Pakistan's Energy & Water - News and Updates

[SBD-3]

Tale of Kh Asif’s frustration and resignation
ISLAMABAD: Minister for Water and Power Khawaja Asif had offered his resignation to the Prime Minister Nawaz Sharif in the last cabinet meeting to protest against the interference of Punjab in his ministerial domain. However, the prime minister had asked him to continue.



Sources said that Khawaja Asif had told the prime minister during the cabinet meeting that Punjab is running his ministry through an adviser to the PM and secretary water and power. He complained that major decisions pertaining to his ministry are taken without his knowledge and implemented through the adviser and the secretary water and power.



These sources said that Khawaja Asif told the prime minister that he could not stay as an ineffective and weak minister. He said that if he has been given the portfolio of the Water and Power Ministry then he should also be given the authority to run the ministry in his own fashion. His grievance was that Punjab is running the affairs of his ministry without his knowledge.



Khawaja Asif said that this situation is unacceptable to him and thus he would prefer to quit instead of continuing as a dummy minister. Some federal ministers, including Interior Minister Chaudhry Nisar Ali Khan and Railway Minister Khawaja Saad Rafique, supported Kh Asif and disapproved the inflated price formula.



They argued that the water and power minister should not be bypassed by anyone, and no major decision should be taken without his information and approval. The sources said that the adviser, who was also present in the cabinet meeting, received rough treatment from some of his cabinet colleagues over the controversial inflated billing issue.



According to a source, the otherwise cool-minded Finance Minister Ishaq Dar also expressed his annoyance with the adviser for causing embarrassment to the government. The adviser was giving a power-point presentation, but Dar reportedly said it is not needed. Minister of State for Water and Power Abid Sher Ali also sided with his minister.



They were of the view that decisions are taken somewhere else without consulting and even informing them but in public they have to receive the brickbats from all and sundry.



Prime Minister Nawaz Sharif wanted to fix the responsibility of who was behind the inflated billing issue. He was furious as to why this happened and sought a full-fledged inquiry into the matter.



He asked Khawaja Asif to explain the position, being the political head of the Ministry of Water and Power. Here, Khawaja Asif lost his patience and told the prime minister about the mismanaged affairs of his ministry because of too many cooks.



Not only did quite a few ministers c0me to his rescue, but the prime minister also rejected his resignation offer and told him that in case of any grievance, he should directly talk to the premier. It is said that twice before this incident, Khawaja Asif had conveyed his frustration to the prime minister and had even offered to resign. However, each time the prime minister had asked Khawaja Asif to continue.



The Water and Power Ministry has been a case of ‘too many cooks spoil the broth’ from day one of the present government. Although Khawaja Asif was made the minister and Abid Sher Ali his deputy to lead the Water and Power Ministry, not only was an adviser on water and power appointed, but an important personality of Punjab has also been taking keen interest in the ministry’s affairs. Some business tycoons from Punjab and an influential junior VVIP from Lahore have also been informally acting as power experts.
Tale of Kh Asif’s frustration and resignation - thenews.com.pk

 

[SBD-3]

 

[fatman17]

Oil production up 19%, gas down 1% in 1Q FY15

• Staff Report
• October 15, 2014

KARACHI: Pakistan’s oil an average production increased by 19 percent in the first quarter of 2014-15 (1Q FY15) to stand at 94,000 barrels of oil per day (bopd) as compared with 79,000 bopd in corresponding period last year, whereas the average gas production during the period dropped 1 percent to 3,955 million cubic feet per day (mmcfd) versus 3,977 mmcfd in 1Q FY14.

Overall, the hydrocarbon production in Pakistan, which stood at an average 787,000 barrels of oil equivalent per day (boed) in 1Q FY14, averaged 799,000 boed in 1QFY15, up merely 1 percent in 1Q FY15 as per statistic provided by exploration and production of companies to local equity research centre.

The net realised prices on oil sales are 5.5x higher than that on gas. Hence, revenue growth from higher oil production outweighs revenue-loss from decline in gas production for exploration and production companies in Pakistan. However, in 1Q FY15, Arab Light prices averaged $103.4/bbl versus $108.6/bbl in similar period last year, while 2 percent average rupee appreciation against US dollar also failed to favor local exploration and production players.

