steps Sindh govt was taking in last 2 months in case of discovery ? aap tu mujh sy ziyada jaanty hain 



Khafee said:


> Something like Nigiera has happened.
> 
> Kekra1 is 280km south of Khi, who is going to go and check whats happening in the middle of the Arabian sea.



Hosla Sir ji Hosla if u looking things at just as oil discovery u r going to missed big picture 


CHACHA"G" said:


> Dil tot giya hai sir g..

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## CHACHA"G"

zulu said:


> Do i need to point u out about recent and every steps Sindh govt was taking in last 2 months in case of discovery ? aap tu mujh sy ziyada jaanty hain


Are you telling me we are putting this on hold until 18th amendment go away. Until Zardari and gang meat their fate..

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## Khafee

CHACHA"G" said:


> Are you telling me we are putting this on hold until 18th amendment go away. Until Zardari and gang meat their fate..


Could be. You have to consider why would anyone spend +/- $100m on exploration if there was nothing.

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## zulu

Meri tassali ko wahid baat jo hai Army is on board warna yeh politicians tu kuch na chorain but said in previous posts and again bhai loog duwain tu karoo ramzan ka maheenaa bhi haii Inshaallah acha hoga 


Khafee said:


> Could be. You have to consider why would anyone spend +/- $100m on exploration if there was nothing.



@Khafee Sir ji aab Raheel Sharif ko wapas tu kar du aany waly waqton main hamain bari zrorat hai uss ki esp hum Karachi walon ka tu hero hai battle ground is setting in sindh we need our General back

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## Khafee

zulu said:


> Meri tassali ko wahid baat jo hai Army is on board warna yeh politicians tu kuch na chorain but said in previous posts and again bhai loog duwain tu karoo ramzan ka maheenaa bhi haii Inshaallah acha hoga
> 
> 
> @Khafee Sir ji aab Raheel Sharif ko wapas tu kar du aany waly waqton main hamain bari zrorat hai uss ki esp hum Karachi walon ka tu hero hai battle ground is setting in sindh we need our General back


Bhai I will comm with you via secure channel.

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## Indus Pakistan

Clutch said:


> IK needs to stop being so impulsive and then have to back peddle everytime


He never said "there was oil". He said drilling was going on and he hoped [expected] good news. When exploring for gas/oil syou can never be 100%. That is why drilling is done to confirm the prospect. Only when you strike can you confirm "yes".

And let's wait for official statement. No point in people scoring or making this political. All of Pakistan loses. Only people who will be clapping is Indians and Arabs. The former because we stay bankrupt, the latter because we remain in servitude to them. My blood boils when I see scions of Indus having to play second fiddle to these camel drivers .... all because this got oil under their feet.

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## Clutch

Indus Pakistan said:


> He never said "there was oil". He said drilling was going on and he hoped [expected] good news. When exploring for gas/oil syou can never be 100%. That is why drilling is done to confirm the prospect. Only when you strike can you confirm "yes".
> 
> And let's wait for official statement. No point in people scoring or making this political. All of Pakistan loses. Only people who will be clapping is Indians and Arabs. The former because we stay bankrupt, the latter because we remain in servitude to them. My blood boils when I see scions of Indus having to play second fiddle to these camel drivers .... all because this got oil under their feet.




Yes.. he did Infact...

But us impulsive finger pointing Pakistanis do not consider these nuances.

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## Indus Pakistan

Clutch said:


> Yes.. he did Infact...


Surely, the sentiment he expressed was in the hearts of all of us? Did we all not hope there was oil and we prayed for good news?



Clutch said:


> But us impulsive finger pointing Pakistanis do not consider these nuances.


True.

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## Mega_Man

Alhamdulillah our hopes are still high and we will find another way to fix our economy. This isn't the end of the world or something. I shared the news from times of Islamabad, this is indeed a sad news for all Pakistanis. But details are yet to come. And we might be getting some kind of deal in canceling oil and gas explorations. Or even the drilling was a haste but it always give us more accurate location of minerals Everytime we drill. Never forget we found sui the same way. It's always have been 50/50 chances. We still have a $24 billion Copper mine. Which is tested and very real.

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## ghazi52

*Can Pakistan get the Shale Oil/ Natural Gas*

Below is a picture of the common Oil/ Natural Gas fields found across the world, and to the right of what is classified as Shale Oil/ Natural Gas:








Below is research gathered by the US Energy Information Institute:






*The US Energy Information Institute estimates that Pakistan has 52 Trillion Cubic Feet of Shale Natural Gas, and 9 Billion Barrels of Shale Oil. *

And this is compared to estimates that by 2023 Pakistan will no longer have any domestic Natural Gas, and by 2022 there will no longer be domestic Oil by current production. 

Shale Gas and it's technology have revolutionized the European-Russian Relationship. No longer with American Shale Gas Technology will Europe be wholly-fully dependent on Russian Natural Gas to heat the continent in Winter.

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## ghazi52

*Kekra-I block has good reservoir but water wet*






ISLAMABAD: The Petroleum Division of the Energy Ministry on Sunday said the results of four-month offshore drilling at Indus G-Block called Kekra-I, some 230kms off the Karachi coast, had shown good quality hydrocarbon reservoir, but unfortunately these were water wet. 

“After the well control operations, the open hole section drilling was resumed on Friday. The reservoir was encountered at 5,492 meters and so far about 140 meters of reservoir has been drilled. The log results show a good quality reservoir but unfortunately water wet without any gas effect,” said a press release of the Petroleum Division.

Current depth of the well is 5,634 meters while another 55 meters would be drilled before proceeding with P&A (plug and abandon) operations, which has already been approved by the Joint Venture Partners, including Exxon.

The offshore drilling is a joint venture of ENI, Exxon Mobil, Oil and Gas Development Company Limited and Pakistan Petroleum Limited.

The consortium had started drilling activities on January 13, 2019. Hopes for the discovery of large reserves of oil and gas off Karachi coast faded after it was officially announced on Saturday that the much-celebrated offshore drilling in Kekra-1 had been stopped because no reserves were found. The operators of the well have decided to plug it in the coming days. Around 17 attempts have been made in the past, but all remained unsuccessful despite encouraging data from each drilling.

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## ghazi52

*Petroleum Division grants oil exploration licence to Kuwaiti firm*

The Petroleum Division has granted *Kirthar Pakistan BV* — a subsidiary of Kuwait Foreign Petroleum Exploration Company (Kufpec) — the license for exploration of oil in the Makhad block Attock mianwali Chakwal in #Punjab, a press statement by the energy ministry said on Wednesday.

The division said that the government has executed an Exploration Licence (EL) as well as a Petroleum Concession Agreement (PCA) — signed by Petroleum Division Secretary Mian Asad Hayauddin and Qazi Mohammad Saleem Siddiqui, the director general of Petroleum Concessions, and the CEO of Kuwait Foreign Petroleum Exploration Company (KUFPEC) at a ceremony also attended by Minister for Petroleum Omar Ayub Khan.

On the occasion, the petroleum minister said that “the execution of PCA and EL will attract foreign investment in the petroleum sector and bridge the demand and supply gap in the energy sector.”

Khan further said that the efforts will bear fruit in future years in the form of hydrocarbon reserves.

The Makhad block, according to the press release, is situated in Attock, Mianwali and Chakwal in Punjab as well as Kohat in Khyber Pakhtunkhwa. It is said to be spread over 1,562.92 square kilometres.

Kufpec will invest at least $9.8 million in the block, as per the press release issued. Apart from the minimum firm work commitment, the company is also obligated to spend a minimum of $30,000 per year in Makhad block on social welfare schemes

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## ghazi52

KOHAT (*Dunya News*) – Pakistan Oilfields Limited (POL) with 25 percent shares and MOL have made oil and gas discoveries in MOL operated TAL Block – that is located in the Kohat Plateau of Khyber Pakhtunkhwa (KP).

In what can be termed a major boost to petroleum exploration activities in the country, MOL Pakistan has made sizeable oil and gas-condensate discoveries at its exploratory wells.

*Initial testing is being considered as extremely encouraging as it showed flow of crude oil at 1,844 barrels per day and 18.25 MMscf of gas. According to the data available, the new reserves will produce 18.2 million cubic feet of gas on daily basis.*

The commercial production from the new oil and gas reserves will begin in December this year.

Reportedly, new hydrocarbon reserves have also been found in Makori 2 at TAL block.

This new discovery has derisked exploration in deeper fault blocks in the TAL block leading to new upside opportunities. Further, this new discovery will help to improve the energy security of the country.

The field accounts for 20% of Pakistan s oil production, amounting to 17,000 barrels per day. Six discoveries have been made in the block, the first in 2002 and the most recent in 2011. Oil and Gas Development Company, Pakistan Petroleum Limited and Pakistan Oilfields hold ownership stakes of 28, 28 and 21 percent, respectively, in Tal Block. The field has 55 percent as the success ratio of discovery in Tal Block, compared to 33 percent in other areas. MOL Group is responsible for making further discoveries and has added 145 million cubic feet of natural gas per day.

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## ghazi52

*Royal Vopak to invest $2.8b in Pakistan*

World fame Dutch oil company, Royal Vopak is going to invest $ 2.8 billion in Pakistan. A delegation of Royal Vopak called on Adviser to Prime Minister on Commerce, Textile, Industries and Production, and Investment, Razak Dawood to discuss the new opportunities for investment related to Terminal and Storage Facilities of Liquefied Natural Gas (LNG) in Pakistan.

Royal Vopak N.V. is a Dutch company that stores and handles various oil, chemicals, edible oils and natural gas-related products all over the world, said a press release issued by ministry of commerce here on Tuesday.

The Adviser to the PM urged the delegation to invest in Pakistan owing to its improved global ranking in Ease of Doing Business Index by 11 points.

Further, he apprised the delegation that Special Economic Zones (SEZs) provide incentives to investors by allowing duty free import of machinery besides tax holiday for ten years and urged the representative of Royal Vopak to make investment in these zones to get better returns on their investments.

Head of the delegation apprised the adviser to PM that Royal Vopak was going to invest $ 1.5 billion in the land-based LNG terminal facility.

He said the terminal would provide cost effective facility to LNG consumers in the country by introducing state of the art modern technology.

He said this facility would create new job employment opportunities besides technological know-how in the engineering sector of Pakistan.

Moreover, they will also invest 150 million USD in the construction of Prolepryplene Plant and 800 million USD in PARCO Coastal Refinery which will provide storage facility

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## ghazi52

*ISLAMABAD: Special Assistant to the Prime Minister on Petroleum Nadeem Babar on Thursday said that a new policy on liquefied natural gas (LNG) would be announced next month as the government had decided to abolish several unnecessary regulations to facilitate investment in petroleum sector of the country.*

Addressing a press conference alongside Minister for Power Divison Omar Ayub Khan and Special Assistant to Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan on Thursday, he said that tax relation would be provided for upgrading old refineries and for installing new ones.

Babar said that a new policy had been prepared to increase domestic production of LNG and decrease its import and that an LPG pricing mechanism will also be introduced. He said that anyone wishing to set up LNG terminals for private consumption would not require government approval.

*He further added that approvals required for establishing petrol pumps were being reduced from 25 to seven and approvals for storage of petroleum products were also being decreased from 19 to six.*

*He also said that gas consumers will get a 15-day bill payment period. He added that public awareness campaigns on usage of domestic gas in winters will be launched in September and that a mobile app and portal will be launched for registration and redressal of public complaints against gas companies. Babar said that provision of gas connection for industries within 30 days will also be ensured.*

Firdous said that the government was determined to ensure ease of doing business for investors.

Omar said that Prime Minister Imran Khan wants to boost investors’ confidence and promote business-related activities.

Pakistan today


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## ghazi52

*APCNGA to explore LNG import possibilities at ‘Gastec-2019’ exhibition*

SEPTEMBER 16, 2019






: All Pakistan Compressed Natural Gas Association (APCNGA) would explore ways and means for “private import” of the LNG at a three-day “Gastech 2019” international conference and exhibition, starting from September 17 in the Houston city of Texas, the second largest state of the United States of America (USA).


“The association is participating in the conference with the sole purpose to encourage the world leading private energy firms for investing in Pakistan’s gas sector as the government is making sincere efforts to extend maximum facilities to both local and foreign companies in this field,” APCNGA senior leader Abdul Ghiyas Paracha told APP.


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## ghazi52

*UAE $5 billion refinery project would be launched by the end of this year*







ISLAMABAD: Talks between Pakistan and the United Arab Emirates on an $5 billion oil refinery project have almost completed and the project would be launched by the end of this year, it emerged Friday.

UAE Ambassador Hamad Obaid Ibrahim Salem Al-Zaabi told Aran News that “we are going to launch one of the biggest investments in a refinery project in Hub very soon”.

“It is going to be a $5 billion investment between Mubadala Petroleum Company of Abu Dhabi, Pak Arab Refinery Limited (PARCO) and OMV [OMV Pakistan Exploration Gesellschaft],” the envoy quoted as saying.

Al-Zaabi said the project was the result of extensive discussions between Mubadala Petroleum and Pakistan’s petroleum ministry along with PARCO and OMV.

The project was finalised during Crown Prince Sheikh Mohamed bin Zayed Al Nahyan’s Pakistan visit earlier this year.

The discussion are ongoing on the minute details of the refinery project, the enjoy said adding that a delegation headed by Mubadala Petroleum chief, Musabbeh Al Kaabi, visited Pakistan and met with the chairman of board of investment chairman and petroleum minister.


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## ghazi52

State-owned Pakistan LNG has canceled a tender to buy liquefied natural gas over a 10-year period and may turn to the spot market instead, according to a report by Reuters.

The report stated that the company issued the tender in early June to import 240 LNG cargoes of 140,000 cubic meters each for delivery over 10 years via the second LNG terminal.

But it has decided to cancel the tender due to inadequate demand for the super-chilled fuel, one of the sources said.

(The company) has decided not to proceed with technical evaluation and opening of commercial offers as there is no demand against this tender. So for now, (the company) has decided to stop the process of long-term commitment until it receives long-term demand for LNG


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## ghazi52

*ISLAMABAD, *(APP - 17th Oct, 2019 ) :Minister for Energy Omar Ayub Khan said the process of hiring technical experts for setting up an oil refinery at the Gwadar deep seaport, an ultimate destination of China Pakistan Economic Corridor (CPEC), had been started and would be completed in next three months.

*"The refinery, having 250,000 to 300,000 barrels per day capacity, will help Pakistan cut its annual crude oil import bill by around $3 billion," he said in a recent interview with Arab news.*

He said this was the first phase of Saudi investment in Pakistan "and as soon as they will start achieving targets, another phase of investment would start." Omar Ayub said work had commenced on $14.5 billion energy and petroleum projects in collaboration with Saudi Arabia.

The minister said that Saudi investment would help Pakistan achieve its target of shifting 30 percent of its energy needs to the renewable energy sector by 2030.

"In the power sector, Saudis are helping us install 500 megawatts renewable energy projects worth $4.5 billion in Balochistan and a $10 billion mega oil refinery in Gwadar, which are part of the $20 billion investment announced during Saudi Crown Prince Muhammad bin Salman's visit to Pakistan earlier this year," the minister said.� Currently, only about 5 to 6 percent of the power to national grid comes from renewable energy, according to the country's Alternate Energy Development board (AEDB).

"Studies have been carried out by Saudi company Aqua Power, Pakistani National Transmission and Despatch Company (NTDC) and other leading companies to look into hybrid or solar projects. This will be a total $4.5 billion investment," he added.� During a visit to Pakistan in February this year by Saudi Crown Prince Mohammed bin Salman, the two countries signed short, mid and long-term investment agreements worth over $20 billion, including for energy and petroleum projects.

Short-term projects signed in February include two Regasified Liquefied Natural Gas plants for $4 billion, a $2 billion investment by Saudi power producing company ACWA Power in Pakistan's renewable energy sector and a $1 billion Saudi Fund for Pakistan.

Mid-term projects include $1 billion each for petrochemical complex, food and agricultural projects. The long-term investments are $10 billion for the construction of the multi-billion-dollar Saudi Aramco oil refinery in Gwadar and $2 billion for the minerals sector.

The minister said the power projects, which were in the pipeline, also included a solar plant of 200-megawatt at the Habibullah coastal power station in Balochistan and a 100-megawatt plant each in three other districts of the province.

"Alternative Energy Development Board cleared the draft renewable energy policy last week, in which we are taking renewable energy from the current 1,500 megawatts to approximately, 8000 megawatts by the end of 2025, and then to 20,000 megawatts by 2030," he said.

Omar Ayub said Saudi Arabia and Pakistan were also collaborating to explore minerals in the Balochistan province to promote indigenous exploration and production activities in both the oil and gas sectors.

"We would be auctioning approximately 40 blocks in the exploration and production sphere in Pakistan. In this process, we welcome Saudi companies to participate in upstream exploration activities," he said.

"Aramco is already working in the downstream exploration activities in Pakistan and we would welcome more Saudi companies to come in Pakistan for investment, whether it is upstream, middle stream or downstream."He also welcomed Saudi participation in the CPEC energy and infrastructure development projects.

"It is a good opportunity for Saudis as well as other Middle Eastern companies to invest in Pakistan as it is next door to a big market like China," the minister said.
__________________


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## ghazi52

First Shale gas, oil well to be drilled in December

Oil and Gas Development Company Limited (OGDCL) has planned to start drilling activities in potential areas of Sindh in December this year for exploration of Shale gas and oil deposits identified almost five years ago, which would also help determine the cost of fuel extraction.

“In pursuit of the Shale gas exploration, the company is working to drill the first-ever unconventional Shale gas well in December at a fast track. Following which, the OGDCL Board and its management are also planning to carry out back to back drilling at nine more Shale wells,” a senior official privy to petroleum sector developments told APP.

A study completed in collaboration with the United States Agency for International Development, covering lower and middle Indus Basin, had identified massive Shale gas and oil reserves in 2015.

The report confirmed presence of 10,159 trillion cubic feet (TCF) Shale gas and 2,323 billion of stock tank barrels (BSTB) Shale oil in place resources.


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## ghazi52

*North-South gas pipeline project in doldrums*

October 26, 2019
https://tribune.com.pk/story/2087386/2-north-south-gas-pipeline-project-doldrums/






ISLAMABAD.: Pakistan has conveyed to Russia that it would not award multibillion-dollar projects to US-sanctioned entities as such a move had already resulted in hampering progress on the North-South gas pipeline project.

The $2 billion North-South gas pipeline project hit snags following Russia’s failure in providing a sanctions-free entity to implement the project.

Under the proposed plan, a gas pipeline would be built from Karachi to Lahore and Russia would provide 85 per cent financing for the project.

In a recent development, Russia nominated an entity – PAO TMK – whose ultimate beneficiary owner (UBO) Dmitry Pumpyansky is on the watch list of US sanctions.

Russia was insisting to make a deal with the company but Pakistan refused, saying that its ultimate beneficiary was on the watch list of US sanctions.

In the protocol execution on July 17, 2019, Pakistan and Russia proposed two options underlying the need that they were not sanctioned nor on the sanctions’ watch list, including their shareholders directly or indirectly, and had pipeline building experience.

“We appreciate that these aspects will be given due consideration in finalising the project structure and accordingly making necessary amendments in the inter-governmental agreement (IGA),” the Pakistani side had conveyed to Russian Energy Ministry.

The implementation of the North-South gas pipeline project has been severely impacted by the numerous changes enacted in the corporate structure. A sanction-free corporate structure in line with IGA between two governments remained elusive and was therefore impending further progress on the project.

In light of the international sanctions on the nominated entity, Pakistan had requested the Russian side to explore the possibility of introducing sanction-free Russian entity with pipeline building experience to move forward with the project.

“We agree to the suggestion of extending the IGA by another six months at this stage and in the meanwhile we need to amend the IGA through a protocol to the amendment already shared with the Russian side during the last meeting held in Dubai from July 15 to 17, 2019,” the Petroleum Division wrote in a recent letter sent to the Russian Energy Ministry.

Pakistan also showed willingness to include the progress of the project implementation in the agenda of the upcoming sixth meeting of the Russian-Pakistani Intergovernmental commission on trade, economic, scientific and technical cooperation which is planned to be held in Islamabad preceded by a meeting of the Joint Working Group on Energy Cooperation in December 2019.

“As regards to your point on inclusion of PAO TMK and its UBO Pumpyansky into the IGA, we have conveyed the position of Pakistan very clearly during the course of multiple video conference, letters and the protocol of the meeting held in Dubai from July 15 to 17, 2019. We understand that there is a need to move forward with the implementation of the project obviating any chance of attracting sanctions on the project or its shareholders given its strategic nature,” the Pakistani side said.

The Russian side had made a detailed presentation in Dubai during which they presented the details of the ultimate beneficial owner of PAO TMK holding majority shares indirectly.

UBO Pumpyanski, however, is on the sanctions’ watch list. This fact had already been pointed to the Russian side and reflected in the protocol executed on July 17, 2019 that people on the watch list were in a high risk category and likely to be sanctioned.

“Our earlier communications and meetings held so far with the Russian Ministry of Energy, particularly the ones held via video conference and recently in Dubai, had clearly mentioned the grounds emphasising that such structures were sanctions or sanction watch list persons and or entities being a high-risk category should not be acceptable and not be associated with the project,” the Pakistani side added.


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## ghazi52

Pakistan and China have to collaborate on four key projects for oil and gas under the framework of the China-Pakistan *Economic Corridor *(CPEC).

These projects include finalizing a feasibility report on the South-North Gas Pipeline Project by Power China International Group of Companies and upgrading Pakistan Refinery Ltd.

The decision was made during a recent meeting. The meeting agreed to work on the following projects in the first phase:

....Finalization of feasibility study on the South-North Gas Pipeline Project.
...Upgradation of Pakistan Refinery Ltd, Karachi.
...Coal to Liquid Engineering Plant in Thar.
...Feasibility study for coal gasification.

Both sides agreed to work on the development of the “Pakistan Oil and Gas Industry Development Plan Report” with a focus on oil and gas exploration and petrochemical refinery.

The two countries also consented to form a development plan for the timely development of projects under CPEC.

It was decided that the interested parties will be asked to conduct feasibilities and present it before the next Energy Planning Expert Panel for review.

Experts from the two countries agreed that the projects that have the Experts Panel’s and Joint Energy Working Group’s nod will undergo a feasibility study before being formally implemented.


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## ghazi52

*Two more* LNG *terminals to be built in 2 years*

Two new offshore liquefied natural gas (LNG) terminals would be built at Port Qasim on build, operate and transfer (BOT) basis by private consortiums, led by foreign companies, over the next 24 months in addition to the two existing LNG terminals, said PortQasim Authority Karachi (PQA) Chairman Hasan Nasir Shah.

Briefing the Senate Standing Committee on Maritime Affairs about operations and current activities of the port, Shah said after completion the terminals would help cater to the energy needs of the country.

The Senate panel, led by its Chairperson Senator Nuzhat Sadiq, held meetings for two consecutive days on November 20 and 21 at the PQA head office.


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## ghazi52

Govt to offer 35 offshore sites for #oil, #gas exploration

Will also invite bids for 10 onshore sites; auction will be held next month

Pakistan has decided to auction 35 offshore sites next month for drilling to find oil and gas reserves in a major move to step up hydrocarbon production and meet growing demand.

The decision came after public-sector companies including Oil and Gas Development Company (OGDC), in a joint venture with Italy’s Eni and US energy giant ExxonMobil, made efforts to discover oil and gas deposits at an offshore site in the Arabian Sea near Karachi. However, they could not find anything but were able to collect data that could be useful for upcoming offshore ventures.

In addition to the 35 offshore sites, the government is poised to auction 10 onshore sites for hydrocarbon exploration, starting December 2019, said Power and Petroleum Minister Omar Ayub Khan in a meeting with German Ambassador Bernhard Schlagheck.


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## ghazi52

Pakistan is all set to offer Malaysia a possible seven percent stake in Oil and Gas Development Company Ltd (OGDCL), as the two countries will focus on boosting trade links during Prime Minister Imran Khan’s scheduled visit to the south-east Asian country next week.

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## ghazi52

*Pakistan’s First Floating LNG Import Terminal Will Increase its Capacity in 2020*

In order to meet the growing demand of LNG in Pakistan, Pakistan’s first floating LNG Terminal will be expanded this year with extended facilities in Karachi.
Excelerate Energy L.P. (Excelerate) and Engro Elengy Terminal Ltd (EETL) have signed a Heads of Agreement (HOA) for the expansion of the EETL liquefied natural gas (LNG) import terminal located in Port Qasim, Pakistan.

Under the agreement, Excelerate will exchange its existing floating storage and regasification unit (FSRU) Exquisite with a newbuild FSRU, Hull 2477, which is currently under construction at Daewoo Shipbuilding and Marine Engineering (DSME) shipyard.

Hull 2477 will increase EETL’s send-out capability by more than 150 million standard cubic feet per day (MMscf/d) and increase its LNG storage capacity from 150,900 cubic meters to 173,400 cubic meters.

Excelerate will receive Hull 2477 in April of this year, and EETL plans expanded operations in Pakistan before winter 2020


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## prop558

ghazi52 said:


> *UAE $5 billion refinery project would be launched by the end of this year*
> 
> 
> 
> 
> 
> 
> 
> ISLAMABAD: Talks between Pakistan and the United Arab Emirates on an $5 billion oil refinery project have almost completed and the project would be launched by the end of this year, it emerged Friday.
> 
> UAE Ambassador Hamad Obaid Ibrahim Salem Al-Zaabi told Aran News that “we are going to launch one of the biggest investments in a refinery project in Hub very soon”.
> 
> “It is going to be a $5 billion investment between Mubadala Petroleum Company of Abu Dhabi, Pak Arab Refinery Limited (PARCO) and OMV [OMV Pakistan Exploration Gesellschaft],” the envoy quoted as saying.
> 
> Al-Zaabi said the project was the result of extensive discussions between Mubadala Petroleum and Pakistan’s petroleum ministry along with PARCO and OMV.
> 
> The project was finalised during Crown Prince Sheikh Mohamed bin Zayed Al Nahyan’s Pakistan visit earlier this year.
> 
> The discussion are ongoing on the minute details of the refinery project, the enjoy said adding that a delegation headed by Mubadala Petroleum chief, Musabbeh Al Kaabi, visited Pakistan and met with the chairman of board of investment chairman and petroleum minister.





Launched or not ?


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## ghazi52

prop558 said:


> Launched or not ?


This is going on for the last ten years, lot of work has been done, it is PARCO project, UAE has 49% share, only now they are putting money.


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## ghazi52

*KARACHI: Pakistan Petroleum Limited (PPL) plans to export up to 400,000 barrels of crude condensate produced from its Gambat South Block, as the company explores opportunities to grow internationally and become a regional leader in exploration and production, The News has learnt.*

According to a company document, the PPL aims to export as much as 32,500 barrels/month through a third party contractor.

Gambat South is located in District Sanghar, Sindh. The block was granted to PPL in December 2009. Later, the company farmed out 10 percent of its working interest in the block to Asia Resources Oil Limited and 25 percent to Government Holdings (Private) Limited in June and July 2010, respectively.

So far, nine discoveries, Wafiq, Shahdad, Sharf, Kinza, Faiz (two formations), Kabir, Hatim, and Zafir have been made in the block with the latest in April 2017. Last year Gambat South Block produced 830 barrels of condensate/day.

*An industry official said country’s oil production had increased but this increase was coming in the shape of condensate and other light crudes, which the local refineries could convert primarily into furnace oil (FO). “Since furnace oil demand has declined to zero and a local refinery is already exporting its produce, the crude condensate exports will increase going forward,” the official added.*

The PPL, the pioneer of the natural gas industry in the country, exported crude condensate worth Rs1.24 billion for the year ended June 30, 2019. According to Pakistan Bureau of Statistics (PBS), country’s overall crude/condensate exports were $110.319 million in the first half of current fiscal year.

Pakistan is an energy deficient country and relies heavily on hydrocarbons imports. The country produces around 85,000 barrels of oil/day which constitutes around 15 percent of the oil consumption, with the rest being imported.

*The news*

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## ghazi52

*Shale gas updates..*.........

ISLAMABAD - Brisk drilling was in progress at the first shale gas and oil well near Hyderabad city of the Sindh province to acquire geological and engineering data for further planning of the pilot project. “The drilling, started on December 14, 2019 at the Shale gas well, KUC-01 (Kunar Unconventional-1), is in progress. As of January 30, 2020 the well was drilled to depth of 2,487 meters that will be taken to 3,910 meters in Chiltan formation,” according to an official document available with APP. Currently, the Oil and Gas Development Company Limited (OGDCL) and United Energy Petroleum Limited (UEPL) are undertaking shale gas & oil exploration projects in Sindh Province. A study, completed in collaboration with United States Agency for International Development in 2015, had identified massive deposits of shale gas and oil, which needed further evaluation to determine the cost of extraction. According to the EIA Shale Gas Assessment Report 2015 (USA); Pakistan has around 105 Trillion Cubic Feet of recoverable shale gas and 9.1 Billion Barrels of recoverable shale oil resources. The successful exploitation of shale gas could provide Pakistan with a sustainable supply of natural gas and oil (against EIA estimated recoverable gas resources), the OGDCL observed before initiating the drilling work. Pakistan’s estimated natural gas demand stood at about 7-8 Billion Cubic Feet per Day (BCFD), out of which less than 4 BCFD was being produced locally*. “*There is 50 percent of gas shortfall in the energy mix needs of the country.” The OGDCL had clarified that the identified resources were not booked as “reserves” and needed to be further rationalized through additional technical information regarding the Shale Reservoir.

*The Nation*

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## ghazi52

South Korea’s Posco *Offers its Lowest Bid to Supply* LNG to Pakistan

For the very first time, South Korea’s Posco International Corp is set to supply liquefied natural gas (LNG) supplier to Pakistan LNG.

Posco has offered the lowest bid of 7.9673% slope to Brent for the supply of LNG cargo on September 12-13, with Socar Trading submitting the lowest bid of 6.9511% for September 25-26 LNG import tender.

It is very unusual for Posco to participate in Pakistan LNG’s import tender, reported Reuters. This could mean that the South Korean company is trying to expand its third-party trading activities.

According to a notice on the company’s website, six companies were technically qualified for an import tender by Pakistan LNG to buy two cargoes of liquefied natural gas (LNG) for delivery in September

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## ghazi52

* Pakistan’s First Ever Euro 5 Fuel*

Today marks the arrival of Pakistan's First Ever Euro 5 Hi-Octane Fuel by PSO!

Coming soon to PSO outlets............

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## ghazi52

*A glimmer of hope
*
Khaleeq Kiani

04 Aug 2020









Enhanced utilisation of LNG terminals will reduce the gas tariff by offering unutilised capacity to private parties. — AFP/File


THE government finally decided last week to auction the unutilised capacity of liquefied natural gas (LNG) terminals that it owns. It decided to allow third-party access (TPA) to private firms to import the product for self-consumption or onward sales to other consumers.

Private companies had been demanding it for a couple of years. At least three firms had already secured licences from the regulator.

The decision coincided with the lowest-ever bid for LNG cargo that state-run Pakistan LNG Ltd (PLL) received from State Oil Company of Azerbaijan Republic (SOCAR). At 5.74 per cent of Brent or $2.2 per million British thermal units (mmBtu), SOCAR’s bid is the lowest since Pakistan entered the LNG business five years ago. None of the traditional traders — Gunvor, Trafigura and PetroChina at 7.84pc, 8.35pc or 10.38pc of Brent, respectively — could even get close to SOCAR.

Both are positive developments. The first decision by the Economic Coordination Committee (ECC) should create a competitive environment. The Ministry of Energy (MoE) had proposed allowing third-party access to LNG terminals to use excess capacity or government-contracted unutilised capacity. The ECC “approved the proposal for selling the unutilised capacity”.

Enhanced utilisation of LNG terminals will reduce the gas tariff by offering unutilised capacity to private parties

The decision comes after a lot of debate among cabinet members as public-sector companies were reluctant to give up their monopoly and, to some extent, because of faulty supply-chain agreements. The discussion in the cabinet focused on revenue sharing while maintaining the priority rights of the government on the use of contracted capacity. The sale of unutilised government-contracted capacity has a direct bearing on excess capacity.

The second development – the low bid for LNG cargo – apparently is a message that Pakistan needs to reach out to the owners/source of LNG like SOCAR or any other producer/supplier from source countries like Australia, Malaysia, Qatar or the United States to secure a better deal that may be easier in the private sector.

This comes at a time that a long-term agreement with Gunvor at a higher price of 13.37pc of Brent is due to expire in January 2021 followed by another having a price of 11.62pc of Brent in 2022. The public-sector companies now want to have service charges on private-sector imports for processing and transportation etc.

According to the MoE, at present two LNG regasification terminals are operational in the country with the total physical capacity of first and second terminals of 690 million cubic feet per day (mmcfd) and 750mmcfd, respectively. For the first terminal, SSGC has contracted the regasification capacity of 630mmcfd with a peak capacity of 690mmcfd on the best-effort basis as and when required and is utilising it fully through PSO-contracted term cargoes. At the first terminal, the sponsor (Engro) is in the process of replacing the floating storage and regasification unit (FSRU) with a bigger ship and will create private excess capacity later this year.

For the second terminal, Pakistan LNG Terminals Ltd (PLTL) has a contracted capacity of 600mmcfd with the peak capacity of 690mmcfd on a reasonable endeavour basis as and when required. At this terminal, PLL is importing two LNG cargoes per month (nearly 200mmcfd) on a term contract basis whereas additional LNG imports are made through spot tenders to meet gas requirements in the country.

The second terminal is underutilised with the average utilisation of nearly 62pc and 51pc in 2018-19 and 2019-20, respectively, with the drop in the last year being on account of Covid-19. In March 2021, RLNG supply of 150mmcfd to K-Electric will begin on a firm basis and the utilisation will go above 70pc.

Due to the underutilization of the second terminal, the regasification tariff works out at the higher level of $0.6159 per mmBtu and $0.7273 per mmBtu in 2018-19 and 2019-20, respectively, against the levelised contracted tariff of $0.4177 per mmBtu had the terminal operated at 600mmcfd. The resultant higher terminal tariff caused an additional burden of $32.5m and $43.2m in 2018-19 and 2019-20, respectively. That was shifted to the consumers of RLNG in the form of higher gas prices.

This called for enhanced utilisation of LNG terminals to reduce the tariff by offering unutilised capacity to private parties. The MoE advocated offering the unutilised government-owned terminal capacity to private parties on a short-term (three-month) forward visibility basis as the most viable option keeping in mind the increasing utilisation by the government itself. This will mean the government will continue to have priority rights of terminal utilisation and maintain operational flexibility.

The MoE, however, fears that TPA could result in some bulk consumers shifting to private suppliers, thus increasing the take-or-pay risk for the government on account of three mega power projects. Hence, it is reluctant to make a long-term commitment with the private sector for unutilised terminal capacity.

Various private parties have expressed their interest in availing unutilised government-contracted capacity at the second terminal. All interested parties having the necessary regulatory authorisation and contractual arrangements will be given access to the available unutilised terminal capacity. Under this TPA framework, private parties will import LNG. The relevant state entity will only provide regasification services and deliver RLNG at the combined terminal station to the importing private parties on the Ogra-determined tariff.

TPA arrangements for excess and unutilised capacity will be exercised through an agreement between the stakeholders on the storage and handling of comingled cargoes and will be administered by Ogra until the promulgation of TPA Rules for LNG terminals. This capacity will be offered to private parties through auction and, in case the total requirement of all eligible interested parties exceeds the total offered capacity, the capacity will be allocated proportionally.

Moreover, the Power Division and the Ministry of Industries will be required to firm up their RLNG requirements at least six months in advance on a recurring basis, enabling state entities to assess unutilised capacity and seek the private sector’s interest in it. That has been a major challenge.

