Pakistan Energy News 2013-2018

[Cyberian]

Power generation through sugar mills
Friday, May 24, 2013

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Thursday approved Rs 10.50 per unit as upfront tariff for power generation through sugar mills by utilising sugarcane bagasse.

According to the NEPRA spokesman, this upfront tariff is approved to encourage sugar mills to generate around 1,500 megawatts (MW) on fast track basis.

At present hydel generation is costing Rs 2.50 per unit, generation through natural gas is costing around Rs 5.0 per unit, thermal generation from Rs 14 to Rs 18 per unit and electricity generated through diesel is costing Rs 23 to Rs 28 per unit in the country.

The approval of upfront tariff for sugar mills would encourage sugar mills to plan their investment in this new sector for steering out the country from power crisis faced by the nation during the last decade.

The government has plans to generate around 3,000 MW cheaper electricity through sugarcane bagasse on fast-track basis and investors would be facilitated and encouraged.

Necessary amendments would also be made in the existing co-generation and renewable energy policies to make it simplified and investor-friendly.

In a recent meeting on fast-track development of bagasse-based power generation projects it was informed that the government was utilising all the resources to end the energy crisis and the power generation from bagasse would be another step to produce electricity from indigenous resources.

Pakistan Sugar Mills Association (PSMA) has been taking interest in the bagasse-based power projects and time and again assured the government to provide full cooperation.

Approval of the upfront tariff was lingering on since a few years. During the last two governments, hectic efforts were made to utilise bagasse for cheaper power generation. Initially 1,500 MW would be completed on fast-track basis. The meeting had also reviewed in detail the existing co-generation and renewable energy policies and discussed various proposals to simplify it in order to get benefit at the earliest.

It has been felt necessary that amendments in the existing policies would help alleviate the power crisis in the country. It was decided that the Alternative Energy Development Board (AEDB) would process the bagasse-based projects under renewable energy policy.

A committee was also set up to finalise the recommendations in consultation with all the stakeholders so that approval could be taken from the competent forum to start the projects.

AEDB and PSMA have already informed the government that Pakistan was the fifth largest producer of sugarcane with production of 50 million tonnes of sugarcane annually, yielding over 10 million tonnes of bagasse.

Power generation from bagasse would not only reduce the furnace oil import, but even save Rs 33 billion to Rs 49 billion of foreign exchange per annum. The country has 87 sugar mills with a capacity to generate 3,000 MW electricity from bagasse in winter season. staff report

Daily Times - Leading News Resource of Pakistan

 

[Cyberian]

EXIM Bank of China to provide $448m for Neelum-Jhelum project
Wednesday, May 29, 2013

LAHORE: EXIM Bank of China has signed an agreement with the government of Pakistan to provide $448 million for 969 MW-Neelum Jhelum Hydropower Project.

This agreement is a significant development in the efforts to secure requisite financial resources for the remaining works of under construction Neelum Jhelum Hydropower Project. Neelum Jhelum Hydropower Project is being constructed on River Neelum in Azad Jammu and Kashmir.

In addition to generating much needed low-cost hydel electricity to help mitigate power shortages in the country, the project is also equally important for Pakistan to establish priority water rights. In view of its significance Water and Power Development Authority is making all possible efforts to complete Neelum Jhelum Hydropower Project by 2016 according to its construction schedule. At present the construction work on all sites of the project is progressing satisfactorily.

Out of total 67-kilometre (km) tunnels, 34.24 km long tunnels (51%) have so far been excavated, while excavation of underground power house stands at 75.24 percent and transformers hall at 96.33 percent.

De-sander of the project is 95 percent complete and Nauseri Bridge over River Neelum is 100 percent complete.

Second stage diversion of the River Neelum has also been completed. staff report

Daily Times - Leading News Resource of Pakistan

 

[Cyberian]

‘APCNGA’s energy plan can reduce load shedding by 70%’
Wednesday, May 29, 2013

Staff Report

ISLAMABAD: All Pakistan Compressed Natural Gas Association (APCNGA) Supreme Council Chairman Ghiyas Abdullah Paracha on Tuesday said former and caretaker governments ignored its recommendations, which would have reduced electricity load shedding by 70 percent and cut gas bill of domestic users by 50 percent.