Oil and Gas Development Company achieved 4 percent improvement in total production with the 2 percent growth in average oil production and 4 percent higher gas in 1Q FY15, showing cumulative hydrocarbon production of Compnay was up 4 percent to stand at 259,000 boed as compared to 250,000 boed in corresponding period last year.

The Company benefited from higher production in blocks like Nashpa and Tal, where cumulative average production contributed 17,000 bopd (41% of OGDC’s total oil production), up 30 percent from 13,000 bopd in 1Q FY14.

Pakistan Petroleum recorded average production of 157k boed versus 160k boed in 1Q FY14, down 2 percent. Its average oil production registered highest growth of 23 percent averaging 14,000 bopd versus 12,000 bopd in 1Q FY14.

On the contrary, gas production declined 4 percent to average 802 mmcfd versus 834 mmcfd in similar period last year. Driven by volumetric growth in Tal and Naspha, PPL’s oil production grew substantially during the period. However, this impact was mainly offset by 25 mmcfd decline in gas production from Sui.

In FY14, cumulative hydrocarbon production of Pakistan Oilfields was down 5 percent at 19, 000 boed as compared to 20,000 boed in corresponding period last year. Its oil production posted an increase of 15 percent as it stood at 6,413 bopd versus 5,563 bopd in 1Q FY14. This was mainly due to higher production from Tal block, which contributed 68 percent to POL’s total oil production versus 57 percent in 1Q FY14. The Company’s average gas production dropped to 70 mmcfd versus 81 mmcfd in 1Q FY14 down 13 percent.

 

[ghazi52]

BAHAWALPUR - Quaid-e-Azam Solar Park - 1500 MW
Panel installation has started...

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[wiqi21]

Foundation Wind Energy 1 Gharo Sindh Pakistan

 

[ghazi52]

Attabad lake tunnel,

Plan

U/C images

 

[Muhammad Omar]

NEWS from 9th December 2014 till 7th January 2015

• Russia ready to build solar power station in Sialkot

SIALKOT – Russian Trade Representative in Pakistan Yury Kozlov has said that several Russian solar energy companies are ready to build 100 megawatts solar energy power generation station in Sialkot to get the export-oriented industries rid of energy crisis.

He said this while talking to leading Sialkot exporters during a meeting held at Sialkot Chamber of Commerce and Industry (SCCI) here on Tuesday. He also assured the Sialkot business community to simplify the Russian banking system, besides, removing all hurdles to encourage the international business community, in this regard. The Russian Trade envoy said that Russia was keen in developing strong mutual trade ties with Pakistan. He stressed the need for making all out sincere efforts to boost mutual trade ties between Pakistan and Russia.

He pledged to make sincere efforts to ensure direct imports of Sialkot-made products including surgical instruments and sports gears direct from Sialkot-Pakistan instead of purchasing these products on very high prices from other European countries. He assured his full cooperation in establishing the strong business-to-business trade relations between businessmen of both Pakistan and Russia, saying that Russia was ready to ensure the easy and hurdle free access of Sialkot-Sialkot exporters to the European, Russian and other international trade markets.

Sialkot Chamber of Commerce and Industry (SCCI) President Fazal Jillani, SVP Mir Alamgir Meyer, VP Malik Naseer Ahmed, SVC of Pakistan Gloves Manufacturers and Exporters Association (PGMEA) Sheikh Ejaz Ahmed Jammu, Mian Mohsin Gull, SCCI PRO Tajjamal Hussain, RDO Umair Nisar and the others were also present on this occasion.

http://www.dailytimes.com.pk/nationa...ion-in-sialkot

• LNG import: Pakistan likely to strike long-term deal with Qatar

Pakistan is likely to strike a long-term agreement with Qatar for the import of Liquefied Natural Gas (LNG), as a Qatari delegation is expected to arrive in Islamabad in the first week of January 2015, Petroleum Ministry officials said. A senior Petroleum Ministry official while talking to Business Recorder on Friday said that a Qatari delegation was expected to visit Pakistan on the start of the New Year to discuss LNG prices and other terms of the agreement.

