Pakistan's Energy & Water - News and Updates

[Hyde]

5) More than obviously but we need 30,000MW by 2015 according to most estimates.

well if that is true then generating 30,000MW by year 2015 is possible. We have several small coal projects of 100MW + 200MW + 200MW (all under construction) and after 2 years several 1000MW plants expected to go under construction. We have IPPs and RPPs in pipeline. We have small hydel power projects + mega projects such as Neelum-Jhelum project of 969MW and diamer Bhasha (4500MW) too expected to be completed by 2016/17 and not to forget about Iran-Pak gas pipeline that will generate 4000-5000MW of electricity and then other smaller wind power projects on pipeline.

But i highly doubt 30,000MW is a right figure as our current demand is around 15,000MW and it will not be doubled within 5 years only. As per Raja Parvez Ashraf our energy demands grows by 8% each year meaning we would require only/around 22,000MW by 2015.

 

[Comet]

Do you people really think that IPPs are the real solution? shouldn't we go for Dams? and Nuclear Energy?

 

[Hyde]

Do you people really think that IPPs are the real solution? shouldn't we go for Dams? and Nuclear Energy?

in reality Dams, Coal and Nuclear energy are the only two solutions for long term

with little contribution of Wind Power plants and IPPs

 

[ajtr]

in reality Dams, Coal and Nuclear energy are the only two solutions for long term

with little contribution of Wind Power plants and IPPs

As far as i know indian subcontinent coal of low quality and produces less heat energy with more ash.and in wake of climate change rules and regulation it may become necessary for the signatory countries to do away with coal fired powerplants.

 

[dextercath96]

This was a federal level project then it was allocated to local sindh gov , mean while the chinese company that started it back out due to some financial issues , as they wanted more benefits , but then I heard they are back in mix

AT the moment PEPCO is handling the issue and making sure that the project gets done , and completed in 1-2 years time

Its estimated that we can producted 20,000MW ~~~ if we use our coal reserves correctly , so 1200 MW is penuts

Thanks for the useful information. I think that the China will not gain to that investment. But, I think that if the production will continue, there are lots of energy will produce.

 

[Hyde]

As far as i know indian subcontinent coal of low quality and produces less heat energy with more ash.and in wake of climate change rules and regulation it may become necessary for the signatory countries to do away with coal fired powerplants.

Ajtr if i am not wrong - you are the one who shared this file with me couple of weeks/months ago on another forum (i just uploaded on rapidshare once again)

RapidShare: 1-CLICK Web hosting - Easy Filehosting

Now see what it says

RELATIVE COSTS
The likely development of various supply options is influenced by a number of factors, including the relative costs of those options (see Figure 9). Estimates of the relative costs of different supply options vary widely. By far the lowest cost options are coal and hydro, while some of the most expensive options are solar photovoltaic and solar thermal. Local costs of supply options can vary considerably and Pakistan-specific estimates suggest nuclear energy could be on the high-end of the range, at roughly $0.057 cents per kilowatt-hour.

Let me show you the cheaper source of energy for Pakistan (extracted from the document attached above)

 

[Hyde]

Here is one more useful chart (extracted from the same document uploaded above in post 201)

 

[ajtr]

Zaki,yes that the same file but than my question here is not per unit cost but how viable is coal for any country say for pakistan when major portion of its coal is low grade one and if in future pakistan becomes signatory at climate change summit how viable will coal fired powerplant will be...remember last years climate summit failed due to major opposition from china/india coz of carbon cut rules and major carbon di oxide and other greenhouse gases are contributed from coal fired power plants in both countries.

 

[Hyde]

Zaki,yes that the same file but than my question here is not per unit cost but how viable is coal for any country say for pakistan when major portion of its coal is low grade one and if in future pakistan becomes signatory at climate change summit how viable will coal fired powerplant will be...remember last years climate summit failed due to major opposition from china/india coz of carbon cut rules and major carbon di oxide and other greenhouse gases are contributed from coal fired power plants in both countries.

then the only solution left for the world is to provide us Nuclear plants to fullfill our energy demands. They would either help us getting cheaper alternatives of energy (in that case Nuclear) or should not object over using Coal fired powerplants. Like i said couple of months ago - the stake for Coal energy in many developed and under developed countries is huge and this matter will not be resolved in a matter of months/years. It requires decades for the whole globe to shfit from Coal energy to more efficient source of energy. They simply cannot shut all their coal power plants in a matter of days/months or even years.