The inability of the Power Division to accurately forecast its LNG demand has been resulting in oversupplies of gas amid low power demand and gas shortages amid peak power demand, exposing gas companies to heavy liabilities and safety challenges. That is where the government will have to put its house in order.

_Published in Dawn, The Business and Finance Weekly, August 4th, 2020_

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## ghazi52



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## ghazi52

*SARA Pakistan’ Energy policy set to unveil!*

You may be wondering what is S.A.R.A (Sustainable, Affordable, Responsible, Available)

The key features are as follows;

1- All LNG terminals will be privatised

2- Anyone can import LNG and government will charge rent to transport gas through its pipeline

3- This is to break monopoly of existing LNG companies and price competitiveness

4- Euro 5 petrol only can be allowed to import from September 1st

5- Euro 5 Diesel only allowed to import from January 1st

6- Refineries will be allowed to produce Euro 2 till up-gradation

7- Refineries will be given incentives to upgrade

8- Massive auction of oil blocks. 20 blocks auction in September

9- Another 20 blocks to be auction next year

10- LPG policy will be released in next 10-15 days. To make fuel cheap and competitive

The government has decided to make energy market competitive and import dependence lower. Exciting time ahead. Stay tune with energy sector investments.

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## ghazi52

New gas reserves discovered in Ghotki Sindh


- According to a statement issued by Mari Petroleum Company, the company has discovered new gas reserves at Ghotki district.

This is the sixth consecutive gas discovery by Mari Petroleum Company in the area. According to preliminary results, the well produces 3.1 million standard cubic feet gas per day.

Mari Petroleum Company statement added the well was drilled down to a depth of 1,250 metres. According to experts, the discovery of this new gas reserve will help meet the gas demand in the country.

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## ghazi52

*Gov’t plans to start ‘physical work’ on PARCO coastal refinery before next summer*

August 26, 2020 

News Desk








The Petroleum Division is planning to start ‘physical work’ on the much-delayed Pakistan Arab Refinery Company (PARCO) Coastal Refinery before the next summer to achieve self-reliance in the oil production sector.
“All formalities including the refinery’s design, licensing, engineering work, sizing and product-slab have been completed. Hopefully the physical work on seven- billion dollar project will start before next summer after its formal groundbreaking,” a senior official privy to petroleum sector developments told APP.
The refinery project, which was approved in October 2007 but remained suspended due to paucity of funds, would have the capacity to refine 250,000 barrels oil per day, equal to 13 million tons of petroleum products per annum.
The official said the Petroleum Division had completed all the necessary requirements to upgrade the other four existing oil refineries operating in the country, terming the coastal refinery ‘biggest project’ of the country
The refinery would be set up at Lasbela district of Balochistan province where the federal government had allocated 1,811 acres (7.3 km2) land for the project.
According to an official report, currently as many as five refineries are operating in the country with overall installed capacity of 417,400 barrel per day (BPD) oil and contributing significantly in meeting the petroleum needs through indigenous production.
Out of which, Pak Arab Refinery Limited (PARCO) has 100,000 BPD oil refining capacity, Attock Refinery Limited (ARL) 53,400 BPD, Byco Petroleum Pakistan Limited (Byco) 150,000 BPD, National Refinery Limited (NRL) 64,000 BPD and Pakistan Refinery Limited 50,000 BPD.
During the last fiscal year, the petrol consumption in the country stood at 7.6 MTs per annum, out of which 30 percent was being catered from local refineries and rest was being imported to meet the national demand.
Similarly, the consumption of diesel was around 7.3 MTs/annum. The local production could meet 65 percent of the total demand, while rest was being imported.
At present, thirty Oil Marketing Companies (OMCs) including Pakistan State Oil Company Limited (PSOCL), Shell Pakistan Limited (SPL), Total Parco Pakistan Limited (TPPL), Attock Petroleum Limited (APL), Gas & Oil Pakistan Private Limited (GOPPL) and Hascol Storage Limited (HPL) are operating in the country.
Among these OMCs, PSO leads with an overall market share of 42.5 percent, followed by APL with 10.9 percent, TPPL 10.3 percent, HPL 9.8 percent and SPL 8.3 percent.
OMCs receive, store and distribute the petroleum products in the country by utilizing their supply arrangements and infrastructure, comprising of their installations, storage depots, oil pipelines and retail outlets.
The bulk of 19.68 million tons of petroleum products required by the Pakistan’s market is transported by road (around 74 percent), Oil pipelines (24.4 percent) and Railways (1.5 percent).

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## ghazi52

*
Pakistan, Russia likely to decide fate of 1,100km North South Gas Pipeline next month*

Pakistan and Russia may take important decisions during the next month for the transportation of Regasified Liquefied Natural Gas (RLNG) from #Karachi to #Lahore by setting up a 1,100 kilometer (km) North South Gas Pipeline (NSGP).

A decisive meeting between Pakistan and officials from the Russian Federation is likely to be held during September 2020. The meeting will take important decisions regarding the NSGP project.

An agreement for the construction of the NSGP can possibly be inked between the two countries if Russia accepts Pakistan’s proposal to reduce the cost of the project and awards the project to Gazprom, a Russian energy company, in partnership with Pakistani companies

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## ghazi52



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## ali_raza

ghazi52 said:


> This is going on for the last ten years, lot of work has been done, it is PARCO project, UAE has 49% share, only now they are putting money.


as usual pakistani government is at fault 
land is the issue

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## ghazi52

https://www.thenews.com.pk/writer/khalid-mustafa




*North-South Gas Pipeline: Pakistan accepts latest structure headed by ETK*


September 1, 2020










ISLAMABAD: In a major development, Pakistan has finally accepted the latest structure headed by the ETK earlier extended by the Russian government paving way for starting work on construction of the much-touted North-South Gas Pipeline Project (NSGPP).

The project will pave way for increased Pak-Russia strategic partnership in more sectors of economy. “All the stakeholders of the State of Pakistan including the ‘powerful circles’ have given go-ahead to the new structure, which is why the Petroleum Division has vigorously started working on the project,” a senior official of the Energy Ministry told The News.

The government wants to increase the scope of capacity and design of the project to transport 1.6 billion cubic feet gas per day (bcfd) as earlier it was proposed with the capacity to transport 1.2bcfd.

In the years to come such project with capacity to transport 1.2 bcfd RLNG will not be enough to cater to future gas demands which is why the authorities concerned are mulling over increasing the capacity of the proposed 11,00 kilometers North-South Gas Pipeline Project to transport 1.6 bcfd RLNG.

Though Pakistan took over four and a half years in finalizing the structure, it has ensured that the companies involved in the structure are not blacklisted and have the requisite experience of laying down such a mega pipeline.

More importantly, the Russian Energy Ministry has its state-owned company in the new structure, as the project will be executed under the government-to-government agreement. The ETK company has the experience to lay down 4,000-kilometer pipelines and rich expertise in supplying the related equipment. To a question, he said Russia was the only country in the world, which had the biggest network of pipelines.

“We have carried out strict and detailed due diligence of the latest structure independently and after getting satisfied we have approved the new structure and now Pakistan and Russia will initiate talks in September for monitoring and implementation of the project,’’ the official said.

‘’We want to initiate the project as soon as possible particularly keeping in view the recent judgment of the Supreme Court on Gas Infrastructure Development Cess (GIDC) on August 13.’’

As per the proceedings of the Apex Court on GIDC, the Finance Division had given an undertaking that Rs295 billion amount in the head of GIDC was lying with it and in case of cash call from the Petroleum Division, it will release the said amount and over Rs417 billion is to be collected from various sector of economy in 24 installments. The Petroleum Division has geared up its efforts to collect the said amount. Under the new scenario, the government feels itself in a comfort zone with regard to the availability of liquidity on account of undertaking given by the Finance Division in the Supreme Court.

“Now we have the option to increase the volume of Pakistan’s equity in the proposed North-South Gas Pipeline to reduce returns to Russian companies and currently many options are under review on how to advance on the project with Russian counterparts. Before the SC judgment on GIDC, Russian companies were not only supposed to provide financing, but also the technical assistance, pipeline and compressors. Now with the liquidity and the scene has changed.”

The senior official said the Petroleum Division had proposed 7th meeting of Pakistan Russian Joint Coordination Committee for implementation of the project in the last week of September to finalize a way forward on how to advance on the project along with the commercial agreement. Spokesman for the Petroleum Division, however, skipped the question if Pakistan had accepted the latest structure but responded saying that in view of the Supreme Court judgment on GIDC, the Petroleum Division intends maximum utilization of GIDC for the North South gas pipeline.

The Petroleum Division looks forward to technical cooperation with the Russian government on building the pipeline. Therefore, it has proposed to the Russian Ministry of Energy for a meeting in September to discuss the project structure and informed that project implementation is required to be done at the earliest. The project currently envisages supply of 1.2 bcfd over 1100km from Karachi to Lahore.











North-South Gas Pipeline: Pakistan accepts latest structure headed by ETK


ISLAMABAD: In a major development, Pakistan has finally accepted the latest structure headed by the ETK earlier extended by the Russian government paving way for starting work on construction of the...




www.thenews.com.pk

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## ghazi52

*The case for the private import of LNG*

Energy alternatives need to be considered dynamically to optimise commercial efficacy


Ibtisam Ahmed
September 03, 2020





*Pakistan’s natural gas demand-supply gap, currently at 1,440 MMCFD, is projected to rise to 3,684 MMCFD by 2024-25 and 5,389 MMCFD by 2029-30. For a country that relies on indigenous and imported gas for more than 40% of its energy requirements, this is an alarming situation. And it has been here for some time now. In fact, the country’s industrial sector has been reeling from the constraint for the better part of this decade as even with the induction of imported RLNG in 2015 the country is far from overcoming its energy woes.*


This industrial bottleneck has also had a profoundly adverse impact on the country’s export-oriented industries and, consequently, on its external account. But despite the incumbent government’s overwhelming focus on correcting the current account deficit (CAD) and growing exports, avenues of bridging this energy gap remain underexplored due to ineffective decision-making structures and non-existent employment of across the board cost-benefit comparisons. 
The country’s industrial sector has been operating below capacity for some time now, but opportunities to optimise production and consequently exports, in the wake of historically low energy prices, have been woefully underutilised. RLNG prices plummeting to $2/MMBTU presented the country’s industry with an extraordinary opportunity, but not only were the private importers not allowed to jump in until prices had rebounded higher, the subsequent go-ahead remains ineffective due to the monopolisation of state-owned enterprises.

The country currently has two LNG terminals with capacities of 690 MMCFD and 750 MMCFD. The second terminal remains underutilised with 62% and 51% utilisation in FY19 and FY20, respectively. Private usage of this idle capacity seems to be a no-brainer as it would not only, in the prevailing price scenario, provide a cheaper source of energy for many industrial users and therefore help in enhancing their export competitiveness, but it will also allow indigenous gas to be diverted to uses it is more suited for and reduce the probability of gas shortage for domestic consumers.


Despite the spot price rebounding from around $2 in April, the current price still enables feasible induction into several industrial uses. In fact, in the prevailing price scenario, the move could open up avenues of coveted foreign exchange earnings, including through unconventional commodities like Urea as RLNG (after accounting for averaged relevant T&D costs) comes up to, at a $4 spot price, around PKR915/MMBTU, cheaper than PKR1021/MMBTU that the fertiliser sector currently pays for its fuel gas and which is marked for an upward revision. At a $2 spot price, the cost would have been reduced to PKR575/MMBTU, which would have been even cheaper than the subsidised RLNG feedstock price designated for two companies at PKR756/MMBTU. 
With the country’s domestic Urea demand projected to fall short of production capacity by 0.6-0.8 million tonnes in 2020, the surplus could have translated into a foreign exchange earning to the tune of USD125-170mn. A substantial differential, especially when put into context of the commemorative reception of a USD424mn surplus in July 2020 and the FY20 CAD coming up to USD2.96bn.
The regulatory framework, however, prevents the private sector from exploiting such opportunities. Even without the projected fall in domestic demand, the import structure has created an unnecessary market anomaly, restraining private companies from switching to a low-cost energy alternative. The problem stems from the markedly centralised nature of essentially commercial decision making. The optimum capitalisation of emerging opportunities and pertinent response measures can only be ensured when the regulatory setup allows the decision-making in this regard to be divested to private entities which are exposed to the economic consequences of these decisions. These entities are best placed to make the relevant cost-benefit comparisons and act upon them when it becomes commercially viable.

In the context of RLNG, this becomes even more important because Pakistan remains a highly price-sensitive market. This means that commercial operations on the basis of cost calculations that might seem feasible in the current price scenario might not be so a few months from now. Centralised policymaking seems to make little sense in this context as it usually is quite protracted due to the required on boarding of a long list of regulatory stakeholders taking months if not years to complete, resulting in timelines that make dynamic decision-making impossible.

Moreover, there is also an urgent need to expand the country’s RLNG import capacity, which currently stands at 1440 MMCFD, if the country intends to sustainably curtail its external account deficit. Import restrictions can only help for so long to manage the current account balance and cannot be relied upon indefinitely as they have natural repercussions for the economic growth of the country. In order to balance the management of current account deficits with economic growth targets, 
Pakistan needs to expand its export base which requires investing in its industrial sector and plugging bottlenecks. With the local energy reserves plummeting sharply and hindrances in industrial operations caused by the resulting constraints all too familiar, energy alternatives need to be considered dynamically to optimise commercial efficacy and competitiveness of the domestic industry.

RLNG is already an important alternative with its share in natural gas supplies increasing to 27 percent in FY2018-19 from 24 percent in the preceding year and the trend is expected to sustain. It is also an alternative which can be employed at a relatively shorter timescale than others. Against this backdrop, it has become more important than ever then to prioritise sourcing optimisation, and to ensure that effective decision making and cost-benefit comparisons are allowed for private undertakers.











The case for the private import of LNG | The Express Tribune


Energy alternatives need to be considered dynamically to optimise commercial efficacy




tribune.com.pk

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## ghazi52

The federal government approved 2 new LNG terminals at Port Qasim conditionalising them to NOCs from the defence ministry within 30 days, while the Petroleum Division will allocate the capacity to them in the existing pipeline on first come first served basis.

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## ghazi52

*SNGPL to lay new transmission line to resolve low gas pressure problem*


The Frontier Post
September 18, 2020


PESHAWAR: Sui Northern Gas Pipeline Limited (SNGPL) will lay a new transmission line from Mardan-Charsadda to Peshawar to resolve the problem of low gas pressure on permanent basis.

The project will cost Rs 2.6 billion whereas work on it will start by November this year.

The chief minister was informed that work on a project worth Rs.1.2 billion was underway to resolve the issue of low gas pressure in Rashakai while work on provision of gas to Hattar Economic Zone was also being carried out on war footing.

The meeting was also told that development projects worth billions of in the field of natural gas were in pipeline for Khyber Pakhtunkhwa that would be completed during the tenure of incumbent government.

The Chief Minister while stressing upon the timely completion of ongoing projects directed the authorities concerned for expediting work and assured that provincial government will provide every possible support in this regard. The chief minister also underlined the need to take all possible measures for providing gas facilities to northern areas and other districts of province where facility is not available to public.

He said that by providing the facility of natural gas would stop deforestation in the province. He said the conservation of forests was their collective responsibility.

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## ghazi52

*Pakistan eyes six LNG spot cargoes for Dec to prevent gas shortage*

October 6, 2020

*ISLAMABAD: *In order to meet the gas requirements of the country, Pakistan LNG Limited (PLL) has invited bids for the delivery of six Liquefied Natural Gas (LNG) cargoes to Port Qasim, Karachi, during the month of December.

As per details, PLL has advertised a tender for spot cargo purchases for six delivery windows in the month of December 2020. The quantity for each cargo will be 140,000 cubic meters.

The deadline for submission of bids is November 2, 2020. The bids will be opened the same day at 1230 hours PST as per PPRA rules.

“Pakistan LNG Limited reserves the right to reject all bids prior to the acceptance of a bid or proposal, as per rule 33 of Public Procurement Rules, 2004,” said the PLL advertisement.

According to PLL, the first LNG cargo will be delivered on 3-4 December, second on 8-9 December, third on 13-14 December, fourth on 18-19, fifth on 24-25 while sixth cargo will be delivered on 30-31 December on a Delivered Ex-Ship (DES) basis.

Sources in the gas sector said the demand for gas in the winter season usually goes up in the country due to higher consumption and low supply. However, they added, the gap between demand and supply can be bridged by importing LNG into the country.

“Although Pakistan had earlier inked a long-term agreement with Qatar for the supply of LNG, the incumbent government has been active on the spot market since last August mainly due to a surge in the demand of gas,” an insider informed. “PLL had previously issued tenders for delivery of two LNG cargoes in October and three cargoes in November, while the company has now issued a tender for supply of six LNG cargoes for December 2020.”

PLL is a subsidiary of Government Holding (Private) Limited (GHPL), which is owned by the federal government. The company has the mandate to procure LNG to meet the country’s gas requirements.

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## Blacklight

ghazi52 said:


> *Pakistan eyes six LNG spot cargoes for Dec to prevent gas shortage*
> 
> October 6, 2020
> 
> *ISLAMABAD: *In order to meet the gas requirements of the country, Pakistan LNG Limited (PLL) has invited bids for the delivery of six Liquefied Natural Gas (LNG) cargoes to Port Qasim, Karachi, during the month of December.
> 
> As per details, PLL has advertised a tender for spot cargo purchases for six delivery windows in the month of December 2020. The quantity for each cargo will be 140,000 cubic meters.
> 
> The deadline for submission of bids is November 2, 2020. The bids will be opened the same day at 1230 hours PST as per PPRA rules.
> 
> “Pakistan LNG Limited reserves the right to reject all bids prior to the acceptance of a bid or proposal, as per rule 33 of Public Procurement Rules, 2004,” said the PLL advertisement.
> 
> According to PLL, the first LNG cargo will be delivered on 3-4 December, second on 8-9 December, third on 13-14 December, fourth on 18-19, fifth on 24-25 while sixth cargo will be delivered on 30-31 December on a Delivered Ex-Ship (DES) basis.
> 
> Sources in the gas sector said the demand for gas in the winter season usually goes up in the country due to higher consumption and low supply. However, they added, the gap between demand and supply can be bridged by importing LNG into the country.
> 
> “Although Pakistan had earlier inked a long-term agreement with Qatar for the supply of LNG, the incumbent government has been active on the spot market since last August mainly due to a surge in the demand of gas,” an insider informed. “PLL had previously issued tenders for delivery of two LNG cargoes in October and three cargoes in November, while the company has now issued a tender for supply of six LNG cargoes for December 2020.”
> 
> PLL is a subsidiary of Government Holding (Private) Limited (GHPL), which is owned by the federal government. The company has the mandate to procure LNG to meet the country’s gas requirements.


I seriously hope and pray, that we find and exploit more gas reserves, so everyone can have a comfortable winter.

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## ali_raza

Blacklight said:


> I seriously hope and pray, that we find and exploit more gas reserves, so everyone can have a comfortable winter.


we should drill kekra

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## ghazi52

*PGPL to build LNG terminal by Dec 2021*

Pakistan GasPort Consortium Limited (PGPL) has emphasised that it will complete work on its second liquefied natural gas (LNG) terminal in December 2021.

At present, the company is operating one LNG terminal at Port Qasim, which has a capacity of handling 750 million cubic feet per day (mmcfd). PGPL is a subsidiary of the Associated Group.

In a meeting held this week to discuss the setting up of LNG terminals in Pakistan, the Associated Group chairman reaffirmed that the project would be completed by the end of next year. He added that the company would do so by seeking pipeline capacity while taking risk.

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## ghazi52

https://www.thenews.com.pk/writer/khalid-mustafa

October 14, 2020

*Two RLNG pipelines from south to north will be built: ISGS MD*










ISLAMABAD: In a new development, the government has decided to build with GIDC (Gas Infrastructure Development Cess) funds two RLNG pipelines, each with capacity to transfer 1.6 bcfd (billion cubic feet gas per day), with diameter of 56 inches. The country is going to have more LNG terminals on private-to-private business model in the next three years time, with total capacity to re-gasify three billion cubic feet gas per day. The government will not extend any sovereign guarantee for offtake of gas from the upcoming LNG terminals.

So much so, the government has also made up its mind to acquire the land for the two gas pipelines, each with 1,100 kilometers length to be laid down from south to north. The second gas pipeline will be built, may be in venture with Russia or China or the country’s gas companies may build on their own, Ms Saira Najeeb, Managing Director of Inter-State Gas System (ISGS), divulged to The News in an interaction here on Tuesday.

Apart from it, she said, the government will also provide financing from GIDC Fund for the project to build gas storages in the upstream country and to this effect, the Asian Development (ADB) has been engaged for the feasibility report about the gas storages project.

She said that international and local companies that include Energas Terminals Pvt. Ltd, Engro Elengy Terminal Ltd, ExxonMobile Pakistan Pvt. Ltd, Mitsubishi Corporation, Pakistan Gas Port Consortium Limited, Tabeer Energy Private Limited have intimated the government in a meeting held on October 7, 2020 in the Petroleum Division that they will import and transfer 3 bcfd to the country once their LNG terminals come onstream. "This is the main reason for building the two RLNG pipelines."

The said LNG terminals will transport the gas to consumers through the said pipelines and the government will earn from the assets of pipelines through the transportation cost tariff. In addition, the government will also build gas storages in the country.

“We are currently internally discussing three scenarios on cost estimates, keeping in view the gas line of 1.2 bcfd with 42 inches diameter and pipeline of 1.6 bcfd with 48 inches or 56 inches diameters respectively. 

Nothing has been finalized so far but the gas pipeline with 56 inches diameter having capacity of 1.6 bcfd is more economical for the country. The cost of the NSGPP will be determined once the Russian side is taken on board. Keeping in view the undertaking of the said six companies, which are set to install LNG terminals on private-to-private business model that they will re-gasify LNG of 3 bcfd and inject into the country’s system on long term basis, the two RLNG gas pipelines are required."

Coming to the North-South Gas Pipeline Project (NSGPP) that got delayed by five years, she said that the current set-up in the Petroleum Division is quite serious towards the project and the government is at present hectically engaged with the Russian government under GtoG arrangement and after the SC judgment on GIDC, it wants to keep its equity at 51 percent and the Russian side has been offered equity of 49 percent.

“We are in touch with the Russian government and asked it to notify their technical team and more importantly we have invited them to come to Pakistan and sign the commercial agreement apart from giving their input for amending the IGA (Inter-government Agreement) accordingly.”

Earlier, Russia was to build the project with its financing but after the SC judgment on GIDC, the scenario has changed. “Now we have to advance on the NSGPP with GIDC amount available with the Finance Division and to this effect, the government has decided to make NSGPP Assignment Account in which the Finance Division will deposit the amount of GIDC on yearly basis as per the demand of Petroleum Division, which will be submitted to the Finance Division with the pace on work on NSGPP project."

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## ghazi52

Pakistan has decided to open up the liquefied natural gas (LNG) market for the private sector from next month in a bid to reduce financial risks for the government and enhance gas supply to minimise shortage in the winter season.

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## ghazi52

*
RLNG pipelines from south to north will be built: ISGS MD*

In a new development, the government has decided to build with GIDC (Gas Infrastructure Development Cess) funds two RLNG pipelines, each with capacity to transfer 1.6 bcfd (billion cubic feet gas per day), with diameter of 56 inches.

The country is going to have more LNG terminals on private-to-private business model in the next three years time, with total capacity to re-gasify three billion cubic feet gas per day. The government will not extend any sovereign guarantee for offtake of gas from the upcoming LNG terminals.

So much so, the government has also made up its mind to acquire the land for the two gas pipelines, each with 1,100 kilometers length to be laid down from south to north.

The second gas pipeline will be built, may be in venture with Russia or China or the country’s gas companies may build on their own, Ms Saira Najeeb, Managing Director of Inter-State Gas System (ISGS), divulged to The News in an interaction here on Tuesday

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## ghazi52

Pakistan and Russia have signed a revised deal to lay the North-South Gas Pipeline, now renamed the Pakistan Stream Gas Pipeline due to Islamabad’s major shareholding.

The two sides have also agreed, in principle, to execute the project through a special purpose company, which would be incorporated in Pakistan.

They also held discussions aimed at finalising the broad contours and parameters of the project involving the construction of a high-pressure gas transmission pipeline from Port Qasim to Kasur for transportation of RLNG towards the northern side of the country in order to fulfil the gas shortage emanating from growing industrial demands and domestic consumers.

Earlier, Russia had to build the pipeline, own, operate, and transfer its ownership to Pakistan after 25 years. Russia had also to make 85pc of the required expenditure on the project whereas Pakistan had to spend 15pc of the capital.

In the revised model, Pakistan has money on account of gas infrastructure development cess (GIDC) and, therefore, it would contribute 74pc of the capital and Russia will make 26pc of the expenditure. However, Russia will provide all importable material for the pipeline.

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## ghazi52

*Work on 1,100km gas pipeline to start in July next year: SAPM*

Special Assistant to the Prime Minister on Petroleum Nadeem Babar has said that construction work on the 1,100-kilometre Pakistan Stream Gas Pipeline Project will begin in July next year to transport liquefied natural gas (LNG) from Karachi to Lahore.


In an interview, Nadeem Babar said that Pakistan will have a majority share of 51pc to 74pc in the project, while Russia will own the remainder. He said that Pakistan’s gas distribution companies will be a part of the project, whereas a Russian consortium would lead the construction.

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## ghazi52



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## Azure

Construction of Pakistan’s first private sector LNG terminal to start in Jan
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APP

ISLAMABAD: After the government opened up the energy sector under its ‘ease of doing business’ strategy, a multinational company will start construction on the first merchant Liquefied Natural Gas (LNG) terminal in the country by end of January 2021.

“A vibrant structural framework is very much in place under which construction work on the first private sector LNG terminal will start by end of the January, whereas physical work on another merchant terminal will commence in second half of the year,” a senior official privy to the development told APP.

According to the officials, the Oil and Gas Regulatory Authority (OGRA) will issue the construction licence within a day or two, while all other agreements, permissions and arrangements have almost been finalised.

After setting up the terminals, the companies would import and sell the commodity on their own without any involvement of the government except in regulation matters.

It may be noted that the country’s existing natural gas reservoirs are depleting fast at a rate of 9.5 per cent per annum. LNG is the only available instant remedy to bridge the increased gap between demand and supply.

Currently, Pakistan’s indigenous gas production is around 3.7 Billion Cubic Feet per day (BCFD) against the demand of 6 BCFD.

According to a recent report by OGRA, the gap between demand and supply of gas could increase by 5,389 Million Cubic Feet per day (MMCFD) by 2029-30.










Construction of Pakistan’s first private sector LNG terminal to start in Jan


ISLAMABAD: After the government opened up the energy sector under its ‘ease of doing business’ strategy, a multinational company will start construction on the first merchant Liquefied Natural Gas




profit.pakistantoday.com.pk

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## ghazi52



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## ghazi52

*
OGDCL discovers Gas & Condensate reserves in KP*

Based on open hole logs data, the well was tested at a rate of 1.6 Milion Standard Cubic Feet per Day (MMSCFD) of gas and 12 Barrels per day (BPD) of condensate through 32/64" choke at Well Head Flowing Pressure of 190 Pounds per square inch (PSI) from Samanasuk Formation.
⁨
The Joint Venture of Baratai Block comprising Oil and Gas Development Company Limited (OGDCL) as operator (97.5 percent) and Khyber Pakhtunkhwa Oil & Gas Company Limited (KPOGCL) (2.5pc) has discovered gas and condensate from its exploratory Well Siab-1, which is located in District Kohat, Khyber Pakhtunkhwa Province.

As per OGDCL, the structure of Siab-1 was drilled and tested using OGDCL's in house expertise. The well was drilled down to the depth of 5500 Meters.

Based on open hole logs data, the well was tested at a rate of 1.6 Milion Standard Cubic Feet per Day (MMSCFD) of gas and 12 Barrels per day (BPD) of condensate through 32/64" choke at Well Head Flowing Pressure of 190 Pounds per square inch (PSI) from Samanasuk Formation.
One more zone in "Lumshiwal/Hangu" formation has been tested at 4.18 Million Standard Cubic Feet per Day (MMSCFD) of Gas and 32 Barrels Per Day of condensate through choke size 32/64" at wellhead flowing pressure of 387 Pounds Per Square (Psi).


The discovery of Siab-1 is the result of the aggressive exploration strategy adopted by the company said OGDCL. It has opened a new avenue and would add to the hydrocarbon reserves base of OGDCL, KPOGCL and of the country and will contribute in reducing the gap between supply and demand of oil and gas in the country through the exploitation of indigenous resources.

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## ghazi52

*KE gets nod to construct gas pipeline*

Company will receive gas supply via new pipeline at its RLNG-fired power plant at Bin Qasim


Salman Siddiqu
January 08, 2021








The Oil and Gas Regulatory Authority (Ogra) has allowed K-Electric to construct and operate a short distance pipeline to receive gas supplies for its forthcoming RLNG-fired 900-megawatt power plant at Bin Qasim from state-owned Pakistan LNG Limited (PLL) this year.

PLL would supply 150 million cubic feet of gas per day (mmcfd) through the dedicated pipeline to the Karachi-based power firm via Sui Southern Gas Company’s (SSGC) infrastructure.

The pipeline would be capable of transporting up to 250 mmcfd of gas. The supplies would be in addition to the ones that are being received by K-Electric from SSGC for a long time. The two companies are fighting a case in court to settle dues worth billions of rupees to be paid by K-Electric to SSGC.

“K-Electric is liable to lay the pipeline, which will handle up to 250 (mmscfd) of RLNG supply,” Ogra said in its decision while awarding the licence to K-Electric to construct and operate the pipeline.

A K-Electric spokesperson said that the company aimed to complete the construction of 2.4km-long pipeline in the vicinity of Bin Qasim by March-April 2021 so that one of the two 450MW RLNG-based power plants could be made operational by the forthcoming summer season.

K-Electric is expected to lay the pipeline at a cost of $4 million, while the two RLNG-based power plants of 450MW each are being set up at a cost of $651 million, according to Ogra. SSGC managing director, while speaking at a public hearing conducted by Ogra before the award of licence to K-Electric, said that the power company was a major defaulter of SSGC.

The total receivable amount as of September 30, 2020 stood at Rs115.91 billion (including Rs82.26 billion in late payment surcharge from July 2012 to July 2020. If K-Electric is allowed to lay and operate the pipeline, then it is likely that the power company would never pay off the outstanding balance to SSGC as it will no longer require SSGC’s supplies, said Ogra.

K-Electric representatives clarified at the hearing that the outstanding gas bill/ arrears mainly pertain to the late payment surcharge and the same is under litigation before the Sindh High Court.

“Heads of agreement with Pakistan LNG Limited for supply of 150 mmcfd of gas to BQPS-III (900MW RLNG-run) has already been signed,” said a K-Electric press statement.

“Subsequent to this, negotiations on the gas sale agreement (GSA) have reached advanced stage and potential hurdles need to be resolved as per past commitments by the Cabinet Committee on Energy (CCOE).”

“CCOE approved 150 mmcfd of RLNG supply to K-Electric while legacy issues (including the pending gas sale agreement) between SSGC and K-Electric were still prevailing…,” according to the Ogra licence order.
K-Electric said the 2.4km pipeline would be laid from Tie-in Point, SSGC Custody Transfer Station located at Bin Qasim, to K-Electric Bin Qasim Power Complex. The RLNG projects would help bridge the power company’s supply-demand gap in Karachi in the years to come.

“The addition of the 900MW RLNG power plant along with proposed decommissioning of older and lesser efficient units will ultimately increase the power utility’s generation capacity and lead to improved service delivery,” said K-Electric.

Gas turbines and steam generators have arrived. The second unit of 450MW can be brought online by the end of 2021, it said.


_Published in The Express Tribune, January 8th, 2021._

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## ghazi52

*Dual White Oil Pipeline in testing phase, to be operational soon*







https://nation.com.pk/NewsSource/app
*APP*
February 19, 2021


ISLAMABAD - Petroleum Division has completed dualization of the White Oil Pipeline (WOP), from Karachi to Sheikhupura, for smooth supply of petrol and diesel to oil marketing companies (OMCs) and reducing reliance on traditional mode of transportation through tankers.

“Currently, the pipeline is in testing phase and will be operational soon,” a senior official privy to petroleum sector developments told APP.

The pipeline, he said, that was previously used to move diesel from Karachi to Sheikhupura would be transporting both diesel and petrol in batches after the dualized line was made operational. He said the WOP would be expanded to Peshawar for which a contract had already been awarded to the Frontier Works Organization, which had completed its necessary work.

Hopefully, the practical work on the expansion project would start in the coming months and complete in a period of 18-24 months, he added.

With completion of the project, known as Machike-Tarujabba oil pipeline, the official said all imported diesel and fuel besides local production in the south of the country, would move through the pipeline from Karachi to Peshawar instead of oil lorries.

However, he said, onward distribution from OMCs’ oil depots to petrol pumps would remain intact through tankers.

“It will greatly help reduce traffic congestion, environmental pollution and transportation cost.” Under the project, a 427-kilometer pipeline from Sheikhupura to Peshawar would be laid aimed at ensuring smooth supply chain of petroleum products from Karachi to Peshawar.

The pipeline had been conceived after frequent incidents of oil tankers’ overturn, especially Ahmedpur Sharqiya tragedy in 2017, to ensure safe, efficient and reliable mode of supplying petroleum products across the country. 

The project consists of three sections, including Machike-Chak Pirana (135-km), Chak Pirana-Rawat (117-km) and Rawat-Tarujabba (175-km), which would be capable of transporting dual oil products like High Speed Diesel and Motor Spirit Oil to different depots.

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## ghazi52

*Pakistan LNG import tender: Qatar Petroleum places ‘lowest’ offer*

Reuters 
20 Feb 2021







SINGAPORE: Qatar Petroleum Trading placed the lowest offer for a liquefied natural gas (LNG) cargo, which Pakistan LNG was seeking for delivery in April, according to a notice on Pakistan LNG's website.

QP Trading placed the lowest offer among five other companies, at a slope rate of 10.025% against Brent crude oil for a cargo to be delivered over April 9 to 10. The prices are expressed as a "slope" of crude oil prices, a percentage of the Brent crude price, and are typically a pointer for the opaque spot LNG market.


The other companies that participated in the tender are PetroChina International, Gunvor Singapore, POSCO International, DXT Commodities and Total Gas & Power, according to the document. They had placed offers ranging from 10.5678% to 11.8566% slope to Brent.

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## ghazi52

*Pakistan to save $300mn annually from Qatar LNG deal: *


Prime Minister Imran Khan on Friday celebrated the signing of a new LNG deal with Qatar which he said will result in substantial savings for the exchequer.

Pakistan will save $3bn in 10 years from LNG deal with Qatar, says PM Imran Khan
Central Business District project to generate wealth for Pakistan: PM Imran Khan
Pakistan can generate Rs6,000bn in revenue from these commercial projects: PM

Prime Minister Imran Khan on Friday revealed that Pakistan had signed a deal related to the supply of the Liquefied Natural Gas (LNG) which would help save the nation $300mn annually.

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## ghazi52

*$15bn oil refining investment: It’s waiting in the wings*

Mushtaq Ghumman 
21 Mar 2021









ISLAMABAD: Ministry of Energy (MoE) is reportedly preparing a new oil refining and marketing policy as $15 billion new investment is said to be waiting in the wings, well-informed sources told Business Recorder.

The issue of existing refineries is very serious as they faced financial losses of approximately Rs 50 billion during the last two years.

Refineries faced inventory losses due to rupee devaluation and then Covid-19 put additional financial pressure on them. Presently, the margins of refineries remain negative.