"Pakistan is likely to strike a 10 years' LNG contract with Qatar and so far we are not in a position to tell about the prices, but we will ensure best possible deal with Qatar," the official said when asked about the price of the commodity. Pakistan at present is facing serious gas demand/supply gap due to which gas supply to many industries and other sectors has been suspended during the winter and to deal with the huge demand/supply gap the government has decided to import up to 2 Billion Cubic Feet per Day (BCFD) LNG within next three years. On fast track basis, the government is making all-out efforts to start importing 400 Million Cubic Feet per Day (MMCFD) of LNG from Qatar for which a KLNG terminal is under construction at Port Qasim Karachi with a capacity to handle a maximum 600 MMCFD of the commodity.

• Pakistan and Russia signed a most sought-after energy deal of $1.7 billion for laying a liquefied natural gas (LNG) pipeline from Karachi to Lahore. The supply of LNG is expected before March next year.

It is for the first time Islamabad and Moscow have signed an energy pact decades after their defence deal.

The energy agreement was signed during the visit of the Russian defence minister. Moreover, Islamabad and Moscow also signed a defence and military cooperation deal, a move seen by economic experts as ushering in a gradual improvement in ties between the two countries.

Before Gen Ziaul Haq’s military regime, Russia had helped Pakistan set up the Karachi Steel Mills and also supported the Oil and Gas Development Company Limited, which is still using old Russian machinery in exploring oil and gas.

Pakistan is currently working on two LNG pipelines as an alternative to the apparently doomed Iran-Pakistan (IP) gas pipeline project, which included LNG Gwadar pipeline and south pipeline from Karachi to Lahore.

The government has signed a deal with China to award $3 billion Gwader LNG pipeline and terminal project.

• ISLAMABAD: The government finalised on Friday a plan to set up gas-based power projects in Sindh and Punjab of 5,600MW, with those in Hyderabad and Sukkur scheduled to start producing about 2,000MW by May this year.

The plan was firmed up at a meeting of a ministerial committee headed by Finance Minister Ishaq Dar and comprising Petroleum Minister Shahid Khaqan Abbasi and Water and Power Minister Khwaja Mohammad Asif.

The cabinet committee on energy headed by the prime minister had directed the ministerial committee to present the plan within a week for its approval and implementation.

A senior government official told Dawn that the plan would be submitted to the prime minister for formal approval by the cabinet committee, most probably on Monday.

He said the plan consisted of two stages. In the first stage, about 2,000MW would be generated through trailer-mounted small power projects of 20-50MW in service areas of the Hyderabad Electric Supply Company and Sukkur Electric Power Company as a stop-gap arrangement for two to three years because of availability of gas for a short period. The projects are anticipated to minimise power shortage until 2017.

Under the two separate schemes, the government had already invited bids for 1,000MW onsite projects based on well-head (raw) gas and another 1,000MW projects based on local purified natural gas.

The last date for filing bids was Dec 31, but it was extended to Jan 15 because of Christmas holidays. In many cases, the defunct rental power projects would be rehired for a short-term period under a revised scheme on a take-and-pay basis and without any mobilisation advance or capacity payments. The bidding results will be on the basis of minimum tariff to be approved by the National Electric Power Regulatory Authority.

In the second stage, 3,600MW power plants would be set up in Punjab’s load centres where transmission lines are already available. The projects will be based on imported liquefied natural gas (LNG).

These are in addition to eight coal-based power projects of 5,300MW currently under process as part of the Pakistan-China Economic Corridor project – four in Thar, Sindh, and four in Punjab’s Muzaffargarh, Sahiwal, Rahimyar Khan and Chakwal. They are expected to start commercial production by 2017 or early 2018.

A power ministry official said the government was planning to set up nine LNG-based power projects at three different sites — Balloki and Bhikki, near Lahore, and Haveli Bhadarjang, near Jhang.

According to sources, the Ministry of Petroleum and Natural Resources had promised to deliver about 500 million cubic feet per day of LNG by March 31 and subsequently ramp up supplies through a pipeline from Karachi to Lahore in three years.

To be offered for bidding by the Private Power and Infrastructure Board, the government plans to achieve financial close for the projects in six to seven months.

In the first phase, the projects would be open-cycle and completed in 18 months after the financial close to produce 2,400MW in May 2017.

In the meanwhile, all these projects will be converted to closed cycle to add another 1,600MW, achieving a planned capacity of 3,600MW by mid-2018.

