SNGPL to Provide Infrastructure for 500 Million LNG to CNG Stations all over in Pakistan
Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that consumption of liquefied natural gas (LNG) in the compressed natural gas (CNG) industry will prove to be a game changer as it will save $2.5 billion per annum in oil imports and ensure employment to about one million people.
Speaking at a press conference along with All Pakistan CNG Association supreme council Chairman Ghayas Paracha here on Monday, Abbasi said gas utilities – Sui Northern Gas Pipelines Limited and Sui Southern Gas Company – would provide infrastructure for transporting 500 million cubic feet of LNG per day (mmcfd) to CNG filling stations.
“Gas supply to CNG stations will be for seven days a week and CNG will be 30% to 35% cheaper than petrol,” he said, stressing Pakistan had a wide infrastructure network in place for CNG pumps and provision of LNG would lead to consumption of clean energy in the country.
He pointed out that CNG stations had provided jobs to 500,000 to 700,000 people and the number would go up to one million following revival of the industry on the back of LNG injection.
“The private sector will import LNG worth billions of dollars and 250 to 300 mmcfd will be left after its supply to CNG stations. This saved gas will be provided to power or fertiliser plants,” he said.
The private sector would also bear the impact of unaccounted-for-gas (UFG), he added, referring to gas theft and leakage.
The country can transport 500 mmcfd of LNG by using the current transmission infrastructure of gas utilities, but additional infrastructure will be developed to handle more LNG supplies.
The minister made it clear that LNG price would depend on market forces, ruling out any role for the Oil and Gas Regulatory Authority (Ogra) in that regard.
However, he said, it would be 30% to 35% cheaper than petrol and the government would give tax relief to make it affordable for the consumers. It will take 18 months to induct LNG into the CNG industry.
All Pakistan CNG Association Chairman Ghayas Paracha claimed that the CNG industry’s worth would jump from Rs450 billion to Rs600 billion after LNG supply to the filling stations.
“The number of CNG-powered vehicles will reach 4.5 million compared to existing 3.7 million and consumers will be able to save Rs12,000 per month in the wake of continuous LNG supply,” he said.
ADB to support Bhasha dam project
The Asian Development Bank (ADB) has said that despite its limited financing capacity it would support the Diamer-Bhasha dam to ‘the extent possible’.
This was a diplomatic message the Asian Development Bank President Takehiko Nakao conveyed to× Pakistan during his meeting with President Mamoon Hussain and Finance Minister Ishaq Dar.
The ADB was earlier expected to be the lead financier and consortium leader of the $14 billion Diamer-Bhasha dam project. Wapda’s former chairman Durrani had told a parliamentary committee about two years ago that the ADB “on at least three occasions has committed to providing up to $4bn”.
The Diamer-Bhasha is an important project for managing water resources in Pakistan and ADB assured of all help.
The matter was taken up during a meeting with the ADB chief by Finance Minister Ishaq Dar who sought support for the country’s top priority project.
“We will need the support of the ADB on the Diamer-Bhasha dam because solving the energy crisis is the top priority of our government,” Mr Dar was quoted in an official statement as telling the visiting ADB chief.
Mr Dar said the Bank would hold a Business Opportunity Conference in Washington on October 8 and government representatives would discuss the project there.
Mr Nakao said that although the ADB could lend only $1bn to a country for a development project, it would continue supporting× Pakistan in projects like renewable energy, Jamshoro coal-fired plant and plans of regional connectivity.
He said his institution supported Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project which was important for Pakistan.
“The Diamer-Bhasha is also an important project for managing water resources in Pakistan and we will help to the extent possible,” he told the finance minister.
Also read: World marketing of Bhasha dam planned
As far as the rehabilitation of× Persons is concerned, the ADB would gladly extend its expertise for the reconstruction work, he said.
Dar said that Pakistan wanted to proceed with the TAPI and CASA 1,000 (Central Asia South Asia electricity import project) for meeting the country’s future energy needs.
The minister said on the economic condition of the country, the government had been following a pro-development macro-economic agenda and improvements could be seen in 16.44 per cent growth in revenue collection, decrease in budget deficit to 5.7pc of GDP, 13.7pc growth in foreign remittances, 4.2pc improvement in large-scale manufacturing output and a 16pc increase in the disbursement of agricultural credit.
The ADB chief was informed that the government had also increased the allocation for social safety net from a mere Rs40bn to Rs118bn over the past 14 months.
