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Pakistan Energy News 2013-2018

Collection of taxes alone would not be the solution. Long term energy policy especially building new electricity generation projects based on hydro electricity and reduction in the dependence on oil based generation are also need of the hour.

With taxes you can only generate revenue which shall subsequently be lost in the form of payments to IPPs. With the generation of cheap electricity we can reduce the cost of generation and save money at the same time. Consumers shall be happy and so shall be businessman and government.

With reduction in electricity tariff cost of manufacturing items shall also be reduced and competing in international markets shall be a bit easy.

For making new projects you need money, you get money by attracting investment and collecting taxes. When you have the money, then you make new power plants.

With PTI in KPK perhaps its time to reconsider Kala Bagh Dam.

PPP in Sindh will still create problems. But PTI and PML should sit together and resolve Kalabagh issue.
 
For making new projects you need money, you get money by attracting investment and collecting taxes. When you have the money, then you make new power plants.

PPP in Sindh will still create problems. But PTI and PML should sit together and resolve Kalabagh issue.

There is a terminology called Build Own Operate and Transfer (BOOT). There are many financially strong companies that can build these projects on BOOT basis. Government would not need to spend much.

With three provinces agreeing to the project, fourth's objection would not be of much legal and moral standing.
 
oky Friends, just a small question, when we talk about cheap electricity, about things that we should have done earlier, what name come to mind??
Kalabag and Diamer Basha Dam?? Right?

I mean, when a common person like most of us talk about electricity crisis, i guess these are the two projects that ring up in our minds. Kindly confirm if i am right or wrong?
 
We have to accept the fact that Kala Bagh dam is a ‘No- No’. KPK & Sindh are never going to agree to it come hell or high water.

Other form of cheap energy is indigenous gas. We have not found many big natural gas reservoirs. However, Pakistan also has tight gas and about time we started looking at this source seriously.

Even Arab Gulf countries such as Oman are keen to develop it. I have come across a news item that Oman has signed an agreement with BP to develop Khazzan tight gas field supposed to contain about 70 TCF tight gas.

http://core.theenergyexchange.co.uk/agile_assets/1601/2._Jonathan_Evans.pdf

I sincerely hope that new NS government goes all out to explore all possible avenues to enhance Pakistan’s energy resources.
 
We have to accept the fact that Kala Bagh dam is a ‘No- No’. KPK & Sindh are never going to agree to it come hell or high water.

Other form of cheap energy is indigenous gas. We have not found many big natural gas reservoirs. However, Pakistan also has tight gas and about time we started looking at this source seriously.

Even Arab Gulf countries such as Oman are keen to develop it. I have come across a news item that Oman has signed an agreement with BP to develop Khazzan tight gas field supposed to contain about 70 TCF tight gas.

http://core.theenergyexchange.co.uk/agile_assets/1601/2._Jonathan_Evans.pdf

I sincerely hope that new NS government goes all out to explore all possible avenues to enhance Pakistan’s energy resources.

Exactly my point. See, again when talking about Hydro Power and energy crisis, even you mentioned Kalabag!
This is what every Pakistani know about, Kalabag and Diamer Basha dam.

Now the thing is that, these two projects, joint together are estimated to cost a total of 16.4 Billion US$ and the total power generation will be 7500 MW. Also remember that:
1) Kalabag Dam issues have be politicized now and there is no consensus on its construction between the provinces of Pakistan. Whenever built, it will fuel controversies!
2) Diamer-Basha Dam is situated in Gilgat Baltistan region so no foreign assistance is expected from the west under Indian pressure. Also there is not infrastructure to carry out such a massive Dam Building operation in that region, for example, a 350 Km road need to be constructed from Mansehra to the dam site for logistic support. It involves building road in some pances and expanding the already existing one in others, so the cost increases!

I am not arguing the utility of these two projects, nor can any one deny the massive gain we will get form all this infrastructure development, water storage and off-course power generation. The point i want to bring in your notice is that we, the people of Pakistan are informed about only two hydel power projects, both of which have a lots of IFs and BUTs. Just because every gov can blame them not be constructed on the other and the game continues! There are way too many things wrong with these that there will be a million reason why these are or will not be built and the governments can bale out!