An official statement said the meeting had reviewed salient features of the short- and long-term plans prepared by the power ministry to meet energy shortage as directed by the prime minister. Altogether, the measures would add up to 5,600MW to the national grid, it added.

The finance minister directed that besides power generation, proper transmission facilities should also be ensured. It was the foremost requirement for the success of both the short- and long-term measures, he added.

• SUKKUR: Pakistan Peoples Party Co-chairperson Asif Ali Zardari on Monday laid the foundation stone of two hydel power plants in Sukkur. One plant will be built at Rohri Canal and the other at Nara Canal, the two offshoots of left pocket of Sukkur Barrage.

The plant at RD-27 of Rohri Canal will be installed at a cost of $36.4 million, while the other will be built at RD-15 of Nara Canal at a cost of $47 million.

Both the power plants will be operated on run-of-river basis and are billed to be completed within 20 months. These power stations are being built by the Sindh government under the public-private partnership mechanism. Zardari was accompanied by Sindh Chief Minister Syed Qaim Ali Shah and the provincial minister for finance and energy, Syed Murad Ali Shah

 

[BetterPakistan]

PML N ministers continously claiming that loadshedding will end in 2017, is it true? I have searched on google and according to my knowledge 969 MW hydro power project known as Neelum-Jhelum, CASA 1000 MW project and a few coal based power projects will be completed in 2017.So how loadshedding will end? I have also heard that Electricity demand in 2017 will be 34,000 MW while current production is 15000 MW so is government really trying to produce 19,000 MW electricity till 2017? Anyone having information about it?

 

[Introvert]

Can anyone provide the link for power projects that are supposed to be completed this year.

 

[salman77]

Pakistan awards US$1.4 billion contract for 720-MW Karot hydroelectric project on Jhelum River

Pakistan's Environmental Protection Agency announced this week that it has awarded a US$1.4 billion contract for development of the 720-MW Karot hydroelectric project on the Jhelum River in the Rawalpindi district of Pakistan, to a group of Pakistani and Chinese investors that includes China Three Gorges South Asia Investment Ltd. (CTGC).

Published information indicates 93% of the project’s funding is through CTGC and the remaining 7% from Pakistan-based Associated Technologies (Private) Ltd. The National Transmission and Dispatch Company Ltd. (NTDC) of Pakistan plan to complete the project by 2020.

Karot Power Co. (Private) Ltd. will operate the run-of-river hydroelectric power plant, which includes an underground powerhouse that will generate electricity from four 183-MW Francis turbine units. The powerhouse will be located in the province of Punjab and the Karot Dam, a concrete gravity dam, will be built on the Jhelum River.

Initially, Pakistan’s Water and Power Development Authority (WAPDA) planned the scheme, but the project was privatized and taken over by the Private Power Infrastructure Board (PPIB), which then subsequently granted operation responsibility to Karot Power Co. (Private) Ltd.

PPIB has authority to "handle" the operation of 12 hydroelectric power projects in Pakistan, according to the agency.

Pakistan awards US$1.4 billion contract for 720-MW Karot hydroelectric project on Jhelum River - HydroWorld

 

[salman77]

Chinese firm to invest $7b in seven mega hydro power projects of Pakistan

ISLAMABAD: China Three Gorges Corporation (CTGC) delegation met Prime Minister Muhammad Nawaz Sharif at the PM House.

The delegation was led by Chairman Mr. Lu Chun.
The Prime Minister said, “Pakistan-China ties are rooted deep in history. Friendship between the two countries has stood test of time”. He said Pakistan is facing serious energy shortage and the government is taking steps for generating enough electricity to provide relief to the people.

He was pleased to note that CTGC is one of the leading companies worldwide in this field and thanked them for undertaking investment in Pakistan.

He said the government of Pakistan has prioritized security of Chinese personnel in Pakistan and special measures are being taken to ensure this.

Mr. Lu informed the prime minister that five of the world’s 10 biggest hydro power projects belonged to CTGC, which has vast experience and strong technical and financial capacity to undertake such projects. He said CTGC is in the process of investing about US$ 7 billion in seven mega hydro power projects in Pakistan including Kohala (1100 MW), Kehrot (720 MW), Azad Pattan (640 MW) and Mehal (590 MW), which would be completed in the next five years. He showed interest in equity investment in projects already under way in the water and power sector. The Chairman CTGC said, due to close friendship between the two countries and the investor-friendly policies of the government, Pakistan has become a destination of choice for Chinese businesses.