Approval of the APCNGA’s Energy Relief Plan containing mid-term and short-term would have resulted in non-stop operations of all industrial and CNG stations, he said.

Speaking at a press conference, Paracha said that the caretaker setup didn’t take any interest in resolving the problem, rather they became part of the problem.

Unveiling the details of the Energy Relief Plan, he said that we had suggested uniform gas tariff for all sectors, ban on gas-powered generators and disconnecting gas supply to primitive captive power plants.

These steps could have saved 550 million cubic feet per day (MMCFD) natural gas while utilising half of the volume for power generation would have resulted in output of 1,100 megawatts while rest of the gas could have been channeled to CNG filling stations and industry in Punjab, he informed.

Accepting the proposals would have sparked the economy to contain unemployment and help government raise additional revenue in billions, he added.

Paracha said that we had also suggested short-term measures like improving efficiency of machines, free of cost replacement of heats and geysers to save 300 MMCFD gas to be supplied to efficient power plants.

The leader of the CNG sector said that APCNGA’s long-term plan included bringing an end to the rampant theft, tapping new gas reserves, better utilisation and just distribution of existing hydrocarbon resources, and importing LNG through funds raised by rationalisation of gas tariff.

He said that top government authorities continued to misguide masses on the issue of CNG on the behest of influential lobbies, which the fact remains that CNG sector has been consuming only 6.1 percent of the total gas output.

CNG sector is using 256 MMCFD gas in which Punjab is using 129 MMCFD gas, Khyber Pakhtunkhwa 63 MMCFD, while Sindh and Balochistan are consuming 64 MMCFD, he said adding that suspending gas supply to CNG outlets in Punjab will save gas enough to generate 500 MW electricity while shortfall stands at 7,000 MW.

Paracha said that closure of CNG will hut millions including domestic consumers as CNG sector has been providing subsidy to all other gas consuming sectors. Four hundred thousand people directly related to the Rs 400 billion CNG industry and 3.5 million owners of converted vehicles would also suffer while petrol consumption will jump by 230 million litres per month putting extra strain of $230 million on forex reserves.

Such a decision will open floodgates of inflation, hike of 15 percent in transportation costs for the man on the street, and health and environmental problems, said Paracha.

He demanded of the authorities to take decisions while keeping interests of masses supreme.

Daily Times - Leading News Resource of Pakistan

 

[Argus Panoptes]

..............CNG sector is using 256 MMCFD gas in which Punjab is using 129 MMCFD gas, Khyber Pakhtunkhwa 63 MMCFD, while Sindh and Balochistan are consuming 64 MMCFD, he said adding that suspending gas supply to CNG outlets in Punjab will save gas enough to generate 500 MW electricity while shortfall stands at 7,000 MW................

Daily Times - Leading News Resource of Pakistan

Baluchistan with its small population is consuming half of what all the crores or people in Punjab consume? Are these figures correct?

 

[Jango]

Baluchistan with its small population is consuming half of what all the crores or people in Punjab consume? Are these figures correct?

It is Sindh and Balochistan combined as I understand.

 

[Argus Panoptes]

It is Sindh and Balochistan combined as I understand.

That would make perfect sense. Thank you.

 

[Edevelop]

 

[Cyberian]

9th Pakistan Oil, Gas and Energy Industry Conference
Friday, May 31, 2013

Efficient use of natural gas to help overcome power crisis

Staff Report

LAHORE: The two-day 9th Pakistan Oil, Gas and Energy Industry Conference with the main theme of ‘Securing Pakistan’s Energy Future: Options and Solutions’ began at Lahore Expo Centre on Thursday.

The companies representing 33 countries of the world established over 250 stalls of renewable and alternative energy solution. The conference was organised by an event management company. Dr Sammar Mubarik would chair a session of the conference on Friday.