The government wants that refineries should upgrade themselves, which needs to be done, but for this purpose, an investment of $ 6-7 billion is required so that they can make products of Euro-V fuel.

During the visit of Saudi Crown Prince Muhammad Bin Salman, it was announced that Aramco will establish a refinery and a petrochemical plant in Pakistan with an investment of $ 10 billion. Likewise, PARCO announced it would establish a coal refinery but both have linked their investment to a new refinery policy.

The existing five refineries have capacity of 417,400 Barrels Per Day (BPD), of which Pak Arab Refinery Limited (PARCO) has 100,000 BPD oil refining capacity, Attock Refinery Limited (ARL) 53,400 BPD, Byco Petroleum Pakistan Limited (Byco) 150,000 BPD, National Refinery Limited (NRL) 64,000 BPD and Pakistan Refinery Limited 50,000 BPD.

The present refinery policy was announced and notified in 1997 and not updated during the last two decades.

"Negotiations with the government are in progress on new refinery policy. It will give protection to new investment which is necessary," the sources continued.

An investment of $ 15 billion is envisaged through establishment of two new refineries and upgradation of existing refineries.

"Talks with government are going towards positive direction. Now there is a feeling in the government that energy security is being jeopardized in the absence of a new refinery policy," the sources continued.

The government had prepared a policy in 2020 offering substantial incentives to the investors but the existing refineries rejected the policy and urged the government to review it. Since then refineries are getting incentives under the Refineries and Marketing Policy of 1997.

On the advice and financial difficulties of the local refineries, the Ministry of Energy (Petroleum Division) had formed a ‘Refinery Working Group’ to work out different plans for mitigating refinery losses and formulate a comprehensive policy framework for future refinery expansion and upgrade.

In the refineries policy 2020, the following incentives were offered to the refineries: 

new refinery projects and upgradation and expansion of existing refineries under Category A shall be exempted from the application of the Companies Profit (Workers’ Participation) Act 1968 and the Workers Welfare Fund Ordinance 1971; and exemption from all duties, taxes, surcharges and levies on import, by the refinery project, its contractors or any other person, of all machinery, vehicles, plant and equipment, other materials and spares and consumables for setting up of operation, maintenance and repair of the refinery.

A number of other incentives were also offered to attract investment.


Copyright Business Recorder, 2021

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## ghazi52

*
Moscow is Offering LNG to Pakistan: *

Moscow has offered Pakistan LNG supplies, a Russian news outlet reported Russian Foreign Minister, Sergei Lavrov, as saying after talks with his Pakistani counterpart Shah Mehmood Qureshi.

“Some time ago there was a mutual interest in the supply of Russian liquefied natural gas through the Gazprom, Rosneft, and Novatek companies,” the minister said. Adding, “Appropriate proposals have been made, we expect a reaction from our Pakistani partners.”

The minister added that other prospects for Russian-Pakistani energy cooperation were also discussed, in particular the North-South gas pipeline project.

“We have a corresponding intergovernmental agreement of 2015, now some issues are being clarified that will become part of the protocol to this agreement,” the Russian foreign minister said. Adding that as soon as the Pakistani side signs the protocol, it will be possible to start work.
The North-South gas pipeline is supposed to connect the terminals for receiving liquefied gas in the port city of Karachi in the south of Pakistan with Lahore in the north.

Its length will be 1.1 thousand kilometers, and its throughput capacity will be up to 12.4 billion cubic meters of gas per year. The project is being carried out by the Russian company RT – Global Resources, which is part of the state corporation Rostec

© ProPakistani

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## ghazi52

*Byco up-gradation plant of its refinery*


Khaleeq Kiani
April 17, 2021






A Byco container 


ISLAMABAD: Byco Petroleum has started physical work on up-gradation plant of its refinery to convert furnace into Euro-5/6 petrol and diesel and plans to establish two more Single Point Mooring (SPMs) over the next couple of years.

Byco Petroleum Pakistan Ltd (BPPL), which has now been rebranded as Cinergyco Pk Ltd after the replacement of Abraaj as fund manager of Infrastructure & Growth Capital Fund (IGCF), recently has held the groundbreaking of the “Upgrade-1” project recently, BPPL’s chairman Muhammad Wasi Khan told a group of journalists.

Pakistan’s fuel mix has evolved rapidly in the past four years. Till mid-2017, furnace oil or fuel oil was the main feedstock for power plants. This was switched to LNG in October 2017 by the then government ahead of application of IMO-2020 that banned high sulfur furnace oil as bunker fuel with effect from January last year. Suddenly hydro-skimming refineries had no market left for fuel oil and no avenues for export.

A byproduct of making gasoline, diesel and other outputs of hydro-skimming, furnace oil was even exported by Byco in January 2020 to lessen financial losses incurred on it. The plant will clean the diesel and gasoline down to 10ppm of Sulphur to comply with Euro-5/6 standards.

“We have started civil work and delivery of equipment has also been initiated,” he said, adding that as per schedule, Byco has commenced civil works for the installation of Diesel Hydro Desulphurising (DHDS) and Fluid Catalytic Cracking (FCC) unit. The addition of the DHDS and FCC facilities will enable Byco to produce Euro-5/6 compliant diesel and gasoline in Pakistan as per the government’s directive.

The upgrade will enable Byco to reduce production of low value furnace oil and enhance output of high quality products, making them better for the environment as well as more valuable for our business and thereby will boost Byco’s profitability.

Byco refinery is operating at 60pc capacity due to higher production of furnace oil. With conversion plant, its capacity utilisation would reach 100pc.

Responding to a question on new oil refining policy finalised by the government, Mr Khan welcomed the initiative but added that the government should also encourage relocation of used refineries as a better business model as it was difficult for the government to spare funds for $5-10bn worth of brand new refineries. He said large refineries have not come up despite many plans as returns on such large investments were not very attractive.

He said that proposed refinery was good so far as refineries are concerned which are operating now in negative margins due to lower prices of refined products. He urged the government to approve incentives for up-gradation plants. Mr Khan said that Byco’s upgrade project and conversion plant would be completed in 2024.

‘We considered that global oil industry will seek peak time in 2030 but it has witnessed its peak time now, he said, adding that it has started to go down now following other energy resources. The oil prices stood at $100 per barrel before pandemic but it hardly touched $70 per barrel now.

_Published in Dawn, April 17th, 2021_

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## ghazi52

𝐌𝐀𝐂𝐇𝐈𝐊𝐄 ( PUNJAB ) - 𝐓𝐇𝐀𝐋𝐋𝐈𝐀𝐍 - 𝐓𝐀𝐑𝐔𝐉𝐀𝐁𝐁𝐀 ( KP )
(𝐌𝐓𝐓) 𝐖𝐇𝐈𝐓𝐄 𝐎𝐈𝐋 𝐏𝐈𝐏𝐄𝐋𝐈𝐍𝐄 (𝐖𝐎𝐏) 𝐏𝐑𝐎𝐉𝐄𝐂𝐓

447 Kilometers
BOT Base

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## khail007

*Six petroleum exploration blocks awarded to state-run firms*
Khaleeq Kiani Published April 24, 2021 - Updated about 15 hours ago
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The government on Friday awarded six petroleum exploration blocks in Sindh, Balochistan and Punjab to state-run oil and gas exploration and development companies. — Reuters/File
ISLAMABAD: The government on Friday awarded six petroleum exploration blocks in Sindh, Balochistan and Punjab to state-run oil and gas exploration and development companies.
The exploration licences (ELs) and petroleum concession agreements (PCAs) were signed by Petroleum Secretary Mian Asad Hayaud Din and Director General of Petroleum Concessions Abdul Jabbar Memon on behalf of the government and Managing Director of Oil and Gas Development Company Limited (OGDCL) Shahid Saleem Khan, Managing Director of Mari Petroleum Company Limited (MPCL) Faheem Haider and Managing Director of Pakistan Petroleum Limited Moin Raza Khan at a ceremony witnessed by newly appointed Minister for Energy Mohammad Hammad Azhar.
The director-general of Petroleum Concession, Petroleum Division, signed PCAs and ELs over Block No. 3068-6 (Killa Saifullah) and Block No. 3067-7 (Sharan) in Balochistan with OGDCL and MPCL; Block No. 3069-9 (Suleiman-Balochistan) with OGDCL and PPL; and Block No. 2467-17 (Sujawal South) in Sindh, Block No. 3273-5 (Jhelum) and Block No. 3272-16 (Lilla) with OGDCL.
The Petroleum Concession director general reported that the minimum firm work commitment for these blocks was $24.68 million for a period of three years. The companies are obligated to spend a minimum of $30,000 per year in each block on social welfare schemes. The annual social welfare obligation in respect of these six blocks is $180,000.
The Killa Saifullah block covering an area of 2421.96 sq-km is located in Killa Saifullah district, while the Sharan block covering an area of 2497.89 sq-km is situated in Killa Saifullah and Zhob districts. The Suleiman block covering an area of 2172.89 sq-km is located in Musakhel, Zhob, Killa Saifullah and Loralai districts. The Sujawal South block covering an area of 1914.1 sq-km is located in Sujawal district of Sindh. The Jhelum block covering an area of 1524.65 sq-km is located in districts of Jhelum, Gujrat and Mandi Bahauddin, while the Lilla block covering an area of 2361.12 sq-km is situated in Chakwal, Jhelum and Khushab districts.
OGDCL is a public limited company engaged in exploration and production (E&P) activities in the country for the last four decades. The company holds the largest share of 41 per cent in oil and 36pc in gas out of the total reserves in the country. Its percentage share of total oil and gas production in Pakistan is 47pc and 29pc, respectively. OGDCL is the operator of 41 exploration licences and working interest owner in six other exploration blocks operated by various E&P companies.
OGDCL is currently producing 35,805 barrel of oil per day (bopd) of oil, 1,012 million cubic feet per day (mmcfd) of gas, 761 tonnes of LPG and 53 tonnes of sulphur per day.
PPL is also a public limited company engaged in exploration and production activities in the country. It is Pakistan’s oldest and largest E&P company incorporated in 1950. Its percentage share of total oil and gas production in Pakistan is 13pc and 19pc, respectively. PPL is the operator in 26 exploration licences and working interest owner in 17 other exploration blocks operated by various E&P companies. PPL is currently producing 10,076bopd of Oil, 673mmcfd of gas and 238 million tonnes of LPG.
MPCL is primarily an exploration and production company in the upstream segment of the petroleum industry. Its principal business activities include oil and gas exploration, drilling, field development, production and distribution of hydrocarbons (including natural gas, crude oil, condensate and LPG) as well as provision of E&P-related services on a commercial basis.
Mari Petroleum is an integrated exploration and production company currently managing and operating Pakistan’s largest gas reservoir at Mari gas field in Daharki, Sindh. MPCL is the second-largest gas producer in the country with 753mmcfd gas and 1,722bopd oil. MPCL is the operator in six development and production leases, 11 exploration licences and working interest owner in seven other exploration blocks operated by various E&P companies.
The energy minister expressed the hope that licences would benefit the country in the form of additional hydrocarbon reserves over the next few years. He said the execution of ELs and PCAs would not only enhance investment in the petroleum sector but also contribute to bridging the gap between demand and supply of energy in the country.

https://www.dawn.com/news/1619982/six-petroleum-exploration-blocks-awarded-to-state-run-firms

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## ghazi52

*Tabeer, Energas get construction licences*

Khaleeq Kiani
Published April 30, 2021







Both companies are stated to have their own customers in the private sector and would arrange LNG imports without any liability to the government.



ISLAMABAD: The Oil & Gas Regulatory Authority (Ogra) has granted construction licences to Tabeer Energy and Energas to start construction of Liquefied Natural Gas (LNG) Receiving Terminals at Port Qasim for import, regasification, storage and supply of LNG to their customers.

The licences would be valid for 15 years. Both companies are stated to have their own customers in the private sector and would arrange LNG imports without any liability to the government by utilising pipeline network of gas utilities which they have not been able to secure so far.

Both these licences are subject to two conditions. They should have implementation agreement with Port Qasim Authority (PQA) for construction of Floating Storage & Regasification Units (FSRU) before the start of construction works. Secondly, they have to sign gas transportation agreements (GTAs) with Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd (SNGPL) for supply of LNG to their customers using the national gas pipeline network.

The regulator which had conducted the public hearing for construction licences on April 18 had already granted 10-year marketing licences to Energas and Tabeer Energy for sale of regasified-liquefied natural gas (RLNG) to their customers.

The licences for construction and establishment of LNG re-gasification terminals including all allied facilities at Port Qasim, Karachi have been issued to Tabeer Energy Private Ltd (TEPL) and Energas Terminal Private Ltd (ETPL) under Ogra Ordiance 2002 and Ogra (LNG) Rules 2007.

The construction licences was a pre-requisite for the two investor groups for taking final investment decisions (FID) on setting up of LNG terminals. Tabeer Terminal has to be located at Chara Chan Waddo, Jhari Creek while Energas at Chara Creek. The licence would allow the developers to set up terminals, purchase LNG supplies, re-gasify it through proposed LNG terminals and supply RLNG to the domestic market and use themselves in their sister companies.

Tabeer Energy — a subsidiary of major global firms led by Mitsubishi of Japan was targeting to make their terminal operational in 24 months after the FID is made based on the issuance of construction license. Energas — a company put together by local business groups expects beginning development works over the next six months with targeted completion in 18 months.

Tabeer’s terminal would take little longer because the company would also have to construct a 24km pipeline including 19km offshore pipeline from Chara Chan Waddo Channel in Jhari Creek where the terminal will be put up.

The terminal will have tie-in facility with Sui Southern Gas Pipeline network at Port Qasim. It will have 750-1000 million cubic feet per day (mmcfd) capacity for which Mitsubishi led consortium had their own gas customers including a spare portion for other private customers. Tabeer plans to supply about 500 mmcfd RLNG each to Northern and Southern pipeline networks.

Both companies are currently in talks with SSGCL and SNGPL for gas transportation agreement but have been struggling to secure pipeline capacity. Without allocation of 300-500mmcfd of pipeline capacity, no terminal can become commercially viable which has to go up overtime with the implementation of proposed North-South Pipeline being undertaken by the government in collaboration with Russia.

_Published in Dawn, April 30th, 2021_

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## farok84

ghazi52 said:


> *Tabeer, Energas get construction licences*
> 
> Khaleeq Kiani
> Published April 30, 2021
> 
> 
> 
> 
> 
> 
> 
> Both companies are stated to have their own customers in the private sector and would arrange LNG imports without any liability to the government.
> 
> 
> 
> ISLAMABAD: The Oil & Gas Regulatory Authority (Ogra) has granted construction licences to Tabeer Energy and Energas to start construction of Liquefied Natural Gas (LNG) Receiving Terminals at Port Qasim for import, regasification, storage and supply of LNG to their customers.
> 
> The licences would be valid for 15 years. Both companies are stated to have their own customers in the private sector and would arrange LNG imports without any liability to the government by utilising pipeline network of gas utilities which they have not been able to secure so far.
> 
> Both these licences are subject to two conditions. *They should have implementation agreement with Port Qasim Authority (PQA) for construction of Floating Storage & Regasification Units (FSRU) before the start of construction works.* Secondly, they have to sign gas transportation agreements (GTAs) with Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd (SNGPL) for supply of LNG to their customers using the national gas pipeline network.
> 
> The regulator which had conducted the public hearing for construction licences on April 18 had already granted 10-year marketing licences to Energas and Tabeer Energy for sale of regasified-liquefied natural gas (RLNG) to their customers.
> 
> The licences for construction and establishment of LNG re-gasification terminals including all allied facilities at Port Qasim, Karachi have been issued to Tabeer Energy Private Ltd (TEPL) and Energas Terminal Private Ltd (ETPL) under Ogra Ordiance 2002 and Ogra (LNG) Rules 2007.
> 
> The construction licences was a pre-requisite for the two investor groups for taking final investment decisions (FID) on setting up of LNG terminals. Tabeer Terminal has to be located at Chara Chan Waddo, Jhari Creek while Energas at Chara Creek. The licence would allow the developers to set up terminals, purchase LNG supplies, re-gasify it through proposed LNG terminals and supply RLNG to the domestic market and use themselves in their sister companies.
> 
> Tabeer Energy — a subsidiary of major global firms led by Mitsubishi of Japan was targeting to make their terminal operational in 24 months after the FID is made based on the issuance of construction license. Energas — a company put together by local business groups expects beginning development works over the next six months with targeted completion in 18 months.
> 
> Tabeer’s terminal would take little longer because the company would also have to construct a 24km pipeline including 19km offshore pipeline from Chara Chan Waddo Channel in Jhari Creek where the terminal will be put up.
> 
> The terminal will have tie-in facility with Sui Southern Gas Pipeline network at Port Qasim. It will have 750-1000 million cubic feet per day (mmcfd) capacity for which Mitsubishi led consortium had their own gas customers including a spare portion for other private customers. Tabeer plans to supply about 500 mmcfd RLNG each to Northern and Southern pipeline networks.
> 
> Both companies are currently in talks with SSGCL and SNGPL for gas transportation agreement but have been struggling to secure pipeline capacity. Without allocation of 300-500mmcfd of pipeline capacity, no terminal can become commercially viable which has to go up overtime with the implementation of proposed North-South Pipeline being undertaken by the government in collaboration with Russia.
> 
> _Published in Dawn, April 30th, 2021_



Hi,

Rather than FSRUs, government should have given some incentives and pushed for onshore terminals with ample storage capacity. We will be seeing an article like following from the next government's Petroleum minister, if they have not planned any onshore storage facilities, which I believe is the case here.









PML-N govt ruined gas sector by establishing LNG terminals sans storage facilities: Nadeem


SAPM on Petroleum Nadeem Babar said government of PML-N ruined gas sector by setting up two LNG terminals in haste under expensive agreements




www.app.com.pk

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## ghazi52

*Strategic North-South Gas Pipeline:
*
Russia provides Pakistan sanction-free structure for over $2 bn.

Pakistan has since long been seeking from Russia sanction free-structure and pleading not to make ROSTEC, the mother company of RT Global, the part of the project as it is facing sanctions.

At last, Russia has provided Pakistan a sanction-free structure for strategic North-South Gas Pipeline at an estimated cost of over $2 billion and the government is of the view that the construction work is most likely to start somewhere in June-July this year.

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## ghazi52

*Country’s natural gas production in decline*

Aamir Shafaat Khan
May 22, 2021 

KARACHI: Pakistan’s natural gas production currently stands at 3,597mmcfd against the all-time highest flow of 4,126mmcfd recorded in February 2017.

Flows from three major gas fields have depleted since 2017, as Qadirpur fell by 43 per cent to 191mmcfd from 337mmcfd recorded in February 2017; Kandhkot flows plummeted by 37pc to 130mmcfd from 208mmcfd; and Sui flows plunged to 348mmcfd from 444mmcfd during the same period.

The gas production from Nashpa and Makori East fell to 94mmcfd and 79mmcfd, respectively, from 101mmcfd and 87mmcfd — down by seven and eight per cent, respectively.

Analyst Shankar Talreja at Top Line Securities said production from Mari gas field rose by 18pc to 753mmcfd from 641mmcfd, while Uch production rose by three per cent to 436mmcfd from 424mmcfd.

He said that recoverable gas reserves of the country increased by two per cent to 62,964 billion cubic feet (bcf) till December 2020 compared to 62,011bcf in June 2020.

He said the increase was due to upward revision of the gas reserves of Mari’s HRL and Mari Deep by seven and eight per cent, respectively, and induction of five new fields — Baqa, Mangrio, Mamikhel South, Togh and Umair.

_Published in Dawn, May 22nd, 2021_

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## Blacklight

We need to work on renewable energy ASAP, on a war footing!

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## ghazi52

Blacklight said:


> We need to work on renewable energy ASAP, on a war footing!


 For cooking and other industrial use, Pakistan needs lot of gas. LPG, LNG etc.

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## Blacklight

ghazi52 said:


> For cooking and other industrial use, Pakistan needs lot of gas. LPG, LNG etc.


Cheap renewable electricity, is capable of replacing it, to a very great extent.

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## ghazi52

In a major development, Pakistan and Russia are set to formally sign an amended Inter-Governmental Agreement (IGA) for the flagship project of North-South Gas Pipeline (NSGPP) in Moscow today. 

Soon after the formal signing, the pipeline project will be renamed as Pakistan Stream Gas Pipeline (PGSP). The cost of the project has been estimated at $2.25 billion by Pakistani officials, which is not yet finalised by the Russian side. 

Later, the cost will be decided keeping in view the scope of the project, a senior official at the Energy Ministry told The News. “Under the revised IGA, Pakistan will be having the major shareholding with 74 percent stakes in the pipeline of 1,122 kilometers from Karachi (Port Qasim) to Kasur (Punjab). And Russia will have 26 per cent equity.”

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## ghazi52

ISLAMABAD: Pakistan and Russia on Friday signed an inter-government agreement (IGA) to develop Pakistan Stream Gas Pipeline for gas transportation from Karachi to Kasur.

Russian Energy Minister Nikolai Shulginov and Pakistan’s ambassador in Moscow Shafqat Ali Khan signed a protocol on the amendments to the IGA on North-South Gas Pipeline Project in Moscow, according to the Pakistan Embassy in Russia.

As per the protocol, the project has been renamed as “Pakistan Stream Gas Pipeline”.

The pipeline project is a flagship strategic venture between Pakistan and Russia that would strengthen bilateral cooperation.

_Published in Dawn, May 29th, 2021






_

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## ghazi52

Lahore to Peshawar ... 477 KM






Machike is in Sheikhupura, Punjab ..

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## farok84

farok84 said:


> Hi,
> 
> Rather than FSRUs, government should have given some incentives and pushed for onshore terminals with ample storage capacity. We will be seeing an article like following from the next government's Petroleum minister, if they have not planned any onshore storage facilities, which I believe is the case here.
> 
> 
> 
> 
> 
> 
> 
> 
> 
> PML-N govt ruined gas sector by establishing LNG terminals sans storage facilities: Nadeem
> 
> 
> SAPM on Petroleum Nadeem Babar said government of PML-N ruined gas sector by setting up two LNG terminals in haste under expensive agreements
> 
> 
> 
> 
> www.app.com.pk



The government is in a very early stage of discussions for developing above ground storage facilities for LNG, Vopak is a natural first choice, owing to their LPG storage facility at Karachi, with a 80,000+ cubic meters installed capacity. But still an onshore regasification facility would have been much better than leasing of FSRUs, specially when the planned construction time period is 24 months, hopefully it is also in consideration.


__ https://twitter.com/i/web/status/1402884612120928261








Chemical Storage & Handling | engro vopak terminal


Vopak handling, storage & regasification of liquid & gaseous chemicals, Liquefied Petroleum Gas (LPG), petrochemicals and biofuels.




www.engro.com

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## ghazi52

*LNG plants to be free of merit order*

CCOE expected to give exemption to ease pressure on SNGPL pipeline network


Zafar Bhutta 
June 17, 2021







*ISLAMABAD: *The Cabinet Committee on Energy (CCOE) is likely to approve a plan to free liquefied natural gas (LNG)-based power plants from the economic merit order in a bid to ease pressure on a gas utility’s pipeline network, but the move will put an additional burden on gas consumers.

The CCOE has already exempted the LNG-based power plants from 66% guaranteed off take of LNG, triggering financial trouble for gas utility Sui Northern Gas Pipelines Limited (SNGPL) and the power plants.

As the power sector is not willing to take LNG supplies, the public gas utilities are also reluctant to allow the private sector start LNG imports to reduce the financial risk for energy companies.
In the past, SNGPL was put at risk several times and the company was compelled to request Pakistan State Oil (PSO) to curtail LNG supplies to safeguard its pipeline network from excessive gas pressure.

Under the “economic dispatch” mechanism, the primary responsibility of system operator – National Power Construction Corporation (NPCC) - is to achieve the “lowest cost” while ensuring system integrity, security, reliability and quality of supply.

Merit order is a ranking of thermal power plants based on ascending order of specific cost (fuel cost plus variable operation and maintenance cost) per unit of the power plants/units. The merit order is one variable in the economic dispatch process.

Other factors required to be considered by the system operator in the economic dispatch include plant availability, fuel availability, system constraints, take-or-pay fuel contracts, startups/shutdowns, ramping rates, stability reserves, etc.

According to the Grid Code, the operation of power generation facilities according to the merit order is strictly desired under “normal system conditions.” However, when required, subject to the factors discussed, the deviation from the merit order is allowed.

The power sector is a major stakeholder in the re-gasified LNG supply chain. Any disturbances in RLNG supply/demand affect the economic dispatch of power and create high line pack issues in the gas transmission system.

In cases where RLNG supply is below the firm order, the basket price of electricity becomes higher compared to the situation when supply follows demand. The lower supply of RLNG also causes operational constraints and creates system stability issues for the system operator.

On the other hand, the basket price is also affected when the plants are forced to accommodate RLNG oversupply by the gas companies. The take-or-pay contractual arrangements for the three RLNG based power plants specify the minimum fuel offtake requirement of 66% annually as established under the Annual Production Plan.

RLNG offtake lesser than the firm requirement of 66% creates financial liabilities for the power sector, in the form of net proceeds differential on account of diversion of firm RLNG requirement to other industries.

Similarly, non-compliance by SNGPL with the firm RLNG orders leads to liquidated damages, to be collected from the gas utility, for failure to supply the committed RLNG to the power sector, and commercial disputes between government-owned entities under the Power and Petroleum Divisions.

To protect the SNGPL pipeline network from damage, the Power Division has asked the CCOE to allow deviation from the economic merit order on account of operational system constraints, leading to mandatory consumption of RLNG.

It also suggested that the cost of variation in the merit order should be passed on to other gas sector consumers (excluding the power sector). Accordingly, the Power Division will claim the cost of such deviation every month from SNGPL, which will be adjusted within 30 days of such claim.

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## ghazi52

*Saudi Arabia has agreed to restart oil aid to Pakistan*

Saudi Arabia has agreed to restart oil aid to Pakistan worth at least $1.5 billion annually in July, according to officials in Islamabad, as Riyadh works to counter Iran’s influence in the region.
The acrimony between the two long-time allies has eased after Prime Minister Imran Khan met Saudi Crown Prince Mohammed bin Salman in May, according to Financial Time.

News of the oil deal with Pakistan comes as Saudi Arabia embarks on a diplomatic push with the US and Qatar to build a front against Iran, said analysts. Riyadh lifted a three-year blockade of Qatar in January in what experts said was an attempt to curry favour with the newly elected Joe Biden.

Pakistan had shifted closer to Saudi Arabia’s regional rivals Iran and Turkey, which, along with Malaysia, have sought to establish a Muslim bloc to rival the Saudi-led Organisation of Islamic Cooperation.

Khan has developed a strong rapport with President Recep Tayyip Erdogan, encouraging Pakistanis to watch the Turkish historical television series Dirilis Ertugrul (Ertugrul’s Resurrection) for its depiction of Islamic values.

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## ghazi52

*Pakistan Oil and Gas Production. *
Pakistan's oil and gas production remained relatively stagnant in June 2021, averaging over 70,000 barrels of oil per day and around 3400 million standard cubic feet of gas per day.
© Business Recorder

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## ghazi52

*Pakistan gets $4.5 Billion facility for oil LNG imports*

Pakistan has secured a $4.5 billion worth of three-year trade financing facility from Jeddah-based Islamic Trade Corporation (ITFC) to cover import cost of crude, petroleum products and liquefied natural gas (LNG).
A formal financing framework agreement on the arrangement would be signed early next week here. The funds would be utilised under Annual Financing Plan of roughly $1.5bn each. 

This trade financing arrangement is in addition to about $531 million already signed by Ministry of Economic Affairs with Saudi Fund for Development (SFD) for project financing of Mohmand dam, a couple of coal based projects besides a few hydropower projects including two in Azad Kashmir.

The ITFC’s financing would be utilised over three years (2021-23) by Pak-Arab Refinery Ltd (Parco), Pakistan State Oil (PSO) and Pakistan LNG Ltd (PLL) for import of crude oil, refined petroleum products and LNG and help augment the country’s foreign currency reserves and provide resources to meet the oil import bill.

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## farok84

*CCoE asks PD to decide whether it wants to build PSGP or LNG-III pipeline*

*Khalid Mustafa*
*
June 25, 2021

ISLAMABAD:* The Cabinet Committee on Energy (CCoE), in its meeting on Thursday, asked the *Petroleum Division (PD) to come up with a clear mind after one month if it wanted to build the Pakistan Stream Gas Pipeline (PSGP) with 26 percent shareholding of Russian government, or it wants to build LNG-III pipeline under the consortium of Sui Southern, Sui Northern and PAPCO – the company of PARCO.

The Petroleum Division wants to build the LNG-III pipeline as an alternative project in case talks with Russia fail on the PSGP, which is also known as North-South Gas Pipeline. The Petroleum Division has made the alternative proposal based on Economic Coordination Committee (ECC) decision, taken on January 5, 2018, under which the financing was also approved for the 1.2 billion cubic feet per day gas (BCFD) capacity RLNG-III pipeline of 1,150 kilometres from Karachi to Lahore with 42 inches diameter.
The Supreme Court, in its verdict in 2020 on Gas Infrastructure Development Cess (GIDC) recovery, had named North-South Gas Pipeline Project that it should be built by using the amount of GIDC, but the new leadership at Petroleum Division now wanted to build LNG-III pipeline with the amount of GIDC as an alternative plan.*
The CCoE also asked the Petroleum Division to come up with a firm project proposal after one month’s time as the government did not afford any delay in building the infrastructure required to suck in more LNG in the country’s system. The country is facing a gas shortage and the required infrastructure is also needed to import more LNG. And to this effect, two LNG terminals – Enargas and Tabeer – have also managed the construction and capacity pipeline to have the financial closure.
*Petroleum Division (PD) pitched in the CCoE meeting a pipeline proposal as a contingency plan from consortium of SSGC, SNGPL and PAPCO saying PD will also ensure participation of local companies in the EPC (Engineering, Procurement, and Construction or EPC) and operations and maintenance (O&M) contracts, local manufacturing of pipeline, and maximum local technical and human resource contribution.
Under the proposal, the PD sought CCoE’s guidance on the three issues which include a) Policy directions on SHA (Share-holding Agreement) negotiations, project structure and financing arrangements; b) Firm commitment from Finance Division for advance release of GIDC instalments, commensurate with project expenditures; and c) Evolving understanding on contingency plan in case of deadlock with Russia.
The summary of the Petroleum Division also mentions that the Government of Pakistan and Government of Russian Federation signed the protocol on the amendments to the Inter-governmental Agreement (IGA) on the cooperation for the development of the PSGP project on May 28, 2021 in Moscow, Russia. The Protocol envisaged signing of a Share-holders Agreement (SHA) within 60 days from the signing of the Protocol (on July 27, 2021).
And to this effect, a draft on SHA approved by the Technical Committee, headed by the secretary petroleum was shared with the Russian Ministry of Energy on Dec 23, 2020 during the Second Meeting of the Russia Pakistan Joint Technical Committee on the project. In response, the Russian side proposed a “Heads of Terms” for SHA on March 17, 2021. The critical aspects of SHA which are also enumerated in the Heads of Terms which say that a) The Project will be implemented through a Special Purpose Company (SPC) to be incorporated in Islamabad, Pakistan; b) ISGS will have majority shareholding in the SPC (74%), while the Russian Nominated Entity will have up to 26% shares; and c) The Chairman of the Board and CEO of the Company will be nominated by ISGS, while the Project Head/Chief Technical Officer will be of Russian Nominated Entity (RNE).
3.This Division has received through MoFA a letter dated June 10, 2021 from N Shulginov, Minister of Energy of the Russian Federation. Through this correspondence, the Russian Ministry of Energy has informed that the Russian Nominated Entity for the Project has been incorporated as PAKSTREAM LLC (having registration number 1217700101211). The Russian side has written that they would like to commence negotiations on the appropriate agreements including banking instruments and commercial contracts, while indicating the readiness of representatives of PAKSTREAM LLC to arrive in Pakistan as soon as possible to do so.*
The summary also says that at this point, key challenges to be addressed at the earliest include: local companies’ participation in EPC contract through local or international JV; GIDC component of financing deposited in Federal Account # 1; route alignment NOC by MoD (ministry of defence), land acquisition; completion of Project Feasibility - PPRA exemption under process for engagement of NESPAK; and alignment of completion of Project with COD of new LNG terminals.









CCoE asks PD to decide whether it wants to build PSGP or LNG-III pipeline


ISLAMABAD: The Cabinet Committee on Energy , in its meeting on Thursday, asked the Petroleum Division to come up with a clear mind after one month if it wanted to build the Pakistan Stream Gas...




www.thenews.com.pk






__ https://twitter.com/i/web/status/1409909124016508938



Extremely disappointed with this development. A complete shitshow by new Petroleum Div leadership. I hope some sanity must prevail and Foreign Office, PMO must intervene and sort PD's (lack of) management, (in)competency, lack of planning and limited foresight.

Although, above ground storage is a welcome news, and much needed, but it will be wise to develop an onshore regasification terminal along with it. In absence of such a facility and reliance on leased FSRU units solely (which are manned and operated completely by foreigners) will be disastrous, a logistical nightmare and a folly of exponential proportion. It seems PD has learnt nothing from their dry-docking self made fiasco. 

Since we are going to pay for jetty, loading arms, land acquisition costs, storage tank(s) infrastructure _(Boil off gas (BOG) compressor, Cryo units, utilities etc)_, facility piping, transport pipelines from our own pockets (GIDC), why are we so shy to invest another $60-70m on boiler and vaporisor units and say, another 25m on land acquisition _(for these additional facilities)_? Instead of more FSRU based terminals, Pakistan should provide incentives to Tabeer, Energas, and Engro in terms of tax breaks similar to ones given to oil refiners, and we will not only have three onshore regasification terminals but also three to six storage tanks (180,000 cubic m each, usually a terminal is constructed with two storage tanks). Any sane government whose RLNG component of Energy mix is 20-25% would have chosen an asset of its own yesterday over any leased asset. This is a thousand fold blunder in making compared to Shahid Khaqan's PGPL terminal mess up.

@niaz sb, @ziaulislam @Patriot forever how do you see these developments? Frankly speaking, I had better hopes from IK led government.

