315 replies to this topic

[SUPARCO]

Construction of hydropower plant
MIGA issues guarantees of $145m
Sunday, July 01, 2012

ISLAMABAD: The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, has issued guarantees of $148.5 million to cover an equity investment by Korea Water Resources Corporation (K-Water) and Daewoo Engineering and Construction (Daewoo) in Star Hydro Power Limited.

MIGA’s coverage is for a period of 20 years against the risk of breach of contract. The project is also supported by project finance loans from the International Finance Corporation, the Asian Development Bank, the Export-Import Bank of Korea, and the Islamic Development Bank. Korea’s Global Infrastructure Fund, established by public funds and private investors to promote Korean companies’ foreign investment, is also investing in the project.

This project represents MIGA’s first guarantee in support of a Korean investor. For the project, K-Water and Daewoo will develop, construct, and operate a 147 megawatts run-of-the-river hydropower plant situated 120 kilometres from Islamabad under a 30-year build-own-operate-transfer scheme. Electricity generated by the plant will be sold to the state-owned utility under a power purchase agreement. By providing this guarantee to a much-needed infrastructure project, MIGA played an important role in providing protection against political risks at a time when commercial insurers are not open to long-term guarantees in Pakistan.

MIGA has recently undertaken extensive investor outreach in Korea in collaboration with various institutions including the government of Korea, export credit agencies, and commercial banks; this project further cements these important relationships.

“Right now, more than 30 percent of Pakistan’s population does not have access to electricity,” noted MIGA’s Executive Vice President Izumi Kobayashi. “This project will help fill this gap.”

She continued, “Supporting complex infrastructure projects is a key priority for MIGA and we expect this project will improve the lives of Pakistani people as the availability of power is increased in the country.”

MIGA said it is supporting a hydropower plant in Pakistan. In addition to alleviating chronic power shortages, the plant will contribute to lowering the country’s average electricity generation costs and greenhouse gas emissions, and reducing reliance on imported fuel oil. The project’s demonstration effect is also significant, as it shows other potential investors that experienced and reputable foreign sponsors are implementing a high-profile project in Pakistan. staff report

http://dailytimes.co...ry_1-7-2012_pg5_11

Salaam,

Only 30% of the Pakistani population left that does not currently have electricity.  Once this hits 100%, then Pakistan will only have to concentrate on reducing loadshedding to zero hours instead of spending billions on construction of mammoth projects year-after-year.

Insha'Allah Pakistan will get there, Insha'Allah.

salaam

[Tarbela]

Coal gasification for power generation



THIS is regarding the news item ‘Prospects of coal gasification for electricity discussed” (June 8) in which Mr Kashif Younis Meher, SVP of LCCI, provided erroneous information during the seminar.
Underground coal gasification is an experimental technology which is not in commercial application anywhere in the world, as such there is no question of producing 80,000MW using this method.
Coal after mining is being gasified and then used for power and other products.
The standard process is to mine and then to gasify the coal, enough time and resources have been wasted in pursuing technologies that are not ready for commercial application.
Dr Samar Mubarakmand’s pilot plant has to be evaluated by experts before committing any more public funds, all his claims remain unverified.
The information in the report is misleading and should be corrected.
DR FARID A.MALIK
Ex-chairman, Pakistan Science Foundation
http://dawn.com/2012...wer-generation/

[Tarbela]

..
Zardari directs expediting power projects

05 July, 2012

ISLAMABAD: President Asif Ali Zardari on Wednesday called for expediting, on fast track, the projects of electricity generation being undertaken in cooperation with the Three Gorges Corporation of China. While appreciating company's involvement in various electricity generation projects, solar power project and the wind project in Sindh, Zardari invited the company to also invest in new projects and construction of small and medium sized dams in various parts of the country. He reiterated government's assurance to facilitate the Three Gorges Dam Project Company in construction of dams and alternate energy projects in the country.

President reiterated his call that besides expediting the ongoing projects, attention should also be given to build a number of small power stations of 20 MW to 30 MW, depending upon the capacity on various tributaries in various parts of the country.
Spokesperson to the President Senator Farhatullah Babar said the projects being undertaken with the assistance of Three Gorges Corporation of China would add into the system around 2,500 megawatts (MW) of electricity. He said of this approximately 1,950 MW would be the hydro electricity and the rest would be generated through wind and solar means. Wang Shaofeng assured his company's continued assistance to Pakistan in the field of its expertise.

[The Pakistani Dragon]

Construction of 969MW Neelum-Jhelum hydropower project
TBMs likely to be operative in first week of August
Friday, July 06, 2012   

ISLAMABAD: The assembling of Tunnel Boring Machines (TBM) to dig mega tunnels according to international standards for 969 megawatts (MW) Neelum-Jhelum hydropower project is in process and will likely be operative during the first week of August 2012

Following international bidding, two German made TBMs costing Rs 8 billion had been installed on the project site Nauseri, Azad Jammu and Kashmir (AJK), where assembling of two giant mechanical milestones are under process and likely to be completed during last week of July and operative in the first week of August.

Speaking with Daily Times, Neelum-Jhelum Hydropower Company (NJHPC) CEO Lt Gen ® Zubair Ahmed informed that with the help of TBMs, the early completion of 969 MW NJHP project could be possible and contribute in saving of Rs 67.5 billion revenue.

He said there is no truth in media reports that TBMs are not feasible for cutting mountains and could damage the entire project, adding that ‘project team had diverted river Neelum on October 2011, while 37.6 percent work on TBMs has been completed’.

He further said that after completion of 969 MW NJHP, more than 5.1 billion electricity unit would be generated, which will later be taken into the national grid at the point of Gakhar, Gujranwala, while the government would collect revenue of Rs 45 billion per year, adding ‘cost of per electricity unit generated from NJHP has been estimated Rs 2 per unit’.

This billion-dollar project was initiated in 2008 and estimated time of completion was announced 2015, however flood havoc completely destructed the whole infrastructure, and after the new design of NJHP, PC-1 cost was once again revised which increased its cost 135 times, which was approved by the Planning Commission on June 18 as Rs 274.822 billion new cost of this hydropower project.