In a session GE Pakistan highlighted the Company’s advanced technologies that could contribute to addressing the power shortage experienced by the country, with a focus on enhancing energy production efficiency and effectively tapping the potential of natural gas.

As natural gas will continue to play a significant role in the energy mix of Pakistan, efficient use of this precious resource can significantly help in overcoming the power crisis and increasing supply and affordability, Sarim Sheikh President and CEO GE Pakistan said.

With sizeable gas reserves, the country can effectively tap the natural gas resources, which is much more cost-competitive and environmentally friendly than other energy sources.

Global gas market is going through a significant shift with abundant supplies becoming available and current reserves estimated to equal 250 plus years of existing demand levels.

The Pakistan Petroleum Policy 2012 has offered attractive incentives and prices for new exploration and field development for natural gas and is likely to deliver increased supply in the medium term. By using the country’s gas resources efficiently and effectively, Pakistan can unlock the value of this indigenous resource and improve energy supply and affordability.

CCGT Natural Gas Plants are quick to execute, with competitive capital and operating costs and can help the Government to bridge its energy gap swiftly.

On the issue of ‘Leveraging Existing Assets,’ Sarim emphasised on the need to provide uninterrupted gas supply to the high efficiency gas plants of GENCO, KESC and IPPs for delivering low cost electricity and savings of over Rs 100 billion per annum in subsidies.

There is a need for complete (stalled) gas based high-efficiency thermal projects such as developing and completing 1050 megawatts (MW) of GENCO based Gas IPPs in Nandipur/Chicho-ki-Malian within the next 18-24 months to add capacity and lower costs.

There is a need to reduce ‘unaccounted-for-gas’ by making infrastructure improvements in SUI Southern Gas Company (SSGC)/Sui Northern Gas pipelines Limited (SNGPL) transmission and distribution network through better measurement and control, smart pressure management and improving pipelines health.

Developing ‘low BTU gas fields’ and dedicating the gas produced to new power plants adjacent or near to the field, developing an liquefied Natural Gas Merchant terminal with short to medium term contracts with throughput guarantees to take advantage of global supply length and allowing private users to access supplies at a competitive tolling fee are also key to boosting the supply side.

Targeted subsidies for gas should be revised by limiting to lifeline domestic users and rationalising tariff for larger consumers to a level that is competitive with alternative sources.

For this competitive market bulk gas supply has to be developed, making it attractive for gas based captive power producers to improve efficiency by encouraging the upgrade of equipment efficiency to at least 35-40 percent levels by setting efficiency thresholds and competitive gas pricing.

Daily Times - Leading News Resource of Pakistan

 

[Cyberian]

MAPNA offers solution to Pakistan’s energy crisis
Friday May 31, 2013

An Iran-based global company has offered immediate solution to the Pakistan’s prevalent power crisis which has pulled the economy down and crippled general life.

Iran Power Plant Projects Management Company (MAPNA), the sixth largest power company in the world says it can bridge the gap between demand and supply of electricity within months.

A delegation headed by Muhammad Hussain Baqri, head of international communications MAPNA said this while talking to Pakistan Economy Watch (PEW) President Dr Murtaza Mughal. He said Iran’s installed capacity is 70,000 MW out of which MAPNA is providing 67,000 MW and can easily provide up to 10,000 MW to Pakistan on very economical rates compared to any other neighbouring country. Pakistan’s current electricity shortfall stands at 7,000 MW.

Baqri said MAPNA, having 39 subsidiaries, has its own gas fields and power plants construction facilities. It has been operating in 18 countries and it can also build power plants having international standards within 15 months with 20 percent discounted rates.

He said the EUR 30 billion company also has interests in oil and gas, wind power and railways and it is willing that Pakistan improve its railways.

The delegation also expressed interest in setting up power plants with 1,000 MW capacities and to supply and install 25 MW small power plants on ground as well as on barges to help Pakistan in overcoming the energy crisis on an urgent basis.

