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The government has decided to convert two inefficient thermal power plants in Sindh — Guddu and Jamshoro plants — to coal with $433 million financing to be provided by the Asian Development Bank.
The conversion of the plants would allow the authorities to enhance their production by at least 700MW.
The major overhaul of and supply of spare parts to the Jamshoro and Guddu thermal power plants, besides recovery of lost capacity, is expected to reduce their generation cost from over Rs16 per unit to about Rs9 per unit, according to a power ministry official.
He said the plan now at the bidding stage was part of an overall ADB financing of over $1 billion under which the government intended to convert at least three major power plants, including Muzaffargarh, to imported coal in order to reduce heavy reliance on expensive furnace oil and to scale down average generation cost through improved fuel mix.
About 400MW capacity would be regained through the planned overhaul of and supply of equipment and spares to Jamshoro and Guddu plants while 200MW oil-based boilers of Jamshoro would be expanded and converted into a 400MW coal-fired plant.
The government has already finalised loan agreements with the ADB. The project will also ensure coal and ash handling systems and modification of other auxiliary equipment.
According to the ADB, the conversion to sub-critical coal-fired system is the least expensive method to diversify the fuel mix away from imported fuel oil.
The persistent energy shortage exceeding 5,000MW represents around 30 per cent of the total demand, making the life difficult of all Pakistanis as loadshedding in some cases goes beyond 10 hours a day in urban areas and almost 20 hours in rural areas.

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Wapda has three major generation companies — Jamshoro, Muzaffargarh and Guddu. All steam units of thermal power station at Jamshoro and Muzaffargarh are dual-fuel plants having gas and residual fuel oil (RFO) firing facilities except one Jamshoro unit which has only fuel oil-firing capability. However, these plants are operating on furnace oil due to shortage of natural gas.
The thermal station at Guddu uses medium-calorific raw gas from Mari and Kandhkot.
Due to poor maintenance of the power stations, Gencos have lost nearly one-third of their capacity and nearly 17 per cent of their thermal efficiency due to plant degradation.
The average capacity degradation at Jamshoro has been found to be 32 per cent compared to a maximum degradation of 40 per cent and a minimum degradation of 23 per cent. The average drop in the net efficiency at this station was about 20 per cent from the designed capacity efficiency.
At Guddu, the average availability of units was in excess to 95 per cent but if this availability is corrected for lost output of the plant owing to degradation, the availability factor would drop by about 30 per cent, quite low by industry standards.
The thermal station at Muzaffargarh is operating with an overall capacity degradation of around 40 per cent. The power station faced an overall degradation of around 18 per cent in its net efficiency.

[Tarbela]

Pakistan is busy negotiating deals with at least five countries to buy natural gas and electricity to overcome its acute energy crisis. The gas and electricity shortages and outages are so serious that the country’s GDP has lost more than two per cent of GDP, as a result, World Bank estimates. The crisis has also led to widespread agitation and anti-government violence as thousands of industrial labour and commercial workers have lost their jobs.

Actual work on implementation of international gas pipelines, installing electrical infrastructure or buying and transporting liquefied natural gas (LNG), or negotiations on these plans are in various stages. The projects involve Turkmenistan, Iran, India, Afghanistan, and Afghan-Tajik basin, located in northern Afghanistan.

Besides these international contacts Pakistan is also gearing up its own efforts to expand exploration, and domestic output of oil and gas, for which it welcomes foreign companies. The first source of gas inflow though an international pipeline is set to be from Iran. The Iran-Pakistan (IP) gas pipeline will cost $1.2 to $1.5 billion and its gas export to Pakistan will be 21.5 million cubic meters daily (mcmd).

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The onshore gas field is located in the Khirtar Fold Belt region, 350 kilometers north of Karachi.


Italian oil group Eni said on Wednesday it had discovered a new onshore gas field in Pakistan with about 8.5-11.5 billion cubic metres of gas in place.

A test revealed the gas quality is "excellent", Eni said.

"The drilling of Badhra North B-1 is part of Eni s new strategy in Pakistan which aims to refocus exploration activities in the neighboring areas to productive fields and confirms the presence of significant exploration potential that can be exploited through the application of new geological models," the Italian group added.

Eni said it has started discussion with the Pakistani regulator in order to speed up the production of the discovery through a long-term production test that will allow for the commercialization of gas, and help to reduce the national gas deficit.