He said the government could have added $2.4bn to foreign exchange reserves but recent political situation had delayed three important transactions; the issue of Sukuk, divestment of the OGDCL shares and IMF’s next release but he hoped to resolve the issue amicably because a committee had already been constituted on electoral reforms.
The ADB delegation was also briefed on the damage cause by flood in Punjab, AJK and Gilgit Baltistan.
Mr Nakao said the ADB would like to assist in the rehabilitation process for flood-affected persons.
Pakistan’s water experts to inspect India’s Himachal project
A three-member Pakistani delegations of water experts reached this Himachal Pradesh town to inspect an upcoming hydropower project in the Lahaul Valley, an official said.
“The delegation, led by Pakistan’s Indus Waters Commissioner Mirza Asif Beg, would visit the 120-MW Miyar hydropower project near Udaipur town in Lahaul-Spiti district Monday,” Central Water Commission regional director P. Dorje Gyamba, who is accompanying the team.
The project is being commissioned by private firm Moser Baer in the Miyar Valley on a tributary of the Chandrabhaga river.
The Indian team accompanying the Pakistani delegation included Indus Water Commissioner K. Vohra and senior joint commissioner P.K. Saxena.
The Indus Waters Treaty was signed in 1960 with the support of the World Bank to settle water issues between the two neighbouring countries.
The purpose of the Pakistani team’s visit is to ascertain whether any diversion has been made in the original flow of the Chandrabhaga, which later enters Jammu and Kashmir and there it’s known as the Chenab.
“We are hopeful that India will show some flexibility on (Pakistan’s) reservations over the building of new dams in India,”.
During the five-day trip, the delegation will also visit four “controversial sites” on the Chenab river where New Delhi is planning to construct new dams, said.
Reiterating that Pakistan’s objections over the design of Kishanganga dam were logical, Baig said that some serious doubts pertaining to the controversial project – particularly regarding the Neelum distributary point – and other dams on the Chenab river have already been allayed.
The paper quoting Baig said his delegation would try their best to resolve all issues during their stay in India. But at the same time, he admitted that Islamabad would have no choice but to approach the International Court of Justice if New Delhi did not entertain their “fair” demands.
Pakistan-Norway agree to enhance energy cooperation
Prime Minister Nawaz Sharif discussed enhancing bilateral energy co-operation with Norwegian Prime Minister Erna Solberg at the United Nations Headquarters, where the Pakistani leader is attending the annual General Assembly session. “Both leaders discussed the existing level of co-operation between the two countries and decided to further enhance bilateral relations especially in the field of energy,” the Pakistani Mission to the UN said.
The two prime ministers also discussed the regional situation, particularly with reference to the recent developments in Afghanistan. Prime Minister Sharif informed his counterpart about the measures taken by the government to resolve the problem of electricity shortages in Pakistan and how all energy sources were being utilised to generate electricity. Norwegian Prime Minister Solberg, while appreciating the steps taken by the government to utilise alternate energy sources, assured her country”s support for Pakistan in the endeavours in the area.
Prime Minister Sharif also informed the Norwegian leader about favourable investment climate in Pakistan and said that Norwegian companies would be welcome to invest in Pakistan, especially in the field of energy and infrastructure development. The Norwegian prime minister appreciated the role of the Pakistani Diaspora in the development of her country. According to the Pakistani Mission, Special Assistant to the PM, Mr Tariq Fatimi, Permanent Representative to UN, Ambassador Masood Khan, Additional Secretary, PM”s Office, Fawad Hassan Fawad were also present during the meeting.
Oracle Coalfields Inks Pakistan Framework Deal With China’s SEPCO
Oracle Coalfields PLC said it has signed a engineering procurement and construction agreement in Beijing with SEPCO Electric Power Construction Corp for the construction of an integrated coal mine and power plant.
SEPCO is a power and construction group in China.
Oracle Coalfields, which is a developer of a lignite coal mine located in the south eastern Sindh Province in Pakistan, said the construction of the integrated coal mine and power plant is a major milestone in the development of the Block VI project in the Thar Coalfields.
Through its local coal mining subsidiary Sindh Carbon Energy Ltd, Oracle owns the mining lease for Block VI in Thar Coalfield, for the mining of lignite coal. Oracle plans to develop the mine and to sell coal to a new created company, provisionally called Electric Power Ltd, at an integrated power station next to the mine.
Oracle said that SEPCO has also proposed a financing structure to potentially securitise up to 85% of the cost of the two EPC contracts, which would be provided by Sinosure, the China Export & Credit Insurance Corp, and some Chinese banks.
