Oil, Gas and Refinery Projects update

[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.

 

[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.

 

[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.

 

[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

 

[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

 

[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

 

[ghazi52]

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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

 

[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

 

[farok84]

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

 

[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.

 

[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

 

[Blacklight]

We need to work on renewable energy ASAP, on a war footing!

 

[ghazi52]

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.

 

[Blacklight]

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.