Eni has been present in Pakistan since 2000 and is the largest producer in the country, with an average equity production at approximately 54,800 barrels of oil equivalent per day in 2011.

[Tarbela]

No amount of ‘investment’ or ‘technology’ can solve our power problems because the problem is not lack of technology, or investment or even funds. The problem is inefficient project management, lack of implementation of asset management practices and corrupt service delivery while undertaking large projects. We should stop looking for a ‘silver bullet’ solution and start treating the rot that is from the ‘Head’ all the way to the ‘Tail’ in our power sector. Unless these diseases are addressed, Pakistanis will remain in the dark.

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Indigenous oil, gas or fossil fuels in Pakistan are limited and so expansion in generating energy capacity relies on hydropower to reduce fuel imports – a need well fulfilled by run-of-river scheme. the Ghazi-Barotha Hydropower Project represents an extraordinary combination of collaboration, fresh thinking to provide cost benefits to the contractors and innovative solutions to bring benefits to its management and the surrounding community.

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300MW power plant in Bin Qasim soon

KARACHI - A Czech Republic investors’ group has planned to set up steel billets making plant with 1.2 million ton annual steel capacity and 300-MW coal-fired power plant in Bin Qasim Town, close to the Pakistan Steel Mills. A delegation of investors of the Santex Pakistan Limited (SPL), which is a subsidiary of Santex Group based in Czech Republic, informed this during their meeting with Sindh Finance Minister Syed Murad Ali Shah and Zubair Motiwala, Chairman Sindh Board of Investment on Sunday. Muhammad Ashraf, Director SPL informed the Sindh finance minister and Sindh Investment Board chairman that a cooperation agreement with the suppliers has been concluded and project financing has been secured on September 10, 2012 during the recent Brno International Trade Fair in Czech Republic. The SPL has also paid the full amount of equity for the project and is planning to formally announce the project and financial close during the month of October 2012 at a befitting ceremony in Prague.The 300MW coal-based power plant has excess capacity of more than 150MW that would be made available to the national grid. It was also told that the project would be delivered on turn-key basis and completed in two and a half years by June 2015.Sindh Finance Minister Murad Ali Shah appreciated SPL for their effort and assured complete support of the government in the project that shows the increased confidence of serious foreign investors in Pakistan’s economy and abundance of business opportunities.The SPL Team expressed their complete confidence in Pakistan and thanked the minister and the chairman for their patronage and assurance of support for this venture.On the occasion, Brig ® Mohtaram of SPL, Secretary Finance Arif Ai Khan, Secretary Coal and Energy Eijaz Ali Khan, Secretary Energy and Power Sohil Rajput, Director General SBI Riazuddin, Director Coal Shahab Ansari and other officers were also present.

300MW power plant in Bin Qasim soon | The Nation

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ISLAMABAD - Despite getting huge subsidy of around Rs 70 billion in just three months (July-September) of the ongoing financial year 2012-2013, the Ministry of Water and Power has failed to control load shedding in the country.

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For energy production we are using adhoc approach, chalta hai approach that is so terrible that it is hard to put in words.

1. Thar coal can provide 10 to 15 thousand MW, but Sindh government in particular and Pakistani federal government in general are not serious due to many many reasons.

2. Hydro - We can get another 10-15 thousand MW from Kala bagh and Bhasha but again our petty squabbling and our corruption and our ineptitude is stopping this deal. Also WB and IMF have backed out of these. So no money.

3. Shale gas - This is new thing. Americans are the leaders in this field. They can help, but we have brick-dog hatred with Americans. So no go there. Even if we have the money, we can get 5-10 thousand MW from this source.

4. LNG import - The least expensive gas will come from the USA. They are the leaders and new Saudi Arabia for gas. Again our hatred means no go there. Even if we have the money, we can get 5-10 thousand MW from this source.

5. gas pipeline- from TAPI or IP. We got no money and no one wants to give us any. Iran is under sanctions so no IPI, and Afghanistan is not at peace so no TAPI. Even if we have the money, we can get 5-10 thousand MW from this source.

6. Wind - solar: This can provide 100 to 200 MW in the next 5-10 years but again the tech will come from Germany and USA + panels from China. Cost of this energy is 10-15 times more for the equivalent amount of energy from nuclear. And we need cold hard cash that is for it that we do not want to spend or we cannot spend because we don't got any.