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## farok84

*ISGS MD dropped from TAPI delegation*
Lower rank official becomes part of committee to negotiate gas price with Turkmenistan


Zafar Bhutta July 07, 2021






*ISLAMABAD:*
The government has dropped name of Inter Gas State Systems (ISGS) managing director (md) from a delegation to negotiate gas price with Turkmenistan under the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project.
The ISGS MD had been signatory of TAPI gas sales purchase agreement (GSPA). The former managing director had signed the agreement for the gas pipeline project and the role of current MD will also be as signatory of revised GSPA.
However, he has been dropped from the negotiation committee and a low rank official has been made part of the committee that is set to negotiate gas price with Turkmenistan. Pakistan had raised the issue of revising gas prices with Turkmenistan following import of LNG in the country. Under the GSPA, Pakistan and Turkmenistan are bound to revise gas price if Pakistan or any other country is able to bring gas at lower prices.
Now, Pakistan claimed that it had imported LNG at cheaper rates compared to gas price under TAPI gas pipeline project. Turkmenistan had built the pipeline in its territory and planned to build pipeline in Afghanistan.
The Afghan Taliban have recently taken over the area of Afghanistan, however, they had announced earlier that they would not sabotage the pipeline project. Tajikistan and Turkmenistan were already exporting electricity to the different areas of the Afghanistan over a decade. However, they never hit the electricity installation.
*Amendment in agreements*
Pakistan and Turkmenistan had already signed the GSPA and now, the negotiation committee will discuss the revised prices under GSPA.
The government has constituted a delegation comprising of members from different ministries and gas companies to conduct meeting with the Turkmenistan side for deliberation and finalisation of the proposed amendments in GSPA and Gas Transportation Agreement (GTA) of the TAPI project.
The delegation comprised of Petroleum Division secretary, additional attorney general, Ministry of Finance representative, ISGS technical GM, ISGS legal DMG, Sui Northern Gas Pipelines (SNGPL) MD, DG Gas, and Sui Southern Gas Company (SSGC) MD. The proposed date and time for the subject meeting is July 8, 2021 in the Ministry of Energy (Petroleum Division). The agenda of the meeting will be to discuss and finalise the proposed amendments in GSPA and GTA of TAPI project. The meeting will be held on Zoom.
*Transportation agreement*
The cabinet has also approved transportation agreement with Turkmenistan. Pakistan will receive a transportation fee against supply of gas in its territory.
Now, Pakistan and Turkmenistan are to sign this agreement. Before this agreement, both the sides are going to discuss modalities of the agreement.
Regarding revision in gas price, Pakistan has been pressing Turkmenistan to revise gas price as it has been receiving LNG at cheaper rates. However, Turkmenistan has been claiming that TAPI gas was still cheaper compared to LNG. To settle this matter, President Arif Alvi had taken up the issue with the Turkmenistan president following which the latter agreed to revise the gas price.
Officials said that the two sides would also discuss entry point of gas delivery. Earlier, the entry point was Turkmenistan border. However, Pakistan wants to designate Pakistan-Afghanistan entry point for gas delivery. The Turkmenistan side had agreed to this and will discuss further on July 8.
The Pakistani side had informed that it would not take responsibility for any gas in Afghan territory and will only be responsible for gas in Pakistan territory.
*Future of TAPI*
Experts say that different countries have been importing LNG at stop gap arrangement. They normally import 6%. However, Pakistan’s import had reached 24%.
_Published in The Express Tribune, July 7th, 2021.
Like __Business on Facebook_, _follow __@TribuneBiz__ on Twitter to stay informed and join in the conversation._










ISGS MD dropped from TAPI delegation | The Express Tribune


The govt dropped name of ISGS managing director from a delegation to negotiate gas price with Turkmenistan under the TAPI pipeline project.




tribune.com.pk







_They should also start renegotiating with Iran. Glad to see government paying attention to these Zardari era expensive GSPAs. Lets hope the negotiators can do a better job this time around and convince Turkmenistan to change from oil benchmarks to gas ones. _

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## niaz

farok84 said:


> *CCoE asks PD to decide whether it wants to build PSGP or LNG-III pipeline*
> 
> *Khalid Mustafa*
> 
> *June 25, 2021
> 
> ISLAMABAD:* The Cabinet Committee on Energy (CCoE), in its meeting on Thursday, asked the *Petroleum Division (PD) to come up with a clear mind after one month if it wanted to build the Pakistan Stream Gas Pipeline (PSGP) with 26 percent shareholding of Russian government, or it wants to build LNG-III pipeline under the consortium of Sui Southern, Sui Northern and PAPCO – the company of PARCO.
> 
> The Petroleum Division wants to build the LNG-III pipeline as an alternative project in case talks with Russia fail on the PSGP, which is also known as North-South Gas Pipeline. The Petroleum Division has made the alternative proposal based on Economic Coordination Committee (ECC) decision, taken on January 5, 2018, under which the financing was also approved for the 1.2 billion cubic feet per day gas (BCFD) capacity RLNG-III pipeline of 1,150 kilometres from Karachi to Lahore with 42 inches diameter.
> The Supreme Court, in its verdict in 2020 on Gas Infrastructure Development Cess (GIDC) recovery, had named North-South Gas Pipeline Project that it should be built by using the amount of GIDC, but the new leadership at Petroleum Division now wanted to build LNG-III pipeline with the amount of GIDC as an alternative plan.*
> The CCoE also asked the Petroleum Division to come up with a firm project proposal after one month’s time as the government did not afford any delay in building the infrastructure required to suck in more LNG in the country’s system. The country is facing a gas shortage and the required infrastructure is also needed to import more LNG. And to this effect, two LNG terminals – Enargas and Tabeer – have also managed the construction and capacity pipeline to have the financial closure.
> *Petroleum Division (PD) pitched in the CCoE meeting a pipeline proposal as a contingency plan from consortium of SSGC, SNGPL and PAPCO saying PD will also ensure participation of local companies in the EPC (Engineering, Procurement, and Construction or EPC) and operations and maintenance (O&M) contracts, local manufacturing of pipeline, and maximum local technical and human resource contribution.
> Under the proposal, the PD sought CCoE’s guidance on the three issues which include a) Policy directions on SHA (Share-holding Agreement) negotiations, project structure and financing arrangements; b) Firm commitment from Finance Division for advance release of GIDC instalments, commensurate with project expenditures; and c) Evolving understanding on contingency plan in case of deadlock with Russia.
> The summary of the Petroleum Division also mentions that the Government of Pakistan and Government of Russian Federation signed the protocol on the amendments to the Inter-governmental Agreement (IGA) on the cooperation for the development of the PSGP project on May 28, 2021 in Moscow, Russia. The Protocol envisaged signing of a Share-holders Agreement (SHA) within 60 days from the signing of the Protocol (on July 27, 2021).
> And to this effect, a draft on SHA approved by the Technical Committee, headed by the secretary petroleum was shared with the Russian Ministry of Energy on Dec 23, 2020 during the Second Meeting of the Russia Pakistan Joint Technical Committee on the project. In response, the Russian side proposed a “Heads of Terms” for SHA on March 17, 2021. The critical aspects of SHA which are also enumerated in the Heads of Terms which say that a) The Project will be implemented through a Special Purpose Company (SPC) to be incorporated in Islamabad, Pakistan; b) ISGS will have majority shareholding in the SPC (74%), while the Russian Nominated Entity will have up to 26% shares; and c) The Chairman of the Board and CEO of the Company will be nominated by ISGS, while the Project Head/Chief Technical Officer will be of Russian Nominated Entity (RNE).
> 3.This Division has received through MoFA a letter dated June 10, 2021 from N Shulginov, Minister of Energy of the Russian Federation. Through this correspondence, the Russian Ministry of Energy has informed that the Russian Nominated Entity for the Project has been incorporated as PAKSTREAM LLC (having registration number 1217700101211). The Russian side has written that they would like to commence negotiations on the appropriate agreements including banking instruments and commercial contracts, while indicating the readiness of representatives of PAKSTREAM LLC to arrive in Pakistan as soon as possible to do so.*
> The summary also says that at this point, key challenges to be addressed at the earliest include: local companies’ participation in EPC contract through local or international JV; GIDC component of financing deposited in Federal Account # 1; route alignment NOC by MoD (ministry of defence), land acquisition; completion of Project Feasibility - PPRA exemption under process for engagement of NESPAK; and alignment of completion of Project with COD of new LNG terminals.
> 
> 
> 
> 
> 
> 
> 
> 
> 
> CCoE asks PD to decide whether it wants to build PSGP or LNG-III pipeline
> 
> 
> ISLAMABAD: The Cabinet Committee on Energy , in its meeting on Thursday, asked the Petroleum Division to come up with a clear mind after one month if it wanted to build the Pakistan Stream Gas...
> 
> 
> 
> 
> www.thenews.com.pk
> 
> 
> 
> 
> 
> 
> __ https://twitter.com/i/web/status/1409909124016508938
> 
> 
> 
> Extremely disappointed with this development. A complete shitshow by new Petroleum Div leadership. I hope some sanity must prevail and Foreign Office, PMO must intervene and sort PD's (lack of) management, (in)competency, lack of planning and limited foresight.
> 
> Although, above ground storage is a welcome news, and much needed, but it will be wise to develop an onshore regasification terminal along with it. In absence of such a facility and reliance on leased FSRU units solely (which are manned and operated completely by foreigners) will be disastrous, a logistical nightmare and a folly of exponential proportion. It seems PD has learnt nothing from their dry-docking self made fiasco.
> 
> Since we are going to pay for jetty, loading arms, land acquisition costs, storage tank(s) infrastructure _(Boil off gas (BOG) compressor, Cryo units, utilities etc)_, facility piping, transport pipelines from our own pockets (GIDC), why are we so shy to invest another $60-70m on boiler and vaporisor units and say, another 25m on land acquisition _(for these additional facilities)_? Instead of more FSRU based terminals, Pakistan should provide incentives to Tabeer, Energas, and Engro in terms of tax breaks similar to ones given to oil refiners, and we will not only have three onshore regasification terminals but also three to six storage tanks (180,000 cubic m each, usually a terminal is constructed with two storage tanks). Any sane government whose RLNG component of Energy mix is 20-25% would have chosen an asset of its own yesterday over any leased asset. This is a thousand fold blunder in making compared to Shahid Khaqan's PGPL terminal mess up.
> 
> @niaz sb, @ziaulislam @Patriot forever how do you see these developments? Frankly speaking, I had better hopes from IK led government.



One rents FSRU because of the shortage of investment capital and because the start up time is less than a land based terminal. Also for safety reasons, some town councils do not want a facility which could possibly explode.

Land based LNG regasification plants are multifunctional and more flexible. For example the jetty could be used for loading/unlading other goods after the LNG carrier has vacated it.

Replacing an FSRU with on shore plant would probably require additional investment in the range of $100-million but in the long term it would more than pay for the additional capital. A new FSRU costs close to $250-million and If one has that much capital available, IMHO it would be stupid not to go for a land based facility.

However, to be honest, the jury is still out on cost/benefits of renting FSRU versus land based facility. If I can raise additional capital, I would go for a land based facility every time.

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## ghazi52

Hammad Azhar

@Hammad_Azhar

After lengthy deliberations, Govt of Pakistan and Russia have agreed upon & signed 'Head of Terms' for construction of PakStream Gas Pipeline. Shareholding & corporate structure finalised. This project has been suffering from delays since 2015 but effective progress made today.

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## ghazi52

*Byco sees doubling of gross refining margin by 2025*

Kazim Alam
July 18, 2021







With a capacity of 155,000 barrels per day, Byco is the largest among the five refineries 

operating in Pakistan. — Photo courtesy Byco website



KARACHI: The gross refining margin of Byco Petroleum — a vertically integrated energy firm with its own floating jetty, refinery and oil marketing arm — is expected to double from $3 per barrel to $6 once it completes the ongoing upgrade process by 2025, according to company chairman Mohammad Wasi Khan.

Speaking to a group of journalists at the company headquarters on Friday, Mr Khan said Byco is adding as many as 14 plants to its processing facilities, which will turn 90 per cent of the refinery’s output into value-added, high-margin products.

With a capacity of 155,000 barrels per day, Byco is the largest among the five refineries operating in Pakistan. However, it’s currently operating at 35-40pc of its capacity because the demand for its major output — furnace oil — has substantially gone down in recent years. The capacity utilisation levels are low across all refineries for the same reason.



> Plans to add 14 more plants to produce high-end products




Annual demand for furnace oil now hovers around 2-2.5 million tonnes, down from 9m tonnes before 2017 when the country changed its fuel mix for power generation in favour of imported liquefied natural gas (LNG). The state-owned power purchaser stopped despatching furnace oil–based power plants, leaving refineries with a slate of products that have few buyers.

The share of furnace oil in power generation in 2020-21 remained 4.8pc against 3.4pc in 2019-20.

The extent of refining crude oil determines whether the output consists of heavier hydrocarbons (furnace oil) that have a lower profit margin or lighter hydrocarbons (petrol, diesel etc) that fetch higher market prices.

“Byco is the only refinery at the moment that is actively implementing its furnace oil upgrade project. We are putting up a fluid catalytic cracking (FCC) plant, which is a secondary unit operation that produces additional gasoline,” he said, adding that furnace oil will be only 11pc of Byco’s entire output in 2025. The share of petrol will go up to 30pc and that of diesel will be 50pc. Other products like jet fuel and kerosene will constitute the rest of the product slate, he said.

The government is encouraging all refineries to start producing Euro V and VI fuels. “We’re adding 10-12 processing plants in addition to FCC and diesel hydro desulphurisation units. It’ll solve the issue of furnace oil (excess production),” he said, adding that the total upgrade cost will be $800m.

Mr Khan expects furnace oil–based power plants will soon be phased out entirely. The refinery will likely operate at full capacity by 2025, providing locally refined substitutes for imported petrol and diesel, he said.

But what if history repeats itself and petrol and diesel are largely replaced by cleaner fuels in coming years? After all, it was only in 2012 that Byco installed its second refinery of 120,000 barrels per day, which is the capacity that’s largely lying idle in the wake of dwindling demand for furnace oil. “Pakistan is one of those countries where electric vehicles haven’t penetrated the market. It’ll take some time,” he said.

Mr Khan added diesel isn’t going anywhere and neither is jet fuel. “A refinery should have the flexibility to start making petrochemicals if its gasoline demand goes down. Byco is doing exactly that. Our upgraded plants will have that provision. We’ll be able to convert them into making petrochemical feedstock,” he said.

The company made a net profit of Rs1.2bn in the quarter ending on March 31, up from a net loss of Rs2.8bn a year ago. Its capacity utilisation in the most recent fiscal year was just 30.8pc.

Mr Khan refused to comment on the upcoming refining policy. On the 2021-22 budget, he said the imposition of sales tax on the import of crude oil will create cash-flow problems for refineries. “We’ll adjust it at a later stage, but it’ll affect our credit cycle,” he said, noting that sales tax should ideally be imposed on raw materials in industries that are undocumented — which is not true in case of refineries.

He did not comment on market reports that Byco was planning to increase its overall refining capacity in tandem with the system upgrade.

He also refused to confirm or deny that his company was about to acquire Puma Energy, an oil marketing company with 542 retail pumps and a market share of 2pc.

The share price of Byco was Rs10.64 on July 16, up 19pc from a day ago.

_Published in Dawn, July 18th, 2021_

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## ghazi52

Panoramic View Of Attock Oil Company Khaur Oil Field, January 1938.

The Town Is The First Site Of Oilfield In Punjab Which Operated From 1911 To 1950's.

© Frederick Gardner Clapp / UWM Libraries

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## ghazi52

Economic Coordination Committee (ECC) of the cabinet presided by Finance Minister Shaukat Tareen has on Monday green-signaled the consortium of Pakistan’s leading petroleum exploration and development (E&P) for *$400 million exploration attempt in Abu Dhabi, United Arab Emirates.*

“Petroleum Division regarding no objection certificate for issuance of the parent company guarantees/corporate guarantees by each of the consortium companies, on a joint and several bases, in favor of Abu Dhabi National Oil Company (Adnoc) and the Supreme Council for the Financial and Economic Affairs (SCFEA) to pursue international exploration and production opportunity in Abu Dhabi, UAE,” Dawn reported, quoting an official statement.

The said consortium of leading public sector E&P companies comprises Oil & Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), and Mari Petroleum Company Ltd (MPCL) along with Government Holdings Pvt Ltd (GHPL).

The four companies have formed a Special Purpose Vehicle (SPV) called NewCo with 25pc shares worth $100 million held by each over a period of five years in the UAE exploration block.

Besides a share of investment, the consortium is required to provide a parent company guarantee for all obligations for the NewCo under the definitive agreements to Abu Dhabi National Oil Company and Supreme Council for Finance and Economic Affairs (SCFEA).

The final approval will be awarded by the Supreme Council for Finance and Economic Affairs (SCFEA) of the Emirate of Abu Dhabi.

The ECC decision would allow these four companies to issue guarantees to the SPV in favor of Adnoc and SCFEA to qualify for the exploration block for which the bid has already been submitted by the consortium, Dawn wrote.

The ECC around two years ago had allowed NewCo to use their initial investment out of their own resources to go for the Abu Dhabi exploration.

Moving forward to two months ago, the members of the consortium reported to PSX that each company would invest $100 million if the bid is successful, otherwise, the NewCo would be dissolved.

It is worth mentioning that Pakistan Petroleum Limited has expanded its exploration portfolio not only within but beyond Pakistan’s borders.

Dawn reported that that along with its partners, PPL had drilled 79 exploratory wells including a well in Iraq, adding 0.6 trillion cubic feet (TCFs) of gas to the company’s reserve base.

Read More: Pakistan ready to open new areas for oil and gas exploration

Based on existing data about the prospective wells from detailed petroleum system studies, seismic surveys, log files, and core samples from appraisal wells, estimates suggest these new blocks could hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.
Some of the blocks already have discoveries, and within the combined area there are 290 targeted reservoirs from 92 prospects and leads. In addition to the country’s conventional potential, one of the offered blocks is expected to contain significant resources.

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## Blacklight

ghazi52 said:


> Economic Coordination Committee (ECC) of the cabinet presided by Finance Minister Shaukat Tareen has on Monday green-signaled the consortium of Pakistan’s leading petroleum exploration and development (E&P) for *$400 million exploration attempt in Abu Dhabi, United Arab Emirates.*
> 
> “Petroleum Division regarding no objection certificate for issuance of the parent company guarantees/corporate guarantees by each of the consortium companies, on a joint and several bases, in favor of Abu Dhabi National Oil Company (Adnoc) and the Supreme Council for the Financial and Economic Affairs (SCFEA) to pursue international exploration and production opportunity in Abu Dhabi, UAE,” Dawn reported, quoting an official statement.
> 
> The said consortium of leading public sector E&P companies comprises Oil & Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), and Mari Petroleum Company Ltd (MPCL) along with Government Holdings Pvt Ltd (GHPL).
> 
> The four companies have formed a Special Purpose Vehicle (SPV) called NewCo with 25pc shares worth $100 million held by each over a period of five years in the UAE exploration block.
> 
> Besides a share of investment, the consortium is required to provide a parent company guarantee for all obligations for the NewCo under the definitive agreements to Abu Dhabi National Oil Company and Supreme Council for Finance and Economic Affairs (SCFEA).
> 
> The final approval will be awarded by the Supreme Council for Finance and Economic Affairs (SCFEA) of the Emirate of Abu Dhabi.
> 
> The ECC decision would allow these four companies to issue guarantees to the SPV in favor of Adnoc and SCFEA to qualify for the exploration block for which the bid has already been submitted by the consortium, Dawn wrote.
> 
> The ECC around two years ago had allowed NewCo to use their initial investment out of their own resources to go for the Abu Dhabi exploration.
> 
> Moving forward to two months ago, the members of the consortium reported to PSX that each company would invest $100 million if the bid is successful, otherwise, the NewCo would be dissolved.
> 
> It is worth mentioning that Pakistan Petroleum Limited has expanded its exploration portfolio not only within but beyond Pakistan’s borders.
> 
> Dawn reported that that along with its partners, PPL had drilled 79 exploratory wells including a well in Iraq, adding 0.6 trillion cubic feet (TCFs) of gas to the company’s reserve base.
> 
> Read More: Pakistan ready to open new areas for oil and gas exploration
> 
> Based on existing data about the prospective wells from detailed petroleum system studies, seismic surveys, log files, and core samples from appraisal wells, estimates suggest these new blocks could hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.
> Some of the blocks already have discoveries, and within the combined area there are 290 targeted reservoirs from 92 prospects and leads. In addition to the country’s conventional potential, one of the offered blocks is expected to contain significant resources.


*MPCL: The significance of UAE oil and gas blocks*
4 March 2020

Last year, the petroleum industry was left in a buzz with fresh oil and gas blocks on the market for exploration, located in Abu Dhabi. These were under the hat of Abu Dhabi National Oil Company (ADNOC), the emirate’s crown jewel. To take full advantage of this opportunity, several E&P companies worldwide partook in the bidding process. Representing Pakistan, major E&P Companies, namely, PPL, MPCL, OGDCL & GHPL, participated in the bidding by forming a consortium – the first of its kind in the country.

ADNOC is currently in the process of deciding who to award the bidding to. Since the last date of bid submission is December 31, 2019, the success of the consortium is entirely dependent on a clear mandate with requisite support from the relevant approving authorities. Accordingly, the consortium has requested authorization to submit bid for one block in Abu Dhabi.

The Petroleum Division in its summary has submitted the following:

(i) Consortium with PPL as the operator and OGDCL, MPCL and GHPL as partners may be authorized to submit bid (directly or through their subsidiaries) in Abu Dhabi 2019 bidding round for one bock and make an initial investment with an overall financial limit of up to $ 400 million spread over a period of five years;

(ii) foreign exchange requirement for this investment to be approved, against rupee cover to be arranged by the member consortium companies in proportion to their respective share from their own resources; and

(iii) consortium may be authorized to establish a jointly owned company (within or outside Pakistan) and open a branch office in Abu Dhabi, in compliance with the requirement of UAE’s local laws and regulations. The government has approved the proposal.

Abu Dhabi is one the world’s richest oil and gas states and a prolific producer with production of more than 3 million barrels of oil per day and around 10 BCF of gas per day. Its first competitive block bid round was concluded in March 2019, which attracted major international players. The successful bidders included a consortium of Bharat Petroleum Company and Indian Oil Corporation Limited. Besides, other international companies namely Eni (Italy), PTTEP (Thailand), Occidental Petroleum (USA) and Inpex (Japan) also won blocks.

Over the past three years, Abu Dhabi National Oil Company (ADNOC) has expanded its oil and gas business and quietly raised more than $19 billion in a variety of ways: by grabbing investments from major companies like, BlackRock (BLK.N), the world’s largest fund manager, etc; by attracting middle-eastern investors in infrastructure development’ by bagging European investors for handling the company’s operations etc.

These are a few of many smart deals made by ADNOC as part of Abu Dhabi’s plans to reform and modernize the economy. Getting on board with such a strong name in the industry can open plenty doors for Pakistan’s economy.

In its second bid round, Abu Dhabi has offered five blocks (two onshore and 3 offshore) through competitive bidding submission deadline of December 31, 2019. The un-risked in-place exploration potential of these blocks is estimated at 6 billion barrels of oil and 44 TFC of gas encompassing a total area of 34,000 sq km. provides a major opportunity for the Consortium of Pakistan’s leading E&P companies to join the world-renowned Abu Dhabi National Oil Company (ADNOC) and unlocking untapped resources in one of the world’s largest hydrocarbon super-basins by investing in a trusted and reliable business environment.

*The blocks being offered have a good appraisal and exploration opportunities. The investment is expected to help bring valuable foreign exchange in the long run for the country which can support in meeting Pakistan’s energy requirements- currently a major source of country’s foreign currency outflows.*

According to MD MPCL, Lieutenant General Ishfaq Nadeem Ahmad in an interview with Dr. Moeed Pirzada, ‘This is a project worth 350 to 400 million dollars, spread over several years. The purpose is that we venture into a market that is outside Pakistan – regional market’.

He believes that an international venture does not only place Pakistan’s oil and gas sector on the global forum, but also brings in two kinds of rewards. Firstly, given that definite discoveries already exist, offshore projects bring up opportunities to tap them with our finances and manpower; and secondly, it allows our geologists to conduct seismic surveys outside of Pakistan to discover and explore unacknowledged hydrocarbon reserves.

According to MPCL Company Secretary, Asad Rabbani, in the current bid of Abu Dhabi gas blocks, offshore Block‐05 has an area of 6223 km² located in the northeast offshore of Abu Dhabi. The block is located in shallow water – around 5 to 30 meters deep – and includes around five more discovered but undeveloped fields with substantial oil potential for appraisal and development. In addition, multiple leads are also present in the block.

A continuous international operation will allow human resource exchange between the countries – this will further help improve our manpower’s expertise in the oil and gas sector and bring forth capacity-building experiences. Pakistan’s oil and gas sector is proficient in the business of conventional gas; however, it still has a lot to learn in handling shale hydrocarbon resources. General Ishfaq thus believes that an inflow of foreign investments will play a vital role in training our E&P companies in the logistics of shale resources. (Shale gas is natural gas produced from shale, a type of sedimentary rock).

A successful undertaking in Abu Dhabi’s oil fields will also help Pakistan improve bilateral relations with UAE in the long run, opening up the potential for investments from UAE in Pakistan’s mid‐stream (exploration and exploitation) and down-stream (production and distribution) oil and gas sector. Hence, winning this Abu Dhabi bid can make a big impact on improving Pakistan’s economy in the next decade.

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## ghazi52

*
The Draft Pakistan Oil Refinery Policy 2021 was discussed in detail.*

The Petroleum Division submitted that the purpose of the policy was to attract investment in new deep conversion refineries as well as for up-gradation of existing refineries. Members of the committee made a number of suggestions on the draft policy.

It was decided that the Petroleum Division would deliberate on the suggestions and re-submit the draft policy for consideration of the CCoE in its next meeting.

Sources told _Business Recorder_ that Umar wanted the Energy Ministry to give timing and mechanism of the implementations of the policy benefits in next meeting which would be held on Monday.

The sources said that Umar further said that policy will be approved as is if the energy ministry gives the mechanism next week. Energy Minister Hammad Azhar is currently in Russia.

The Petroleum Division presented an update to the CCoE on the Pakistan Stream Gas Pipeline Project.

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## ghazi52

Pakistan and Russia have signed an agreement for the construction of a 1,100-kilometre-long stream gas pipeline from Karachi to Lahore which will be completed by 2023 at the cost of $2.5 billion.

The agreement of the Pakistan Stream Gas Pipeline Project was signed in a ceremony by secretary petroleum Arshad Mahmood and the director of the Russian energy ministry. Energy Minister Hammad Azhar and representatives of the Russian energy ministry have also attended the ceremony.

Hammad Azhar said that the gas pipeline project was facing a delay since 2015 and both countries have signed an agreement for technical cooperation. The project will be completed by 2023 at the cost of $2.5 billion.

He added that the north-south stream gas pipeline project was an important project while local companies will complete the work for laying gas pipeline and the material will be imported from Russia.

Azhar said that Oil and Gas Regulatory Authority (OGRA) will finalise the tariff of the gas pipeline that will be used for gas supply from the northern to the southern part of the country.

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## ghazi52

*SINGAPORE: State-owned Pakistan LNG is seeking five liquefied natural gas (LNG) cargoes for delivery from October to November, two industry sources said on Monday. It is seeking the cargoes for delivery Oct. 8-9, Oct. 23-24, Oct. 28-29, Nov. 6-7 and Nov. 12-13, one of them said, adding that the tender closes on Sept. 2 and is valid for the same day.*

This is likely a re-tender after an earlier process seeking seven cargoes for October and November garnered interest from only three companies, with offers ranging from just over $17 per million British thermal units (mmBtu) to over $22 per mmBtu, a second source said.

Spot Asian LNG prices are currently trading at just over $18 per mmBtu for cargoes delivered into North Asia, traders have said. The earlier tender closed on Aug. 24 but remains valid until Sept. 8. It was not immediately clear if any of the cargoes in that tender had been awarded.

Separately, state-owned Pakistan State Oil (PSO) is seeking an LNG cargo for delivery over Oct. 22 to 23 in a tender that closes on Aug. 31 and is valid until Sept. 1, a tender document showed.

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## farok84

*Abu Dhabi Offshore Exploration Block Awarded to a Consortium led by Pakistan Petroleum Limited in Historic Concession Agreement*

First-time Pakistani companies will invest in and explore for oil and gas in an Abu Dhabi concession

Award builds on the deep-rooted bilateral ties between the UAE and Pakistan

Pakistan Petroleum Limited led consortium awarded concession for Offshore Block 5 and will invest $304.7 million (AED1.12 billion) during the exploration phase

Award underscores ADNOC’s expanded approach to strategic partnerships and concludes Abu Dhabi’s second competitive block bid round







*Abu Dhabi, UAE – August 31, 2021:* The Abu Dhabi National Oil Company (ADNOC) announced today, the signing of a historic exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 5 to a consortium of four Pakistani companies – Pakistan Petroleum Limited (PPL), Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company Limited (OGDCL), and Government Holdings (Private) Limited (GHPL) – in Abu Dhabi’s second competitive block bid round. The consortium is led by PPL.

The award marks the first time Pakistani companies invest in and explore for oil and gas in an Abu Dhabi concession as well as the first time ADNOC partners with Pakistani energy companies.

The historic agreement builds on the deep-rooted bilateral relationship between the United Arab Emirates (UAE) and the Islamic Republic of Pakistan and underscores ADNOC’s expanded approach to strategic partnerships, including those who can provide access to key growth markets for the company’s crude oil and products.

The exploration concession agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and Moin Raza Khan, Managing Director and CEO of PPL.

H.E. Dr. Al Jaber said: “This historic exploration concession award marks a new chapter of energy cooperation in the 50-year old UAE-Pakistan relationship. It represents an important platform upon which we can drive win-win opportunities to support Pakistan’s energy security and further strengthen the strategic and economic ties between our two countries. We are delighted to partner with Pakistan Petroleum Limited and the other members of the consortium on Offshore Block 5.





“The consortium was selected as part of Abu Dhabi’s block bid round where we have once again reinforced our approach to strategic partnerships that contribute the right combination of market access, capital, best-in-class expertise or advanced technology. We are very optimistic about the potential to unlock significant value with all our partners in this second competitive block bid round as we continue to accelerate the exploration and development of Abu Dhabi’s untapped resources, in line with the Leadership’s wise directives.”

Under the terms of the agreement, the consortium will hold a 100% stake in the exploration phase, investing up to $304.7 million (AED1.12 billion) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an offshore area of 6,223 square kilometers and is located 100 kilometers north east of Abu Dhabi city.

Khan said: “The PPL-led consortium is delighted to be selected for the concession award of Abu Dhabi’s Offshore Block-5. This award is not only a watershed moment for Pakistan and the Emirate of Abu Dhabi towards bilateral energy cooperation and economic links but also offers an opportunity to strengthen strategic cooperation with ADNOC to share technical know-how and expertise.

“We are particularly excited that this consortium comprises the ‘big four’ national exploration and production companies that are fully geared to support ADNOC and the Emirate of Abu Dhabi in reinforcing its leading position in the global energy sector.”

Following a successful commercial discovery during the exploration phase, the consortium will have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold a 60% stake in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase and the block offers the potential to create significant in-country value for the UAE over the lifetime of the concession.

In addition to drilling exploration and appraisal wells, the exploration phase will see the consortium leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is acquiring 3D seismic data within the block area. The data already acquired over a large part of the block combined with its proximity to existing oil and gas fields, suggests the concession area has promising potential.

ADNOC launched Abu Dhabi’s second competitive block bid round in 2019, offering a set of major onshore and offshore blocks, on behalf of the Government of Abu Dhabi. The award of Offshore Block 5 to the Pakistani consortium concludes this second block bid round, which has seen very competitive proposals submitted for the geographical areas offered.

Following ADNOC’s recent discoveries of 22 billion stock tank barrels (STB) of recoverable unconventional oil resources and 160 trillion standard cubic feet (SCF) of recoverable unconventional gas resources, it was decided not to award an exploration license for Onshore Block 2. ADNOC intends to engage with potential partners for unconventional resource licensing opportunities around this geographical area. This area contains some of the unconventional resources discovered that have production potential ranking alongside the most prolific North American shale oil plays.

As part of Abu Dhabi’s second block bid round, ADNOC awarded Offshore Block 4 to a wholly-owned subsidiary of Cosmo Energy Holdings Co., Ltd.; Offshore Block 3 to a consortium led by wholly-owned subsidiaries of Eni and PTT Exploration and Production Public Company Limited (PTTEP); and Onshore Block 5 to Occidental. Based on existing data from detailed petroleum system studies, seismic surveys, exploration, and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

PPL operates 15 producing fields across Pakistan and contributes over 20% of the country’s total natural gas supplies. As of June 2020, PPL’s proven recoverable reserves were 1,793.5 billion cubic feet (bcf) of natural gas, 13.3 million barrels (mmbbl) of oil/ NGL/ condensate and 543.1 thousand tonnes (Ktons) of LPG.




https://www.adnoc.ae/news-and-media/press-releases/2021/abu-dhabi-offshore-exploration-block-awarded-to-a-consortium-led-by-pakistan-petroleum-limited




*Offshore Block 5*

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## Blacklight

farok84 said:


> *Abu Dhabi Offshore Exploration Block Awarded to a Consortium led by Pakistan Petroleum Limited in Historic Concession Agreement*
> 
> First-time Pakistani companies will invest in and explore for oil and gas in an Abu Dhabi concession
> 
> Award builds on the deep-rooted bilateral ties between the UAE and Pakistan
> 
> Pakistan Petroleum Limited led consortium awarded concession for Offshore Block 5 and will invest $304.7 million (AED1.12 billion) during the exploration phase
> 
> Award underscores ADNOC’s expanded approach to strategic partnerships and concludes Abu Dhabi’s second competitive block bid round
> 
> View attachment 774550
> 
> 
> *Abu Dhabi, UAE – August 31, 2021:* The Abu Dhabi National Oil Company (ADNOC) announced today, the signing of a historic exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 5 to a consortium of four Pakistani companies – Pakistan Petroleum Limited (PPL), Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company Limited (OGDCL), and Government Holdings (Private) Limited (GHPL) – in Abu Dhabi’s second competitive block bid round. The consortium is led by PPL.
> 
> The award marks the first time Pakistani companies invest in and explore for oil and gas in an Abu Dhabi concession as well as the first time ADNOC partners with Pakistani energy companies.
> 
> The historic agreement builds on the deep-rooted bilateral relationship between the United Arab Emirates (UAE) and the Islamic Republic of Pakistan and underscores ADNOC’s expanded approach to strategic partnerships, including those who can provide access to key growth markets for the company’s crude oil and products.
> 
> The exploration concession agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and Moin Raza Khan, Managing Director and CEO of PPL.
> 
> H.E. Dr. Al Jaber said: “This historic exploration concession award marks a new chapter of energy cooperation in the 50-year old UAE-Pakistan relationship. It represents an important platform upon which we can drive win-win opportunities to support Pakistan’s energy security and further strengthen the strategic and economic ties between our two countries. We are delighted to partner with Pakistan Petroleum Limited and the other members of the consortium on Offshore Block 5.
> 
> View attachment 774551
> 
> “The consortium was selected as part of Abu Dhabi’s block bid round where we have once again reinforced our approach to strategic partnerships that contribute the right combination of market access, capital, best-in-class expertise or advanced technology. We are very optimistic about the potential to unlock significant value with all our partners in this second competitive block bid round as we continue to accelerate the exploration and development of Abu Dhabi’s untapped resources, in line with the Leadership’s wise directives.”
> 
> Under the terms of the agreement, the consortium will hold a 100% stake in the exploration phase, investing up to $304.7 million (AED1.12 billion) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an offshore area of 6,223 square kilometers and is located 100 kilometers north east of Abu Dhabi city.
> 
> Khan said: “The PPL-led consortium is delighted to be selected for the concession award of Abu Dhabi’s Offshore Block-5. This award is not only a watershed moment for Pakistan and the Emirate of Abu Dhabi towards bilateral energy cooperation and economic links but also offers an opportunity to strengthen strategic cooperation with ADNOC to share technical know-how and expertise.
> 
> “We are particularly excited that this consortium comprises the ‘big four’ national exploration and production companies that are fully geared to support ADNOC and the Emirate of Abu Dhabi in reinforcing its leading position in the global energy sector.”
> 
> Following a successful commercial discovery during the exploration phase, the consortium will have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold a 60% stake in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase and the block offers the potential to create significant in-country value for the UAE over the lifetime of the concession.
> 
> In addition to drilling exploration and appraisal wells, the exploration phase will see the consortium leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is acquiring 3D seismic data within the block area. The data already acquired over a large part of the block combined with its proximity to existing oil and gas fields, suggests the concession area has promising potential.
> 
> ADNOC launched Abu Dhabi’s second competitive block bid round in 2019, offering a set of major onshore and offshore blocks, on behalf of the Government of Abu Dhabi. The award of Offshore Block 5 to the Pakistani consortium concludes this second block bid round, which has seen very competitive proposals submitted for the geographical areas offered.
> 
> Following ADNOC’s recent discoveries of 22 billion stock tank barrels (STB) of recoverable unconventional oil resources and 160 trillion standard cubic feet (SCF) of recoverable unconventional gas resources, it was decided not to award an exploration license for Onshore Block 2. ADNOC intends to engage with potential partners for unconventional resource licensing opportunities around this geographical area. This area contains some of the unconventional resources discovered that have production potential ranking alongside the most prolific North American shale oil plays.
> 
> As part of Abu Dhabi’s second block bid round, ADNOC awarded Offshore Block 4 to a wholly-owned subsidiary of Cosmo Energy Holdings Co., Ltd.; Offshore Block 3 to a consortium led by wholly-owned subsidiaries of Eni and PTT Exploration and Production Public Company Limited (PTTEP); and Onshore Block 5 to Occidental. Based on existing data from detailed petroleum system studies, seismic surveys, exploration, and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.
> 
> PPL operates 15 producing fields across Pakistan and contributes over 20% of the country’s total natural gas supplies. As of June 2020, PPL’s proven recoverable reserves were 1,793.5 billion cubic feet (bcf) of natural gas, 13.3 million barrels (mmbbl) of oil/ NGL/ condensate and 543.1 thousand tonnes (Ktons) of LPG.
> 
> 
> 
> 
> https://www.adnoc.ae/news-and-media/press-releases/2021/abu-dhabi-offshore-exploration-block-awarded-to-a-consortium-led-by-pakistan-petroleum-limited
> 
> 
> 
> 
> *Offshore Block 5*
> 
> View attachment 774549


@farok84 @niaz Brothers, what are your real life expectations, from this win? Keeping ground realities in mind.