Thats a slow procedure and i believe we still got plant to time to utilize our coal resources for the upcoming decades

 

[xenia]

Pakistan, Iran sign gas pipeline accord ​

By Kalbe Ali
Saturday, 29 May, 2010



ISLAMABAD: Pakistan and Iran signed on Friday an agreement for supply of gas from Iran through the $7.5 billion pipeline project to be completed by the end of 2014. The cost for the Pakistan section of the project is estimated at $1.65 billion.
The ‘sovereign guarantee’ agreement was signed by S.R. Kasaezadeh, Managing Director of the National Iranian Oil Company, and Irshad Kaleemi, Joint Secretary of the Ministry of Petroleum and Natural Resources. Petroleum Minister Naveed Qamar and Secretary Kamran Lashari attended the signing ceremony.

Under the gas sale and purchase agreement (GSPA), Pakistan will import 750 million cubic feet a day (mmcfd) with a provision to increase it to one billion cubic feet a day (bcfd).

The volume of imported gas will be about 20 per cent of Pakistan’s current gas production and the agreement is for a period of 25 years, renewable for another five years. The gas will be provided to the power sector to generate about 5,000 megawatts of electricity.

As a part of the conditions precedent (CPs) to be completed by the parties to make the agreement effective, the government of Pakistan is providing a ‘performance guarantee’ on behalf of the InterState Gas Company.

Since all other CPs of the agreement have been completed, the project is ready to enter the implementation phase.

The petroleum minister said that construction of the pipeline would create jobs, provide vocational training and develop backward areas of Balochistan and Sindh.

“The IP project will be another testimony of the long historic and cordial relations between Pakistan and Iran,” Mr Qamar said.


DAWN.COM | Front Page | Pakistan, Iran sign gas pipeline accord

 

[Raza88]

World Bank not to fund Thar coal project: spokesperson



To invest in environmentally sustainable projects

Saturday, May 29, 2010
By Saad Hasan

KARACHI: The World Bank will not finance coal-fired power plants in Pakistan, which faces a severe energy crisis in the wake of depleting gas fields and too much dependence on the expensive imported oil, officials said.

“Yes, the bank has decided that it will not proceed with the Thar coal technical assistance project,” the World Bank’s spokesperson in Islamabad informed The News in an email.

“The limited financing available can more effectively be directed towards investment that will address the energy shortfalls in the near-term in an environmentally sustainable manner,” the spokesperson said.

The World Bank decision is being seen as a blow to Pakistan, where demand for energy outstrips the supply. However, coal is seen as “dirty fuel” because of the high-level of pollution it creates when used as an energy source. Acquiring technology, which converts it into clean energy, remains costly and seen beyond the reach of cash-strapped Pakistan.

The World Bank spokesperson said that instead, it has been working on $650 million project for containing losses in the natural gas transmission system and increasing power production from Tarbela Dam.

One of the world’s largest coal reserves, estimated at more than 185 billion tons, were found in early 1990s in Tharparkar district of Sindh, but successive governments failed to exploit this huge energy resource.

Experts and power industry officials are unanimous on the importance of using indigenous coal to generate electricity. It is the most cost-effective solution to the energy crisis, they said.

World Bank not to fund Thar coal project: spokesperson

---------- Post added at 01:26 AM ---------- Previous post was at 01:25 AM ----------

Pakistani experts shocked



Saturday, May 29, 2010
The World Bank’s decision not to finance the Thar coal project came as a shock for Pakistani industry officials, who say that the country does not contribute any significant amounts to carbon emissions.

Khalid Mansoor, the CEO of Engro Energy, which has leased a block at Thar, says the World Bank’s decision reflects growing concerns over global warming. “But that is not a huge stumbling block for us. There are other options of financing as well.”

However, he said, the government needs to present its case properly to the World Bank, which has just recently allocated $3.7 billion for coal-fired power plants in South Africa.

“We are one of the least polluters. Our energy mix includes 33 per cent of power generation from dams and another 33 per cent from gas. There is a need for proper lobbying,” Mansoor said.

Farooq Hasan, the CEO of Hasan Associates, seconded the opinion. His company has fought in vain for years to get an appropriate tariff for the power plants, which might have used coal.