Chinese firm to invest $7b in seven mega hydro power projects of Pakistan | Customs Today Newspaper

Pakistan to buy Iranian electricity for 30 years

Pakistan’s National Electric Power Regulatory Authority (NEPRA) has reportedly approved the import of electricity from Iran for three decades.

NEPRA approved the import of 1,000 megawatts (MW) of electricity from Iran for 30 years at the rate of 8-11 Pakistani rupees (nearly USD 0.1) per unit, for which Tehran is ready to provide 70 percent financing for the transmission line to be laid down in Pakistan’s Balochistan province, Tasnim news agency reported.

Pakistani media say this followed a NEPRA hearing into the petition of the National Transmission Dispatch Company (NTDC) which sought the approval of the project.

They said Iran’s electricity will be injected into Pakistan’s national power grid.

The Iranian power generation, transmission and distribution company, Tavanir will reportedly install a power plant with a capacity of 1,300 MW in the southeastern city of Zahedan, close to the border with Pakistan and Afghanistan, to that end.

The construction of the transmission line from the Iran-Pakistan border up to Quetta in Balochistan will cost $580 million and Iran will provide 70 percent of the financing of the line, according to the report.

The report said currently Pakistan purchases 74 MW of electricity from Iran for various areas of Balochistan.

Iran’s Energy Ministry said last summer that the country’s power exports in the first quarter of the current Persian calendar year (started March 21, 2014) witnessed a 12.43% year-on-year growth.

During the period, Iran exported nearly 3,215 gigawatts/hour of electricity to its neighboring countries, compared with nearly 2,860 gigawatts/hour the same period last year.

Iran has energy exchange with Armenia, Pakistan, Turkmenistan, Turkey, Azerbaijan, Iraq and Afghanistan.

The Islamic Republic seeks to become a major regional exporter of electricity and has attracted major investments for the construction of three new power plants.

PressTV-‘Iran to sell Pakistan electricity for 30 years’

 

[salman77]

China Three Gorges Builds Its First Wind Farm in Pakistan

The China Three Gorges Corporation has official wrapped up construction work on its first wind farm in Pakistan, as part of vigorous efforts by the state-owned renewable energy giant to expand into the South Asian market.

Total investment for the Three Gorges wind farm in Pakistan was $130 million, for the creation of total installed capacity of 49.5 MW. The project has taken just over two years to complete, with work commencing at the end of January in 2013 and initial commercial operation beginning on November 25, 2014.

Three Gorges Corporation has touted the project as the first wind farm that a Chinese company has funded and built in Pakistan, as well as the only wind farm in Pakistan to be completed ahead of schedule.

At a completion ceremony held on March 11, China Three Gorges chairman Lu Chun said that Pakistan was a key strategic investment market for the company due to its close strategic ties with China, as well as its abundance of clean energy resources and strong market demand.

In order to foster its expansion into the Pakistani market, China Three Gorges has established China Three Gorges South Asia Investment Limited (CSAIL) an investment holding company in Pakistan that aspires to become the country’s largest renewable energy company.

The company has over 2 GW of solar, wind, and hydropower projects in the pipeline, with key projects that have already entered the construction phase including two hydropower plants with expected capacities of 720 MW and 1.1 GW respectively.

CSAIL has already obtained the support of some heavyweight backers, including the World Bank’s International Finance Corporation, which has acquired a 15% equity stake in the company.

China’s $40 billion Silk Road infrastructure fund, whose establishment was announced by Beijing in November of last year, has also expressed strong interest in either investing in or cooperating with CSAIL in the South Asian market.

China Three Gorges Builds Its First Wind Farm in Pakistan | CleanTechnica

 

[Kurlang]

Solar-powered tube-well subsidy in limbo

While the financial year is inching towards closure, solar-powered tube-wells have not been provided promised subsidy. -AFP/File

While finalising budgetary proposals for development spending in the province, the Sindh government had decided to make realistic allocations for timely fund releases. But this did not happen, at least in the case of agricultural development projects.

The provincial government announced in the current year’s budget that it will provide subsidy for tractors and solar-powered tube-wells. The mechanisation of agriculture, as always, remained a priority in the budgetary allocations. The ground realities, however, remain somewhat different.