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## farok84

Blacklight said:


> @farok84 @niaz Brothers, what are your real life expectations, from this win? Keeping ground realities in mind.



Hi,

It is a great venture for these companies. It will increase their exposure and help them build their expertise and portfolios in international arena, and upon successful commercial discovery_, _those 40% shares (production phase) will help them generate revenues. Hopefully in future, this capital and expertise can be directed towards Pakistan's own offshore exploration. Let's hope they discover a huge field soon, all is hinged on that.

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## Blacklight

farok84 said:


> Hi,
> 
> It is a great venture for these companies. It will increase their exposure and help them build their expertise and portfolios in international arena, and upon successful commercial discovery_, _those 40% shares (production phase) will help them generate revenues. Hopefully in future, this capital and expertise can be directed towards Pakistan's own offshore exploration. Let's hope they discover a huge field soon, all is hinged on that.


Sorry for a very naive question, any possibility of us getting crude oil and gas at discounted rates?


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## farok84

Blacklight said:


> Sorry for a very naive question, any possibility of us getting crude oil and gas at discounted rates?



Hi,

Our investment might guarantee us preferential volumes _(if and when they discover them)_, but I don't see anyone agreeing to take a cut on the profits, particularly the Pakistani consortium. They are the ones with 100% stake (that is 100% investment, and 100% exposure to risk) during exploration phase. They will be the last ones keen on giving discounts.

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## ali_raza

farok84 said:


> Hi,
> 
> Our investment might guarantee us preferential volumes _(if and when they discover them)_, but I don't see anyone agreeing to take a cut on the profits, particularly the Pakistani consortium. They are the ones with 100% stake (that is 100% investment, and 100% exposure to risk) during exploration phase. They will be the last ones keen on giving discounts.


maybe our deep rooted relationship with uae might give us a edge here dont u think
cos its not a commercial company but adnoc who owns these blocks for now


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## farok84

ali_raza said:


> maybe our deep rooted relationship with uae might give us a edge here dont u think
> cos its not a commercial company but adnoc who owns these blocks for now



Hi,

I am of the opinion, if UAE, wants to extend some favors to Pakistan, it won't be as direct as a discounted price for Adnoc's Oil or Gas (Lng), this will limit Adnoc's negotiation bar with her other customers in the region, specially if it's going to be gas field (Lng).

Those favors are likely to be extended through soft loans or a credit facility, similar to the ones provided by ITFC in July (particularly for imports of Parco, that is Das, Murban and Zakum blends from Adnoc). Abu Dhabi will like to keep her generosity as far away from Adnoc's business interests as possible.

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## ali_raza

farok84 said:


> Hi,
> 
> I am of the opinion, if UAE, wants to extend some favors to Pakistan, it won't be as direct as a discounted price for Adnoc's Oil or Gas (Lng), this will limit Adnoc's negotiation bar with her other customers in the region, specially if it's going to be gas field (Lng).
> 
> Those favors are likely to be extended through soft loans or a credit facility, similar to the ones provided by ITFC in July (particularly for imports of Parco, that is Das, Murban and Zakum blends from Adnoc). Abu Dhabi will like to keep her generosity as far away from Adnoc's business interests as possible.


but its always a possibility and happened before and in inshallah will happen in future

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## farok84

ali_raza said:


> but its always a possibility and happened before and in inshallah will happen in future



Hi, 

Let's hope for the best, but we should also consider Adnoc's other commitments and Abu Dhabi's limitations _(their fiscal breakeven is around $64.6/bbl for current year and is projected at $60.4/bbl for 2022, external at $29.7/bbl)_. 

Also, it is not the only block they have awarded. In 2019, they had also awarded Onshore Block 1 to an Indian consortium _(for $170million)._

A better opportunity may arise _if and when_ that Parco Coastal Refinery actually gets constructed, we can hope for a long term discounted offer by UAE then.

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## Blacklight

farok84 said:


> A better opportunity may arise _if and when_ that Parco Coastal Refinery actually gets constructed,


Brother, I have been hearing about this of the last 15+ yrs. Is the current GoP serious about it?

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## ali_raza

Blacklight said:


> Brother, I have been hearing about this of the last 15+ yrs. Is the current GoP serious about it?





farok84 said:


> Hi,
> 
> Let's hope for the best, but we should also consider Adnoc's other commitments and Abu Dhabi's limitations _(their fiscal breakeven is around $64.6/bbl for current year and is projected at $60.4/bbl for 2022, external at $29.7/bbl)_.
> 
> Also, it is not the only block they have awarded. In 2019, they had also awarded Onshore Block 1 to an Indian consortium _(for $170million)._
> 
> A better opportunity may arise _if and when_ that Parco Coastal Refinery actually gets constructed, we can hope for a long term discounted offer by UAE then.


i heard pakistani government is not releasing the land 
and is actually not interested in the project 
whts ur take @farok84

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## farok84

Blacklight said:


> Brother, I have been hearing about this of the last 15+ yrs. Is the current GoP serious about it?





ali_raza said:


> i heard pakistani government is not releasing the land
> and is actually not interested in the project
> whts ur take @farok84



Hi, 

I am not too sure. I think the lack of seriousness was from both sides. First Zardari happened, then blockade of funds from UAE, but we can thank Mr. 10% upgrading to Mr. 100% for that too. 

I believe they have completed civil construction and are in process of mechanical construction now. Let's hope they are able to complete it. 

Parco is 60-40% split between Pakistan and UAE, so Pakistan also has to arrange finances for it. I think they offered China some stakes in it too around Feb-March 2021, in hopes of raising some capital, but China might have other plans.

Unfortunately I don't have credible information on it's progress. Maybe @niaz sb can help us out and offer his insight on the subject.

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## Blacklight

farok84 said:


> Hi,
> 
> I am not too sure. I think the lack of seriousness was from both sides. First Zardari happened, then blockade of funds from UAE, but we can thank Mr. 10% upgrading to Mr. 100% for that too.
> 
> I believe they have completed civil construction and are in process of mechanical construction now. Let's hope they are able to complete it.
> 
> Parco is 60-40% split between Pakistan and UAE, so Pakistan also has to arrange finances for it. I think they offered China some stakes in it too around Feb-March 2021, in hopes of raising some capital, but China might have other plans.
> 
> Unfortunately I don't have credible information on it's progress. Maybe @niaz sb can help us out and offer his insight on the subject.



Projects like these are gold mines, so I fail to understand why GoP is facing fund raising issues. 

Ideally given our relationship with KSA & UAE, we should have set up huge Refineries and PetroChem complexes, which would have not only met our domestic demand, but would have been export earners for us as well.

Now if GHQ would take over stagnated critical projects, of national security and interest, liberals and illiterates would be go apeshit.

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## Patriot forever

Blacklight said:


> Projects like these are gold mines, so I fail to understand why GoP is facing fund raising issues.
> 
> Ideally given our relationship with KSA & UAE, we should have set up huge Refineries and PetroChem complexes, which would have not only met our domestic demand, but would have been export earners for us as well.
> 
> Now if GHQ would take over stagnated critical projects, of national security and interest, liberals and illiterates would be go apeshit.



Regarding Parco oil refinery I think government finalised the land problems a few months ago. Government of Balochistan granted lease to Parco. Correct me if I am wrong but it is a project worth roughly around $9b, it is beyond the scope of any institution on its own. With the new policy and the incentives offered there is a high probability that we might get access to funding/investment.

Apart from the new refineries, even existing refineries are operating at around half their capacity to refine crude into high value products like petrol and diesel and end up with FO. This segment has been neglected for a long time. We import high value products directly roughly around 50% of petrol and 60% of diesel to meet out requirements.

With the recent developments and policy announcement, Byco ( corrected not Parco but Byco) is the first I think which is investing around $800m in upgrading its facilities to increase value addition instead of FO into petrol and diesel that too of higher standard. This alone will result in saving of 5-6% value of crude import.

@farok84 your comments brother?

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## farok84

Blacklight said:


> *Ideally given our relationship with KSA & UAE, we should have set up huge Refineries and PetroChem complexes, which would have not only met our domestic demand, but would have been export earners for us as well.*



Hi,

I actually argued about this in 2018, when KSA proposed it's refinery in Gwader.



farok84 said:


> Question: Why are we planning so many refineries? KPK government is planning to install two refineries (Falcon Oil, 100k bpd and recently licensed Khyber Refinery, 20k bpd) and are planning to increase provincial refining capacity to 200k bpd eventually (they have another refinery planned with Russians & KPOGCL ~20k bpd, but was not issued a construction license yet).
> 
> So, now we have;
> *1.* KSA (Gwader Refinery) ~ 500k bpd (Planned) - Balochistan
> *2.* UAE (Cosatal Refinery) ~ 250k bpd (Planned) - Balochistan
> *3.* Khybery Refinery (Pakistan's private investor & UAE based US consortium, construction license awarded 2018) - KPK
> *4.* Falcon Oil ~100k bpd (Pakistan's private investor and Chinese group, construction license awarded 2017) - KPK
> *5.* KPOGCL & Russian consortium (Kohat Refinery) ~20k bpd (Planned, conducting feasibility) - KPK
> 
> *Are these not too many for our requirements? For these to work, IK hopefully can convince China to import from these refineries and invest actively in Gwader - Kashgar rail and pipeline links, in his upcoming visit.*





farok84 said:


> We have ~400 kbpd refining capacity which results in an imbalance of ~200 kbpd equivalent imports. Now, KPK is planning to increase its capacity by ~200 kbpd [divided among its 3 new refineries, Falcon ~100 kbpd, Khyber ~20 kbpd (eventually planned to be increased to ~40k), Karak (KPOGDCL refinery) ~20 kbpd (eventually to be increased to 60k)]. With KSA & UAE, GOP is planning a combined increase of ~950k bpd, and a total of ~1.350 mmbpd refining capacity, say in next 10 years. Regardless of whether we can achieve it or not, we have an intent, this intent should have some basis. This particular refinery (Coastal) when was planned in 2007, was intended to cater our needs 5-10 years down the line, that is today and would have catered to our refining woes and that ~200k bpd equivalents effectively.
> 
> Our, oil demand should be going down, we are actively converting our power generation to gas fired plants, this is one of the largest areas for our consumption. So, where are we expecting increase in our demand over next 10 years, and that too from ~600k to 1.35 mmbpd, and how are we planning to support it? Our oil production is at around ~84k bpd and is expected to decline.
> 
> 
> 
> 
> 
> 
> 
> So, we will be relying on foreign crude imports of about ~1.25 mmbpd or 456.25 mmbbl/year. Having current prices of $76.47 for Arab Light locked, we are looking at a price tag of ~$34.8 Billion/year. This doesn't look like a very well thought out plan, or we are missing a very important variable in the equation. Maybe we are not the only intended target for the products, and the GOP has envisaged another player to pick some of that ~34.8B cheque. They did offer an ROI of 16% to KSA, that is atleast 6% more of the going rate, some may even say twice - our economy alone will not be able to support this. *T**hat's why I said IK needs to convince China in investing on rail and pipeline links between Gwader and Kashgar in his upcoming visit, and focus on China's energy security paradigm with Pakistan being in central and pivotal role.*
> "




I am still of the opinion that we actually don't need all these refineries _(KSA, UAE and bunch of smaller ones, planned in KPK)_ for our own consumption and if and when, all these are actually constructed, the products will flow to China, maybe that was the reason for GOP's invitation to China in Parco project. For our own consumption, a 250,000 bpd KSA or Parco refinery would have suffices, specially with our heavy investment in Lng ecosystem. 

I also believe if China is ever going to import refined products through any refinery in Pakistan, it would be from it's own investments, with Chinese control on operations and crude oil procurements _(maybe Iran/ Iraq Crude Blends),_ as evident from it's own proposed alternative to KSA and UAE refineries.









China to set up $15b oil complex | The Express Tribune


A consortium of Chinese state-owned companies offered to set up a $15b oil refinery complex that may provide some relief to Pakistan.




tribune.com.pk





CPEC Phase 3 has a planned tunnel through Karakorums for railway links, let's hope they also lay a bunch of pipelines through it too, for crude oil, products and gas.

FWO has a contract _(likely for feasibility study) _with Petroleum Division for Gwader to Kashgar crude oil pipeline.






29 May 2018: Signing of Agreement for Gwadar – Kashgar Cross Country Crude Oil Pipeline Project







www.fwo.com.pk







Patriot forever said:


> With the recent developments and policy announcement, Parco is the first I think which is investing around $800m in upgrading its facilities to increase value addition instead of FO into petrol and diesel that too of higher standard. This alone will result in saving of 5-6% value of crude import.




I don't have knowledge regarding Parco Mid Country Refinery upgrade plans, but Byco will certainly take the lead. They have the largest refining capacity (over 150,000 bpd) in Pakistan and are not afraid to take risks. With Parco joining them that's a combined capacity of ~270,000 bpd. These upgrades will help us in reducing our product imports, and import bills.









Byco Refinery to convert FO into petrol, diesel by 2024


HUB, Balochistan: In a welcoming development, the Byco Refinery has taken the lead in initiating the process to install an upgraded plant in its vicinity aiming to convert furnace oil by 2024 into...




www.thenews.com.pk





With incentives in new refinery policy, others (NRL, PRL, ARL) will follow too. I wish they had also provided similar tax holiday to Lng terminals (new/ old) for establishing onshore terminals instead of FSRU ones.


Pakistan needs to look beyond oil/ gas imports. Our economy can't sustain it, even with generous subsidies from our Gulf brothers (KSA, UAE, Qatar). Our future prosperity is in becoming transit hub not only for China's energy needs, but also by providing access to unexplored markets for Central Asian Oil/ Gas, by becoming the center for Turkmenistan, Uzbekistan and Kazakhstan's Oil/ Gas (Lng) exports to markets in South Asia (Bangladesh), Southeast Asia (Thailand, Philippines, Vietnam, Singapore), North Asia (Japan, South Korea) and Europe. I hope Planning and Petroleum Divisions have started working on these lines and have drawn up some solid proposals.

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## niaz

farok84 said:


> Hi,
> 
> I am not too sure. I think the lack of seriousness was from both sides. First Zardari happened, then blockade of funds from UAE, but we can thank Mr. 10% upgrading to Mr. 100% for that too.
> 
> I believe they have completed civil construction and are in process of mechanical construction now. Let's hope they are able to complete it.
> 
> Parco is 60-40% split between Pakistan and UAE, so Pakistan also has to arrange finances for it. I think they offered China some stakes in it too around Feb-March 2021, in hopes of raising some capital, but China might have other plans.
> 
> Unfortunately I don't have credible information on it's progress. Maybe @niaz sb can help us out and offer his insight on the subject.




The planned expansion has taken far too long and as you correctly pointed out because it is a joint venture; decision making about a large investment is not easy. Sadly I don't have any additional info in this regard.

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## niaz

Blacklight said:


> @farok84 @niaz Brothers, what are your real life expectations, from this win? Keeping ground realities in mind.



Nearly all of the potential oil/gas deposit areas of the Persian /Arabian Gulf region have already been extensively mapped. Even though this does not preclude the existence of hydrocarbon baring structures in the new block, this does mean that finding new reserves in this block is a 'Possibility' and not a 'Probability'. Besides, oil exploration has always been a calculated risk; let us keep our fingers crossed.

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## ali_raza

niaz said:


> Nearly all of the potential oil/gas deposit areas of the Persian /Arabian Gulf region have already been extensively mapped. Even though this does not preclude the existence of hydrocarbon baring structures in the new block, this does mean that finding new reserves in this block is a 'Possibility' and not a 'Probability'. Besides, oil exploration has always been a calculated risk; let us keep our fingers crossed.


pakistani government wouldn’t spend 400 million if it wasn’t a probablity 
we aren’t that rich

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## ghazi52

Pakistan’s total refining capacity is 19.37 million tonnes per year, according to the Economic Survey, while the country consumes 19.68 million tonnes of petroleum products annually.

The government says refinery capacity is not being fully utilised on account of financial as well as technical problems, and is supplying only 11.59 million tonnes per year, with the rest of the country’s needs imported.

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## niaz

ali_raza said:


> pakistani government wouldn’t spend 400 million if it wasn’t a probablity
> we aren’t that rich



Regardless of it being a probability or a possibility, we have to remember that success rate in oil exploration is seldom more than 1 in 5. Have we already forgotten Kekra-1 where an investment of close to $100-million went to waste? (Actually Rs 14- billion per (https://archive.pakistantoday.com.p...ling-at-kekra-1-near-karachi-coast-completed/).

We need to keep our fingers crossed and not jump the gun.

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## ali_raza

niaz said:


> Regardless of it being a probability or a possibility, we have to remember that success rate in oil exploration is seldom more than 1 in 5. Have we already forgotten Kekra-1 where an investment of close to $100-million went to waste? (Actually Rs 14- billion per (https://archive.pakistantoday.com.p...ling-at-kekra-1-near-karachi-coast-completed/).
> 
> We need to keep our fingers crossed and not jump the gun.


i can’t match ur experience or intelligence 
but kekra affair is much more dubious 
its wasn’t just a waste as per some people


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## ghazi52

*CCoE approves Pakistan Oil Refinery Policy 2021*

Mon, 13 Sep 2021, 7:07 PM






*
ISLAMABAD, Sep 13 (APP):..... *The Cabinet Committee on Energy (CCOE) approved on Monday the Pakistan Oil Refinery Policy 2021and directed the Petroleum Division to revisit the upfront incentive package offered to the existing refineries in the country.

The meeting of the Committee was held here under the chairmanship of Minister for Planning, Development and Special Initiatives Asad Umar.

The committee discussed in detail the proposed policy presented by the Power Division.

The Chairman of the Committee appreciated the work and efforts of the Petroleum Division and highly knowledgeable and experience professional involved in the formation of this policy.

The Power Division submitted a report of the implementation committee on the ratification of the IPPs Agreement, under the 2002 Power Policy.

After a detailed discussion, the Committee approved the final report of the Implementation Committee and directed the Power Division to proceed with the payments of all 11 IPPs as per the signed agreement except a company whose cases are under investigation at NAB.

Due to the limited availability of natural gas during winters, the consumers need alternative affordable resources for meeting the heating requirements. Hence the winter incentive package for electricity consumers from 1st November 2021 to 28th February 2022 was submitted by Power Division and approved by CCoE.

The CCoE directed Power Division that KE consumers should also be included in this package. The Committee also directed Petroleum Division to submit an inverse gas pricing mechanism for the same months within this week.

The meeting was attended by Minister for Finance, Minister for Energy, Minister for Maritime Affairs, Minister for Railway, SAPM on Power, Petroleum & Revenue. Adviser for Commerce and Investment to Prime Minister. Representatives of regulatory authorities and senior officials of Ministries/Divisions also participated in the meeting.

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## ghazi52

*White oil pipeline project: ECC for locking tariff in dollar terms for 5 years*

Mushtaq Ghumman 
16 Sep 2021








*ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has decided that the prospective tariff of white oil pipeline multi-grade movement project in terms of dollars will be locked for five years to be paid in Pak Rupees, official sources told Business Recorder.*

The ECC took this decision on September 9, 2021 on a summary moved by the Ministry of Maritime Affairs, which is now more focused on petroleum sector instead of port affairs.

The following proposals were submitted for consideration and approval of the ECC: (i) the revised tariff of $1 per ton for HSD handling inclusive of PQA royalty (to be paid in equivalent Pak Rupees) to be implemented and incorporated in HSD pricing formula or OMC Dealer margin; (b) tariff differential amount for the period from July 1, 2012 to till June 30, 2020 amounting to Rs 1,505,962 to be incorporated from OMC Dealer Margin for recovery; (c) The revised handling tariff will also be applicable on handling of MOGAS through existing pipeline as an interim arrangement until a dedicated pipeline is laid by FOTCO and its tariff determined on actual cost basis and submitted, separately.

After detailed discussion, ECC decided that prospective tariff in terms of dollars shall be locked for 5 years to be paid in Pak Rupees, at the prevailing exchange rate, by PSO for HSD and MOGAS with immediate effect.

The ECC also constituted a Committee under the chairmanship of Deputy Chairman Planning to formulate recommendations for the ECC in the light of the report of M/s A.F. Ferguson & Co, regarding payment issue of outstanding dues of Rs1.5 billion payable by PSO since2012 to 2020.

The composition of the Committee will be as follows: (i) representative of Finance Division; (ii) representative of Petroleum Division; (iii) representative of PSO; (iv) representative of FOTCO; (v) representative of PQA; and (vi) Chairman, OGRA. The secretariat support will be provided by Ministry of Maritime Affairs.
Copyright Business Recorder, 2021


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## ghazi52

*Refinery policy and its partial approval*

Reservations about deemed duty collection delayed clear go-ahead

Zafar Bhutta
September 19, 2021






Refineries are required to invest in their expansion and upgrade projects from the special reserve account. 


*ISLAMABAD: *The Cabinet Committee on Energy (CCOE) has adopted a diverse approach to deal with two sectors of the same industry; power and refining.

Pakistan’s refining sector meets the strategic requirements of the country as it also produces jet fuel for airlines and the air force. However, for a second time now, the CCOE has refrained from giving a clear approval to the refinery policy as it raised observations on the proposed 10% tariff incentives for oil refineries. The reservations were made despite the Petroleum Division sharing a detailed break-up of the refineries’ deemed collection and their investment.

Meanwhile, a power plant in the private sector was given the go-ahead to make payments despite clear advice from the National Accountability Bureau (NAB) to recover dues from all 12 IPPs, including Nishat Chunian, under Power Policy 2002.

NAB had established a case against Nishat Chunian Power Ltd due to the determination of tariff at the higher side. It further intimated, “The Ministry of Energy, if so desired, may proceed under Power Policy 2002 after securing the amount of loss caused to the state as established during the above stated NAB investigation in the best interest of the state.”

NAB wanted the government to recover the illegal gains from the IPPs set up under Power Policy 2002 before proceeding further on the process of payments.

However, the CCOE stopped payment to Nishat Chunian while directing the Power Division to make payment to 11 IPPs set up under Power Policy 2002.

Officials, privy to the matter, said that this was the result of a tussle between different groups in the cabinet committee.

The government has also formed a Cabinet Committee on Transport and Logistics and its mandate was to resolve issues of freight policy, transport, and logistics. However, the transport committee intervened in the matters of the Petroleum Division and directed all refineries to submit details of collecting deemed duty.

Hence, the CCOE on one hand dealt with the oil refineries, and on the other was the logistics committee, which was going beyond its mandate. Due to this, the refinery policy went back and forth between the Power Division and CCOE.
*Read *CCOE turns down hike in gas prices
The Petroleum Division had informed CCOE that oil refineries made the same investment of Rs200 billion, which they collected.
Why oil refineries were allowed to recover deemed duty?
In a letter sent to the committee on transport and logistics, Pakistan Refinery Limited (PRL) managing director said that there is a gross misunderstanding that deemed duty collected by a refinery is meant to be used for investment.
The correct legal status is that refineries entitled to the Tariff Protection Policy are required to create a ‘special reserve’ account in pursuance of directives of the government issued on June 25, 2002.
He said that the special reserve account of a refinery will be credited with that amount of after-tax profit, which is left after the distribution of allowable dividend.
Refineries are required to invest in their expansion and upgrade projects from the special reserve account.
It is important to note that at the start of this policy from 2002 till 2013 refineries were also allowed to offset their losses against the special reserve account.
He said that it is a factual explanation, which clearly shows an incorrect assumption that the total amount of deemed duty collected by a refinery will need to be invested.

A relevant extract of this letter further clarifies as follows, “The main objective of the tariff protection formula was to dispense with the minimum 10% rate of return requirement and provide incentives to oil refineries to operate on a self-financing basis...However, net profit after tax above 50% will be diverted to special reserve to offset any future loss or make an investment for expansion or up-gradation of refineries.”

It is clear that the prime objective of the tariff protection formula was to help the refineries to operate on a self-sustainable basis without any government subsidy.

Subsequently, deemed duty on kerosene, LDO and JP-4 were totally abolished with effect from June 10, 2007, and later effective August 1, 2008, deemed duty on diesel was reduced to 7.5%.

AF Ferguson & Co audited the amount accumulated in the special reserves as per the pricing formula and ENAR Petrotech Services (Pvt) Limited has carried out a technical audit of the installation of isomerisation unit. These audit reports were already submitted.

Interestingly, key stock market brokers have been allegedly making money by manipulating shares of two refineries; Attock Refinery Limited and National Refinery Limited.

The energy ministry informed the CCOE on Thursday that NAB wanted the government to recover the illegal gains from the IPPs including Nishat before proceeding further on the process of payments.
The Petroleum Division started work on the new refinery policy and the first draft was made in 2019 when Nadeem Babar was the special assistant to the prime minister on petroleum.

Since that time, there had been manipulation of shares of ARL and NRL on the stock market. The share price of ARL went up to Rs275 from Rs70 and NRL jumped from Rs90 to Rs650.

The shares of these refineries continued going up and down to benefit some key stock market players.

The energy ministry had also informed the cabinet body on energy that it should revise the master agreement signed with IPPs under Power Policy 2002.

On the manipulation of shares, the Securities and Exchange Commission of Pakistan (SECP) said, “The SECP, inter alia, is mandated to maintain fair, orderly and efficient capital markets, promote robust corporate and insurance sectors and protect the rights of investors through beneficial regulations. In order to perform its regulatory functions, SECP regularly carries out inspections, inquiries, investigations and takes such other regulatory actions, as deemed necessary, in accordance with its administered legislation.”

It added, “However, on account of SECP’s operational SOP’s and relevant laws, unless a matter is concluded, we cannot either confirm or deny initiation of any purported action or proceedings against any regulated entity or person. Please note that any final conclusion, decision or enforcement action, if any, is made public through placement on SECP’s website for public information, subject to the policy of the Commission and permissibility under the law.”

_Published in The Express Tribune, September 19th, 2021._


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## ghazi52

*Pakistan says finalising details of PSGP project with Russia*


Energy minister says govt 'moving fast', new terminals to have no take or pay liability

BR Web Desk 
09 Oct 2021








*Minister for Energy Hammad Azhar said on Saturday that the government is "moving fast" on finalising details of the Pakistan-Stream Gas Pipeline (PSGP) project, formerly called the North-South pipeline, with Russian counterparts.*

The minister shared the development in a tweet post, saying that the government has facilitated the allocation of pipeline capacity firm offer to two upcoming terminals. “The new terminals will have no take or pay liability on the government like previous terminals and will be based on B2B models,” informed Azhar.

The minister added that these measures will enhance the capability of the system to handle imported gas but in a “cost-efficient manner.”

Back in July, after days of negotiations, Pakistan and Russia signed Heads of Terms to construct the $2.5 billion Pakistan-Stream Gas Pipeline (PSGP) project of 1,040 kilometers from Port Qasim to Kasur, to be completed by 2023.

The infrastructure of the 42-to-56 diameter pipeline, costing $2.25 -2.5 billion, will ensure the enhanced energy security of Pakistan.

The project will secure sustainable gas supply infrastructure for the next 40 years. This will be the most essential conduit between the installation of new LNG terminals and the industrial growth of Pakistan. Oil and Gas Regulatory Authority (Ogra) will determine the tariff of gas pipelines. The raw material of the pipeline will come from Russia whereas local companies will lay the pipeline.

The Pakistan Stream Gas Pipeline Project was announced in a joint statement of the Pakistan-Russia Inter-Governmental Commission on November 26-28, 2014.

The federal cabinet approved the Protocol to IGA on March 9, 2021. Amended IGA was signed on May 28, 2021, whereas the original IGA was signed on October 16, 2015. According to the IGA, Pakistan-nominated entity, Inter-State Gas System, will undertake the project through GIDC proceeds of (74%) and external equity (26%).

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## ghazi52

*LNG new terminals*

BR Research 
11 Oct 2021









*Finally, the ball is rolling. With allocation of pipeline gas capacity, the possibility of having new LNG terminal(s) is high. Any new terminal will be on a take and pay basis and the government will not assume any risk. There is growing market of imported gas. All investors want guaranteed pipeline capacity with which they can ensure certain volumes handling have commercial viability. However, there is one caveat. As per Ministry of Petroleum presentation in CCoE, the firm commitment of 500-600 MMCFD is proposed on a three-month rolling basis. This needs to be revisited as guaranteed availability will ensure projects bankability.*

The two new terminals could significantly improve LNG security in Pakistan, and the reliance on spot buying cargos would be less; and that would take the media sensation out of the sector. The two existing terminals can handle 6 cargos a month each. This implies that one cargo coming every 5 days at each terminal can ensure 1200 MMCFD handling a month. At the same volume, with a third terminal, the storage will jump to 7.5 days and by having fourth, the terminal handling per cargo can reach 10 days. 

This is good for energy security. And potentially, higher number of cargos can be handled to cater for peak demand and to reduce the risk on the system by delay in any cargo. For instant, recently a cargo on one terminal was delayed by two days, and the supply got short for Sindh industrial consumers.

Two companies -Energas and Tabeer Energy have acquired licenses to procure and handle LNG. However, the projects were stuck at the pipeline availability by Sui companies. 

Some were of the view that there is not ample capacity and whatever is available should be allocated to the existing two terminals as they can expand – Engro has had an option of keeping a bigger FSRU. Others think that having new terminals is better for reducing supply risk by diversification. And with one (or two) FSRUs coming, the storage would double.

However, FSRU is temporary storage and not an asset of the country. Therefore, theoretically, it is better to build onshore gas storage facility. 

That is to not only build strategic storage but also can help in buying off-peak season for peak days, as this could save cost of buying expensive gas in peaking season. This arbitrage was attempted to exploit by other countries – such as Dubai and Singapore; but seeing that producers altered the spreads (supply in peak season) to kill the arbitrage. Nonetheless, onshore capacity would be a strategic asset. 

The purpose should be to develop strategic storage; but should not be seeing as an arbitrage opportunity on winter-summer spreads. Its expensive and higher storage capacity should be built to attain economies of scale. Returns are in long term. Private sector doesn’t have muscle or viability to build these. Government of Pakistan lacks fiscal capacity to do so.

Hence, having FSRUs by private sector is the best bet.

The energy minister is convinced on this philosophy. And the ministry finally found excess capacity in pipeline system. Total SGNP pipeline capacity – from south to north, is 1,200 MMCFD.

The long-term contract is of 900 MMCFD and this will increase to 1,000 MMCFD. Within it, 150 MMCFD is committed to be supplied to KE, and 150-250 MMCFD is being provided to Sui South customers. SSCG south network can handle 600 MMCFD. This leaves 500-600 MMCFD collectively excess capacity from both SNGP and SSGC, and 250-300 MMCFD each to be supplied to Energas and Tabeer Energy.

The question is given volumes of excess capacity and demand, is having two terminals viable? May be not. Gas load varies from 1500-1800 MMCFD. The existing two terminals are handling 1200 MMCFD. This leaves 300-600 MMCFD per month for new terminals to handle. The commercial viability of a terminal is on every month handling of 300 MMCFD and to handle 600 MMCFD at peak. Thus, at this point, it seems one of the two terminals will be built. The demand is growing every year. Hence, the second terminal may come in a few years.

The next question is what type of consumers the new terminals would handle and would it cannibalize the existing good paying Sui customers? SNGP is not happy with new terminals as they fear that the new terminals will take away their existing good customers. And this would leave them with low paying large number of domestic consumers and that would increase its losses. Well, with this philosophy, the gas marketing sector could never deregulate and liberalize.

The board of SSGC is supportive of private sector. Shamshad Akhtar – chairperson of SSGC, is a seasoned economist and she understands the benefits of privatization, deregulation, and liberalization. The market can only develop by bring competition to sui companies. 

Private sector presence can eventually be better off with new private players coming in. For instance, marketing efforts by Shell in Oil marketing business in 90s forced PSO to work on improving its brand. Eventually, the market size grew and PSO kept its lion share. Sui companies should get aspiration from PSO.

The new gas companies would not have access to cheap domestic gas as is the case for Sui companies. The cost structure is in favour of the latter. There, marginal cost varies from domestic fields and on imported buying. The new players will bring efficiency in imported gas, and that would force Sui companies to be efficient in their allocation. They need to think on diverting cheap gas to low revenue customers or can come up with other ways. 

The point is by having level playing field for everyone, eventually complacent players will have to come up to the mark. And its win-win situation for all.

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## ghazi52

*Gas transmission network being reinforced with 18,731-km additional pipelines*

Sun, 10 Oct 2021

ISLAMABAD, Oct 10 (APP):The two state-owned companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) would lay around 18,731-kilometer (km) pipelines in their respective areas to strengthen their network transmission and distribution networks during the current fiscal year.

Last year, the companies laid around 3,540 km pipelines against the target of 7,497- km, according to an official document available with APP.

Besides, the SNGPL and SSGC are working on at least seven major projects to reinforce their gas transmission and distribution systems.

The SNGPL is constructing a 12 km pipeline to supply 30 million cubic feet per day (MMCFD) gas to Rashakai Special Economic Zone. “The project is expected to be completed by the end of December, 2021,” according to an official document available with APP.

Similarly, a 20-km pipeline is being laid to provide 40 MMCFD gas to Allama Iqbal Industrial City Special Economic Zone, which is scheduled to commence in the first quarter of 2021- 22.
However, to supply 5 MMCFD gas to Allama Iqbal Industrial City on a temporary basis, a 2-km main supply line had already been laid and commissioned by extending the existing network of M-3 Industrial City.

Whereas, a project is being launched to address the acute low gas pressure issues during the winter season in Mardan and Peshawar regions, at an estimated cost of Rs 2,296 million for system augmentation of transmission Charsadda-Khazana-Tangi pipeline.

The SNGPL is confident that a 22-km transmission mainlines from Barki to Sunder and a 10-km from Dial to G.T Road is expected to be completed by December, 2021.

On the SSGC network, a 3.5-km pipeline would be constructed at a cost of Rs149.41 million for supplying 13 MMCFD gas to Bin Qasim Industrial Park, Karachi.

The company also got approval for laying an 8.7-km pipeline to supply 10 MMCFD gas to Bostan Special Economic Zone, Balochistan at an estimated cost of Rs 731.447.

During the current fiscal year, the two companies would collectively invest Rs17,571 million on transmission projects, Rs91,812 million on distribution projects and Rs 3,156 million on other projects, bringing the total investment of Rs112,539 million.