Explaining the progress on Neelum water diversion tunnel, he said that more than 24 kilometres tunnel has been constructed out of total accumulated length 63 kms including entrance rage of tunnel through driller blast and other heavy mechanical equipment, however remaining part of tunnel would be completed soon as once TBMs would be operative. He also informed that the federal government has approved Rs 2.4 billion, which would be released soon and spent on construction of small projects including schools, model parks and health units for displaced persons from the site, while the land acquisition issue has also been resolved.

Out of 4,200 kanals of land, 3,850 kanals land has been acquired; however remaining land of 121.6 marlas is under litigation and would be resolved soon.

If Pakistan succeeded to commission NJHP before completion of controversial Indian hydropower project, it would not only grab water priority rights on the Neelum river, but also help Pakistan’s legal battle in the Permanent Court of Arbitration (PCA) at Hague against India on Kishanganga hydropower project as India is building it on the same river in held Kashmir with faulty design that negates the Indus Water Treaty. NJHP management was of the view that the completion of controversial Kishanganga could cause decrease in water inflow up to 14 percent in river Neelam, adding, ‘the country could face loss of $321 million annually, and agri-land of Muzaffarabad could be barren’. Public sector power managers ascertained that annual benefits of the project have been estimated at Rs 45 billion, adding that the project would payback its cost in about seven years. zeeshan javaid

http://dailytimes.co...ry_6-7-2012_pg5_12

[Tarbela]

France provides euro 68.3 million for Hydro Project
Additional Secretary, Economic Affairs Division and Ambassador of France signing the agreement with AFD (Government of France) for Jaggran-II Hydropower Project. – AP
ISLAMABAD: The Government of France will provide Euros 68.3 million for the construction of a 48MW Jaggran-II Hydro Power Project, which will be built in the upper extent of Neelum River.
Agreement to this effect was signed here at Economic Affairs Division (EAD) by the Additional Secretary of EAD, Iftikhar Ahmed Rao, Ambassador of France, Philippe Thiebaud and Country Director of the French Development Agency (AFD), Nicolas Fornage here on Friday.
The project will be located downstream of the existing 30.4MW Jaggran-I hydropower project, funded earlier with French support and being operated since 2000 by the Hydro-Electric Board (HEB).
Jaggran-II Hydroelectric Power Project will operate as a run-of-the-river scheme and will not entail any major environmental or social constraints. It will be connected to the national grid and will help to alleviate the energy crisis in the country.
The project is expected to complete by 2015, will provide a reliable source of renewable energy and a permanent supply of electricity for the 1.2 million people living in the Muzaffarabad area, with strong social and economical impacts.
Besides the soft loan of Euros 68 million provided to the government of Pakistan, AFD is also providing a grant for capacity-building of HEB.
France, through Agence Francaise de Development (AFD) is providing funds to address the current national energy crisis.
To improve the power supply, AFD is supporting the development of renewable energies, currently with Jabban (22MW project in Malakand District) and Jaggran II hydropower projects.
AFD has also recently approved a soft loan of 11 million Euros, in order to fund detailed design studies for the Munda hydropower project, located in Mohmand Agency.
As a member of the Group of Friends of Democratic Pakistan, France pledged 300 million Euros at the Tokyo ministerial conference in 2009.
With the funding agreement for Jaggran II signed with EAD, France has now a portfolio of projects amounting to 213 million Euros for the water and energy sector in Pakistan, corresponding to 73 per cent of its pledge.

[Tarbela]

Solar homes: Balochistan to spend Rs888m


QUETTA: The Balochistan government will spend Rs888 million on the Solar Energy Home Project under which around 300 villages will get access to electricity. Sources in the Balochistan Planning and Development department have told APP that nature has endowed the province with immense potential in generating solar, wind and geo-thermal energy. In this regard, the provincial government has already set up the Balochistan Energy Company for promotion of renewable energy in the province. The company has also been registered by the Securities and Exchange Commission of Pakistan.  With exorbitant increases in the power tariff, the provincial government plans to convert all such tubewells to run on solar-energy at a cost of Rs5 billion.
Published in The Express Tribune, July 7^th, 2012.

[S.U.P.A.R.C.O]

Sweden interested in energy, transport sectors for investment
Wednesday, July 11, 2012

ISLAMABAD: Ambassador of Sweden to Pakistan Lars-Hjalmar Wide on Tuesday said his country is interested in the promising energy and transport sectors of Pakistan.

He said that Sweden can prove a good market for Pakistani fruits, vegetables, meat, leather, sports goods and textiles if potential is exploited properly.

Wide said this while speaking to Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Standing Committee on Diplomatic Affairs Chairman Sheikh Humayun Sayeed and FPCCI Media Chairman Malik Sohail.

The ambassador informed that Swedish Chambers of Commerce has organised a delegation, which will explore possibilities of investment in green energy in Pakistan. Similarly, Volvo is interested in exporting busses to Pakistan, he added.

He lauded the role of Pakistan’s embassy in Stockholm in promoting bilateral trade but added that perception of Pakistan is barring some investors from his country from launching projects here.

Wide said that Swedish companies like Tetra Pak, Millicom International Cellular, Saab Automobiles and GAC Logistics were operating successfully in Pakistan, which is an incentive for other companies.

However he regretted that Skanska AB, a multinational construction and development company completed construction of a dam in Azad Jammu and Kashmir in 2000 but they are still awaiting payment, which is sending very wrong signals.

The ambassador of Sweden assured the FPCCI officials that intending investors of Sweden will be briefed about opportunities in Pakistan. He called upon frequent visits of private sectors and federal chambers aimed at boosting bilateral trade.

The envoy said that EU package to Pakistan may not be as good as many hoped but its symbolic value is very important.

At the occasion, Sayeed assured of support in resolving problem of outstanding payment.

Demanding transfer of technology, relaxations in trade and close coordination between business communities of two countries, he said that the situation is quite different here then perceived.