“Political will is missing. Successive governments have just paid lip service to the importance of indigenous coal reserves. Nothing will happen until there is a realisation at the highest level that using coal is in the larger national interest.”

During the last two years, the government had set up committees and even gone into public-private partnership for utilising coal reserves, but the process of getting regulatory approvals is too long and complicated. Engro Energy is the only firm, which is effectively pursing the coal prospects in Pakistan.

According to Najamul Hasan Farooqi, an energy consultant, Pakistan did not even mention coal as a source of future energy supply in its report, which is annually submitted to the World Bank.

“The country can’t count on its gas anymore. The supply-demand gap has already surged to 30 per cent,” he said. “The Iranian gas will be enough to generate between 2,500 and 3,000 megawatts and it is going to be expensive.”

He said the cost of energy has shot up substantially as thermal power plants use more furnace oil.

“Just the fuel cost of power generation is Rs10 per kilowatt hour when furnace oil is used. It is Rs3 per kWh for gas and using Iranian gas will take it to Rs8 per kWh. But the fuel cost of Lakhra coal is just Rs2.5 to Rs3 per kWh.” —SH

Pakistani experts shocked

 

[Hyde]

Korea keen to set up alternative energy projects ​

Wednesday, 02 Jun, 2010

Leader of the delegation, Byong Son Min said that the secret behind the development of Korea was the selection of projects as model. This fostered development in Korea. — File Photo Business​

SBP emphasises on wooing savings, investment SBP emphasises on wooing savings, investment KARACHI: A Korean delegation has indicated interest in setting up solar and wind energy projects in the interior Sindh region to generate electricity.

Leader of the delegation, Byong Son Min said that his company wanted to start a pilot project in some villages to provide electricity to villagers at cheaper rates. Few villages will be selected as model for this project.

He was talking to the Advisor to CM on Investment Zubair Motiwala at Sindh Board of Investment (SBI) office here on Wednesday.

Ms. Rara Ge On, Secretary SBI Mohammad Dagha and President Pak Korea Business Forum Ihsan Mukhtar Zubairi were also present on the occasion.

Motiwala informed the delegation about the investment opportunities for Korean businessmen in Pakistan. He said the government was focusing on alternative energy projects to generate electricity at affordable rates.

Besides, the government is also providing incentives for investment in dairy farming, livestock, agriculture, health and education.

Korean delegation leader said that Pakistan was full of natural, mineral and agricultural resources and Korea was also interested to make investment in transport, textile, health and education sectors.

Min said that the secret behind the development of Korea was the selection of projects as model. This fostered development in Korea.

 

[Hyde]

Hubco setting up 225 megawatts combined cycle power plant in Narowal ​

ISLAMABAD (June 12 2010): Saleem H. Mandviwala, Minister of State/Chairman BoI urged to work on priority basis to overcome the grievous energy shortfall in the country, emphasising to deregulate the power sector to foster economy, businesses and investments. He said during a detailed session with Vince Harris CEO Hub Power Company and Honorary Investment Counsellor of BoI in United Kingdom.

The Hubco is the country's leading independent power producer (IPP). The Hub power station is one of the largest private power projects in the newly industrialised world and supplying at times up to 10 percent of the country's total electricity generation. Hubco is contributing to the country's growth by enhancing its generation capacity through new energy projects.

Vince Harris said that Pakistan's largest independent power producer Hubco is setting up a 225 MW combined cycle power plant in District Narowal, Punjab and will start supplying electricity in October 2010 to reduce the acute power shortage. He said that 84 MW Hydel Power Plant in Azad Kashmir would start functioning in 2012 to control the power dearth.

Saleem appreciated that these new power plants by Hubco reflect their desire to be a part of the solution to the burgeoning energy crisis in Pakistan. Pakistan Energy Conference is scheduled on July 17 in Karachi to address the role of energy sector to combat the current energy shortfall and planning of strategic actions to overcome this grievous problem on emergency basis. Vince said that the agenda of the conference should also to explore new investment opportunities in every sector of Pakistan.