MAPNA offers solution to Pakistan’s energy crisis - Pakistan Today

 

[Cyberian]

Govt shares in energy companies to be reduced
Sunday, 2 Jun 2013

The Pakistan Muslim League – Nawaz (PML-N) is contemplating reducing the government’s share in state-owned energy companies to around 51%, in a bid to raise the cash necessary to clear the circular debt in the system, as well as restrict the ability of future politicians to engage in populist moves in the energy sector, according to local media reports.

The move to retain a majority-government ownership in energy companies appears to be a retreat PML-N’s manifesto, where it called for complete privatisation. Now it appears that the incoming ruling party wants to test the waters before an all-out onslaught.

Sources familiar with the matter say that the PML-N leadership believes that bringing in more private sector investors into state-owned companies will help improve the governance of these companies. Under the current arrangement, the CEOs of these companies are appointed by the prime minister. This level of direct government control has exposed these companies to political interference, which has reduced their efficiency.

The PML-N wants to give the power to appoint chief executives to the board of directors, and have more private sector investors represented on the boards to limit government influence. This proposal is likely to find no major opposition, as one of the main opposition parties, the Pakistan Tehreek-e-Insaf, is also in favour of such a move.

Companies most likely to see their government shareholding reduced include the nine state-owned electricity distribution companies, two of the state-owned gas distribution companies (Sui Southern Gas Company and Sui Northern Gas Company) as well as primary energy production companies like the Oil and Gas Development Company and possibly others.

The government’s weighted average stake in these companies is around 81.5%, according to the latest available financial statements. Reducing that share to 51% would raise approximately Rs455 billion for the government, at Friday’s prices, a number very close to the Rs500 billion that the PML-N is looking to raise to pay down the circular debt in the system in one go.

This estimate does not take into account the amount that the government will earn if it listed the eight state-owned power distribution companies on the stock exchange. Nishat Group and the Crescent Group, two of the largest diversified financial and industrial conglomerates in the country have expressed an interest in buying the Lahore Electric Supply Company and the Faisalabad Electric Supply Company.

The PML-N’s market-oriented proposals to resolve the energy crisis stand in contrast to the outgoing left-leaning Pakistan People’s Party administration’s plans, which typically tried to retain heavy government involvement. It tried to outsource the operations and maintenance of state-owned power plants, but faced enormous protests from the unionised workers at those plants. It tried to break up the two giant gas distribution companies into 20 smaller companies, but saw that plan run into legal complications.

See more at: Govt shares in energy companies to be reduced | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

 

[cloud_9]

Govt shares in energy companies to be reduced
Sunday, 2 Jun 2013

Looks like he's learnt these tricks from UPA.Sell the government companies and use your black money to buy the share's.

 

[AZADPAKISTAN2009]

Sugar .. based .. energy source .. oh man here comes the SUGAR SHORATAGES
Followed by Billion dollar gain by sugar mills

 

[Chak Bamu]

I do wish people would stop talking about Kalabagh Dam. I want it as much as the next guy, but while our Sindhi brothers are adamantly against it, we should forget about it for the next 4 years. Instead we should focus on run of the river projects on Indus with very modest storage. No one would have any objections and these projects could be completed with a lot less fuss, finance, and time.

Once Sindhis feel the need for longer term water storage and energy, we can talk about Kalabagh Dam. If we can not have consensus on this, then we should not waste time over it. We have wasted enough time as it is. We could have been producing many thousand MW power from run of the river projects and never would have had to face disastrous load-shedding.

 

[Cyberian]

E&P drilling activities increase by 50 percent
Tuesday, June 04, 2013

By Abrar Hamza

KARACHI: Manzalai-10 in Tal Block has successfully tested for gas reserves while the exploration and production (E&P) industry has drilled 50 percent more wells in 11 months of fiscal year (FY) 2012-13 as compared to drilling in FY 2011-12, said Pakistan Petroleum Information Service (PPIS) activity report on Monday.

