Oil, Gas and Refinery Projects update

[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

 

[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

 

[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.

 

[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.

 

[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

 

[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.

 

[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.

 

[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.

 

[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.

 

[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.

 

[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.

 

[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

 

[prop558]

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 ?

 

[ghazi52]

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.