While the financial year is inching towards closure, solar-powered tube-wells have not been provided subsidy yet. The case of subsidised tractors is different: two installations of Rs500m each have been released this month.

However, farmers’ bodies are questioning the entire process, saying the subsidy is being given on political considerations. Around 1,600 subsidised tractors are to be provided to growers.

Around 250 solar-powered tube-wells were to be provided on subsidy in the 2014-15 budget, given the energy crisis whose severity increases every summer in rural areas. Farmers usually depend on tube-wells powered by electricity. Since electricity is not available all the time, the required irrigation needs of farmland are not met, affecting the per-acre productivity.

The provincial government had made an initial allocation of Rs130m for tube-wells in this year’s budgeted programme, stated to cost Rs1bn. The provision of 70 tube-wells was mentioned in the budget documents, with growers bearing 70pc of the cost and getting 30pc subsidy.

Sindh had made an initial allocation of Rs130m for tube-wells in this year’s budget programme
Why the funds have not been released is anybody’s guess. A report, however, suggests that the growers are pressing for a 50-50 cost sharing. A summary has been moved to the chief minister, but it is pending decision. Meanwhile, some influential landowners have installed subsidised tube-wells on their lands.

A provincial finance department officer suspects that the agriculture department has not completed all documentation formalities for provision of subsidies. “There is no delay on our part. It is evident from the fact that we released Rs500m and then another Rs500m this month,” he said.

Solar panels are costly to install but are very cheap to run. They save farmers’ electricity bills, which vary between Rs25,000-30,000 per month on average, and may go up to Rs55,000 in case of big farms.

Electricity load-shedding is prolonged in rural areas as the summer season progresses. With no power supply for tube-wells, growers use diesel, which adds to their overall production expenses.

Sindh Abadgar Board vice president Mahmood Nawaz Shah points out that solar-powered tube-wells will modernise farming if the project’s implementation is properly planned. This renewable energy has the potential to ensure continuous power supply for 12 hours on average, helping irrigate the targeted area.

Meanwhile, a subsidy of Rs200,000 is given for tractors costing Rs800,000, and Rs300,000 if the price is over Rs800,000. In the current year, 1,400 subsidised tractors were to be provided initially, but reports said the number was later revised to 1,600. The Sindh Bank is supervising the scheme and checking for compliance with financial and application requirements.

“An advertisement appeared in newspapers earlier this month, inviting application forms. The next day, Sindh Bank officials told us that all the forms for the 1,600 tractors were issued and deposited in just one day. Isn’t it mind-boggling,” wondered Sathio. The forms were not even made available at some branches of the bank, he said.

Published in Dawn, Economic & Business, March 30th , 2015

 

[wiqi21]

KARACHI: K-Electric has expressed interest in installing a plant to generate electricity through solid waste at the Dhabeji landfill site managed by the Sindh Solid Waste Management Board (SSWMB).

A delegation of the entity, comprising of its senior officials in a meeting with SSWMB Managing Director Roshan Ali Shaikh on Friday, said that a pragmatic approach was needed to address the issue of power shortages.

Seeking support of the SSWMB, they said that power generation through waste is a strategy adopted in different parts of the world as an alternate means of producing electricity.

“It is time that all concerned departments and organisations coordinate and cooperate with each other to overcome the energy crisis affecting almost all sections of society,” said a K-Electric official.

SSWMB’s Managing Director Roshan Ali Shaikh, appreciating the proposal, said the board has constituted six updated garbage transfer stations across the metropolis that, besides increasing cleanliness in the city, could be used to extract energy to fulfil the ever-increasing demand of Karachi.

He added that there is further facilitation of the scheme through provision of composing plants and disposal furnace plants. Shaikh agreed that the landfill site, spread over an area of 3000, is emerging as one of country’s most popular treatment sites, which can be used as a spot for electricity generation.

He also mentioned that under the initial scheme, a mini-forest would also be developed at the site with 40% of Karachi’s waste transported and efficiently disposed-off.

The participants of the meeting hailed measures being planned to give Karachi a green and clean look with added provision to turn itself sufficient in power generation.

Published in The Express Tribune, May 9th, 2015.

 

[SBD-3]

https://twitter.com/x/status/610513066308976640