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Oil, Gas and Refinery Projects update

ghazi52

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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.
 

ghazi52

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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

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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.
 

farok84

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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

1635450342785.png


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.


 

farok84

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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.


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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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.
 

ghazi52

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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.
 

ghazi52

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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
 

ghazi52

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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.
 

farok84

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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.

 

ghazi52

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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 .


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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,


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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

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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.
 

ghazi52

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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
 

ghazi52

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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.


May be an image of fire and outdoors
 

ghazi52

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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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