Why are we not informed about Dasu Hydro power Project with generation capacity of 4500MW and cost of 5.3 Billion? Why not about Thakot with capacity 2800 MW and cost 5 Billion? Why not Bunji Hydro power Project with cost 6 Billion and capacity 7200 MW???

These total to cost 16.3 Billion and generation 14500 MW!! Arent these much much more beneficial?
There is a potential 70000MW Hydel Power generation potential in Pakistan why are we crying about the controversial 3500 MW Kala Bag? Just because every thing can be blamed on it and we can bale out?

SO WHY IN HELL ARE WE WAITING FOR KALABAG ISSUE TO BE RESOLVED??

Just because politicians want to hold these cards and because they know that they can give a good speech on WHY WE WERE UNABLE TO MAKE KALABAG OR DIAMER BASHA DAM AND FOOL PEOPLE ABOUT WHY THEY HAD TO LIVE IN DARKNESS!!
 
Yulbo Hydropower Project capacity 3000 MW, Chinese asking again and again to carry out this project! Tungus Hydropower Project generation 2200MW, Dudhnial Hydropower Project generation 900MW. Believe me, the list goes on, Suki Kinari Hydropower Project, Kundal Shahi Hydropower Project, Yogo Pakistan. Also there are hundreds of proposed projects, run of river, costing around 150 to 250 million US$ and capacity of range 50 to 80 MW. No environmental hazards, quick to build, clean and cheap energy sources!!

The recognized Hydel Power generation potential is 70,000 MW as per a survey conducted by European team in 2006. Options are there, potential sites are marked, feasibility reports are in process for years, we have got everything but one!

The thing we need is a committed and visionary leadership with only one goal in mind, the betterment and progress of Pakistan and all this problem is resolved, Unfortunately, this is something IMF or World bank cannot load us!
 
Just because politicians want to hold these cards and because they know that they can give a good speech on WHY WE WERE UNABLE TO MAKE KALABAG OR DIAMER BASHA DAM AND FOOL PEOPLE ABOUT WHY THEY HAD TO LIVE IN DARKNESS!!

There is a political version to this as well but another reason why these projects are being constantly talked about is because they are under construction (Bhasha) or in advanced stages of studies (Kalabagh), as I understand, Dasu, Thakot and Bunji are in early stages and only Bunji dam has some sort of headway in terms of studies.

Bunji has gone this far...BUNJI HYDROPOWER PROJECT
 
There is a political version to this as well but another reason why these projects are being constantly talked about is because they are under construction (Bhasha) or in advanced stages of studies (Kalabagh), as I understand, Dasu, Thakot and Bunji are in early stages and only Bunji dam has some sort of headway in terms of studies.

Bhasha has gone this far...BUNJI HYDROPOWER PROJECT

Agreed! Kalabag was supposed to be build way back and thus the INTIAL FEASIBILITY report were done. But nothing have happened on ground and thus get over with it wont cost us much. Infact, Bunji dam, that you have also mentioned is a bit ahead now as far as the paper work in considered. Also we all know that Kalabag have been politicized and i dont think there ever will be a decision made without hurting someone!
No one can deny the water storage capacity of kalabag and the influence it will have in controlling floods, but still, Ab nai ho ra tu janay dain... lets move forward!

Same for Diamer, the ground breaking ceremony of Basha dam was carried out THREE times, HILARIOUS!!
All Mr. Pervaiz Musharraf, Mr. Syed Yousaf Raza Gilani and Mr. Asif Ali Zardari have been blessed to BREAK THE GROUND :cheesy: Initially some reports said that the diversion tunnel construction in underway but there were problems in that as well since getting the heavy machinery to the site is a big task in itself.

All i am trying to say is that why is that we are not more serious about the options that are relatively easier, cheaper and can be completed in less time, like, Akhori Dam, Munda Dam!
 