Sayeed said that all facilities would be extended to incoming Swedish delegation so that they can help Pakistan overcome energy crisis, which has reduced gross domestic product growth by 2.0 percent. staff report

http://dailytimes.co...ry_11-7-2012_pg5_2

[Tarbela]

Electricity supply: Iran links power price with world crude rates

Iran has linked the price for export of 1,000 megawatts of electricity with international crude prices and the rate will fluctuate in the range of 7 to 11 cents per unit.
Pakistan and Iran have already signed a memorandum of understanding (MoU) for electricity supply. According to a government official, the two sides have also agreed on the price which will be in the range of 7 to 11 cents per unit.
An official of the Ministry of Water and Power said gas prices in Iran were linked with global oil rates, therefore, it based the power price on crude oil prices in the international market.
According to the price formula, Pakistan will be paying a maximum rate of 11 cents per unit of electricity if crude prices reach $110 per barrel and the price range will be reviewed after five years.
“The electricity price has been capped by the time oil rates do not cross the $145 per barrel mark. However, if crude prices rise above that level, the two countries will be bound to review the electricity rate before the end of five-year period,” the ministry official said.
Under the proposed project, Iran will build a powerhouse in Zahedan province bordering Pakistan to generate electricity for export and has also expressed its willingness to provide $800 to $900 million for the project. A 700km transmission line of 500 kilovolts will also be laid from the Pak-Iran border to Quetta.
Some officials suggest that the government should ask Iran to install the power plant in Pakistan in order to avoid expenditure on laying the distribution and transmission line.
Besides the 1,000MW for which an MoU has been signed, Iran has also offered to export a huge quantity of 10,000MW to Pakistan.
However, the ministry official pointed out that Iran, at present, had no power plants to export such a huge quantity. “So the best way is to press Tehran to establish power plants in Pakistan,” the official said, adding Iran had already shown interest in setting up a 200MW plant in Balochistan near the border.
Published in The Express Tribune, July 11^th, 2012.

[Tarbela]

.Makori East oil and gas field starts production
Highly anticipated oil and gas field Makori-East started production in May against expectation of not coming online before July, according to monthly report released by Pakistan Petroleum Information System.
The news flow may create a positive price trigger for Pakistan Oilfields as it would offset market concerns on recent reduction in POL’s own operating oil field like Pindori and Domail. The report could also reflect positively on Pakistan Petroleum Limited and Oil and Gas Development Company that have a working interest of 28% each.
As per the report, Makori East produced 447 barrels of oil per day (bpd) and 2 (million cubic feet per day) mmcfd of gas in May, according to a Topline Securities research note. The field which is predominantly oil has the potential to produce over 11,000 barrels of oil per day.

Topline Securities believe the complete ramp-up of the field is tied up with the development of Makori CPF that is scheduled to commission in early 2014 as existing facility at Tal block has a capacity to process only 370 mmcfd of gas and 10,000 bpd of oil.

http://tribune.com.p...rts-production/

[Tarbela]

Making progress: Ten wind projects to achieve financial close this year

Ten wind power projects with a combined capacity of 500 megawatts will achieve financial close in the current year, giving the hope that tapping of alternative energy resources will help ease power shortage.
The Chief Executive Officer (CEO) of the Alternative Energy Development Board Arif Allauddin announced this while speaking at a seminar on “Alternative and renewable energy resources and Pakistan’s energy crisis”, organised by the Institute of Policy Studies here on Thursday.
He said the government was moving towards alternative energy resources and had made progress over the last five years. “A project needs five years and two wind power projects have achieved financial close while eight others will reach the mark this year.”
Financial close refers to a period of time when all conditions have been fulfilled and all documents filed. After that, borrowing can be made.
However, Allauddin pointed to the circular debt, which was a worry for the energy sector. There were other issues as well like allotment of land for wind projects, which needed to be settled.
He said the government was facilitating the private sector to help them set up energy projects. In this regard, duties and sales tax on renewable energy projects have been removed.
“We cannot remain hostage to (expensive) thermal power and we need to move towards renewable energy resources to overcome the power crisis,” he declared.
Highlighting the benefits of solar energy, he said it was cheaper than electricity produced by diesel. “You can produce power through solar technology when you want. Only you have to change the design of your house as it will not be successful in ‘inefficient houses’.”
Speaking on the occasion, Renewable and Alternative Energy Association of Pakistan representative Asif Jah said they had worked on solar energy in big cities like Islamabad, Karachi and Lahore. However, remote areas have also not been ignored.
“A house requires expenditure of Rs30,000 to Rs100,000 and the government should provide loans for such projects,” he said, adding initial cost of the solar project was higher, so banks should lease solar energy in remote areas.

[Tarbela]

. . Chinese firm plans Thar coal mining in October
A Chinese mining firm said on Saturday that it would begin mine development at a Thar Coalfield block in October this year, producing coal in commercial quantities through open pit mining by the first quarter of 2015.
The chief executive officer of Oracle Coalfields, UK, Shahruk Khan assured the meeting that his company would start mine development in the first quarter of 2013 and coal production by 2014.
Briefing the meeting on the present status of their project at Block-VI, he said pre-development ground activities had already been started. He said Oracle Coalfields (UK) had signed a ‘joint development agreement’ with the Karachi Electric Supply Company on June 25 for establishing a 300-megawatt power plant in the first phase, which would be subsequently increased to 1,100MW.

[Tarbela]

.Khan Khwar project to come on line today

The Water and Power Development Authority (Wapda) has announced that the 72-megawatt (MW) Khan Khwar hydropower project, completed at a cost of Rs10.73 billion, will be formally inaugurated today (Saturday).
The high-head project will provide 306 million units of low-cost electricity per annum to the national grid with annual benefits estimated at more than Rs2.75 billion.
The project has been constructed on Khan Khwar (Nullah), a right bank tributary of Indus River near Besham town in Shangla district of Khyber-Pakhtunkhwa. The main components of the project include a 46-metre high and 112-metre long dam, about 5km long tunnel, a power house and a switchyard.
According to Wapda, the cost includes foreign exchange component of Rs5.049 billion. The Islamic Development Bank (IDB) provided a loan of $30.8 million for the project.
Khan Khwar hydropower project is part of least-cost energy generation plan of Wapda being executed on priority in view of the increasing demand of electricity.
Of these, six projects with a combined production capacity of about 400MW will be completed this year. Prominent among the remaining 11 projects are 969MW Neelum Jhelum, 106MW Golen Gol, 4,500MW Diamer Bhasha, 1,410MW Tarbela 4th Extension, 84MW Kurram Tangi, 4,320MW Dasu, 740MW Munda and 7,100MW Bunji.
Published in The Express Tribune, July 14^th, 2012.

[Tarbela]

Iraq signed a gas exploration deal with Pakistan Petroleum Limited on Sunday, a senior official said, the first of three successive contracts aimed at increasing the country’s oil and gas reserves.