Pakistan has an extensive gas network of over 13,315 km Transmission 149,715 km Distribution and 39,612 km service gas pipelines to cater for the requirement of more than 10.3 million consumers across the country.

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## ghazi52

Licenses have been issued for oil and gas search in Attock and Loralai districts. The government has accelerated efforts to explore natural resources. Offshore Exploration licenses will be issued in the next few months.

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## ghazi52

*Despite the recent surge in petroleum prices, demand for petroleum products in the country has been on an up-climb. Recent quarterly growth (1QFY22) for petroleum product sales by the oil marketing companies stood around 24 percent year-on-year; in line with the trend, oil sales for Attock Petroleum LImited (PSX: APL) was also up by 23 percent year-on-year during the quarter. For APL, the volumetric growth was led by the retail fuels, motor gasoline and high-speed diesel, while after a weak month (July-21), furnace oil sales also grew staggeringly during the two latter months to lift the overall share of the fuel.*

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## farok84

*Qatar Invests in Pakistan’s Next LNG Import Terminal*
By
Faseeh Mangi
October 28, 2021, 5:21 PM GMT+5

*Qatar, the world’s top supplier of liquefied natural gas, will invest in Pakistan’s next import terminal in a bid to support one of the fastest growing buyers of the super-chilled fuel. 

Qasim Terminal Holding Co., a subsidiary of Qatar Energy, has applied for clearance with Pakistan’s government to take a stake in Energas Terminal Pvt., according to people familiar with the matter. Qatar Energy and Energas did not respond to requests for comments while Pakistan’s competition commission declined to comment.*

The deal comes as Qatar plans to dramatically increase production over the next decade, which will require the Middle Eastern nation to find more buyers for its fuel. Qatar is already Pakistan’s largest gas supplier with its latest long-term deal slated to start this year. 

*Thirst*
Pakistan's LNG demand to triple by 2031






Source: BloombergNEF

*Energas**’ terminal will be the nation’s largest with a capacity to import 1 billion cubic feet of gas a year. Pakistan currently operates two LNG terminals, while Energas and Japan’s Mitsubishi Corp. are vying to build the nation’s first two private projects. *

Pakistan is going to dominate LNG growth in emerging Asia along with Bangladesh and Thailand over the next five years. The three nations will almost double LNG imports over 2021-25, according to BloombergNEF.










Qatar Invests in Pakistan’s Next LNG Import Terminal


Qatar, the world’s top supplier of liquefied natural gas, will invest in Pakistan’s next import terminal in a bid to support one of the fastest growing buyers of the super-chilled fuel.




www.bloomberg.com

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## farok84

farok84 said:


> *Qatar Invests in Pakistan’s Next LNG Import Terminal*
> By
> Faseeh Mangi
> October 28, 2021, 5:21 PM GMT+5
> 
> *Qatar, the world’s top supplier of liquefied natural gas, will invest in Pakistan’s next import terminal in a bid to support one of the fastest growing buyers of the super-chilled fuel.
> 
> Qasim Terminal Holding Co., a subsidiary of Qatar Energy, has applied for clearance with Pakistan’s government to take a stake in Energas Terminal Pvt., according to people familiar with the matter. Qatar Energy and Energas did not respond to requests for comments while Pakistan’s competition commission declined to comment.*
> 
> The deal comes as Qatar plans to dramatically increase production over the next decade, which will require the Middle Eastern nation to find more buyers for its fuel. Qatar is already Pakistan’s largest gas supplier with its latest long-term deal slated to start this year.
> 
> *Thirst*
> Pakistan's LNG demand to triple by 2031
> 
> View attachment 788370
> 
> 
> Source: BloombergNEF
> 
> *Energas**’ terminal will be the nation’s largest with a capacity to import 1 billion cubic feet of gas a year. Pakistan currently operates two LNG terminals, while Energas and Japan’s Mitsubishi Corp. are vying to build the nation’s first two private projects. *
> 
> Pakistan is going to dominate LNG growth in emerging Asia along with Bangladesh and Thailand over the next five years. The three nations will almost double LNG imports over 2021-25, according to BloombergNEF.
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> Qatar Invests in Pakistan’s Next LNG Import Terminal
> 
> 
> Qatar, the world’s top supplier of liquefied natural gas, will invest in Pakistan’s next import terminal in a bid to support one of the fastest growing buyers of the super-chilled fuel.
> 
> 
> 
> 
> www.bloomberg.com



Although a welcome investment by Qatar Energy, but what exactly is the role of GOP in securing this investment? 

All praises to Energas for bringing in Qatar, and at the speed with which they are able to do so, specially when Exxon backed out of the project early this year.

IMO, for GOP, it is another case of huge opportunity, missed. Qatar (Nakilat) will likely lease another FSRU to us and that will be the extend of their investment. A newly built FSRU (of 1 bcfd/ 8mtpa) would cost around $375-400m, it's charter will be around $150,000/day (for the life of project, 20 years, it will be $1.095B, paid by consumers in Pakistan). In all likelihood, once pipeline capacity issues are resolved between SSGC/ SNGPL and Energas/ Tabeer, Qatar will get one of its older/ existing carriers converted to FSRU for around $150-200m instead of procuring a new FSRU. They are looking at 300-400% return on their investment, but that's not the price Qatar is seeking. The real money is in the guaranteed import of Lng from Qatar by Energas Terminal. They have firm demand of 300mmcfd from their own sister companies, the same pipeline capacity they are seeking, that is guaranteed 3 cargoes/ month or 2.25 mtpa Lng import from Qatar, which could go up, when Energas finds more customer. Their rationale for this investment interest is primarily driven not by FSRU returns but in securing new customers for their Lng expansion project. 

Now, when I say, its another missed opportunity by GOP, it is because of this rationale. Qatar would have been equally happy in investing those $200-400m for an onshore terminal. A converted FSRU takes 1.5-2 years and a newly built around 2.5-3years for a 750mmcfd capacity, for 1 bcfd it will take longer. An onshore terminal for the same capacity could have been built within same timeframe which could be expanded to 1 bcfd later on. Apart from this, we also won't be able to train our own people on the leased FSRU. All our previous governments had neglected skill development, PTI is also doing the same.

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## Blacklight

farok84 said:


> Although a welcome investment by Qatar Energy, but what exactly is the role of GOP in securing this investment?
> 
> All praises to Energas for bringing in Qatar, and at the speed with which they are able to do so, specially when Exxon backed out of the project early this year.
> 
> IMO, for GOP, it is another case of huge opportunity, missed. Qatar (Nakilat) will likely lease another FSRU to us and that will be the extend of their investment. A newly built FSRU (of 1 bcfd/ 8mtpa) would cost around $375-400m, it's charter will be around $150,000/day (for the life of project, 20 years, it will be $1.095B, paid by consumers in Pakistan). In all likelihood, once pipeline capacity issues are resolved between SSGC/ SNGPL and Energas/ Tabeer, Qatar will get one of its older/ existing carriers converted to FSRU for around $150-200m instead of procuring a new FSRU. They are looking at 300-400% return on their investment, but that's not the price Qatar is seeking. The real money is in the guaranteed import of Lng from Qatar by Energas Terminal. They have firm demand of 300mmcfd from their own sister companies, the same pipeline capacity they are seeking, that is guaranteed 3 cargoes/ month or 2.25 mtpa Lng import from Qatar, which could go up, when Energas finds more customer. Their rationale for this investment interest is primarily driven not by FSRU returns but in securing new customers for their Lng expansion project.
> 
> Now, when I say, its another missed opportunity by GOP, it is because of this rationale. Qatar would have been equally happy in investing those $200-400m for an onshore terminal. A converted FSRU takes 1.5-2 years and a newly built around 2.5-3years for a 750mmcfd capacity, for 1 bcfd it will take longer. An onshore terminal for the same capacity could have been built within same timeframe which could be expanded to 1 bcfd later on. Apart from this, we also won't be able to train our own people on the leased FSRU. All our previous governments had neglected skill development, PTI is also doing the same.


Corruption & Incompetence, will always insure that our economy goes no where.

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## ghazi52

Pakistan has accepted a liquefied natural gas (LNG) cargo at the highest-ever price of $30.6 per unit, quoted by Qatar Petroleum, to stave off a possible gas crisis in the country this winter.

The record high bid came in response to a tender floated by Pakistan LNG Limited (PLL) for the purchase of two LNG cargoes on an emergency basis to arrange gas supplies in winter months of December and January.

Earlier, commodity trader Gunvor and energy giant Eni defaulted on supply of LNG cargoes to Pakistan. PLL has short and long-term agreements with the two foreign companies for the delivery of one LNG cargo each every month.

However, the two firms backed down and refused to bring two LNG ships in the face of skyrocketing gas prices in the international market.

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## ghazi52

*Delay in setting up of merchant LNG terminals: Ogra identifies certain bottlenecks*


Both the companies have not taken a final investment decisions (FIDs) so far due to the issue of pipeline capacity, which is under deliberation with the gas companies

Recorder Report
14 Nov 2021

*ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has identified some of the bottlenecks, which are causing delay in the construction of two upcoming merchant LNG terminals that can ensure provision of gas to the users at competitive rates.*

The oil and gas regulator issued two new construction licenses to private companies - Tabeer Energy (Pvt) Limited (TEPL) and Energas Terminal (Pvt) Limited (ETPL) - in April 2021 for establishing at Port Qasim. Both the companies have not taken a final investment decisions (FIDs) so far due to the issue of pipeline capacity, which is under deliberation with the gas companies.

Once resolved, the construction and operation shall take another two years. These private LNG re-gasification terminals shall operate on third-party access (TPA). To regulate the TPA to the LNG terminals, the Ogra has drafted "LNG Terminal Access Rules and Code" in consultation with all the relevant stakeholders.

The said rules have been sent to the federal government on October 1, 2021 for notification as the rules requires federal government approval as per OGRA Ordinance 2002. The said code has also been drafted and shall be notified at the earliest.

At present, the factors, which are hindering the private sector import of gas are mainly the delay in establishment of new terminals, lack of pipeline capacity availability for transportation of RLNG, non-expansion of existing LNG terminals due to contractual constraints, which pertain to the Sui Southern Gas Company (SSGC) and the Pakistan LNG Limited (PLL), and resistance of the gas companies to let go their monopoly.

These impediments can be resolved by early establishment of new LNG terminals, expeditious work on "Pakistan Stream Gas Pipeline" for which MOU was signed between Pakistan and Russia, which shall enhance the gas pipeline capacity from South to North of the country. At present, the federal government contracted the storage and re-gasification capacity of two LNG terminals.

The peak re-gasification capacity of Engro Elengy Terminal Limited (EETL) as per operations license issued by OGRA is 690 mmcfd.

The SSGC contracted 630 mmcfd of this terminal on firm basis and 690 mmcfd on best endeavour basis on behalf of government through LNG Services Agreement (LSA). There is no spare capacity available at the EETL terminal.

The real regasification capacity of Pakistan Gasport Consortium Limited (PGPCL) LNG Terminal, the second terminal, as per operations license granted by the Ogra is 750 mmcfd.

Pakistan LNG Limited (PLL) hired 600 mmcfd of LNG regasification capacity of this terminal on firm basis and 690 mmcfd on reasonable endeavour basis.

The utilisation of the remaining capacity i.e. 60 mmcfd is still under deliberation between the respective parties and the same shall be available for use by third parties once agreed by the parties to the contract.

Sources in the gas sector said that the country would expectedly face a serious natural gas shortage in the upcoming winter months due to a gap between the demand and supply of gas.

They said that during winter months, gas consumption by the domestic sector increased manifold on account of use of room and water heaters.

They said the SNGPL network would face around 370 mmcfd shortfall while the SSGCL network also faced shortage of approximately 250 mmcfd during the winter season.

Copyright Business Recorder, 2021

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## ghazi52

In a major development, *Pakistan and Russia on Friday agreed on “discussion draft” of the shareholders' agreement for the Special Purpose Company (SPC) for construction of the Pakistan Stream Gas Pipeline (PSGP) project* and resolved to sign the agreement by February 15, 2022, an official statement said.

The above mentioned and several other agreements were signed as protocol in the seventh meeting of the Russian-Pakistani Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation being held in Yekaterinburg, Russia on November 24-26, 2021.

The Pakistani delegation was headed by Federal Minister for Economic Affairs Omer Ayub Khan. Other members of the delegation included Secretary Economic Affairs Division Mian Asad Hayauddin, Pakistan Ambassador to Russia Shafqat Ali Khan, Pakistan Embassy Trade Wing and representatives of Ministries of Energy, FBR, Commerce and other relevant ministries.

The Russian side was headed by Minister of Energy of the Russian Federation Nikolai Shulginov and included representatives of energy, trade, economy, agriculture, railways and others.

Pakistan and Russia further agreed to develop and sign the facilitation agreement for the PSGP by February 15, 2022, and to sign statutory documents of the SPC for the construction of the pipeline by January 31, 2022.

The 1,100-kilometre-long project, formerly known as the North-South Pipeline, plans to carry 12.4 billion cubic metres of natural gas annually. The project name was changed to 'Pakistan Stream' along with its partnership structure against the risk of US sanctions on Russian companies.

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## farok84

25 NOV, 20:42
*Pakistan sees prospects for LNG storages construction by Russian companies — Minister*
Omar Ayub Khan welcomed Russian suppliers to bid on a competitive basis

*YEKATERINBURG, November 25. /TASS/.* Pakistan needs construction of currently absent liquefied natural gas (LNG) storages. This is a promising sphere of investments and it can be of interest for Russian companies in particular, Pakistan’s Federal Minister for Economic Affairs Omar Ayub Khan told TASS on Thursday.
"Currently, there are no storage facilities for LNG in Pakistan. This is another promising investment opportunity," the Minister said.
*"At the moment, ships with LNG immediately pump gas into the pipe, and there is no place to store LNG. We are considering different options. One of the latter is a storage facility for 100-200 million cubic feet of gas. Therefore, Russian companies could not only supply gas to Pakistan but also participate in the construction of storage facilities for LNG," *the official noted.
Omar Ayub Khan welcomed Russian suppliers to bid on a competitive basis.



https://tass.com/economy/1366399

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## ghazi52

*Oil Village SEZ, Chakri.*

Board of Investment sponsored 𝗖𝗣𝗘𝗖 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗖𝗼𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝟮 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗖𝗼𝗻𝗳𝗲𝗿𝗲𝗻𝗰𝗲 The conference was held at Lahore on 21 December 2021, covering investment opportunities in Industry and Special Economic Zones.

Besides a number of local investors, over 70 Chinese and other foreign investors also attended. 

FWO showcased its privately developed first ever Service Sector Special Economic Zone (SEZ) namely Oil Village SEZ, located near Chakri astride Motorway M2 .






This SEZ aims to improve oil storages in the country and to accomodate all *oil marketing companies* in securing a safe, secure and state of the art storage facility. Being co-located with the upcoming cross country White Oil Pipeline along motorway M2,






The new Oil Village SEZ is ideally located in circumventing thickly populated areas of Rawalpindi and likely to remain viable for long times to come Both domestic and international investors showed overwhelming interest in joining FWO sponsored Oil Projects.

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## ghazi52

*Pakistan Refinery Limited announces to undertake $1.2bn expansion project*

BR Web Desk
28 Dec 2021







*The Board of Directors of Pakistan Refinery Limited (PRL) has announced to undertake an expansion project worth $1.2 billion.*

The company shared the development in its filing to the Pakistan Stock Exchange (PSX) on Tuesday.

The statement read that the BoD in their meeting held on December 27, 2021 decided to undertake Refinery Expansion and Upgrade Project (REUP) with the following objectives:

Compliance with requirement to produce EURO V compliant High-Speed Diesel (HSD) and Motor Spirit (MS/Petrol); Expansion of crude processing capacity to 100,000 barrels per day (bpd); And, to achieve self-sustainability by upgrading from Hydro-skimming Refinery to Deep Conversion Refinery thereby, significantly reducing production of High Sulphur Furnace Oil (HSFO).

The company added that the project cost is currently estimated at $1.2 billion on the basis of a detailed feasibility study. However, “actual costing will be determined after the completion of the FEED study, followed by financial close and award of Engineering Procurement & Construction (EPC) contract,” it added.

PRL would undertake the Front-End Engineering Design or FEED study of the said project and appoint the financial advisor, with the successful bidder expected to be in place by the quarter ending March 31, 2022.

Back in April, it was reported that PRL is looking to buy a second-hand refinery complex to upgrade its operations and increase output.

As per an advertisement placed by PRL in media back then, it was undertaking an upgrade and potential expansion project to produce Euro V specification and high-speed diesel oil. For this purpose, it intends to purchase a pre-owned refinery complex with one or more conversion units, which should have a 50,000 to 100,000 bpd throughput design.

Oil purchase makes up a major portion of Pakistan's import bill, which also jumped 64% year-on-year in the first four months of the current fiscal year — from July to October.

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## ghazi52

*Karachi to have new Fuel Jetty.*

The Ministry of Energy identified numerous limitations on Karachi ports, which has decreased its oil handling ability by half, charging billions of rupees yearly in the penalty to the Oil Marketing Companies (OMCs), and to overwhelm the restraints has planned the production of a new jetty, night navigation, and assigning FOTCO only for imported finish petroleum products.

In a report released by the Petroleum Division (Ministry of Energy), the import of oil and port constraints at Karachi is to be moved to Cabinet Committee on Energy (CCoE) and has documented that the Oil Industry has elevated some reliability and maintenance matters at Oil Piers (OP) 1, 2, and 3 at Keamari Port

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## ghazi52

*
OGDCL DISCOBERS HUGE OIL, GAS RESERVES IN KP*

The find is being estimated as the biggest one in the last decade, according to top sources in the ministry
Pakistan’s prime oil and gas exploration company, OGDCL has discovered huge oil and gas reserves in the Wali block near Lakki Marwat in KP. 

The find is being estimated as the biggest one in the last decade, top sources in the Energy Ministry told The News on Sunday.

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## ghazi52

*LNG Terminal *

Pakistan will become the third country to install more than two LNG Floating Storage Regasification Unit (FSRU) terminals at a single port, following Brazil and Indonesia.

Globally, a first or second FSRU is followed by an Onshore Terminal to create a strategic national asset to ensure supply security. 

However, in Pakistan, it is followed by two more offshore FSRU terminals, sources familiar with the matter told ProPakistani. The move is being discouraged by the major LNG importers across the world due to supply security and safety hazards of FSRUs

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## ghazi52

PRL set to start exporting furnace oil next month​
By Tanveer Malik
January 25, 2022







PRL can export FO at a rate of Rs83,000 per metric tonne in the international market and is searching for a potential buyer. -Photo file


KARACHI: Having been unable to draw local buyers even months after running into an inventory crisis, Pakistan Refinery Limited (PRL) has decided to start exporting its huge furnace oil (FO) stocks in the first week of February, if there is no improvement in demand, The News learnt on Monday.

PRL has started to shift the FO stock of 24,000 metric tonnes at the storage the company acquired on rent in Port Qasim area of Karachi. The company currently holds a stock of 24,000 metric tonnes of FO at its refinery and is making vigorous efforts to sell it locally and is ready to export it if it is not consumed by domestic Independent Power Plants (IPPs).
​PRL is the second refinery to store FO near Port Qasim for export purposes after PARCO that has already stored 58,000 metric tonnes there. “PRL has only two options; either to shut down the refinery or export FO at the discounted price to keep itself operational,” sources told The News.

According to sources, PRL can export FO at a rate of Rs83,000 per metric tonne in the international market and is searching for a potential buyer. Currently the global price of FO is Rs85,000 per metric tonne.

Sources said offering FO at discounted price would cause financial losses to the refinery; however, the price was not an issue at the moment, as disposal of FO was critical for running the refinery. Sources in the refinery sector said the FO uptake issue had not been resolved as government also told in plain words that it couldn’t do refineries any favour.

“If it is lifted by IPPs, then it is fine, otherwise the government can’t do anything in thisregard,” the sources said quoting the government, which held a meeting with the management of the refineries last week. Refineries have also offered to sell FO at discounted price but the situation has not improved for them so far. The import-parity price of FO is Rs98,000 per metric tonne but refineries have offered to sell their FO at lower levels.

The ex-refinery price of National Refinery Limited’s (NRL) FO is Rs79,000 per metric tonne, whereas ex-refinery price of Byco, PARCO, and PRL is Rs83,000 per metric tonne and Attock Refinery Limited (ARL)’s ex-refinery price is Rs93,000 per metric tonne. About the high ex-refinery price of ARL, sources point out that IPPs are lifting its FO as it uses local crude oil.
Sources said the currently local refineries have a total stock of 200,000 metric tonnes of FO and it has created problems in the operational capacity of the refineries.


Sources noted local refineries have now two option either to close down the refineries or export FO and because of it they are offering to sell it at prices lower than local as well as international market ones.

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## ghazi52

*ISLAMABAD: Pakistan and Saudi Arabia Thursday agreed to operationalise the Saudi oil facility of $1.2 billion at the earliest.*

The Financing Agreement worth $1.2 billion for import for petroleum products was signed on 29th November 2021 between the Saudi Fund for Development (SFD) and Economic Affairs Division (EAD), Pakistan. As per Financing Agreement, the SFD will extend financing facility up to $100 million per month for one-year for purchase of petroleum products on deferred payment basis.

According to the official documents available with Business Recorder, the terms of the financing includes price of purchase by SFD along with a margin of 3.80 percent per annum. The financing agreement will be initially valid for one year, which may be extended for another one year with mutual consent.

The signing of financing agreement will be followed by submission of sovereign financial guarantee from Pakistan side and opening of new Head of Account.

This will be simultaneously followed by signing of purchase contract between importer and Saudi Aramco and Saudi Aramco product trading company.

The Finance Division vide their letter dated 03-01-2022 and 04-01-2022 has furnished the sovereign financial guarantee from Pakistan side as well as Head of Account. The same has been forwarded to Saudi Fund for development and Petroleum Division vide this ministry’s letter dated 05-01-2022. It is expected that it will take one and half month to sign the purchase agreement. After singing the purchase agreement, the financing agreement will be operationalised and importers (Parco and NRL) will materialise the first shipment of crude oil/oil products.

Ambassador of the Kingdom of Saudi Arabia in Islamabad Nawaf bin Saeed Al-Malkiy called on the Federal Minister for Economic Affairs Omar Ayub Khan, here on Thursday. Both the sides discussed ongoing development projects and new initiatives. The Minister for Economic Affairs appreciated the Saudi support in the priority development areas. During the meeting, it was agreed to operationalise the Saudi Oil Facility at the earliest.

They also discussed the remaining work of development projects in the earthquake affected areas of Azad Jammu and Kashmir (AJK) and Khyber-Pakhtunkhwa.

The SFD is providing financial assistance for various development projects in the areas of energy, health, education, and infrastructure. Most recently, the SFD has committed to provide financing for Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Gravity Flow Water Scheme Mansehra, and Abbottabad-Muzaffarabad Road Project.

The Saudi ambassador assured of continued support at all levels to further strengthen the bilateral economic cooperation between the two brotherly countries.

The Saudi ambassador expressed that the Kingdom of Saudi Arabia is committed to play a much stronger role in the socioeconomic development of Pakistan.

Copyright Business Recorder, 2022

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## ghazi52

SNGPL, SSGC repair 887-km pipelines, rectify 1447,342 leakages​
The Frontier Post

ISLAMABAD (APP): The Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have collectively repaired around 887-kilometer faulty pipelines and rectified 1447,342 leakages in line with the government strategy to bring down the Unaccounted for Gas (UFG) ratio.

Besides, the companies’ experts inspected around 13,388 Town Border Stations (TBSs) and rectified 633 stations after finding them leaked, according to an official document available with APP.

The state utilities have installed Electronic Volume Corrector (EVC) meters at all industrial connections and high pressure commercial connections that calculate actual volume of gas consumption, maintain record of hourly/daily gas consumption and generate tamper alarm in case of an attempt of magnetic interference with meter or other infrastructure.

Around 1,850 out of 3,655 industrial connections have been integrated with Supervisory Control and Data Acquisition (SCADA) for remote monitoring of industrial consumers for timely identification of gas theft and measurement errors, if any.

To control the line losses and bring down the UFG ratio, the cyber locks are being installed at industrial meter stations to restrict the access of consumers to the meters and regulators to reduce chances of
gas theft.

The companies are also using Laser Leak Detectors, the best available technique and gadgets, for identification of underground leakages. “High flow samplers are being used for quantification of leakages.”

The UFG losses of SNGPL and SSGC stood at 8.83 per cent and 15.85 percent respectively
during the fiscal year 2020-21.

“Volumetric loss of SNGPL remained at 34,021 million cubic feet (mmcf) of gas and SSGC 67,476 mmcf of gas, mainly because of gas leakages, measurement errors and theft.”

In 2019-20, the SNGPL and SSGC had prevented a volumetric loss of around 9,938 mmcf gas against the UFG reduction target of 14,806 mmcf gas.

The UFG is a phenomenon of gas loss that occurred due to various technical factors when gas flowed from fields to end consumers.

It is calculated as the difference between metered gas volume injected into the transmission and distribution network (Point of Dispatch/Delivery) and the metered gas delivered to the end consumers (Consumer Meter Station) during a financial year.

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## ghazi52

ISLAMABAD: The government on Wednesday approved pricing guidelines for the supply of Regasified Liquefied Natural Gas (RLNG) to K-Electric along with amendments to the existing legal framework and extended agreement with Saindak Copper-Gold Project with existing Chinese contractors for another 15 years.

These decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet presided over by Finance Minister Shaukat Tarin that also authorised the issuance of a sovereign guarantee or standby letter of credit (SBLC) worth Rs6.944bn as operational Viability Gas Fund for construction of Sialkot-Kharian Motorway on build-own-transfer basis.

The ECC approved a summary of the Ministry of Energy on the determination of RLNG sale price for the supply of 150 million cubic feet per day by Pakistan LNG Ltd (PLL) to KE. This removes a key hiccup to operationalisation of KE’s new 900MW power project whose first of the two units is ready for generation.

Under the decision, the ECC approved amendments to the Second Schedule of Petroleum Products (Petroleum Levy) Ordinance and policy guidelines for RLNG pricing which would now be issued as Statutory Regulatory Order also approved by the ECC.



> Approves RLNG pricing guidelines for K-Electric



Now, the Oil and Gas Regulatory Authority (Ogra) would determine the sale price of RLNG on the basis of LNG delivered ex-ship price as per the contract signed by the PLL and KE as per the existing guidelines. The two sides (PLL and KE) had signed the RLNG supply contract about two years ago.

While finalising the RLNG price, Ogra would also accept PLL’s LNG import-related costs, port charges at actual and PLL’s margins as per the existing arrangement. All the charges under the Operation Services Agreement including but not limited to capacity charges, utilisation charges of the terminal as well as retainage and terminal management fee would also be taken at actual as per the existing guidelines.

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## ghazi52

*Attock Refinery Limited (ARL) commemorated its 100 years anniversary on Friday in a solemn ceremony at the company’s general office, Morgah Rawalpindi. Shuaib A Malik, Group Chief Executive, Attock Group and Chairman ARL graced the occasion as the Chief Guest.*

The Chief Guest in his address congratulated ARL management and workers on centenary celebration. He said that ARL has reached this milestone after successfully navigating through many hurdles and challenges over 100 years.

He further said that Morgah Refinery has unique distinction of first and only refinery of northern region of Pakistan and it has played a pivotal role in war and peace.

He especially mentioned the contribution and compassionate nature of Late Dr Ghaith R Pharaon, Founder, Attock Group for development of Pakistan and wellbeing of Attock Group employees even in turbulent times.

Earlier, M Adil Khattak, Chief Executive Officer ARL, in his opening address, welcomed the participants on the historical day of Centennial celebration. He shared exemplary bonding of employees with ARL with some employees now serving in ARL as 4th Generation.

Hameed Khan Jadoon, President Refinery CBA also expressed his views regarding the Centennial celebration. He expressed sentiments of workers and extended their everlasting support for progress and success of the Refinery.

Copyright Business Recorder, 2022

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## ghazi52



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## ghazi52

‘Big change’ in energy policy to ensure provision of gas:​APP
FEBRUARY 18, 2022

ISLAMABAD: Minister for Information and Broadcasting Chaudhry Fawad Hussain Thursday congratulated Minister for Energy Hammad Azhar for bringing a ‘big change’ in the energy policy that would help ensure the provision of gas across the country in the coming days.

“Today a big change has occurred in Pakistan’s energy policy,” he said in a tweet while referring to the Weighted Average Cost of Gas (WACOG)-Bill passed by the Senate of Pakistan earlier in the day.

With this legislation, he said, the industrial sector especially in Punjab had been compensated which was callously ruined by Pakistan Muslim League-Nawaz to get elected their prime minister for the third time.

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## ghazi52

OKTA Group plans $500mn investment in Pakistan’s oil & gas sector​
Objective is to 'localise supply of critical hydrocarbon resources' over the next few years

BR Web Desk 
24 Feb, 2022







*Islamabad-based OKTA Group plans to invest $500 million over the next few years in Pakistan's oil and gas sector with the key objective being to localise the supply of critical hydrocarbon resources, a statement issued on Thursday said.*

The Group's subsidiary, OKTA Exploration & Production Limited, entered the oil and gas sector during the director-general petroleum concession (DGPC) bidding round, held under the ministry of energy, in January 2021. The company won two exploration blocks namely, Block-28 North and D.I. Khan West Block.

"Both blocks are in highly prospective zones as proved by three recent gas discoveries of OGDCL around Block-28 North and discovery of Wali-1 well near D.I. Khan West Block," the company stated.

"In near future, successful discoveries in both blocks will positively contribute to mitigate energy demand and supply gap from indigenous resources."

OKTA Group said it is not only working in hydrocarbon exploration, but its scope of work is extended to becoming a fully integrated E&P player of the region with medium-term plans of establishing its own oil refinery and oil marketing setup.
Similarly, OKTA Group is going to install a petrochemical plant for the separation of other useful chemicals from extracted hydrocarbons, it said.

"Long-term plan of the company is to invest over $1 billion in the next ten years. No doubt this huge investment within the country will create employment opportunities at different levels in the sector.

"At the same time, the company looks forward to bringing international investors into Pakistan’s Oil & Gas sector, as Investors from Russia & Saudi Arabia are showing interest for JV partnership in this area."

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## FuturePAF

I hope Pakistan accesses microharmomic technology to better map shale oil reserves if it bores holes in search of oil. Through this methods the US companies have been able to avoid drilling a dry oil for a few years now. Also, using this tech as well as slant drilling multiple pipes from one bore hole, costs of getting shale oil has decreased to nearly $35/barrel. Which at today’s oil prices would make Pakistan search for oil on shore profitable.

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## ghazi52

......



...
Morgah, Rawalpindi, Punjab...
Attock Oil Company in the British era.
Courtesy: Umar Chaudhary

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## ghazi52

.
CCoE body to review oil, gas exploration status​Naveed Butt
05 Mar, 2022
...
*ISLAMABAD: The Cabinet Committee on Energy (CCoE) constituted a committee headed by Federal Minister for Energy Hammad Azhar to review the oil and gas exploration status and analyse the amendments required in the petroleum policy to enhance the exploration and production activity in the country.*

The CCoE took the decision to form a committee in its meeting chaired by Federal Minister for Planning, Development and Special Initiatives Asad Umar at P-Block secretariat on Friday.

The meeting also discussed the Draft Model Petroleum Sharing Agreement as per the Pakistan Petroleum Exploration and Production 2012, which was approved by the Council of Common Interests (CCI).

The draft agreement will facilitate the offshore exploration of oil and gas in the country. The CCoE asked the Law Division to review the draft agreement before approval.

The CCoE also reviewed the circular debt situation and power sector performance during January 2022. The Power Division also explained the changes in the merit order dispatch of power plants due to transmission constraints and limited gas supply during January 2022.

Minister for Energy, Federal Minister for Science and Technology Shibli Faraz, Member Energy, Secretary Power and Secretary Petroleum Division participated in the meeting.

Copyright Business Recorder, 2022
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## ghazi52

...
Govt to tax Chinese petrol import​FBR prepares summary seeking imposition of 10% regulatory duty

.
The government has decided to impose 10% regulatory duty on the import of petrol from China aimed at plugging a loophole that is exploited by the oil marketing companies to avoid taxes, which has caused over Rs40 billion losses in just a few months.

The Federal Board of Revenue (FBR) has prepared a summary for the approval of cabinet to impose regulatory duty at the rate of 10% on the import of petrol from China, sources told The Express Tribune.

The Collectorate of Customs Enforcement, Karachi had unearthed the misuse of China-Pakistan Free Trade Agreement a few months ago.

The import of petrol is subject to 10% customs duty but no levy is collected if petrol is imported from China under the free trade agreement (FTA).

In the budget, the government had doubled the customs duty on import of petrol from 5% to 10%, which also significantly increased prices of the important fuel.

*Read: *Oil prices slide in volatile session

The share of petrol import from China in total import of the fuel has increased from 11% to 40% due to the duty-free status and routing of imports from other destinations through the Chinese ports, said the sources.

The government has already taken a hit of Rs40 billon on its revenues during the current fiscal year due to the duty-free import from China. On the current import value, the monthly losses due to the misuse of FTA have increased to Rs22 billion, said a senior FBR officer.

Petroleum imports were made part of the revised FTA in 2019 despite the fact that China was a net importer of oil and these products were not in the original FTA signed in 2006.

According to the Rules of Origin, agreed under the bilateral FTA, the trade conversion for product not wholly produced should have at least 40% of its content originating from the same party, according to a special formula specified in the rules.

However, the petrol being imported from China has less than 40% value addition, therefore, it does not qualify for the duty-free import status.

The fuel is being imported through the Chinese ports of Dalian and Zhoushan, said the officials.

The FBR raised over Rs287 billion in indirect taxes from petroleum products in the first seven months of current fiscal year, up 72% or Rs120 billion.

In July-January FY22, the FBR collected Rs70 billion in taxes on the import of petrol on account of customs duty and sales tax. It was higher by nearly one-third, or Rs17 billion.

Customs duty collection on petrol import stood at Rs36 billion in seven months, which was higher by nearly 290%, thanks to the government’s decision to double the customs duty rate to 10% in July last year.

Prime Minister Imran Khan has paused the proposed increase in petroleum product prices with effect from March till June this year.

Sources said that after finding the misuse of the Chinese trade facility, the Customs department had stopped fuel shipments and released them only after taking securities from the oil marketing companies.

All the oil marketing companies are not availing the FTA, which has resulted in a situation where some are paying 10% customs duty while others are not.

According to a report in an English daily newspaper, the oil marketing companies have recently reported to the Ministry of Energy that they had imported about 2.4 billion litres of petrol from China between January 1, 2020 and January 1, 2022.

Pakistan State Oil took benefit of petrol imports from China. It imported about 68 million litres from China and claimed customs duty waiver against the FTA certificate.

The biggest beneficiary of the facility was Shell Pakistan, which imported about 1.2 billion litres of petrol and claimed customs duty waiver, according to the reports.

The second biggest beneficiary was Gas and Oil Pakistan, which imported more than 474 million litres of petrol from China.

Total-Parco imported about 288 million litres in two years with no payment of customs duty, according to the report.

_Published in The Express Tribune, March 11th, 2022._
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## ghazi52

....
UAE has shown interest building oil reserves..​CCOE seeks feasibility study as reserves critical for dealing with oil shortages

Zafar Bhutta.
March 17, 2022..

The United Arab Emirates (UAE) has shown interest in building strategic oil reserves in Pakistan – a project which will help cope with shortages if such a problem arises in future.

In the past, Pakistan has faced oil shortages several times due to the lack of strategic reserves.

Surprisingly, the government banned imports of petroleum products in 2020, at a time when global crude oil prices crashed following the Covid-19 lockdowns across the world.