Progress on drillings of important wells promises further production additions as the industry has moved closer to FY 2012-13 target. The E&P industry has drilled 82 wells till the end of May, which includes 29 exploration and 53 development wells. This translates into 90 percent of FY 2012-13 drilling target in the first 11 months, PPIS report stated.

The latest PPIS activity report indicates successful testing of gas reserves at Manzalai-10, located in the Tal Block in NWFP and Gyorgy Mosonyi, while testing at Manzalai-10 is still underway.

On the other hand, Nashpa-IV’s drilling bid has been fixed as industry sources suggested that Drill Stem Test (DST) on the well is likely to start in the next two weeks. First three wells on Nashpa are producing cumulatively 15,000 barrels per day (bpd) oil and 50 million cubic feet per day (MMCFD) gas.

Moreover, another production well, Kadanwari, on the field has been completed with flow of 30 MMCFD. Oil and Gas Development Company (OGDC), which carries 50 percent stake in the field, stands to benefit.

JS Research’s Syed Atif Zafar said that a relatively modest gas discovery of 25-35 MMCFD has been discovered, which will be 20 percent of total Manzalai gas flows, 12 percent of Tal Block gas flows and 1.0 percent of country’s gas flows.

OGDC, Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL) have respective stakes of 27.8 percent, 27.8 percent and 21.1 percent, respectively in the block. Zafar said that production from Manzalai-10 is likely to provide annual earnings upside of two paisas per share for OGDC, five paisas per share for PPL and Rs 2.5 per share for POL. He expects the field is likely to be tied-in over the next three to six months. The E&P space has seen renewed interest in recent times, where OGDC, PPL and POL have gained 19 percent, 21 percent and 5.0 percent, respectively in the past one month.

Meanwhile, the latest industry updates on drilling are largely encouraging and suggest positive production outlook for the listed E&P companies. The industry has already drilled more production wells than envisaged at the start of the year though exploration drilling has relatively lagged behind.

Mohammad Fawad Khan of Foundation Research Equities said that a key highlight of FY 2012-13 activity is contribution from private sector and healthy success ratio. Overall private E&P companies (OGDC and PPL) have drilled 21 exploration wells. United Energy Limited contributed the lion’s share with two thirds of drillings. Altogether, private sector enjoyed a success ratio of 50 percent. Most of the finds are in Badin block and in terms of size can be termed as small to modest.

Khan further said that Manzalai-10 has been completed though production numbers on development well are not known but should range between 10-15 MMCFD gas. Manzalai-10 will help in arresting the production decline on the field, he added.

Tal drilling on a new exploration well, Kot-01 has started with total target depth of 5,488 metres, highest among all eight wells drilled so far. Kot-01 is the first exploration well since completion of drilling on Tolanj in 2011-12 and highlights operator’s focus on scanning the remaining potential in Tal block.

Daily Times - Leading News Resource of Pakistan

 

[Cyberian]

Generators’ prices soar as load shedding intensifies
Saturday, June 08, 2013

LAHORE: Electricity load shedding has further pushed up prices of generators from 40 to 55 percent over the last one month.

A variety of generators, including those, which run on gas and diesel, are available in the market. Gas generators are high in demand because of their low running costs as compared to petrol and diesel generators.

China-imported generators are in high demand owing to their comparatively low price in comparison to those made by Japan. A one-KV Chinese generator, enough to power four tubelights and four fans for six hours, is being sold for Rs 14,500 against its previous price of Rs 8,500. Also, a Japanese generator of the same capacity costs Rs 16,000, which was earlier available for Rs 10,000. Due to their affordable prices and being more fuel efficient, small power generators are considered ideal for middle-income groups.

There are reports that the numbers of generators, which are replicas of famous brands, flood the market.

A dealer on Hall Road said generators that were earlier available at affordable prices had now become very expensive. “The machine has become the need of every consumer, that is why its prices have gone up,” he added. app

Daily Times - Leading News Resource of Pakistan