“We are now initialing a contract between the Iraqi oil ministry and Pakistan Petroleum,” said Abdul Mehdi al-Amidi, the head of the ministry’s contracts and licensing department.

Referring to deals with consortia led by Kuwait Energy and Russia’s Lukoil that will be initialed on Monday and Tuesday respectively, Amidi said: “We will send all these agreements to the cabinet for approval, and then we will sign the final contract…That will take about one month.”

During a two-day auction for exploration blocks in May, Pakistan Petroleum won a contract for a 6,000 square kilometre (2,300 square mile) block thought to contain gas in the central Iraqi provinces of Diyala and Wasit.

[Tarbela]

Gas import: Iran to lay Pakistan’s portion of pipeline

ISLAMABAD: Avoiding pressure from the United States, Pakistan and Iran have committed to press ahead with the gas pipeline project and constituted a joint working committee to finalise a deal for laying Pakistan’s portion of the pipeline by Tehran.
Iran has also offered to set up an oil refinery in Pakistan. Earlier, it had discussed a plan to lay an oil pipeline to Gwadar where a refinery would be set up to process crude oil.
Until one and a half years ago, two Pakistani refineries had been importing Iranian crude oil on three-month credit, but supply stopped afterwards as banks showed reluctance to open letters of credit following imposition of US sanctions on Tehran.
According to sources, these developments came during two days of talks in Islamabad, which concluded on Wednesday.
Sources told The Express Tribune that Iranian authorities reiterated their resolve to provide technical and financial help for constructing the gas pipeline.
“A joint working group has been formed to consider different options for Iran to lay the pipeline,” a source said, adding Tehran had already committed to provide $250 million and was willing to arrange more financing through Chinese commercial banks.
“The working group will also discuss the option of financing offered by Iran,” the source said. German-based firm ILF has completed detailed engineering design of the pipeline and according to an interim feasibility report, the project will cost $1.2 billion to $1.5 billion.
“If local companies participate in the project, the cost will come down and if foreign firms undertake the venture the cost will go up. There is also an option under which local and Iranian companies will join hands to complete the project,” the source said.
“Though Iran is an option to strike deal on government-to-government basis, we are also discussing the construction of the pipeline with China and Russia,” he said.
Meanwhile, the Pakistan-Iran joint committee on oil, gas and energy held a meeting on July 17 and 18 in Islamabad to discuss bilateral cooperation in oil and gas sectors.
The Iranian team was headed by Dr Ahmad Khalidi, Deputy Minister of Internal Affairs, Ministry of Petroleum while Pakistani team was led by Abid Saeed, Additional Secretary Ministry of Petroleum and Natural Resources.
The Iranian side expressed its intention to invest in hydrocarbon exploration and production including upstream and midstream sectors. It also invited Pakistani companies to invest in oil and gas exploration and production in Iran.
Published in The Express Tribune, July 19^th, 2012.

[Tarbela]

Thar coal project Step one complete, expert tells Zardari

Global Mining of China, Sindh Engro Coal Mining Company and Oracle Coalfields of UK have all completed their feasibilities and with it phase one of their projects.
Briefing the Thar Coal Development Board meeting chaired by President Asif Ali Zardari, Coal and Energy Development Secretary Mohammad Sohail Rajput on Monday said that the four blocks of Thar Coalfield are at an advanced stage.
Global Mining is also scheduled to start mine development activities in Block I by October 2012 which will lead to mine construction of five tons annually by 2015 and power generation of 900MW by financial year 2016. The total composite cost of the project is $3 billion.
Meanwhile, the Oracle Coalfield will initiate mine development phase for its $860 million mining and power project by early 2013.
The president was informed that Sindh Engro Coal Mining Company was pursuing to achieve the financial close for its $3 billion coal mining and power generation project at Block II of Thar coalfield.

[Tarbela]

TIMELINE OF Pakistan'S ENERGY CRISIS
2011

• 
  The year started with the shut down of Uch power plant producing 585MW of electricity, as one of the pipelines providing fuel was blown up in the district of Jaffarabad. Pakistan faced one of its most crucial gas crises, with the shortfall rising up to 1.8 billion cubic feet (bcf). The year also experienced the worst CNG load shedding resulting in losses and problems for the consumers. However OGRA increased the gas tariff by 14 per cent in the beginning of the year which was one of the biggest tariff hikes in the history of Pakistan. Moreover, the energy shortfall reached up to 2,700 MW.

[Tarbela]

Pakistan’s indigenous natural gas reserves are declining and a low gas price has become a significant disincentive in attracting new gas supplies, either through increased domestic exploration activities or via imports of liquefied natural gas (LNG) or regional gas pipeline imports. If current gas policies persist, Pakistan’s natural gas supply is expected to decline from 4 billion cubic feet per day (bcfd) in 2010/11 to less than 1 bcfd by 2025/26. This will lead to a growing gas/energy shortfall reaching 8 bcfd (over 50 million TOEs) by 2025/26 and will depress Pakistan’s average GDP growth rate over the next 15 years.

[Tarbela]

Petroleum
Petroleum production is heavily dependant on refining capacity, efficiency, and a stable crude oil supply. Over the years Pakistan has increased its refining capacity, with newer and more efficient refineries set up, but is largely dependant on imports for its crude oil supplies. Imported crude oil would lead to higher prices for petroleum and related products, but the addition of value added taxes, like GST and the petroleum development levy, push prices even higher. Petroleum products provide highest indirect source of revenue for the governmen. The collection on petroleum products in 2010-11 was Rs153.3 billion or 47.2 per cent of the total collection. Unless the government shifts its revenue dependence away from taxing petroleum products, it is highly unlikely that fuel prices will be brought down, pushing us further into the energy crisis.