However, other countries like China capitalised on the opportunity and imported crude oil in bulk to store the fuel.

Pakistan, on the other hand, failed to cash in on the opportunity provided by the cheap crude oil due to the lack of storage capacity.

Even the government planned to hedge against oil prices but could not execute the plan.

Recently, the crude oil prices were hovering at multi-year highs due to the Russia-Ukraine war before receding back to near $100 per barrel. Different countries such as the United States have started using their strategic reserves due to the geopolitical turmoil.

The reserves of petroleum products, especially high-speed diesel (HSD), are depleting fast, raising the spectre of another fuel crisis across the world if the war continues.

In the past, different governments took up the matter of building strategic oil reserves in the country but could not implement the plan.

The practice of curbing local petroleum production owing to the lack of storage capacity continues as the power sector has refused to lift furnace oil from refineries.

Under such circumstances, experts believe the government should build strategic reserves, even in partnership with friendly countries like the UAE.

Previously, Azerbaijan also offered Pakistan to help build strategic reserves and provide oil on deferred payment without government guarantees. However, after so many years, the plan has not yet materialised.

The UAE already has strategic reserves and has provided the facility to different countries like India for oil storage. Now, it is planning to build oil storages in Pakistan.

The two countries have partnered with each other in Pakistan’s largest oil refinery – Pak-Arab Refinery Limited (Parco). There is also a plan to set up another refinery in the coastal area of Balochistan.

Sources said that the UAE had also offered to export oil to Pakistan for building fuel reserves.

In that regard, the Cabinet Committee on Energy directed the Oil and Gas Regulatory Authority (Ogra) to conduct a feasibility study.

After conducting the study, the government will decide whether state-run energy companies should build the strategic oil reserves or hand over the project to the UAE or any other friendly country.

The committee directed Ogra to undertake a pragmatic study to develop strategic reserves of petroleum products to help Pakistan take benefit of the slump in global oil prices.

The decision was taken during a meeting held under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar.

The Petroleum Division presented a report on the development of strategic petroleum reserves. The meeting was informed that a working group comprising Oil and Gas Development Company Limited (OGDCL), Pakistan State Oil (PSO), Pakistan Electric Power Company (Pepco), Parco, Total Parco Pakistan Limited and Pakistan Refinery Limited (PRL) was formed to develop a concept paper and study the strategic reserve requirement in the country.

The group has completed its initial assessment and a detailed feasibility study is being planned based on recommendations of the working group. According to sources, there could be different options for building the strategic reserves. OMCs can build oil reserves in association with the government in a shared model.

In the prospective study, Ogra will also focus on tariff, capacity and locations of the proposed strategic reserves of petroleum products.

It was informed that the maritime ministry had also developed a proposal in that regard.

Therefore, directives were issued to constitute a committee under Ogra with the maritime ministry and Petroleum Division as members for finalising the proposal and reviewing a detailed framework for the establishment of strategic petroleum reserves.

Earlier, PSO was proposed to build the strategic reserves. However, it was estimated that PSO would need Rs15 to Rs20 billion to build the reserves.

The working group had proposed to the government to set up a separate company with the mandate to build the reserves and to allocate Rs1-2 per litre out of the petroleum levy to raise funds for building them.

It further suggested that a separate company should manage funds to build the strategic reserves and added that Pakistan could store more petroleum products when global oil prices declined.

Similarly, the country could use petroleum products out of the reserves when oil prices go up globally.

Mulling over whether the government should build storages for crude oil or petroleum products, the officials mentioned that the countries with storage for crude oil had higher refining capacity, adding that Pakistan only had 40% refining capacity and the rest was imported.

“Therefore, a more feasible option was to build storages for finished petroleum products.” Moreover, Pakistan imports petroleum products from the south to meet demand in the north. Therefore, the working group recommended building storages in the north.

_Published in The Express Tribune, March 17th, 2022._

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## ghazi52

;',.
*As Russia develops the Yamal LNG project facility *-
- Islamabad and Moscow are in talks to a multi-billion dollar government-to-government import deal. The Yamal LNG Project includes the development of the giant South Tambey (Tambeyskoye) gas field that is located near Sabetta in the Yamal peninsula in Russia. The Russian government has declared the project to be of national interest at a cost of around $27 billion.

This is a new addition to the energy cooperation between Pakistan and Russia as two countries are already working on different projects including the Pakistan Gas Stream, a gas pipeline from Kazakhstan and an offshore gas pipeline. Sources said the Pakistani government was interested to sign a government-to-government deal with Russia to import LNG to meet its growing gas demand.

They added that Russia was developing the Yamal Project, which would be one of the largest LNG facilities in the world. Russia is also meeting the demand of Europe by exporting gas through a pipeline despite the opposition of the US. The sources said Pakistan LNG Limited was in talks with Russian firms Gazprom and Novatek to import the gas. At present, Pakistan has a space on the second LNG terminal owned by Pakistan Gasport Consortium Limited (PGPC) to import the product despite a fresh deal of imports from Qatar. At present, Qatar controls the Pakistani market in terms of LNG import.

Earlier, Saudi Arabia had dominated the Pakistani oil market. However, Qatar had started supplying LNG to Pakistan. This affected the oil market on the supply of fuel to power plants as they had started using LNG to produce electricity. The sources said Pakistan was currently importing LNG from Qatar and wanted to apply this as a benchmark price for other countries including Russia. They said the benchmark price set by Pakistan might cause hurdles in implementing the LNG deal with Russia. Moreover, the prices of LNG had globally witnessed a sharp increase.

Secondly, the Russia is too far away and Pakistan might face higher freight charges in comparison with LNG cargoes coming from Qatar. However, Russia might have the option to follow LNG cargo swap with other companies operating close to Pakistan that could result in cutting the freight charges. Pakistan meets around 24% of its gas demand through LNG imports. Initially, the PML-N government had planned to utilise LNG in industrial, power and commercial sectors.

-;'

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## ghazi52

.;




__ https://www.facebook.com/video.php?v=805736950830670




',.;

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## ghazi52

,.,.,.,
Sources in the oil sector said presently the country was holding sufficient stocks of diesel and petrol​
By Tanveer Malik
March 30, 2022

KARACHI: In a preemptive move to ensure fuels availability amid volatile world crude market, authorities plan to push refineries to maximise output, which officials said wouldn’t be possible for the cash-strapped industry, The News learnt on Tuesday.

Petroleum Division, Ministry of Energy, will convene a meeting with five local refineries on Thursday, March 31, 2022 in Islamabad to discuss the same, sources said.

A top executive of a local refinery told The News that on the face of it the purpose of the huddle was to convince local refineries to boost up their production.
​However, he said, refineries, currently grappling with cash flow challenges, were not in a position to increase output.

The official said reportedly the government was also mulling changing duty structure on import of crude oil and high-speed diesel (HSD), which, according to him did not seem possible given the situation.

Sources in the oil sector said presently the country was holding sufficient stocks of diesel and petrol.

Pakistan currently had 23 days’ worth of petrol stocks (590,000 tonnes), while diesel (560,000 tonnes) was sufficient for 26 days.

Sources said Pakistan State Oil’s (PSO) two diesel cargoes for April were on their way. Sources said presently there was no threat of diesel shortage in the country. The government only wants to preempt any shortage because there are fears of diesel shortage in the global market, the added.

Pakistan oil sector is presently receiving price differential claim (PDC) from the government to keep the domestic prices frozen till next budget.

As per sources, during the next two weeks, the PDCs of oil marketing companies and refineries are estimated to reach Rs36.07/litre for HSD and Rs19.64/litre for petrol if the government plans to keep the oil prices at the current level.

During the first two weeks of April, the ex-depot price is predicted to reach Rs169.50/litre against Rs149.86/litre in the fortnight starting from March 16 and ending on 30th.

Furthermore, during the next fortnight that starts from April 1, the ex-depot price of HSD is figured to be Rs180.22/litre against Rs144.15/litre during this fortnight.

For the next two weeks, the PDC on LDO (light diesel oil) and kerosene oil is estimated to be Rs28.33/litre and Rs30.78/litre respectively.

The rise in the PDC is attributed to the increasing international oil prices that reached over $120/barrel on March 25, 2022.
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## ghazi52

.,.,.,.,
During 2022: Pakistan to import 32.7mn barrels of crude under Saudi Fund Programme​
Pak-Arab Refinery Company Limited and National Refinery Limited are planning to import 16.89 and 15.81 million barrels, respectively

BR Web Desk | APP 
05 Apr, 2022










*Pakistan will import around 32.7 million barrels of crude oil under its agreement signed with the Saudi Fund for Development (SFD) on deferred payment during 2022, reported APP.*

“Pak-Arab Refinery Company Limited (PARCO) and National Refinery Limited (NRL) are planning to import 16.89 and 15.81 million barrels of oil in the year 2022, respectively,” according to an official document available with state-run _APP_.

As per the agreement, crude oil worth $100 million per month for one year could be imported on deferred payment.

“The price will be as per existing long-term agreements/contracts between Saudi Aramco, PARCO and NRL,” it added.

“The facility will be available for a 12-month period which may be extended for 1 year upon consent of the parties. Repayment of the withdrawn amounts plus the margin at the rate of 3.8% shall be made in one annual installment in US$.”

Back in February, then Finance Minister Shaukat Tarin informed the upper house that Pakistan will start utilising the Saudi oil facility on deferred payments from March.

The Financing Agreement worth $1.2 billion for import for petroleum products was signed on 29th November 2021 between the Saudi Fund for Development (SFD) and Economic Affairs Division (EAD), Pakistan.

As per the Financing Agreement, the SFD will extend the financing facility up to $100 million per month for one year for the purchase of petroleum products on a deferred payment basis.

Oil imports account for a major chunk of Pakistan’s import bill, and during the first eight months of the fiscal year, Pakistan imported petroleum products worth $12.941 billion as compared to $6.446 billion in the same period last year, an increase of over 101%.

The country’s overall imports increased by 48.6% during the first nine months (July-March) of the current fiscal year and stood at $58.691 billion compared to $39.489 billion during the same period of the corresponding year, revealed Pakistan Bureau of Statistics (PBS) data.

The rise in imports widened the trade deficit by 70.1% during the first nine months (July-March) of the current fiscal year, 2021-22, and reached $35.393 billion compared to $20.802 billion during the same period of 2020-21.

A senior official privy to the petroleum sector developments told _APP_ that the government had given the Exploration and Production companies, operating in Pakistan, a target to produce around 29 million barrels of crude oil during the current fiscal year.

The companies had produced 27 million barrels of oil in 2020-21, he added.
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## ghazi52

,.,.,.
The Sui Gas Purification Plant, Sui, Balochistan, 1958 (c).

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## ghazi52

,.,.,.
Pakistan to buy expensive LNG again​Nation accepts lowest bid for LNG cargoes for May

Our Correspondent
April 22, 2022







*ISLAMABAD: *The tender awarded to Pakistan LNG Limited (PLL) for the month of May is quite costly for the country mainly owing to supply-chain disruptions in the international market on the back of Russia-Ukraine war.

The firm selected the lowest bid for liquefied natural gas (LNG) cargoes. Out of seven, six contract prices for LNG cargoes were received. The cargoes were sought on an urgent basis after earlier committed cargoes were cancelled.

The lowest contract price for a cargo requested for May 1-2 delivery received at $29.67 per mmbtu from Total Energies Gas and Power. The second bid for the same delivery window was received from Vitol Bahrain at $29.79 per mmbtu.

Pakistan, which has increased its dependence on LNG in recent years, due to depleting indigenous natural gas deposits, issued a separate tender for six deliveries in May and June earlier this month.

Qatar Energy quoted the lowest bid for May 12-13 delivery at $25.15 per mmbtu and for the June 6-7 delivery window at $27.65 per mmbtu.

Total Energies Gas and Power again quoted the lowest bid for May 17-18, May 27-28 and June 16-17 deliveries at $31.77, $26.87 and $29.04 per mmbtu, respectively.

There was no bid for the June 1-2 delivery window so far, industry sources said. The final decision on acceptance or rejection will be taken in a board meeting of PLL.
The CNG association and general industry hoped to resume gas supply which was suspended earlier this month due to shortage.

“The government has taken a bold step and bought the LNG from the International market in this difficult time for reducing gas shortages and ensuring supply to power plants specifically and other consumers,” All Pakistan CNG Association Chairman Ghiyas Paracha stated.

The gas demand rises in the winter season because people in northern areas and Balochistan use gas geysers and heaters to keep themselves and their homes warm.

_Published in The Express Tribune, April 22nd, 2022._

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## ghazi52

,.,.,






*Pakistan LNG Limited (PLL) has awarded four spot cargoes of which three are for May 2022 and one spot cargo for June 2022.*

According to Managing Director/ CEO PLL, Masood Nabi, to efficiently manage the upcoming payments, it is imperative that funds are made available to PLL in a timely manner to retire these international payments and resultantly free up PLL’s LC lines for subsequent spot cargoes.

Keeping in view the current scenario, PPL’s liquidity requirements for May 2022 and June 2022 will be over Rs 25.678 billion for May and Rs 57 billion for June. The PPL will also recover Rs 5.7 billion against May delivery and Rs 13.1 billion against RLNG delivery in June. The PLL will require Rs 1.426 billion per day in May 2022 and Rs 3.1169 billion per day in June 2022.

Managing Director PPL has requested the federal government to issue instructions to relevant stakeholders (SNGPL, Petroleum Division, Power Division, and Ministry of Finance) to ensure that payments are as per PLL’s requirements and are processed in a timely manner.

This week, PLL received the lowest bids from Total Energies Gas & Power for liquefied natural gas (LNG) cargoes for delivery windows for May in response to an emergency tender floated in the international market. However, out of seven, six contract prices were received for LNG cargoes.

The cargos were sought on an urgent basis after earlier committed cargos were canceled.

The lowest contract price received for a cargo requested for May 1-2 delivery was at $29.67/mmbtu from Total Energies Gas & Power. The second bid for the same delivery window was received from Vitol Bahrain at $29.7920 per mmbtu.

Qatar Energy quoted the lowest bid for May 12-13 delivery at $25.15 per mmbtu and for the June 6-7 delivery window at $27.65 per mmbtu. Total Energies Gas & Power again quoted the lowest bids for the May 17-18, May 27-28 and June 16-17 deliveries at $31.77 per mmbtu, $26.87 per mmbtu and $29.04 per mmbtu.

Copyright Business Recorder, 2022

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## ghazi52

.,.,.,.,.,.
In Gilgit, work on first Sui Northern Air mix Gas pilot project costing 1.2 billion rupees is in progress.

Executive Engineer Sui Northern Gas Company Muzafar Ali Khan said gas will be provided to four main villages in the city under the project.

Sui Northern Air mix Gas project will help to save forest and fruit bearing trees from cutting and also pave ways for keeping environment clean

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## ghazi52

.,.,.
*Pakistan will produce a Strategic Underground Gas Storage (SUGS) at a cost of Rs. 127 billion. *

The bankable feasibility study in this respect will be finalized by June 2022.

The building of underground storage would be an important part of an integrated and uninterrupted gas supply scheme. .

Pakistan’s reliance on imported LNG is increasing day by day, because of depleting natural gas reserves, but in the absence of storage capacity, the country cannot tolerate a small interruption in the supply of imported gas. Thus, it is being proposed to develop local Strategic Underground Gas Storage with an investment of about Rs 127 billion, as per the official.

The construction of SUGS is part of the government’s policy to improve energy security and affordability in the country,” said a senior official from petroleum sector development.

He stated that the development of the SUGS was intended to fulfill the country’s growing domestic and commercial needs, particularly during the peak winter months of November, December, January, and February.

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## ghazi52

,.,.,.,
Daewoo Gas signs contract with Chinese company in offshore LNG terminal​April 25, 2022





Daewoo Gas has signed a Master Engineering Procurement Construction and Finance (EPCF) contract with China National Chemical Engineering Construction Company (CNCEC) under which CNCEC would design, construct and finance an offshore LNG terminal.

The terminal would be complete with topside equipment to enable LNG filling into ISO containers for use in Pakistan. The specialized LNG containers will be moved by trucks all over Pakistan where LNG will be re-gasified at client sites.

According to a statement from Daewoo, “At its peak, Daewoo Gas’ terminal will handle 10,000 metric tons of LNG per day, improve Pakistan’s energy supply, create thousands of jobs nationally, and reduce carbon emissions.” The total foreign investment in this project including the terminal, facilities, LNG logistics and supply infrastructure is estimated to be US $300 Million.

Shahid Karim, chief executive officer of Daewoo Gas, remarked: “We plan on operationalizing the terminal within a year, before summer 2023, at Pakistan’s LNG zone in the Arabian Sea.”

Daewoo Gas also plans to use the LNG in its own long-distance bus and truck fleet operated by Daewoo Express as a substitute for more expensive and polluting diesel.

CNCEC Chairman Hu Liufang states: “We welcome the award of this significant contract by Daewoo Gas and look forward to designing and constructing world largest VLNG terminal for offshore installation. This large and ambitious project represents the ideals of CPEC industrial cooperation and technology transfer between the brotherly countries of China and Pakistan.”

Sameer Chishty, chairman of Asiapak Investments, which is the holding company for Daewoo Gas, was present at the signing ceremony and commented, “AsiaPak Investments is committed to innovative technology projects in Pakistan’s energy sector, a country with a significant energy need for industry and households.

Through this VLNG project, AsiaPak Investments contributes to further strengthening Pakistan and China’s Iron Brotherhood. We are grateful to all the stakeholders especially OGRA, Port Regulators and Government of Pakistan for their encouragement and support, ensuring uninterrupted supply of affordable energy to the people of Pakistan.”

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## ghazi52

.,.,
*The consumption of petroleum products continue unabated as the petroleum product prices remain frozen. 

After 23 percent in March 2022, the petroleum products sold by the oil marketing companies in April 2022 were up by 25 percent year-on-year. The growth was largely led by furnace oil that increased by over two times in April 2022 versus April 2021, while motor gasoline and high-speed diesel also witnessed double digit growth of 10 and 13percent year-on-year, respectively.*




The month-on-month growth of petroleum products’ consumption was also over 15 percent but was however slightly impacted by the Holy month of Ramzan as sales of motor gasoline dropped by 4.4 percent. However, HSD and FO remained robust due to increased agricultural activity and demand from the power sector, respectively. This also allegedly resulted in fuel shortages.




Overall, in 10MFY22, petroleum sales of the three key products were seen growing by over 16 percent year-on-year with double digit growth all the three products. This was a led by FO sales increasing by 25 percent, followed by HSD and motor spirit with growth of 18 percent, and 10 percent, respectively.




Continued rise in sales as well as rising international oil prices has put the country in a tight spot as the new government is still to unfreeze and increase petroleum prices. The unpopulous decision is much more crucial with every passing day and the burden the government will bear will continue to mount as the consumption will continue to go up in the coming months and there is no mechanism in place to curtail or squeeze demand. Higher furnace oil consumption cannot be ruled out as the country enters summers and demand from power sector will definitely rely on furnace oil because of the defaults on RLNG commitments earlier. Whereas diesel and petrol demand will also continue to rise as a relatively slower month of Ramzan is over.


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## farok84

Pakistan Plans to Sign a Long-Term LNG Deal to Ease Gas Shortage​
Government will float tender for a 10 to 15 year contract
Fuel crunch is forcing Pakistan to resort to planned blackouts





Pakistan’s government has resorted to planned blackouts to conserve its dwindling supply of fuel.
Photographer: Asim Hafeez/Bloomberg
By
Faseeh Mangi
June 1, 2022, 1:30 PM GMT+5
​Pakistan aims to sign a long-term liquefied natural gas purchase deal in a bid to secure future supply and ease crippling blackouts.

*The South Asian nation intends to float a tender to purchase one LNG cargo per month for 10 to 15 years, said Shahid Khaqan Abbasi who is overseeing the energy sector for Prime Minister Shehbaz Sharif. The government is still deciding the timeline for when to issue the tender, which they will use to gauge the market response and pricing, Abbasi said in an interview.*

Sharif’s government will also speak with LNG suppliers in the Middle East, including Qatar, the UAE, Saudi Arabia and Oman, for a long-term contract, according to Abbasi. Pakistan last week said it’s not ruling out a potential gas supply agreement with Russia.

Pakistan depends on overseas LNG for power generation, and was hit particularly hard by the surge in spot prices and supply disruptions. The cash-strapped government resorted to planned blackouts to conserve its dwindling supply of fuel.

Asian LNG spot prices are trading at a seasonal high after Russia’s invasion of Ukraine exacerbated an already tight market. Pakistan was forced to purchase several expensive LNG shipments from the spot market to keep the lights on last month. Long-term deals are much cheaper than current spot rates, and may provide some relief for Pakistan’s government.

Abbasi, who is a former prime minister and energy minister, signed several long-term LNG supply deals with Qatar, Eni SpA and Gunvor Group in 2016 and 2017. 

*However, Eni and Gunvor have canceled several scheduled cargoes to Pakistan in the last year, exacerbating the nation’s energy shortage and fueling political instability. The suppliers backed out by paying a 30% penalty on the cost of the shipment, which is envisaged in the contracts if they cannot deliver. 
*
*The government will keep the 30% clause in future deals, said Abbasi, who explained that it is standard in contracts.*

*Pakistan is also open to signing a 30-year contract to make sure it has enough fuel to power its economy well into the future, said Abbasi. Today, the industry’s longest deals rarely top 20 years.*










Pakistan Plans to Sign a Long-Term LNG Deal to Ease Gas Shortage


Pakistan aims to sign a long-term liquefied natural gas purchase deal in a bid to secure future supply and ease crippling blackouts.




www.bloomberg.com







__ https://twitter.com/i/web/status/1531936114592083968

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## ghazi52

.,.,
ISLAMABAD: Pakistan on Friday imposed a 10 per cent regulatory duty on the import of petroleum products from China after a massive 673pc surge in duty-free imports to Rs250 billion this year with a revenue loss of Rs25bn under the garb of the China-Pakistan Free Trade Agreement (CPFTA).

A decision to this effect was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet which also approved almost Rs147bn worth of supplementary grants including Rs81bn additional funds to defense services for expenditure before June 30.

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## ghazi52

.,.,
Russia Pakistan oil trade has been a topic of discussion for months in Pakistan. Its also a matter of interest for public, because of massive hike in fuel prices in Pakistan. Ex PM Khan claimed that he wanted to buy Russian oil on cheap prices to provide relief to the public, but there was no official statement from Russian authorities until now . 

The Consul General of the Russian Federation Mr. Andrey Fedorov has confirmed that oil trade was discussed during the visit of the former Prime Minister Imran Khan to Russia.

He was Speaking at a press conference at the Russian Consulate, where he said if Pakistan government contacts us, we are ready to provide oil on cheap rates.

He said, "Russia is interested in supplying oil on cheap prices to other friendly countries including Pakistan." He added that, this is just an excuse that Pakistan does not have refineries to treat Russian crude oil.

Everything is being confirmed now. Then what was the problem? The only problem was ‘absolutely not’. Woh kon tha who doesn’t like ‘absolutely not’...

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## ghazi52

.,.,.
Completion of Mahmood Kot-Faisalabad-Machike (MFM) Pipeline Phase II Reconstruction and Expansion Project, 
Oil & gas sector. 
It will provide petroleum products supply, contributing to economic development of Pakistan.

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## ghazi52

.,.,
MARKETS
Power crisis: Pakistan's request for LNG fails, not a single offer received​
PLL had invited bids for 10 LNG cargoes from international suppliers during the July-August-September window
BR Web Desk 
07 Jul, 2022

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## ghazi52

,..,.,
Law Division finds Hubco undertaking inadequate​Undertaking has been sought to establish financial strength of Eni asset buyers

Zafar Bhutta
July 22, 2022





PHOTO: HUBCO

*ISLAMABAD: *The Law Division has found the undertaking, submitted by Hubco in relation to transfer of Eni Pakistan’s assets to a new company, inadequate for future commercial operations and has called for seeking original undertaking.

In order to establish the financial strength of sponsors of Prime International Oil and Gas Company Limited (PIOGCL), the Petroleum Division asked Eni Pakistan to provide an undertaking of Hubco, saying if PIOGCL fell short of meeting financial obligations to running the operations in future, Hubco would provide such financial support.

PIOGCL is a consortium of Hub Power Holding Limited (HPHL) and Eni Employees Buyout (EBO) Group.

Transfer of Eni’s shares to PIOGCL had been delayed due to questions raised over financial health of the new entity. A deal between Eni and PIOGCL matured at $16.4 million.
Eni entered into a sale-purchase agreement with PIOGCL on March 8, 2021 for sale of its entire share capital.


Hubco stated that they could provide support for PIOGCL including the EBO’s share with regard to the acquisition price, however, it did not provide an undertaking for future operations as, according to the company, giving such an open-ended undertaking was against the Companies Act 2017.

Following that, the Petroleum Division sought advice of the
Law Division.

“The referring division (Petroleum Division) is advised that the undertaking provided by Hubco (HPHL) is not adequate in respect of covering the future operation of petroleum exploration licences, development and production leases, etc, decommissioning cost to be incurred upon the expiry of licences and leases,” the Law Division said, adding that in case the undertaking was issued in favour of the government, the government should keep the original undertaking in its record.

In response to a letter sent by the Petroleum Division, the Law Division said “it is a norm in petroleum exploration and production business that companies holding petroleum rights dispose of their shares pursuant to their business planning, etc.”

Also, “the respective petroleum exploration and production rules do not provide for a mandatory lock-in period for holding interest in the companies for a certain time period”.

The Law Division said “it is in the interest of the government that if no viable option is available with the buyer, the shareholders must undertake to fund the shortfall. The government would have the option to enforce the undertaking against HPHL, if HPHL fails to meet the funding shortfall of the buyer.”

_Published in The Express Tribune, July 22nd, 2022._

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## ghazi52

.,.,.

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## ghazi52

.,.,
Oil consumption declines​
Petrol and diesel consumption declines 21% and 44% respectively

*ISLAMABAD: The country’s consumption of two key petroleum products, Petroleum Motor Gasoline (PMG) or petrol and HSD, has declined by 21 per cent and 44 per cent, respectively due to measures taken by the government to curtail imports and massive increase in their prices by the incumbent government.*

Industry sources told _Business Recorder_ that daily consumption of diesel has reduced to 13,000 MT per day from 23,000 MT whereas consumption of petrol has declined to 19,000 MT per day from 24,000 MT.

“If the current pattern of consumption continues during the remaining days of current month, then petrol stock is enough for 32 days and HSD for 62 days,” said industry sources. Presently, the stock of PMG stood at 695,000 MT whereas stock of HSD was 760,000 MT.

On July 21, 2022, addressing a press conference on Minister of State for Petroleum and Natural Resources, Dr Musadik Malik claimed that the stocks of HSD are enough for 66 days while petrol stock was for 34 days, a claim that was made in spite of the fact that the regulatory requirement of stock is of 20-22 days.

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## ghazi52

IK has control...

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## ghazi52

,.,..,
Petrol, diesel sales decline on slower agri, transport activities​Tanveer Malik
August 02, 2022

KARACHI: The sale of diesel and petrol declined by 27 percent and 38 percent respectively in the month of July 2022 on the back of long holidays of Eid as well as rains, which slowed down agriculture and transport activities in the country.

Overall sale of petroleum products also shrank during the month under review as it fell by 26 percent YoY, oil sale data showed on Monday. The sale of petroleum products plunged to 1.44 million tonnes in of July compared to 1.94 million tonnes of July last year and 1.94 million tonnes, recorded in June this year.

Petrol sales went down by 27 percent on year-on-year basis and 15 percent on month-on-month basis to 0.59 million tonnes, which was the lowest sale volume since April 2020. The sale of high speed diesel (HSD) decreased by 38 percent on YoY basis and fell by the same percentage on MoM basis.

Similarly, furnace oil sales also declined five percent YoY basis 23 percent MoM. Tahir Abbas, head of research at Arif Habib Limited told The News that the long holidays of Eid and rains slowed down activities that resulted in lower consumption of petroleum products.

Sales of Pakistan State Oil (PSO) decreased 25 percent YoY and 27 percent MoM. Sales of Attock Petroleum Limited decreased 12 percent YoY and 25 percent MoM. Shell sales also went down 30 percent YoY and 34 percent on MoM basis.
The rainy month of July halted agricultural activities in almost the entire country, which slashed diesel demand that is mostly used as a fuel in the agriculture sector.

“Harvesting season is over and now rains are lashing almost the whole country, putting breaks on agriculture activity,” a top executive of an oil firm told The News.
Low consumption has led to diesel stockpile of up to 660,000 tonnes in the country, which was sufficient for the next few days, keeping in view the current daily consumption of the fuel, the executive said.

About low sale of petrol, he said that this could mainly be attributed to the price hike, as people were not bringing out their vehicles on the roads to cut back on fuel expenses. Petrol stocks in the country stand at 650,000 tonnes, more than the required quantity for the time being.

On Sunday, the federal government decreased the price of petrol by Rs3.05 but increased diesel by Rs8.95 for the next fortnight. The Finance Division, in its notification, said that in view of the fluctuations in petroleum prices in the international market and exchange rate variation, the government has decided to revise the existing prices of petroleum products to pass on the impact to the consumers.

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## ghazi52

,.,.
*Private Banks Refuses to Give Loan to PSO, Need Rs. 80 Billion to Avoid 2 Months Oil Import Ban*

Rising prices of fuel have been the headline for some days, now Private Banks refuse to give Loan to PSO, need Rs. 80 Billion to avoid 2 months Oil Import Ban*.*

PSO feared that besides the disruption in the company’s supply chain due to default, the delay in receipts from the power sector could have very serious financial, regulatory and political implications and a considerable time would be required to put the supply chain back on track and restore the confidence of suppliers.

The receivables from the domestic sector on the provision of liquefied natural gas (LNG) have reached Rs. 344.76 billion, whereas the receivables of the power sector stood at Rs. 183.31 billion. In addition, government institutions also owe Rs. 77.66 billion to state-owned company. The Central Power Purchasing Agency (CPPA) owes Rs. 149 billion to PSO.

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## ghazi52

Pakistan is likely to get additional oil facility on delayed payment from Saudi Arabia and the oil facility is also likely to increase from $1.2 billion to $2.4 billion.

According to officials of the Ministry of Finance, significant progress has been made in the talks between Pakistan and Saudi Arabia, as Saudi Arabia has expressed its support for providing additional oil facilities to Pakistan on deferred payment.

Officials of the Ministry of Finance say that Brother Malik has informed officially, however, he will make the announcement in this regard himself.

Officials from the Ministry of Finance said that the oil facility is likely to increase from $1.2 billion to $2.4 billion.

According to Finance Ministry officials, China has so far rolled over $4.3 billion in debt, including $2.3 billion in commercial loans and $2 billion in deposits.
Sources said that at present Pakistan is being supplied with loan oil worth 100 million dollars per month by Saudi Arabia, and if the package is extended, Pakistan will be provided with loan oil worth 300 million dollars per month.

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## ghazi52

,.,.,.
Govt agrees to deregulate oil prices​In new policy, market forces will determine margins of OMCs and refineries

Zafar Bhutta
August 05, 2022


The government has agreed to give a free hand to the oil industry to set petroleum product prices by implementing a deregulation mechanism under the new proposed oil policy effective November 1, 2022.

At present, the prices of petroleum products like petrol and high-speed diesel (HSD) are regulated while the price of furnace oil is deregulated.

In a meeting held on Wednesday, the executives of oil refineries, Minister of State for Petroleum Musadik Malik, Energy Task Force Chairman Shahid Khaqan Abbasi and officials of the Oil and Gas Regulatory Authority (Ogra) reached an agreement.

Sources told The Express Tribune that all sides agreed that both the products produced locally by oil refineries and those imported by Pakistan State Oil (PSO) would compete in the local market.

At present, PSO imports 50% of petroleum products whereas 50% of products are produced locally by oil refineries to meet energy demand of the country.

Sources said that there would be competition between PSO and local oil refineries in the country’s market.

Recently, the government has agreed to raise margins of oil marketing companies (OMCs) that would be effective till November 1, 2022.

After implementation of the new oil refinery policy, the government will withdraw the margins set for the OMCs including PSO.

The government also recently increased margins of dealers to Rs7 per litre that would continue to remain in place after the implementation of the new oil refinery policy.

In the new policy, market forces will determine the margins of OMCs and oil refineries, officials said.

In the proposed policy, the government had reduced the regulatory duty from 5% to 2.5%, which was later increased to 5% on the import of crude oil.

According to the agreement, officials said, the government agreed to reduce the duty to zero in the new oil refinery policy.

“If the government does not withdraw the duty, then the new refinery policy will lose its significance for the refining sector,” a senior government official said.

Officials said that the government had already increased the deemed duty on petrol and diesel to 10%. However, the entire collection was going into the national exchequer.

The refineries and the previous government of PTI had been locked in a dispute on the formula of allowing incremental revenue to the oil refineries for upgrading their plants.

The previous government agreed to allow 30% of the total incremental revenue to the refineries for investment in plant upgrades.

However, some key ministers from Karachi had been in tussle with a local refinery, which created hurdles in the way of approving this mechanism.

Now, the government will allow 30% of funds from the incremental revenue collection to be invested in upgrading plants.

Local refineries need $4 to $5 billion in total investment for upgrading their plants. Byco refinery has already started work on upgrading the plants.

Regarding the question of monopoly of the oil sector, oil industry officials ruled out any such situation. They said that PSO had 50% market share whereas the remaining 50% share was held by the local refineries.

PSO is a state-owned company and therefore, the government has complete control over this entity.

They said that the new refinery policy would also be helpful for PSO that was facing financial crunch and the risk of default on international payments.

The government has recently approved Rs30 billion to rescue PSO from a liquidity crisis as its receivables have crossed Rs600 billion.

The new oil refinery policy will provide PSO with the freedom to set margins and compete with other refineries.

The oil industry officials said that competition would also result in competitive oil prices for the consumers.

_Published in The Express Tribune, August 5th, 2022._

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## ghazi52

.,,.

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## ghazi52

.,,..,
Shell Pakistan announces to discontinue aviation operations across the country​

Says after consideration of a wide range of factors, SPL has taken the decision not to participate in the tender floated by PCAA for the operation of six airports

BR  
August 17, 2022

*Shell Pakistan Limited (SPL) on Wednesday announced that it has decided to discontinue its aviation operations across Pakistan.*

In a notice to the Pakistan Stock Exchange (PSX), Shell Pakistan informed that the company carries out its aviation-related operations at the following locations: (i) Jinnah International Airport (JIAP) (ii) Quetta International Airport (QIAP) (ii) Begum Nusrat Bhutto Airport (BNB) (Sukkur) and (iv) Nawabshah Airport (WNS).

“Following the expiry of the leases related to the above airports, the Pakistan Civil Aviation Authority (CAA) has floated a joint-tender inviting participants to bid for the operation of six (6) airports, including all four of the airports currently operated by SPL as well as Skardu International Airport (KDU) and Gwadar International Airport (GDU).

“After due consideration of a wide range of factors, including legal compliance, financial and commercial considerations, SPL has taken the decision not to participate in the tender,” read the notice.

SPL said it remains committed to the safe handover of operations to the CAA and/or relevant stakeholders (as appropriate) at the airports at which it is currently operating.

"The final date of exit from these airports will be communicated after consultation with the CAA," it added.

SPL further said that it remains committed to continuing all its other businesses and operations in Pakistan, which remain unaffected.

The oil marketing company recorded a drop of 37% in its month-on-month oil sales in the month of July, but the overall trend was lower as well.

Its sales clocked in at 100,000 tons on account of Eid holidays during the first half of the month where inter-provincial transportation activity decreased, which led to lower HSD sales, and monsoon season across the country resulted in lower traffic on the roads.