Moreover, the Minister called for Vince to develop a suggestive plan of action to control the energy crisis and cope with future demands of the electricity. Vince being the Honorary Investment Counsellor of BOI in United Kingdom also requested to highlight the role of BOI Pakistan in the conference on Power being held by British Government in London on July 6, and assured to extend all possible assistance required to them as and when needed.-PR

 

[xenia]

Energy security options​

By Khaleeq Kiani

WITH energy crisis feared to worsen next year because of the doubling of natural gas shortfalls, the only apparent hope to keep the economic engine running is the swift completion of the Iran-Pakistan gas pipeline project and import of liquefied natural gas.

Over the next 20 years or so, the country is likely to depend primarily on timely realisation of these two projects. The country has already lost decades in development of cheap hydro and coal resources for power generation, resulting in the rising power rates and long hours of loadshedding.

But the opposition to Iran-Pakistan pipeline has not died down. During the recent bilateral strategic dialogue concluded in Islamabad, the US officials clearly told Islamabad that Obama administration did not appreciate the gas import plan.

They have tried to raise doubts over Iran’s reliability as a gas supplier and Teheran’s credibility not to seek tariff revisions after completion of the project. However they were surprised over the rates on which the two neighbourly countries have struck the deal.

At current oil prices, the Iranian gas is estimated to cost Pakistan around $9 per MMBTU (million British thermal unit) and the price is capped at a maximum of $100 a barrel. This could be used only for power production because of its comparatively higher rates when compared with domestic gas price of about $4.5 per MMBTU.

While opposing the Iranian gas project, the US has not shown any interest in going deep into Sui field in Balochistan and in exploitation of over a trillion cubic feet of tight gas in small pockets across the country at economical rates. America is known to have made technological advancement for tapping such difficult resources.

Pakistan had sought the US assistance for technical studies, surveys and latest production techniques to maximise domestic production of gas including from deep, shallow and tight horizons.

This makes easier for Islamabad to resist the US pressure against Iranian gas project. It would be in the best interest of Iran and Pakistan to stick to the ‘peace pipeline’ agreement, honour their mutual commitments and move swiftly to complete the multi-billion dollar project as early as possible.

The agreements entail first gas flows by end 2014 which could be advanced by one year if domestic gas companies – SNGPL and SSGCL – are engaged to construct about 750-kilometer of pipeline. More so, because they are well versed with the terrain, routes and other technical details inside their country’s borders, given their vast existing pipeline network – one of the world’s largest integrated transmission system.

The two companies have indicated to complete the pipeline in 36 months compared with estimates of minimum 48 months, presented by a consultant who had been engaged without a transparent process as required under the public procurement rules.

Simultaneously, the LNG import is the key to resolution of short-term energy needs. The prime minister has decided to go ahead with the contract finalised with 4Gas and GDF Suez for import of 3.5 million tons per annum (500 million cubic feet per day), on which a lot of time has been lost due to unnecessary litigations.

At the same time, the prime minister has agreed to allow other firms to bring in additional quantities of LNG. The benchmark prices agreed for contracted project would, however, need to be kept in mind to ensure that energy costs remain within affordable limits.

Officials estimate that the gas shortfall is likely to almost double to more than two billion cubic feet a day (BCFD) even if the liquefied natural gas (LNG) imports planned over the next few months materialise. The most important thing is to put all resources and efforts together to expedite and enhance domestic oil and gas production. The OGDCL, the PPL and others have been sitting on vast hydrocarbon resources for decades because of bureaucratic wrangling and security reasons, which should end, given the increasing energy shortages.

As of now, the gap between gas demand and supply stand at around one BCFD this year and the plan to import gas from Iran through a proposed pipeline would, at best, materialise in four to five years. The shortage of one BCFD this winter, would go up to 2.1 BCFD by next year. The demand and supply estimates suggest that the gas shortfalls would increase by more than 300 per cent to 6.5 BCFD by 2020.

The projections imply that while gas demand would maintain a steady increase over the next 10 years — from 4.8 BCFD now to 8.6 BCFD in 2020 — the supplies would register a further decline, from four BCFD this year to 2.11 BCFD by 2020. Over the next two years, however, the supplies would slightly increase by 0.5 BCFD because of LNG imports.

The estimates suggest the shortfalls would increase despite a projected gas import through the IPI pipeline in 2014 and LNG imports next year because of the decrease in domestic production. These estimates indicate that shortfalls would be even higher if taken at the historic 6.5 per cent growth rate rather than 4.5 per cent assumed earlier.