The EPC contract is for a 4.2 million tonnes per year coal mine and the 600 megawatt power plant.
The combined EPC transaction value is around USD1.3 billion, Oracle said.
The EPC framework agreement confirms SEPCO’s intention to purchase minority equity interests in Electric Power and to potentially make an investment in Sindh Carbon Energy Ltd, Oracle said.
“Entering the EPC Framework Agreement with and receiving a financing proposal from one of China’s largest state-owned enterprises in the energy sector is another step towards bringing the project to reality. Both SEPCO and Oracle are eager to succeed in the development of our integrated coal mine and power plant project and to play an effective role in addressing Pakistan’s energy crisis,” said Oracle Chief Executive Shahrukh Khan in a statement.
Punjab government approves projects worth Rs 9,581 million
The Punjab government on Wednesday approved sixteen development schemes of various sectors with an estimated cost of Rs 9581.101 million, including Replacement of Pumping Machinery at Inline Booster Pump Station & Terminal Reservoir in Faisalabad at the cost of Rs 1643.520 million.
According to the spokesman for the P&D, the approved development schemes included:
1. Up-Gradation / Establishment of Lab Schools in GCET’s (Provision of Missing Facilities) at the cost of Rs 533.254 million,
2. Up-gradation of ICU and Operation Theaters of Nishtar Hospital, Multan at the cost of Rs 350.000 million,
3. Replacement of Pumping Machinery at Inline Booster Pump Station & Terminal Reservoir in Faisalabad at the cost of Rs 1643.520 million,
4. Laying of Forcemain from Bhogiwal Disposal Station Chotta Ravi Drain to Shalimar Escape Channel Across Lahore Ring Road Lahore at the cost of Rs 368.762 million,
5. Sewerage scheme Depalpur City, District Okara at the cost of Rs 300.355 million,
6. Widening / Improvement of Bypass Khan Musalman to Jagowala Nowshera Virkan length 17.50 kms, Gujranwala at the cost of Rs 459.562 million,
7. Construction of Double road from Gujrat-Jalalpur Jattan Road to University of Gujrat length 2.14 kms, Distt Gujrat at the cost of Rs 263.085 million,
8. Widening / Improvement of road from Pirkot Khaliana to Chela to Rajana to Khan Da Kot to Guniana length 45.00 km, Jhang at the cost of Rs 555.594 million,
9. Improvement of road from Pir Mahal Darkhana Road to Shorkot Cantt Toba Road Via Chak No 321-GB, 323-GB, 321-GB, 325-GB, 326-GB, length 20.00 km, T T Singh at the cost of Rs 307.962 million,
10. Dualization of Intercity Road in Pir Mahal City, length 2.87 km, Toba Tek Singh at the cost of Rs 247.374 million,
11. Widening / Improvement of Palace Road from Pull Dari Sangi to UAE Palace (length: 15.50 km), Distt R Y Khan at the cost of Rs 2623.405 million,
12. Construction & Extension of W/I of Pattan Minara Manthar Road (length: 26.25 km), R.Y Khan at the cost of Rs 398.557 million,
13. Widening Improvement of road from Mubarakpur to Jhangara Sharqi (length 25.00 km) in District Bahawalpur at the cost of Rs 470.240 million,
14. Widening Improvement of road from Iqbalnagar to Dulwan (length=26.10 Km) in District Khanewal at the cost of Rs 352.412 million,
15. Widening / Improvement of Fatehpur to Nawankot Road, length 32.50 Km in District Layyah at the cost of Rs 448.21 million and
16. Construction of 1st Part of Southern By-Pass Shujabad Multan from River Bank Chenab to Pull Syed Wali Siyalan Wali via Khan Garh Road and Canal Bank towards North Side to connect existing Multan Road, (length 9.20 km) Tehsil Shujabad District Multan at the cost of Rs 258.809 million.
These schemes were approved in the 16th meeting of Provincial Development Working Party of current fiscal year 2014-15 presided over by the Punjab Planning and Development Board Chairman, Muhammad Irfan Elahi, says P&D Spokesman.
Provincial Secretary P&D Waseem Ajmal Chaudhary, Chief Economist Dr Khalid Mushtaq, Members P&D Board Dr Naveed Ahmad Chaudhry, Agha waqar Javed, Ejaaz Hussain, Secretary, C&W Mian Mushtaq, Director General LDA Ahad Khan Cheema, Senior Chief co-ordination, P&D Javaid Latif and other senior representatives of the relevant Provincial Departments also attended the meeting