Moreover, Pakistan's oil sales commenced FY23 with a decline of 26% on month-on-month basis to clock in at 1.44 million tons in July 2022. Oil sales in July 2022 were the lowest since February 2021.

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## ghazi52

.,.,

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## ghazi52

.,.,





The Frontier Post

KARACHI: United Bank Limited (UBL) and JS Global Capital Limited (JSGCL) have been jointly awarded the mandate for Financial Advisory and Arrangement Services for local debt and equity for Pakistan Refinery Limited (PRL). This appointment will assist in meeting PRL’s financing requirements for a Refinery Expansion & Upgrade Project (REUP) at an estimated cost of USD 1,200 Million.

The objective of the project is to enhance PRL’s production capacity from 50,000 barrels per day to 100,000 barrels per day and produce advanced quality Euro-V MOGAS/HSD. The expansion and upgradation will not only develop eco-friendly Deep Conversion Refinery but also aid the national economy via import substitution.

The contract signing ceremony was held on August 19, 2022.

The contract was signed by Mr. Shazad G. Dada President & CEO UBL, Mr. Zahid Mir, MD & CEO PRL and Mr. Kamran Nasir, CEO JS Global on behalf of their respective organisations. 

The ceremony was also attended by Mr. Tariq Kirmani, Chairman PRL Board of Directors, Mr. Mohsin Mangi, member PRL Board of Directors and senior management of UBL, PRL & JS Global.

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## ghazi52

,.,.,.
Pakistan LNG Limited (PLL) has guaranteed timely payments to international LNG suppliers for spot cargoes till December 2028 through standby letters of credit (SBLCs) to international banks.
PLL, a state-owned entity (SOE), will receive one cargo per month (72 cargoes in total) in the next 6, Dawn reported on Monday.

For this, the company issued tenders at the start of this month with a deadline of 13 September. However, the LNG suppliers asked for payment assurances or sovereign guarantees due to the ongoing balance-of-payments issues being faced by Pakistan.

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## ghazi52

Attock Oil Refinery Head Office , Rawalpindi.

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## ghazi52

.,.,
LNG company rejects strict terms​Pakistan GasPort finding it difficult to utilise excess terminal capacity

Zafar Bhutta
September 20, 2022





Under the agreement, PGPC would have unconditional right to use excess capacity available at LNG terminal for third party and its affiliates. photo: file
*
ISLAMABAD: *Pakistan GasPort Consortium (PGPC), which operates a liquefied natural gas (LNG) terminal, has turned down the strict conditions laid down for utilising excess capacity of its terminal.

PGPC’s terminal has handling capacity of 750 million cubic feet per day (mmcfd) of LNG. State-owned Pakistan LNG Limited has been allocated 600 mmcfd of capacity at the terminal, which has operated at full capacity for only a few days.
The terminal operator is seeking to utilise its 150mmcfd idle capacity at its own risk. PGPC and PLL also signed an agreement on August 3, 2022 that gave unconditional rights to the former to utilise surplus capacity of the terminal.
However, the government has made it difficult for the terminal operator and is not permitting it to utilise its own capacity.
In a letter to the Petroleum Division, PGPC has turned down the laid-down terms and conditions, saying it had not been able to facilitate private investors in receiving a single LNG ship over the last four years despite idle capacity at the terminal.
On the other hand, PLL has failed to arrange LNG over the last one year, particularly ahead of the winter season.

PGPC is handling only two ships a month against the government’s allocation of six ships due to PLL’s failure to arrange LNG cargoes.

In the letter, PGPC said “in a country which desperately needs gas and which has been offered a viable solution by private sector to bring gas and sell it at its own risk and responsibility, to say the least, your (Petroleum Division) letter is disappointing”.
The company was referring to a letter written by the Petroleum Division on September 11, 2022, which imposed some conditions that seemed to be giving PLL the primary rights of utilising the full terminal capacity.

After four “frustrating” years, according to the terminal operator, PLL and PGPC signed an arrangement vide PLL’s letter of August 3, 2022, which, if it had been allowed to be implemented, would have seen at least one cargo at the PGPC terminal by now.

“Any deviation from the agreement is not workable for PGPC,” it said, adding that PGPC, therefore, regrets its inability to accept the terms proposed by the Petroleum Division in its letter.

PLL, in its letter sent to PGPC CEO on August 3, 2022, sought PGPC’s confirmation of the import of third-party cargoes.

Under the arrangement, out of the total physical capacity of 750 mmcfd of the Floating Storage and Re-gasification Unit (FSRU), PLL shall have unconditional access to the peak daily delivery capacity of 650 mmcfd for 300 days (which may be increased to 350 days) and 690 mmcfd for 45 days on the “operator’s reasonable endeavour” basis, subject to the unloading of a maximum of 4.5 million tons of LNG per annum by PLL at the terminal.

PLL further said it would have berthing priority for its cargoes, however, both parties would work together for managing the berthing slots and there would be no restrictions on utilising the storage by either party.

“If PLL suffers any demurrages or loss as a consequence of failure of the third party/ operator, then PGPC will bear the loss suffered by PLL and will indemnify PLL in any such instance.

“PLL, on the other hand, will not take any additional liabilities, nor incur any extra costs for facilitating the import of private sector LNG cargoes.”

PLL said “this clarification letter shall be valid for the remaining term” of the agreement and would be considered terminated if the London court upheld the termination notice issued by PLL.

Subject to this arrangement, PGPC, under Clause 9.4 of the agreement, shall have unconditional right to use the excess capacity available at the terminal for third-party (including PGPC’s affiliates) use, after meeting its obligations to PLL.

According to the letter sent by the Petroleum Division to PLL and PGPC, the division floated some proposals that violated the earlier arrangement between the two companies.

It said the arrangement between PLL and PGPC would become effective only after the operational capacity test of FSRU at the operator’s expense and confirmation that the daily delivery capacity of 650 mmcfd for 350 days could be made available to PLL on a firm basis.

“Out of the total physical capacity of 750 mmcfd of the FSRU, PLL shall have unconditional access to daily delivery capacity of 650 mmcfd on a firm basis for 350 days.”

It further said that the peak daily delivery capacity of 690 mmcfd would be available to PLL, as and when required, for a specific number of days (at least 45 days) on a firm basis instead of “on reasonable endeavour” basis.

“Third-party access (TPA) may be for up to one year only, extendable through mutual agreement.”

Since revenue through the TPA will be an additional benefit to PGPC without making any additional investment and PLL will have to compromise by sharing its storage capacity, berthing slot, etc, therefore, 50% of the monthly capacity charges, prorated for one cargo, (out of capacity payments of average six cargoes a month) will be netted off by PLL from the capacity payments of PGPC.

However, PGPC turned down the proposals.

_Published in The Express Tribune, September 20th, 2022._

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## ghazi52

.,.,

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## ghazi52

,..,.,
Gas shortfall in winter:​*The Sui Northern Gas Pipeline Limited (SNGPL) on Monday said that it will distribute 100,000 Liquefied Petroleum Gas (LPG) amid an expected gas shortage in the upcoming winter.*

The gas distribution company, in a notice to the Pakistan Stock Exchange (PSX), said that in view of potential gas shortfall in the forthcoming winter, the Ministry of Energy (Petroleum Division) has advised to explore all possible options to meet the energy needs of consumers, including supplying LPG cylinders.

“Accordingly, the Board of Directors of SNGPL in their meeting dated September 28, 2022, has approved the project of LPG distribution with 100,000 cylinders,” read the notice.

SNGPL informed that the estimated initial investment for the said venture is up to Rs1,200 million.

“The return on investment is not subject to the present Return on Assets (ROA) regime and will be determined as per market dynamics,” the company said.

Earlier, trade bodies including the Businessmen Group (BMG) and Karachi Chamber of Commerce and Industry (KCCI) proposed Prime Minister Muhammad Shehbaz Sharif to summon an emergency meeting on top priority to extensively discuss the overall gas demand/ supply situation in addition to exploring ways and means of how to efficiently deal with gas shortages during this year’s winter season.

In the letter, they said that the winter season this year is expected to be harsher due to the after-effects of climate change, which would require an extraordinary plan of action for dealing with the anticipated gas crisis but unfortunately, no measures have been taken so far.

The bodies said that there had been continuous supply shortfall of gas in the year 2021 when the general industries of Karachi faced around 12 hours of load shedding which started on 1st January 2021 till December 2021 and the gas supply during last three months, i.e. October, November and December, was dreadful.

Gas shortage has become a massive issue in Pakistan, with the situation worsening especially during the winter months, as demand for heating rises, affecting both households and industries.


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## farok84

__ https://twitter.com/i/web/status/1577020743698640896

__ https://twitter.com/i/web/status/1576924302439763969








https://www.paklng.com/LNG/T56/FinEval_T56.pdf




__ https://twitter.com/i/web/status/1577102909119963138








Pakistan Fails to Secure LNG Deal in Latest Hit to Fuel Supply


Pakistan’s acute energy shortage is at risk of lasting years after the government was unable to secure a long-term supply of liquefied natural gas.




www.bloomberg.com




Pakistan Faces Years of Fuel Shortages After Gas Tender Flop​
No one participated in tender to buy LNG for 6 years from 2023
There is little spare LNG supply available until 2026: traders





The cash-strapped nation has grappled with widespread blackouts this year after several failed attempts to buy LNG from the expensive spot market. Photographer: Asim Hafeez/Bloomberg

By
Stephen Stapczynski
October 3, 2022 at 5:03 PM GMT+5 Updated on October 4, 2022 at 6:12 AM GMT+5

*Pakistan’s acute energy shortage is at risk of lasting years after the government was unable to secure a long-term supply of liquefied natural gas.

Not one supplier responded to Pakistan LNG Ltd.’s tender to buy the power-plant fuel for between four to six years starting January, said traders with knowledge of the matter. The tender, which closed Monday, was seeking to procure one cargo of LNG each month.

The cash-strapped nation has been hit with widespread blackouts this year after several failed attempts to buy gas from the expensive spot market. It tried to get a long-term deal looking for more reasonable prices, but that hasn’t materialized. *

There’s little LNG supply available until 2026 when massive new export projects start up, according to traders. Many spot cargoes are currently going to Europe, where buyers are willing to pay high prices in the rush to secure gas to replace dwindling Russian pipeline flows. That’s leaving developing nations facing energy shortages and economic uncertainty for years.

*The latest blow comes at a difficult time for Pakistan, which is already struggling with high inflation and falling currency reserves. Some LNG suppliers are hesitant to sell fuel to the nation out of fear it may not be able to make future payments, according to traders.*

Pakistan’s gas distributor Sui Northern Gas Pipelines Ltd. plans to supply 100,000 LPG cylinders to consumers to deal with a potential gas shortfall this winter, it said in a notice to the stock exchange. The company that caters to customers through pipelines in the northern half of the nation has been asked by the government to take steps to meet energy requirements.










PLL fails to attract LNG bids for six-year term contracts


ISLAMABAD: In a huge dent to future LNG supply, Pakistan LNG Limited here on Monday received no response from the LNG suppliers against the revised two-part tender seeking 72 cargoes under 6-year...




www.thenews.com.pk





PLL fails to attract LNG bids for six-year term contracts​By Khalid Mustafa
October 04, 2022

*ISLAMABAD:* In a huge dent to future LNG supply, Pakistan LNG Limited (PLL) here on Monday received no response from the LNG suppliers against the revised two-part tender seeking 72 cargoes under 6-year term agreements as LNG is no more available even for term contracts in the international market.

The evaluation report of the results of the two-part tender seeking term contracts uploaded on Monday (October 03, 2022) on PLL’s official website, mentions that no LNG supplier turned up for participating in the bidding process. Under the two-part tender, PLL had sought under part 1, bids for two years from January 2023 to December 2024 seeking 24 LNG cargos but no LNG supplier came up with any bid. The same happened with part 2 of the tender for which PLL sought bids from January 2025 to December 2028 for 48 LNG cargos.

*“This is a huge setback for the government as the Pakistan LNG Limited has already failed to procure spot cargos for a long time and the people this time will have to face a massive gas deficit close to over 1-1.5 bcfd,” a senior official close to Secretary petroleum told The News.*

The official said that Prime Minister Shehbaz Sharif is known as a doer, but the top functionaries of the Petroleum Division and PLL under his command, as PM also holds a portfolio of federal minister for Petroleum, have failed to import more LNG and resultantly the government will have to rely on the 8 term-cargoes (6 under 13.37 per cent of Brent price and 2 under 10.2 per cent of Brent) and one cargo from ENI at 12.14% of the Brent price. The ENI usually backs out from supplying one cargo in alternate months. *“This means that against the capacity to import 12 cargos a month, the government will have to import 8-9 cargoes for winters.” This means Pakistan this time would be importing 800-900 mmcfd gas every month during the winter season against the capacity to import 1,250 mmcfd causing a shortage of 300-450 mmcfd gas.*

*As far as the local gas is concerned, the gas demand of Sui Southern in Sindh and Balochistan will be hovering at 1200-1300 mmcfd in the winter season, but only 900 mmcfd of gas (850 mmcfd of system gas and 75 mmcf LNG). This means that the gas deficit in Sui Southern system would be around 300-400 mmcfd. However, for Punjab and KPK, the gas deficit in Sui Northern system would rise to 750 mmcfd in January, starting with a shortage of 250 mmcfd in November that will scale up to 600-700 mmcfd in December. The system gas for Punjab and KP will be available to the tune of 790 mmcfd and LNG of 800 mmcfd. From the Mari gas fields, the government is trying to get more gas, ie from 30mmcfd to 110 mmcf to address the shortage.*

Apart from the acquisition of term and spot contracts, the government also failed not only to use the under-utilized capacity of 300-400 mmcfd of LNG Terminal-2 but has also not succeeded to use the additional capacity of the same LNG terminal under TPA rules. Had the private sector been allowed to use the excess and under-utilized capacity, the country would have more 400-500 mmcfd LNG in its system and there would have been no gas crisis in the coming winter season “Right now at LNG terminal-2, PLL is unable to fully utilize its own purchase capacity of 600 mmcfd as it has failed to procure 3-4 spot cargos a month. However, it is utilizing 200-300 mmcfd capacity.

A senior official, when asked for reasons behind PLL’s failure to invite LNG suppliers for term bids, said firstly LNG is not available in the international market in the backdrop of the Ukraine crisis and all the LNG producing countries are overcommitted to European countries, China, and Japan. And since they all are rich countries and are able to pay the maximum price of LNG, Pakistan has not received a bid for term contracts.

*The second reason, the officials said, is that the country’s LNG sector has become unsustainable. Pakistan State Oil (PSO) is facing a circular debt of Rs327 billion in the LNG sector alone in the wake of the inability of Sui Northern to pay the dues of Rs327 billion. “PSO is feeling the heat as it is finding it difficult to open and retire LCs on time for smooth imports of LNG. More adverse is the case of Pakistan LNG Limited which is also a victim of circular debt of close to Rs100 billion and is unable to open LC for the import of costly LNG cargoes.* And on top of that, the current management of PLL has failed to create its clout in the international market despite so many foreign visits by MD Masood Nabi for attending LNG seminars and workshops.

On top of this, the official explained the five-year term contract with GUNVOR expired in July 2022 but the PLL management did not initiate any term agreement with any LNG supplier before the contract with GUNVOR expired. “This is criminal negligence on part of PLL and it should be probed as to why it did not contract more LNG terms agreements before the agreement with GUNVOR expired.”

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## ghazi52

,.,..,
Mari Petroleum drills first-ever horizontal well in Sindh​
BR

Mari Petroleum Company Limited (MARI), one of Pakistan’s largest integrated petroleum exploration and production companies, has successfully drilled and tested its first-ever horizontal development well Mari 122-H in HRL Reservoir located in Sindh.

“We are pleased to inform you that MARI has successfully drilled and tested its first-ever horizontal development well Mari 122-H in HRL Reservoir of Mari Gas Field in Daharki, Sindh province,” the company shared in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

Mari is the operator of the Mari Gas Field with 100% working interest.

The company shared that the well was drilled to a total depth of 1,550 meters including a horizontal section of around 530 meters.

“After the acid stimulation job, the well was tested at a rate of around 21 mmscfd of gas at a flowing wellhead pressure of 426 psi."

The company added it is working to put this well into early production and also evaluating the possibility of drilling additional horizontal wells.

Last month, Mari announced a temporary suspension of production operations at its Zarghun South Gas Field and Ziarat Block after flash floods adversely impacted gas pipelines and road infrastructure in Balochistan.

Earlier in June, Mari made a gas/condensate discovery in its exploration well located in North Waziristan, Khyber Pakhtunkhwa.

With a 21% market share, Mari is the second-largest gas producer in Pakistan and has a reserve base of around 600 million BOE (Barrels of Oil Equivalent).

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## ghazi52

,.,.
LAHORE: *The Sui Northern Gas Pipelines Limited (SNGPL) plans to provide liquefied petroleum gas (LPG) cylinders to those consumers who often face extremely low gas pressure in the tail-end areas during winter.*

The company has also identified up to *one million such consumers* living in several parts of Punjab as eligible for LPG cylinder provision, _Dawn_ has learnt. An official in the petroleum division said a senior officer of the SNGPL has been tasked with carrying out the LPG supply operation.

“As this is being done in the public interest, the LPG would be provided to consumers on a no-profit, no-loss model,” the official added.

The SNGPL covers seven million consumers in Punjab and Khyber Pakhtunkhawa, the majority of them are domestic ones. For many years, the company has been facing a shortage of gas due to depleting indigenous gas reserves and increasing demand. 

The company also started importing liquefied natural gas (LNG) from Qatar in a bid to meet the demand of industry, power and other sectors. Due to increasing demand, the LNG share of the total LNG supply has reportedly surged to 55 percent.

The official said before launching the LPG supply operation, the company plans to run an awareness drive for the public at large in print, electronic and social media.

He said there was a plan to provide gas to consumers during cooking hours alone if the gas shortage worsens in a severe winter. He said the company has been asked to ensure gas supplies to industry, especially the export and power sectors.

“The gas supply to the CNG sector is already closed. And it is likely to remain so in coming days,” he said. The official revealed that the LPG supply plan, to date, is in Punjab alone, as there is no gas shortage in KP.

“Under the constitution, the company is liable to ensure full supplies as per the demand of the KP, which is a major gas-producing province,” he clarified.

The company imposed a ban last year on the provision of new gas connections that not only irked consumers but also increased its backlog to around 2.8 million. The company is of the view that while there is no sufficient gas supply, how can it make new connections? The company claims to have given new connections in the last fiscal year in a bid to reduce the backlog. The delay in the finalization of the new gas tariffs for domestic consumers is also a major reason behind the ban. 

The reason behind rationalizing gas tariffs for domestic consumers emerged keeping in view the provision of imported LNG after regasification, which costs too much, to consumers at cheaper rates besides providing the system gas (indigenous gas). Eventually, this forced the authorities to work out a new price formula, which has almost been finalized, for domestic consumers. 

The backlog of 2.8 million applications for new gas connections also included those seeking gas connections under the urgent category through the deposition of a Rs25,000 fee.

In August last, the company said in a briefing that its regasified liquefied natural gas (RLNG) consumption has reached 55pc of the total supplies due to a massive decline in the indigenous supplies, resulting in more dependence on the RLNG. It also referred to the government’s plan to introduce the weighted average cost of gas, which, the company claimed, would mitigate and reduce the high price of RLNG for the public.

_Published in Dawn, October 8th, 2022_

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## ghazi52

Saudi deferred payment facility: Country imports $100m oil in September​Tahir Amin
October 23, 2022 .


*ISLAMABAD: Pakistan imported petroleum products worth $100 million on deferred payment basis under the Saudi oil facility for the seventh consecutive month in September 2022.*

Official documents revealed the government has budgeted estimates of $800 million for oil imports under the Saudi oil facility. The country has imported petroleum products worth $300 million in the first three months of the current fiscal year. Saudi Arabia provided petroleum products worth $700 million to Pakistan from March to September. It also provided petroleum products worth $100 million each during March, April, May, June, July, and August 2022.

The Financing Agreement worth $1.2 billion for the import of petroleum products was signed on 29 November 2021 between the Saudi Fund for Development (SFD) and Pakistan’s Economic Affairs Division (EAD).

Under this facility, the Pak-Arab Refinery Limited (PARCO) and the National Refinery Limited (NRL) will import petroleum products up to $100 million per month from Saudi Arabia.

The SFD has extended the financing facility for up to $100 million per month for one year to facilitate the purchase of petroleum products on a deferred payment basis.

According to the official documents, the terms of the financing include the price of purchase by the SFD and a margin of 3.80 per cent per annum. The financing agreement will initially be valid for one year, which may be extended for another year with mutual consent.

Copyright Business Recorder, 2022

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## ghazi52

.,.,
The same hue and cry were there in 2019 when KSA promised to make an FDI in Oil Refinery in Pakistan!
Have the KSA fulfilled their 1st Promisss?
Foolish to believe them the 2nd Time!

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## ghazi52

,..,.,.
Govt Manipulating Fuel Prices Will Cost Them Rs. 7.5 Billion: OCAC​ProPK 
Nov 17, 2022

Keeping oil prices unchanged for the second consecutive fortnight could cost the oil industry Rs. 7.55 billion in damages and disrupt fuel supply.

The Oil Companies Advisory Council (OCAC) wrote to the Petroleum Division protesting that this forced stabilization of oil prices at the cost of the industry is not sustainable and will severely impact the already crippled oil industry, knowing very well that based on the government-approved pricing formula, rates were going up.

However, the government, instead of passing on the increase to end consumers or absorbing the impact of the increase by reducing the petrol levy, has reduced the Inland Freight Equalization Margin (IEFM), Exchange Loss Adjustment, and Margins of oil marketing companies (OMCs).

OCAC stated that this rating freeze would cost oil marketing companies Rs. 8.34 on each liter of petrol and Rs. 7.15 on each liter of high-speed diesel (HSD), or a total financial loss of Rs. 7.55 billion. 

“The industry is already cing a severe financial crunch due to high global prices, depreciation of the rupee, increased charges on confirmation of letters of credit, high premiums on import, etc, and will not be able to survive if these unfair adjustments are not removed immediately,” it said.

It further added that the Rs. 7.55 billion impact does not include the impact of exchange loss adjustments that have been withheld/staggered by OGRA since August 2022.

The industry liaison argued that forcing oil prices to stabilize at the expense of the industry was unsustainable for it would have a negative impact on the oil industry. The government should have “an urgent meeting with industry members so as to ensure [the] survival of the industry and avoid any supply chain challenges”.

According to the OCAC, the inland freight equalization margin (IFEM) was reduced by Rs. 3.21 and Rs. 2.72 per liter on petrol and HSD, respectively. Similarly, the exchange loss adjustment on petrol and HSD was reduced by Rs. 3.01 and Rs. 2.11, respectively.

While the economic coordination committee (ECC) last month increased OMC’s sales margins to Rs. 6 per liter, OCAC pointed out that the “revised margin for both products has not been incorporated in the prices”, and the industry will not be able to survive if such issues and “unfair adjustments” are not removed immediately.

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## ghazi52

.,.,
Power Division Refuses to Buy Furnace Oil From Local Refineries​The Power Division has refused to lift furnace oil (FO) from local refineries without a workable deferred payment plan.

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## ghazi52

Sui, Balochistan
The Sui Gas Purification Plant, Sui, Balochistan, 1958 (c).

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## ghazi52

.,.,

__ https://twitter.com/i/web/status/1593557754576265217

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## ghazi52

,.,,.
Prospects of oil from Russia: much love lost​Farhat Ali 
December 3, 2022

*A delegation led by State Minister for Petroleum Musadik Malik, who wasd accompanied by the officials of Petroleum Ministry and the Pakistan Embassy, held a meeting in Moscow early this week to work out an agreement with Russia on the procurement of Russian oil.*

The expectation of the delegation was high and had taken it very much for granted that Pakistan would succeed in inking an agreement on favourable terms similar to those Russia had agreed to for India, which meant seeking a 30 to 40 percent discount on Russian crude oil.

Reportedly, the response of the Russians was against expectations of the delegation; it was rather cold, to say the least. Russia declined to offer its oil to Pakistan, stating that presently all its volumes are sold out and committed. Russia, however, promised to consider Pakistan’s demand later on through diplomatic channels. This promise is more of diplomatic courtesy than anything tangible.


Russia, during the talks is reported to have also pinned down Pakistan on its commitment to the flagship project of Russia-Pakistan Stream Gas Pipeline (PSGP) to be laid between Karachi and Lahore. The Pakistani side during the talks mentioned its desire to change the model of PSGP project.

The Russian side said that the model of the project under G2G arrangement has already been finalised and only some clauses of the shareholding agreement were yet to be given a final shape. Russia is irked by Pakistan’s constant delays on the project and is aware that the issue is diplomatic expediency from Pakistan’s end rather than anything technical or contractual.

It’s a seller’s market in view of upcoming onset of winter in Europe and supply and price volatility in the global energy market. Russia is, therefore, cashing in on this opportunity.



> At the very start of the Russia-Ukraine conflict and unprecedented sanctions on Russia by the West, Moscow desperately needed buyers for its oil and empathy/neutrality from nations on the diplomatic front. India immediately grabbed this opportunity with both hands, overriding all criticism from the West.



In the process India signed a long-term oil procurement agreement at some significant concession and once again got on the right side of Russia, much at the expense of Pakistan’s loss on both counts.

Pakistan has missed out on the timing of its outreach to Russia for the procurement of oil and also on exposition of diplomatic neutrality towards Russia when it needed it the most. More than losing out on oil procurement from Russia, it has missed a rare opportunity to balance its relationships with the US and Russia on lines that India is managing so successfully since long.

It is no secret that the incumbent government, so as not to displease USA, avoided procurement of oil from Russia when it was time to do so and when Russia was inclined towards Pakistan. The incumbent government strengthened its spine only when President Biden recently gave a green signal of no objection to nations aspiring to procure Russian oil.

Russian oil at discounted rates would have done much good to the nation’s sinking economy and could have provided the much-needed relief to its people, businesses and industries. This is one example to demonstrate how a nation’s subservience to a superpower shatters the dream of its people to secure a better life for themselves and their offspring.

Copyright Business Recorder, 2022

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## ghazi52

.,.,
Govt left red-faced over Russian oil assertions​State minister Musadik denies FM Bilawal’s claim; says country indeed pursuing ‘discounted’ oil from Moscow

Zafar Bhutta
December 16, 2022

Contradicting his cabinet colleague, Minister of State for Petroleum Dr Musadik Malik on Friday, addressing a news conference in Islamabad, maintained that Pakistan was indeed pursuing Russian oil at discounted rates.

“Russia would export petrol and diesel to Pakistan at the maximum possible discounted prices,” he added.

When asked about the foreign minister’s statement on the Russian energy, Malik said he could not listen to the news conference of Bilawal. However, he hurriedly added that Bilawal had merely said that Pakistan was not receiving energy from Russia.

“We lacked something that we should have given in detail to the Foreign Office,“ Malik said, adding that his ministry would clarify all misperceptions in this connection.

The state minister further said that the Pakistani ambassador in Moscow was also part of the negotiations with Russia on oil import. “This is a technical confusion, which we will address,” he informed the media.

Malik claimed that the visit to Russia had been “very positive” in connection with crude oil imports from that country. “There are eight types of crude oils in Russia, two of which can be refined in Pakistan,” he said.

He added that the Pakistan Refinery Limited (PRL) and Pak-Arab Refinery Company Limited (Parco) had expressed their willingness to refine the Russian crude oil.

He further said Pakistan would import Russian oil at discounted rates and that would reduce the cost of energy in the country. “Lower energy prices will reduce the cost of production, transportation and storage of everything, which will also bring down commodity prices,” he maintained.

A delegation of an inter-governmental commission headed by the Russian energy minister will visit Pakistan in the second week of January to finalise matters related to the import of crude oil, diesel and petrol. “The supply of oil from Russia will start early next year,” Malik said.

The state minister said Azerbaijan was believed to be providing cheaper liquefied natural gas (LNG) and talks were also under way with the UAE for diesel and petrol.

He added that Pakistan would import 1.3 billion cubic feet of gas per day through the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.

Malik claimed that the government was focusing on the development and prosperity of the country to provide relief to the people and added that the government was trying to buy cheap oil and gas, which was the dream of Prime Minister Shehbaz Sharif to provide facilities to the poor.

He further informed the media that the situation of gas supply in October and November was better than last year. “More gas is being supplied in December than last year,” he claimed.

“More gas will be available in January as well, he said, adding that its production was decreasing at the rate of 10% per year.

He said an additional cargo had been arranged from Qatar to minimise the gas crisis. Apart from this, the Sui Northern Gas Pipelines Limited (SNGPL) has arranged for the supply of liquefied petroleum gas (LPG) to consumers.

As many as 20,000 tonnes of LPG is being procured, and a framework agreement with Azerbaijan in this connection is expected to be signed soon.

There is a possibility of a government-level agreement with Azerbaijan's major company Socar Polymer, which will provide cheaper LNG.


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## farok84

$4.5 billion oil refinery in Gwadar to be discussed today​By *Yasir Habib Khan* | Gwadar Pro
*Dec 20, 2022*

GWADAR, Dec.20 (Gwadar Pro) - *In order to materialize the $4.5 b oil refinery project in Gwadar, five-member delegation of Chinese Company “East Sea Group Limited (ESGL)” is visiting Gwadar on December 20 (Tuesday). *

ESGL official Jason Zhou told Gwadar Pro that ESGL chief engineer Mr Liu along with other officials will reach Gwadar on December 20. The delegation consisting of technical team with marine engineering, commerce and petroleum professional background will be headed by Group’s General Manager Fang Haixia. Delegation will stay for three or four days in an effort to tune in conceptual and practical frameworks. 

They will hold meetings with leadership of China Overseas Ports Holding Company and Gwadar Port Authority to review the proposed site for the establishment of oil refinery in Gwadar Free Zone phase II. 

*As per initial plan, ESGL will install 5 million tons capacity oil refinery in Gwadar. Later ESGL will upgrade it with annual oil processing capacity of 8 million tons in Gwadar. China Overseas Port Hold Company (COPHCO and ESGL have already mutually developed understanding to make things happen at Gwadar Free Zone phase II.  *

East Sea Group Limited (ESGL) is a diversified multinational company, mainly engaged in energy trade, energy storage logistics and oil refining, and has invested in many countries such as South America, the Middle East and Indonesia. 

Chinese entry came at a time when uncertainty was brewing about fate of oil refinery in Gwadar after international players dragged their feet and went indecisive on the offer of establishing oil refinery in Gwadar. And following Chinese move, many international firms have signaled for interest afresh to develop oil refinery in Gwadar. 

*Sources in GPA told Gwadar Pro that oil refinery project will be constructed in two phases. The first phase will have an annual refining capacity of 5 million tons. East Sea Group will place at least six crude oil transshipment vessels totaling 2 million tons at Gwadar port in Pakistan every month, starting from and supporting its own oil source business, and will also provide oil transshipment and transshipment services for major Middle East oil producing countries. *

According to sources in Ministry of Energy (Petroleum Division), the refinery will provide a substantial storage capacity to Pakistan, enabling it to maintain reserves for longer time and save foreign exchange. The multi-billion dollar project, upon implementation will provide an impetus to further investment in the petrochemical industry in Gwadar.

In order to greenlight the mega project by government of Pakistan, concerned institutions are gearing up to scrutinize the detailed business plan and feasibility study for further processing. For this purpose the services of an international consultant has already been hired and both documents are in the process of preparation. For planning and construction, Oil and Gas Regulatory Authority (OGRA) will fulfil the licensing requirements under OGRA Ordinance 2022. 
The move of launching the oil refinery seems to have encouraged other foreign investment that had stalled due to many reasons in the oil refinery sector during recent past. 
In January 2019, Saudi Arabia’s Energy Minister Khalid Al-Falih announced that the Arab nation was planning to set up a $10 billion oil refinery in Pakistan’s deep-water port of Gwadar. However, the plan was rolled back. Later it was indicated with vagueness that instead Gwadar, oil refinery may be established somewhere else in Pakistan. 

As a bolt from the blue, few days back Saudi Arabia has sprung back into action with signaling renew engagement to come up with oil refinery project in Gwadar amid fresh activism of newly appointed Secretary Petroleum Capt (r) Muhammad Mahmood. On October 27, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar also held a virtual meeting on First Joint Economic Sub Committee of the Saudi – Pakistan Supreme Coordination Council with HRH Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy Kingdom of Saudi Arabia. 

Meanwhile the UAE has also shown willingness to set up a deep-conversion, state-of-the-art refinery that would have an output of 500,000 barrels per day in Hub (a town in Balochistan with Pak-Arab Refinery Limited (PARCO). 

Currently, there are five local players operating in the oil refining sector in Pakistan including, Pak-Arab Refinery Limited (PARCO), Attock Refinery Limited (ARL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL) and Cnergyico Pk Limited (CPL). All of the refineries are hydro skimming refineries, except for PARCO which is a mild-conversion refinery.

Pakistan’s oil refining capacity is about 450,000 barrels per day (bpd), equivalent to 20 million tons per annum. Local refineries have supplied about 60 percent of the country’s requirements of Diesel, 30 percent of Motor Gasoline and 100 percent of Jet fuel for defense. The rest is imported as refined products. Pakistan has been importing significant volumes of petrochemicals, worth more than USD 2 billion annually, as there is no primary petrochemical production facility in Pakistan.









$4.5 billion oil refinery in Gwadar to be discussed today


GWADAR, Dec.20 (Gwadar Pro) - In order to materialize the $4.5 b oil refinery project in Gwadar, fiv




www.gwadarpro.pk













Oil refinery project: Chinese team visits Gwadar


ISLAMABAD: In order to materialise the $4.5 billion oil refinery project in Gwadar, five-member delegation of...



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Gwadar: 3 million-ton ship-to-ship oil blending facility in the offing​By *Yasir Habib Khan* | Gwadar Pro
*Dec 23, 2022*

GWADAR, Dec. 23 (Gwadar Pro)-*Chinese firm East Sea Group Limited (ESGL) plans to establish a 3 million-ton ship-to-ship (STS) oil blending facility at sea space in connection with a $4.5 billion oil refinery project in Gwadar. After the venture materializes, Pakistan will earn $ 20,000 to $ 40,000 annually. 

The 3 million-ton STS oil blending facility will be established solely on the sea surface without any contact or use of the landmass of Gwadar. The rest of the 5 million-ton oil refinery will be on the land of the Gwadar Free Zone Area (phase II). With the 3 million-ton STS oil blending facility in the first phase and the 5 million-ton oil refinery in the second phase, Hong Kong-based Chinese firm East Sea Group Limited will build up an oil refinery with an annual oil processing capacity of 8 million tons.  *

The mega plan of the STS oil blending facility was discussed at length in the 45th special urgent meeting of GPA board members. The meeting held at GPA head office Gwadar was participated by GPA board members, COPHC chairman, and ESGL officials.

The meeting agreed to designate a specific sea area away from the 38 sq km anchorage area of Gwadar Port for the establishment of the STS oil blending facility. Instead of the northward side, the facility will be on the south side because the northward area has a depth of only 15 meters, while the southward side has a depth that ranges from 35 to 37 meters, which appropriately serves the purpose. 

Furthermore, Chairman GPA Pasand Khan Buleidi assured the visiting delegation of East Sea Group Limited of tax facilitation and duty exemptions set forth by all procedural and legal frameworks under Pakistan's transshipment rules. 

On the occasion, the ESGL officials committed that the company will buy 30 percent crude oil from the local market of Pakistan as Pakistan boasts 19 million tons of crude oil capacity. 









Gwadar: 3 million-ton ship-to-ship oil blending facility in the offing


GWADAR, Dec. 23 (Gwadar Pro)-Chinese firm East Sea Group Limited (ESGL) plans to establish a 3 milli




gwadarpro.pk


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