We have to accept the fact that Kala Bagh dam is a ‘No- No’. KPK & Sindh are never going to agree to it come hell or high water.

Other form of cheap energy is indigenous gas. We have not found many big natural gas reservoirs. However, Pakistan also has tight gas and about time we started looking at this source seriously.

Even Arab Gulf countries such as Oman are keen to develop it. I have come across a news item that Oman has signed an agreement with BP to develop Khazzan tight gas field supposed to contain about 70 TCF tight gas.

http://core.theenergyexchange.co.uk/agile_assets/1601/2._Jonathan_Evans.pdf

I sincerely hope that new NS government goes all out to explore all possible avenues to enhance Pakistan’s energy resources.
pakistan have about 60,000 MW of KNOWN hydro potential. i.e projects on which some sort of intial studies are done
if u want to convert that into gas divide it by 4 u will get approx 15billion cubic eet of gas will be required to produce this much amount of energy.

another prjoect is buni. on which detail engnr study has been completed. it can produce 7100MW at its peak or 24000gunit(total generation in 2012 of pakistan was 75000G units)..thats twice amount of energy that can produce via iran gas pipeline!!!!!!!!
we can easily implement these projects and they will be cheaper than gas.
gas is a very precious item we should use it in places we cant use anything else. it shouldnt be used in power generation..

if PML N start work on vision 2025..then by 2025 additional 37000mw will be added to system
it would mean that pakistan willl be producing around 50,000 (37k+7k current hydro+6k from miscellaneous wind nuclear)from renewable resources
while max demand at 2025 is expected to be around 60-70k mw

WAPDA - Water Resources and Hydropower Development-Vision 2025

http://http://www.wapda.gov.pk/vision2025/default.asp
 
China to help end Pakistan energy crisis: Li

ISLAMABAD: China and Pakistan should make the cooperation on power generation a priority, Chinese Premier Li Keqiang said, as Pakistan seeks to end an energy crisis that triggers power cuts of up to 20 hours a day, bringing the economy to a near standstill.

He was addressing a luncheon hosted in his honour by President Asif Ali Zardari here at the Aiwan-e-Sadr on Wednesday.Li arrived in Islamabad under extra-tight security on the second leg of his first official trip since taking office in March and after a visit to India.

Li's plane was escorted by six air force fighter jets as it entered the Pakistani airspace. Security measures also included shutting down mobile phone networks briefly across the city.

"Our two sides should focus on carrying out priority projects in connectivity, energy development and power generation and promoting the building of a China-Pakistan economic corridor," Li said.

President Zardari urged the need for improved connectivity between Pakistan and China and the region at large which he said would turn this region into a vibrant trade, energy and the two leaders agreed to boost bilateral relations in the fields of economy, trade, investment, agriculture, industry, defence and people-to-people contacts with special focus on strengthening the economic linkages.

The two leaders expressed satisfaction on the current status of bilateral trade ties and urged the need for more consistent efforts on both sides to boost the bilateral trade to $15 billion from the current $12.4 billion in the next two to three years.

The two sides agreed to speed up work on the projects identified under the Five Year Development Programme and also decided to press ahead with the second phase of negotiations on the China-Pakistan Free Trade Agreement. The meeting decided to start work on the China-Pakistan Agriculture Demonstration Zone and establishing Young Entrepreneurs Forum for this purpose.

The president called for opening more branches of Chinese banks in Pakistan and the operationalisation of the currency swap arrangement which, he said, would help bolster trade and business linkages between the two countries.

While expressing satisfaction over the working of Pak-China Joint Energy Working Group, he asked for early holding of its third round and said Pakistan appreciates the interest of Chinese solar and wind companies to invest in these sectors.

The two leaders shared common concerns on terrorism, separatism and extremism and said that it posed serious threats to regional peace, stability and security. They reiterated their resolve to continue cooperation both at bilateral and multilateral levels in combating these evil forces.