Fuel Price History



2003Rs.33

2004Rs.41

2005Rs.52

2006Rs.56

2007Rs.52

2008Rs.76

2009Rs.62

2010Rs.68


2011
Rs. 88

2012
Rs. 85

Fuel price
157.6%
in Ten Years
MAPPING THE OVERVIEW OF ENERGY IN Pakistan

• COAL
  
• ALTERNATIVE ENERGY

[Tarbela]

Energy Crisis in Pakistan

Coal Reserves

Pakistan’s coal resources are estimated to be very vast, but very little progress is made in its use for energy. While total reserves are estimated to be 185 billion tonnes, with the majority stated to be in Sindh, the use of coal in Pakistan’s energy mix stands at less than 0.1 per cent, which is much lower than the global average of 40 per cent. The Thar Desert in Sindh is claimed to contain the seventh largest oil reserves in the world, estimated at 175 billion tonnes. The government at this point claims to be developing the area’s infrastructure to generate investment, with road networks, electricity, communication, and other necessary facilities. However, the progress so far with regards to extraction is very minimal. It is essential for Pakistan to tap its coal reserves to efficiently solve its energy crisis to avoid depletion of other limited resources.


Coal Generation

[Tarbela]

Power Crisis: Why the debt keeps piling up?
f the circular debt is partly explained by the rising prices of oil internationally, another aspect is the domestic consumer who refuses to pay for the bulbs he lights and the air conditioners he runs.
And like any other business, the power sector cannot survive if the dues it is owed are not recovered.
The ministry of water and power concedes that the electricity distribution companies (discos) have to recover Rs375.73 billion from consumers.
But these consumers are not just errant individuals and tax evading businesses but also the government. This is an oft repeated story but such an important one that it has to be highlighted time and again.
No government, so far, has been able to make any of these institutions or sectors cough up – simply because of politics.
The private sector on the other hand owes Rs166.18 billion – these are mostly large commercial and industrial units that have piled up bills and then gone into litigation against the relevant Disco to avoid paying up.
And then there are powerful individuals. “Consumers who have to pay millions of outstanding electricity bills are well connected and influential,” the official said adding that “We cannot even disconnect the supply to their installations – be it home or business.”
Pakistan has nine electricity distribution companies and each one of them suffers from transmission and distribution (T&D) losses.
Of these, the losses of some are relatively low – from nine to 20 per cent. This includes Islamabad Electric Supply Company, followed by the three Discos of central Punjab. These are: Gujranwala Electric Power Company (GEPCO); Faisalabad Electric Supply Company; and Lahore Electric Supply Company (LESCO).
But this is the relatively good news.
Outside of upper and central Punjab, the default takes on grave proportions. Sindh and South Punjab are good examples of this.
Sukkur Electric Power Company (SEPCO)’s losses are 39 percent. Ironically, this disco was created as late 2010 to improve the power distribution network.
“There are frequent complaints of teams being held hostage or severely harassed by powerful people who are not paying bills,” said an official of Sepco.
Hesco’s woes are no different – though from 38 per cent two years ago, its leakages have dropped to 28 per cent. But this is only because its troubled areas were taken away from it and given to SEPCO.
“Hesco has to recover Rs26 billion from the Sindh government and Rs12 billion from private consumers – but political pressure stops us from disconnecting any connection,” said an official.
“Recently we disconnected the power supply to Wasa and some other departments over outstanding bills of Rs2.38 billion but half a dozen MNAs and MPAs intervened. The politicians’ argument was that their voters would get upset,” said one official.
Incidentally, two cheques amounting to Rs300 million and Rs200 million have not been honoured by the banks – but still Sindh Government got the power supply to these banks restored.
Hesco operates in 12 districts from Hyderabad to Shaheed Benezirabad (old Nawabshah).
Similar problems are also faced in parts of Khyber Pakhtunkhwa.
High T&D losses are also experiences by Peshawar Electric Supply Company (PESCO) which supplies power to over 2.0 million consumers in Khyber Pakhtunkhwa; Quetta Electric Supply Company (QESCO) which covers the entire Balochistan Province and Multan Electric Power Company (MEPCO).
http://dawn.com/2012...eeps-piling-up/

[Tarbela]

US RenuEn Corporation secures 50MW solar project

NEW YORK: RenuEn Corporation, a expanding renewable energy roll up company focused on solar, wind and geothermal energy solutions, announced it has secured 50 megawatts (MW) solar project in Pakistan through its pending acquisition of Team Energy, Inc Projected installed cost is $200 million.

The project will be managed by a foreign operating subsidiary, which is also joining RenuEn upon closing of acquisition. Power Purchase Agreement (PPA) is guaranteed by Government of Pakistan and is for 25 years. For their management in project, Company will realise income throughout the duration of PPA.

Team Energy has extensive international experience in developing power projects and 50 MW solar farm is just one of many they have secured, said James Scott, CEO RenuEn.

50 MW solar project is prime example of why acquisition of Team Energy is so significant for our Company.

Company will choose its construction partner soon. Pakistan government shall be power purchaser. Project meets all of criteria for MIGA investment guaranty coverage. MIGA is a division of World Bank. Don Wood, CEO of Team Energy said.
http://www.dailytime...y_31-7-2012_pg5_13

[Tarbela]

Energy sector: $280mn US assistance released

The US Congress has released 280 million dollars as new US assistance to support Pakistan’s energy sector, said US Embassy here on Friday.
The funds will support improvement of Mangla Dam and infrastructure support and due diligence work of the Kurram Tangi Dam project.
The US efforts to fund large-scale infrastructure are expected to add 900 megawatts to the national grid by 2013, enough energy to provide power to two million households and businesses.
“This is the latest example of the US long-term and enduring support for Pakistan’s energy sector and for the people of Pakistan”, said US Embassy spokesman Mark Stroh, adding that “relieving Pakistan’s energy crisis is the top priority of our civilian assistance programme.”
The release of the fund is followed by singing of a recent memorandum of understanding (MoU) between Pakistan and US to facilitate the Nato supplies opened after seven-month blockade in the wake of Salala incident.
The spokesman said that US approach consisted of high-impact projects aimed at increasing Pakistan’s energy resources and helping power sector institutions more effectively to meet the country’s energy needs. “Our institutional support ranges from improving the governance of the power sector to strengthening the performance of Pakistan’s power distribution companies”, the spokesman said, adding, “we are helping develop new policies to rationalise pricing, reduce subsidies, increase revenues, and improve the distribution of energy resources.”
Besides, he said US also worked with private sector entities and civil society organisations to enhance their role in decision-making and advocacy.
Giving a breakup of on-going projects supported by the US, he said Gomal Zam Dam would generate 17.4 megawatts of hydroelectric power and was enough to supply electricity to 30,000 households – and irrigate almost 200,000 acres of land worked by 30,000 farmers.
The Satpara Dam, which will provide 17.7 megawatts of power to the local grid, is enough to supply electricity to 30,000 households – and mitigate flooding, provide water for irrigation, and serve as a significant source of drinking water.
The Muzaffargarh Power Station will increase the generation capacity of the power station by 475 megawatts and supply electricity to about 680,000 households.  The Jamshoro Power Station project would enable the station to restore at least 150 megawatts of power generation capacity and supply electricity to about 215,000 households, and the Tarbela Dam modernisation project would add 128 megawatts to power generation capacity, he added.
http://www.brecorder...-released-.html