Many believe that the demand, supply and shortfall estimates were still conservative given the fact that these had been prepared keeping in mind the current downturn in economic activities. That would mean even higher reliance on imported fuels like diesel and furnace oil to meet electricity demand. The oil import bill last year stood at about $9.5 billion and is forecast to be around $11.6 billion this year. If the gas import pipeline is not completed, oil import bill could reach $15 billion in only two years.

In the recent past, the previous government had planned five major initiatives to meet energy requirements, including three gas import pipelines, Gwadar port as an energy hub and LNG import. There has been no progress on these three pipeline projects, while building energy facilities at Gwadar has remained a pipe dream chiefly

Energy security options

 

[xenia]

Restarting bidding process not advisable, says govt Same European firms set to get LNG contract​

By Khaleeq Kiani

ISLAMABAD, June 20: The government has decided to go ahead with the award of a contract to the 4Gas and GDF Suez companies for import of 3.75 million tons of liquefied natural gas (LNG) for 20 years that was held in abeyance in April on the intervention of the Supreme Court.

The decision was taken a few days ago at a meeting presided over by Prime Minister Yousuf Raza Gilani, who was given a presentation on the project, its benefits to the national economy owing to its competitive rates and widening energy shortfalls and its ramifications for investor confidence.

The prime minister gave approval to awarding the contract to the companies already selected by the petroleum ministry and a price negotiation committee comprising representatives of the ministries of finance, planning and petroleum.

“A summary for re-approval of contract for setting up of LNG terminal and supply of 3.75 million tons of LNG will be presented to the Economic Coordination Committee (ECC) of the cabinet at its next meeting,” an official told Dawn.

He said that after detailed consultations the government reached the conclusion that the Pakistan Mashal LNG project was crucial to meeting the country’s gas shortfalls and resolving the energy crisis and that it would not be advisable to waste more time by restarting the entire process. It was also noted that the prices finalised with the 4Gas and GDF Suez for import of LNG were very competitive and should not be reopened. “If the process is started afresh, the government will have to pay more,” the official said.

At the same time, the government decided to provide a fresh opportunity to other parties for the import of additional quantities of LNG for short and medium terms, without affecting the Mashal project.

Meanwhile, the ministry of petroleum and natural resources has requested the Prime Minister’s Secretariat to constitute an independent committee or nominate a very senior official to examine the role of its former special secretary who handled the LNG import project as desired by the Supreme Court.

The PM Secretariat has been informed that the special secretary was in BPS-22 and under rules he could not be asked to appear before any official of the petroleum ministry because they all were junior to him.

According to the Terms of Reference for the probe committee, the ministry has proposed to examine the Pakistan Mashal LNG project from the beginning and see if its scope was ever changed and whether any special treatment was given to any party.

In February, the government selected the GDF Suez of France for import of 3.75 million tons of LNG per annum for up to 20 years. The price of LNG to be imported from Qatar during the first six years will be $1.8 billon lower than the rates offered by its competitor, Shell. The import price will be around $9.3 per MMBtu if calculated at crude price of $70 a barrel.But the contract signing was held in abeyance when the Supreme Court took suo motu notice of media reports alleging that the lowest bidder had been ignored.

The court ordered that the entire process be reviewed by the prime minister and a fresh summary be moved for a decision by the ECC to award the contract to the parties which were declared qualified by consultants.

“In view of the importance of the matter, will it be possible that the petroleum ministry put up a new summary before the ECC for considering the case of 4Gas, a Hollandbased consortium, for the Mashal LNG project and on the basis of the same a fresh decision be taken for awarding the contract to parties which were declared qualified by the consultants, potent and partners,” the court said in its order.

The official said the Mashal LNG was an integrated project and GDF Suez’s name was proposed by 4Gas because of its ability to ensure uninterrupted gas supplies. The project approved by the ECC allowed LNG import of 2.75 million tons per annum by the GDF Suez for a medium-term period of six years at a rate of 3.95 per cent Brent plus 75 per cent maximum of Henry HubNational Balancing Point formula plus $1.58 per MMBtu.

It also approved import of the remaining quantity of LNG by the GDF Suez for long-term supplies at 15.2 per cent of Brent plus $0.5 per MMBtu for a period of 20 years subject to further price negotiations. The long-term price will be for 10 years and renegotiable for the second 10-year term.

Restarting bidding process not advisable, says govt Same European firms set to get LNG contract