Li Keqiang said that the government and the people of China recognised and appreciated the huge human and material sacrifices Pakistan had made in the fight against extremism and assured that China will continue to support Pakistan in combating terrorism. He thanked the president and Government of Pakistan for the warm welcome and hospitality and said Pakistan was an important country in the region and it had made significant contribution to peace, stability and development of the region and the world at large, adding that the Pak-China relationship was an excellent example of countries of different social systems living in amity with each other.

Li assured that China will continue to firmly support Pakistan in its efforts to uphold independence, sovereignty and territorial integrity and achieving national stability and development.

Meanwhile, Pakistan and China inked 12 agreements and memoranda of understanding (MoUs) that mainly included the long-term economic corridor plan, maritime cooperation and satellite navigation.

President Zardari and Chinese Premier Li Keqiang witnessed the signing ceremony as the representatives of the two countries inked the documents at a ceremony held at the Aiwan-e-Sadr. The visit of Chinese Premier Li Keqiang marked the signing of important documents aimed at long-term cooperation between the two countries in multiple areas.

An MoU on maritime cooperation between the two governments, an agreement on boundary management system between China's Xinjiang and Gilgit-Baltistan area, and another agreement on border ports and their management system was signed by Chinese Foreign Minister Wang Yi and Jalil Abbas Jilani.

MoU on cooperation for long-term plan on China-Pakistan economic corridor between the two governments was inked by Xu Shao Shi, Chairman National Development and Reform Commission, China, and Shahid Amjad Chaudhry, Adviser to the Prime Minister.

China's Minister for Commerce Gao Hucheng and Pakistan's Secretary Economic Affairs Division Shahzad Arbab signed the agreement on economic and technical cooperation and the handing over certificate of seismographic network.

An MoU on cooperation in the field of marine science and technology between the State Oceanic Administration (SOA) of China and the Ministry of Science and Technology of Pakistan was signed by Administrator SOA and Secretary Ministry of Science and Technology Akhlaq Ahmad Tarar.

Agreement between China Satellite Navigation Office (CSNO) and Pakistan Space and Upper Atmosphere Research Commission for Cooperation (Suparco) was inked by Director CSNO Ran Chengqi and Major General (R) Ahmed Bilal.

Agreement on establishment of Confucius Institute at the Karachi University was signed by Xu Lin, Head of National Office for Chinese Language, and Muhammad Qaiser, Vice Chancellor Karachi University. The other documents that were signed included Annual Blister Purchase Contract and Greige Fabric Contract.

China to help end Pakistan energy crisis: Li - thenews.com.pk
 
PSO launches Fuel Smart Cards
Sunday, May 19, 2013

KARACHI: Striving to provide ever-greater value to its customers, Pakistan State Oil (PSO) introduced chip-based Smart Cards. These fuel cards are the first of their kind to be launched by any OMC in Pakistan.

The formal launch ceremony ‘Your World Just Got Smarter’ featured high-profile guests and decision makers from across the corporate sector.

These fuel cards incorporate added security features in the form of chip-based encryption technology, which secures all customer information residing in the chip from unauthorised access. Usage of these cards will benefit corporate customers by facilitating administrative supervision, economizing fuel expenses and selection of customised cards options.

CEO and MD PSO Naeem Yahya said, “Through the launch of this Smart Card, PSO has further underlined its standing as a customer-centric Company which is continually introducing new products and services to provide ever greater benefits to the consumers at large.” staff report

Daily Times - Leading News Resource of Pakistan
 
Developing lower BTU gas fields : Fertiliser sector to invest $100m
Thursday, May 23, 2013

By Razi Syed


KARACHI: The Sui Northern Gas Pipelines Limited (SNGPL)-based fertilizer plants would invest $100 million for long-term development of dedicated lower British thermal unit (BTU) gas fields that would ensure better gas supply to fertilizer plants to get better production from local plants instead of depending on costly imported urea spending hundreds of millions of dollars of foreign exchange every year.

The fertilizer sector has been deprived of gas since April 2010 and has been one of the worst-affected sectors, which has worsened rural economy over the last few years.