[Tarbela]

Neelum-Jhelum project: PM inaugurates tunnel-boring machines



Prime Minister Raja Pervez Ashraf formally inaugurated two tunnel-boring machines on Monday following their installation at the site of the 969-megawatt Neelum-Jhelum hydropower project in Azad Jammu and Kashmir. The project is being completed with assistance from Chinese and other international companies.
With deployment of the German-manufactured state-of-the-art gigantic machines, Pakistan has joined the club of countries that are using high-tech machines in execution of water and power projects, says a press release.
The machines will reduce the construction period by about 18 months and will provide an estimated benefit of Rs67 billion. The project is scheduled to be completed in 2016.
The two machines were procured at a cost of about Rs19.5 billion, including the expenditure made on their shipment and installation.
Neelum-Jhelum project Chief Executive Officer Lieutenant General Muhammad Zubair said the cost of the two machines would be recovered in three years and these would also be used for other such projects, involving tunnels, in the future. He expressed the hope that the Neelum-Jhelum project, after completion, would reduce load-shedding by three hours in the country.
Zubair said about 40% work had been completed, adding the project had been facing shortage of funds for the last two months due to delay in release of money from the finance ministry. “These machines are able to make one-km tunnel every month.”
The project is being executed on priority to produce low-cost hydropower and win priority water rights over the Neelum and Jhelum rivers, as India is constructing Kishan Ganga project upstream of the rivers.
The hydropower project will contribute about 5.15 billion units of electricity per annum and annual benefits have been calculated at about Rs45 billion. It will pay back its cost in about seven years.
Published in The Express Tribune, August 7^th, 2012.

[aamirzs]

Pakistan to Invest up to $2.7B in Wind

http://www.onlinetes...tan-081012.aspx

According to official estimates, Pakistan has the potential to generate 143,000MW through solar and wind energy. Currently, the country is developing wind power plants in Jhimpir, Gharo, Keti Bandar and Bin Qasim in Sindh which will not only reduce electricity shortages, but will also help ease the burden of oil imports costing over $12 billion annually to the national exchequer. The fair category of wind speed in most parts of the world is between 6.2m/s and 6.9m/s. However, the wind speed in the Sindh corridor is stronger and stands in the excellent category of 7.5m/s and 7.7m/s.

According to a United States Agency for International Development (USAID) report, Pakistan has the potential of producing approximately 150,000MW of energy through wind, of which only the Sindh corridor can produce 40,000MW.

Government plans to achieve up to 2,500MW by end of year 2015 from wind energy.

Work on Zorlu energy wind power project with 50MW generation capacity is underway in Jhimpir and will start trial production soon. Pakistan’s Alternative Energy Development Board (AEDB) recently approved a New Park Energy Phase-I, 400MW wind project near Port Qasim.

According to a study, Pakistan has identified cumulative potential to generate 3.2 million MW from renewable energy resources – 340,000MW from wind, 2.9 million MW from solar, 50,000MW from hydro (large), 3,100MW from hydro (small), 1,800MW from bagasses cogeneration and 500MW from waste.

[Tarbela]

Provinces allowed to set up higher capacity power plants

ISLAMABAD: The Council of Common Interests (CCI) has allowed provinces to set up power plants having capacity of up to 100 megawatts, apparently in the face of government’s failure to ensure equitable distribution of available electricity.
The decision was taken in the last meeting of CCI on the insistence of Punjab, said Secretary Planning Javed Malik here on Monday. He was speaking in a meeting of the Senate Standing Committee on Finance and Planning.
Malik said compared to previous limit of 50MW, the CCI allowed the provinces to set up 100MW projects where sovereign guarantees were involved. If the provinces finance the project from their own resources, there is no capacity limit.
Punjab also asked the CCI to resolve the upfront tariff issue as the province depended on the federal power distribution network. According to Malik, the tariff issue will be settled in a committee formed to work out a judicious power distribution system.

[Tarbela]

Punjab Chief Minister Shahbaz Sharif said on Saturday that solid steps were being taken for promotion of bio-gas technology.
Talking to the Chinese delegation, he said that setting up of bio-gas institute for promotion of bio-gas technology was of great importance.
He said that Chinese Company BIOMAK had expertise in bio-gas sector and full benefit would be taken from its technology and experiences.
He said that there was a need of technical cooperation of Chinese Company BIOMAK in designing of the institute, training, preparation of master trainers and other matters.
http://dawn.com/2012...nology-shahbaz/

[complicated]

Tarbela, on 20 August 2012 - 06:01 AM, said:

Punjab Chief Minister Shahbaz Sharif said on Saturday that solid steps were being taken for promotion of bio-gas technology.
Talking to the Chinese delegation, he said that setting up of bio-gas institute for promotion of bio-gas technology was of great importance.
He said that Chinese Company BIOMAK had expertise in bio-gas sector and full benefit would be taken from its technology and experiences.
He said that there was a need of technical cooperation of Chinese Company BIOMAK in designing of the institute, training, preparation of master trainers and other matters.
http://dawn.com/2012...nology-shahbaz/

Bio Gas is really cheap you can run a medium size village home with 50k investment.

[Tarbela]

complicated, on 20 August 2012 - 10:52 AM, said:

Bio Gas is really cheap you can run a medium size village home with 50k investment.

True .
but who will take action --- I think nobody

[Tarbela]

...Fauji Foundation Energy
..Somewhere in Sindh:

[complicated]

Village ppl have already started using this especially for running water pumps to irrigate their land. Is this technology widely used in rural India? Can Indian over here tell us pros and cons of this technology?

Tarbela, on 23 August 2012 - 06:13 AM, said:

True .
but who will take action --- I think nobody

[Tarbela]

South Korea has expressed their interest to invest in the hydropower and water sector projects in Pakistan and mutual cooperation in various other projects for flood protection and technical assistance in the water sector.
This was said by Dr Myung-Pil Shim, Minister for National Restoration of Republic of South Korea during a meeting with the federal minister for Water and Power, Chaudhry Ahmed Mukhtar on Monday. The meeting was also attended by the special secretary, additional secretary, joint secretary (water) of Ministry of Water and Power, chairman Water and Power Development Authority (Wapda), Private Power and Infrastructure Board (PPIB), chairman of Federal Flood Commission and other senior officials of the ministry and Wapda.
Shim said that Korean companies were already working on different water and power projects and more investors expressed their intent to invest in the country. Korea possessed expertise in the field of flood mitigation and were interested to share their experiences and technical knowledge with Pakistan. He also discussed various issues of mutual cooperation to enhance economic ties between the two countries. Later, a presentation on ‘Four River Restoration Project’ was given by the Korean delegation regarding flood protection and river management.
While welcoming the delegation, Mukhtar appreciated the Koreans for showing their interest to invest in the power sector. He said that Pakistan had great potential in hydropower generation and 59,000 megawatts (MW) of potential energy was identified in existing hydel power projects. Pakistan was now focusing on indigenous resources to generate cheap electricity. The work on a number of hydropower and water storage projects was in progress. The Koreans were also offered to invest in the Neelum-Jhelum hydropower projects of 969MW and Diamer-Bhasha dam project of 4,500MW.
Published in The Express Tribune, August 28^th, 2012.

[tank131]

Anyone have a full list of relevant power generation projects taking place (i.e. those expected to generated more than 50MW)?

[Tarbela]

Renewable energy development can be another area of cooperation between India and Pakistan.

A visiting Pakistan delegation led by Zafar Mahmood, secretary in Pakistan's water and power ministry held talks Tuesday with officials in India's ministry of new and renewable energy.

The high-ranking Pakistan official said that renewable energy being a relatively new area in Pakistan, the interaction had been extremely useful and provided an opportunity to learn from the Indian experience.

Gireesh Pradhan, secretary in the ministry of new and renewable energy, gave the Pakistan delegation a detailed overview of India's journey in the development and application of renewable energy. The focus of the presentation was on solar, wind, biomass and small hydro sectors.

India's achievement in installing over 25,000 MW of grid-connected renewable energy was lauded by the Pakistan delegation.

The Pakistani officials were informed about Indian Electricity Act 2003 and Tariff Policy provisions with reference to the renewable purchase obligation for renewable energy, which makes it mandatory for all power distribution companies to purchase a minimum percentage of power generated through renewables.

The provision is an effective instrument for promoting the use of renewable energy.

The visiting delegation was also informed about fiscal and financial incentives given by the union government to promote renewable energy.

[Tarbela]

ISLAMABAD: Pakistan is considering importing liquefied natural gas (LNG) from Qatar via India, which will receive the gas at its terminal and supply through a planned pipeline from its territory to Pakistan’s border.
“A proposal was under consideration for import of LNG through a terminal in India,” Secretary Petroleum Dr Waqar Masood told The Express Tribune here on Wednesday.
The government was also planning to import LNG directly from India through a pipeline, which India would lay over 60 km to Wagah border, he said. The LNG import from Qatar is separate from this programme.
“Officials of Pakistan and India will hold negotiations on the possibility of LNG trade between them here on Thursday (today),” said a senior official of the Ministry of Petroleum and Natural Resources.
An Indian team was to reach Islamabad on Wednesday night to discuss LNG trade, its prices and mode of transportation. India has offered supply of 200 million cubic feet per day (mmcfd) of LNG for a period of five years.
According to sources, India has planned to expand its pipeline network for LNG supply across the border. It has already laid a 100km pipeline for transport of LNG to Bhatinda, from where the pipeline will be extended to Pakistan’s Wagah border.
Indian LNG trading company Petronet Private Limited (PPL) has an LNG receiving and re-gasification terminal at Dahej, Gujarat with original handling capacity of 5 million tons per annum (mtpa). Later, the capacity was expanded to 10 mtpa.
The terminal meets around 20% gas demand of India. PPL has sourced 7.5 mtpa of LNG through a long-term contract with RasGas, Qatar with back-to-back sales arrangement with GAIL India, Indian Oil Corporation and Bharat Petroleum Corporation.
“India too faces gas shortage, estimated at over 4 billion cubic feet per day (bcfd) and the question arises whether it will be able to provide gas to Pakistan,” an energy expert pointed out.
India has also an oil refinery in Bhatinda from where it wants to export oil to Pakistan. It has offered to lay an oil pipeline to the border for export to Pakistan.

[Tarbela]

Petroleum (Exploration & Production) Policy, 2012

Announcing the new Petroleum (Exploration & Production) Policy, 2012, Adviser on Petroleum & Natural resources Dr. Asim Hussain said in order to accelerate exploration, the period of Exploration License has been reduced from 9 years to 7 years i.e., 5 years initial term (Phase-I of3 years + Phase-II of 2 years) + Two renewals of one year each.

Addressing press conference here Monday, he said similarly appraisal renewal period has been reduced from two years to one year. In order to attract much needed foreign investment in E&P sector, better gas price has been given; US$6 per MMBTU for Zone-III, $6.3 per MMBTU for Zone-II, $6.6 per MMBTU for Zone-I, $7 per MMBTU for Zone Offshore Shallow, $8 per MMBTU for Zone Offshore Deep & $9 per MMBTU forZone Offshore Ultra Deep). Windfall Levy has been reduced from 50% to 40%.

He said base price of crude oil and condensate for Windfall Levy has been increased from $30/barrel to$40/barrel; which will escalate each calendar year by $0.5/barrel; Windfall Levy will be equally shared between Federal Government and Provincial Government. Gas pricing Ceiling of $100/barrel replaced with $110/barrel; 5% carried interest (Government Holding 2½%, Provincial Government Holding 2½%);

Dr. Asim said Provincial Government Holding company shall also have first right to makeup required minimum Pakistan working interest without reimbursement or payment of any past cost; Renewal of lease after expiry of lease term for another five years subject to payment of an amount of 15% of wellhead value; Sale of 90% share of pipeline specification gas to Government of Pakistan and 10% by E&P companies to any buyer with prior consent of Government;

He said a bonanza of $1/MMBTU shall be given for first three discoveries in offshore area. Policy, 2012 gas price will also be extended to leases for additional 10% production over and above commitmentof Development plan approved by the Government. Introduce TCM/ OCM to monitor physical progress of minimum work commitment and other obligations.