Fertilizer Manufacturers Pakistan Advisory Council (FMPAC) Executive Director Shahab Khawaja said the new gas allocation through long-term arrangement was just a replacement of current allocation through which fertilizer plants based on SNGPL network would get gas through different small fields as a replacement of gas which would be discontinued from existing sources and which was our legal right as all the fertilizer companies have agreements in place gas sales purchase agreement (GSPA) with the utility providers.

The decision to supply gas to fertilizer industry through dedicated small fields is in line with the strategy to reduce burden from the SNGPL network, and to ensure continuous supply to general and industrial consumers in the country.

This decision has been taken after detailed deliberations from all the concerned stakeholders in the larger interest of the country, which is an agriculture economy.

Agriculture contributes around 24 percent to the gross domestic product (GDP) of Pakistan and it also provides raw materials to all the major industries of Pakistan including, textiles and sugar.

He said successful implementation of the long-term plan would ensure self sufficiency of country in fertilizer production and would also bring substantial savings of half-a-billion-dollar of foreign exchange annually and subsidy of approximately Rs 20 billion that country has to spend on one million tonnes of urea imports.

The post-Economic Coordination Committee approval, GSPAs between gas fields and fertilizer plants were inked carrying the reservoir risks and gas transportation agreements with both sui companies were signed under Oil and Gas Regulatory Authority TPA Rules, these agreements strictly comply the TPA rules.

The arrangement is beneficial for sui companies with additional stream of tolling income and saving on 240 million cubic feet per day gas allocated to four fertilizer plants under existing GSPAs with SNGPL.

While dispelling the impression fertilizer sector would get dedicated gas from different small fields without any additional investment, he informed to facilitate this transaction fertilizer plants were investing more than $100 million in increasing the pipeline capacities of sui companies where bottleneck exists.

The SNGPL-based plants being large-scale units are now at verge of closure with over Rs 100 billion of payable bank loans. Current arrangement is a win-win for all stakeholders as fertilizer plants upon receiving the regular gas from different small fields would provide farmers with cheaper local urea and gas companies would be selling this gas to new customers on better rates.

He informed fertilizer plants would also pay a higher gas price than the gas price available to them under the existing GSPAs and would also have to incur significant additional investment for the smooth transportation of gas from respective gas fields to their plants.

In the past despite guaranteed contracts with the fertilizer industry gas was diverted from fertilizer companies to other sectors, however with the implementation of this arrangement, certainty of gas supplies to the fertilizer sector would be ensured to get continuous urea production for Pakistani agriculture sector.

Daily Times - Leading News Resource of Pakistan
 
Sale of LPG up by around 25% on closure of CNG stations
Friday, May 24, 2013

KARACHI: The sale of Liquefied Petroleum Gas (LPG) is increased by around 25 percent on back of three closures of Compressed Natural Gas (CNG) filling stations in Karachi and elsewhere in Lahore.

The public transport buses and rickshaw are the main users of LPG when CNG stations are closed down on routine gas supply holiday.

Due to cheaper Iranian LPG by around 40 percent to local product, the smuggling of the gas has been increased from Iran, sources in LPG Distributors Association said.

Around 200 tonnes of LPG is sold on daily basis as the greatest advantage of LPG is that it can be easily transported.

The LPG industry in Pakistan is a developing one. The industry is deregulated so as to encourage private sector investment and allow market forces to determine demand, supply, and pricing decisions.

The local production stands more than 1,600 metric tonnes per day, while the demand hovers between 1900-2100 metric tonnes per day.


JJVL, OGDCL, PPL, PARCO, NRL, PRL, OPI, POL, BYCO and ARL are the producers and approximately 85 licensed marketing companies spread throughout the country with a distribution network of more than 5000 distributors.

LPG or liquefied petroleum gas is a by-product of crude oil and natural gas that is rich in propane/hydrocarbons. It is an odorless, non-toxic, clean burning, and an environmentally friendly fuel with almost zero level of pollutants. staff report

Daily Times - Leading News Resource of Pakistan
 
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