He said 10% of royalty will be utilized in district where oil and gas is produced for infrastructure development; For pricing and delivery obligations for natural gas, the gas will be delivered at outlet flange (Field Gate/ Delivery Point).

Sui Southern Gas Company (SSGCL) and Sui Northern Gas Company Limited (SNGPL) will be responsible for laying pipelines for which they will get tariff on transportation of gas as approved by Oil & Gas Regulatory Authority (OGRA). For offshore, gas will be delivered at nearest access point to an existing regulated transmission system; or at the shore within coastal locations, he added. (PPI)

[Tarbela]

Sindh govt signs MoU for 50MW wind power project

The Sindh government has signed a Memorandum of Understanding (MoU) with WIKOVWIND AS – a Czech company – for the generation of 50 megawatts (MW) of electricity through the wind corridor in Gharo Jhimpir, Thatta.
The MoU was inked by Sindh Board of Investment Director General Muhammad Riazuddin and WIKOVWIND Company head Martin Wichterle in the presence of Sindh Chief Minister Syed Qaim Ali Shah, Sindh Minister for Finance Syed Murad Ali Shah and Sindh Minister for Information Sharjeel Enam Memon, among others. A delegation of investors from the Czech Republic also witnessed the ceremony.
Minister for Finance Syed Murad Ali Shah, while giving out the details of the MoU, said that the Sindh government will execute the project and arrange the funds, while the Czech company will provide required material, machinery and technology.
He added that financing for the 50MW power generation project will be arranged before December 31 this year, while construction will start in January 2013.
On the occasion, Wichterle said that investing in power generation through wind was a great opportunity, and that his company will bring in more business for the local industry. He added that the Czech Republic wants to enhance its business and investments opportunities in Pakistan, and many other power generation projects are under consideration which will help in resolving the energy crisis faced by the country. Meanwhile, he said, bilateral cooperation in trade and investment will also be boosted significantly.
“Sindh is the first province to take the lead in power generation through wind resources. The province has has the potential of generating 50,000MW of power through wind in the coastal belt of the province” said Qaim Ali Shah, while addressing the gathering.
The Sindh Chief Minister said that investment-friendly policies of the Sindh government are attracting more and more foreign investment in the province, which also reflects the confidence of investors on the government’s initiatives.
Later, while talking to media persons, the CM revealed that a foreign company also wants to invest in power generation through coal in the Badin district.
Published in The Express Tribune, August 31^st, 2012.

[Tarbela]

Karachi—President Asif Ali Zardari Sunday chaired a meeting at Bilawal House, Karachi to review current energy situation and the progress on various measures being taken to overcome the power shortage in the country.

Ch. Ahmed Mukhtar, Minister for Water & Power, briefed the meeting about the latest power situation in the country and said that the various immediate measures taken by the government resulted in reducing the supply- demand gap.

He informed the meeting that the power situation was steadily improving and expressed the hope that with the rising water levels in reservoirs as a result of recent rains , the situation is to improve further with regards to power generation.

Chairman WAPDA briefed the meeting on various hydel power projects including Allai Khwar-Battagram, Jinnah Hydropower-Mianwali, Gomal Zam Dam-South Waziristan Agency, Satpara Dam-Skardu, Duber Khwar-Kohistan, Jabban Hydropower Malakand and Laraib HPP which has a total capacity of 487 MW and would be inducted in the national grid by March 2013.

The meeting was informed that Tarbela Dam was likely to be filled soon while Mangla Dam has been filled to a level of over 1180 feet against a level of 1230 feet.

The meeting was also briefed about the progress made so far in the construction of Diamir Bhasha Dam and the efforts being made to garner finances for the project.

Advisor to PM on Petroleum, Dr. Asim Hussain briefed the meeting about the availability of gas and fuel for the power generation.

The President urged the Ministries of Petroleum, Finance and Water and Power to work in unison and take concerted and coordinated steps to end electricity and gas load shedding, adding that government can no more afford persistent loashedding as it was adversely impacting the country’s economy.

The President directed that he should regularly be updated about the power situation adding that the government accords high priority to improve energy situation.—INP

[Chief of army staff]

Who own these sugar mills???Zardari and his party????Nice way to earn the profit. Pakistani economy fall down to 124th in the world (Dawn News). Shame on the AZAAB-E-ELAHI ZARDARI for looting the economy

[Tarbela]

Chief of army staff, on 05 September 2012 - 06:35 PM, said:

Who own these sugar mills???Zardari and his party????Nice way to earn the profit. Pakistani economy fall down to 124th in the world (Dawn News). Shame on the AZAAB-E-ELAHI ZARDARI for looting the economy

Nice one.

[Tarbela]

ISLAMABAD  : The state-run Oil and Gas Development Company Limited (OGDC) on Wednesday announced discovery of new reserves in Karak district of Khyber Pakhtunkhwa, which would boost its daily oil output by about 8 per cent.  
A company spokesman said the Nashpa-3 well located in Karak district initially produced 3,165 barrels per day (bpd) of oil and about 15 million cubic feet per day (mmcfd) of gas, boosting the total production in the Nashpa region to about 11,165bpd of oil and 43mmcfd of gas. The total oil production of the company would now increase to about 44,610bpd or 64 per cent of the country’s total oil output while gas output would go up to approximately 1,030mmcfd.
The country’s total oil production has increased to about 72,500bpd against the total consumption of about 300,000bpd.
The OGDC spokesman said all the employees of the company would be paid a one-month basic pay as bonus on the discovery of the reserves.
“The structure of Nashpa-3 well was delineated, evaluated, drilled and tested utilising indigenous expertise,” he said. The oil produced from the well would initially be put into the system through bowzers (oil tankers) because building a pipeline would take some time.
Besides OGDC, Nashpa-3 has shareholding from Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL).
After Drill Stem Testing (DST) in new horizons of Samanasuk, Lumshiwal and Hangu formations, significant reserves of hydrocarbons have been confirmed at Nashpa-3 well.
The actual flow potential of the well will be established later.
http://dawn.com/2012...l-gas-reserves/