7. Nuclear: This is perhaps the only long term source for us. But we prefer bumb over energy, so no go there either. We must say trade nuke bumbs for nuke plants right away. India cannot dare attack us if we have 1 million man army + other forces. But lack of energy will tear us apart and then India or even Afghanistan can occupy us. So our priorities must be changed on nukie bumbs. Out of projected need of 80,000 only 30,000 MW or so will come from non-nuclear sources.

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A secretary-level committee has decided to enhance oil supply to power plants, following suspension of gas supply from Qadirpur field, in an effort to increase electricity production and bridge the widening demand-supply gap.
In a meeting held at the Ministry of Water and Power here on Thursday, the Secretaries Committee on Energy reviewed the demand, supply and power generation in the country.
Water and Power Secretary Zafar Mehmood, Petroleum and Natural Resources Secretary Dr Waqar Masood and Joint Secretary (Power) Zergham Ishaq Khan attended the meeting.
The power shortfall widened as gas supply from Qadirpur gas field was stopped to four power plants – Rosche Power, Fauji Kabir Wala, Altern Power and Engro Power – because of technical fault at the field. As a result, power production dropped by 763 megawatts.
Power generation at four independent power plants (IPPs) near Lahore was also affected. These were Orient Power, Saif Power, Sapphire Power and Halmore Power, where production fell by 400 megawatts.
The meeting participants noted that about 1,100 megawatts had unexpectedly gone out of the system due to suspension of gas supply.
They resolved that all possible steps would be taken to restore supply from Qadirpur gas field at the earliest. Alternative resources would be utilised to reduce the demand-supply gap and steps would be taken to generate maximum power from oil-run plants, they said.
They decided that oil supply would be enhanced to both public and private sector power plants to curtail the shortfall. As per plan, the government will provide 5,600 tons of furnace oil to Kot Addu Power Company (Kapco), 5,800 tons to Muzaffargarh plant and 2,000 tons to Jamshoro power plant.
In addition to these, a total of 7,400 tons of oil will be supplied to AES Lalpir, Pak Gen, Saba Power, Sepcol, Atlas Power and Japan Power.
The officials expressed the hope that the increase in oil supply to the power plants would improve electricity production, cut load-shedding and give relief to the people.
Published in The Express Tribune, September 28^th, 2012.

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The Abu Dhabi Fund (ADF) has withheld a $100 million loan it had pledged for the construction of the 969 megawatt Neelum-Jhelum hydropower project in Azad Jammu and Kashmir, a parliamentary panel was informed on Friday.
The ADF provides development aid to developing countries in the form of concessionary loans and grants on behalf of the Abu Dhabi government.
“The loan agreement of $100 million is pending with the ADF because it has linked it to the resolution of payment issue with Etisalat in the PTCL privatisation process,” Lt Gen ® Muhammad Zubair, the managing director of Neelum-Jhelum hydropower company, told the National Assembly Standing Committee on Economic Affairs Division.
Zubair informed the committee, which met under the chairmanship of Pirzada Imran Ahmed Shah, that the loan agreement of $448 million with Exim Bank China was also pending as China State Council was yet to give the go-ahead.
Financial constraints were further delaying the project that was supposed to be completed by 2016, he said.
“The Neelum Jhelum Hydropower Company has not been able to open Letter of Credit (LC) to procure equipment and material for the project against financing of $113 million by Islamic Development Bank (IDB) and this issue has been taken up with the company board,” he added.
Published in The Express Tribune

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Pakistan may tap US gas reserves to quench energy thirst

Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain has revealed that the government is mulling purchasing a shale gas field in the United States in an effort to tap a cheaper source of energy to meet growing needs of Pakistan.
Addressing a press conference here on Tuesday, Hussain said huge reserves of shale gas had been discovered in the US, “therefore, we are considering investing in a shale gas field to ensure gas supply to
Pakistan.”
Discussing Pakistan Petroleum Limited’s (PPL) interest in Iraq, he stressed that the company would explore oil and gas reserves there as the Iraqi cabinet had approved the award of a block to PPL, which it had won in bidding.
“The government is also looking for exploration activities in Afghanistan, Morocco and the US,” he said.
Hussain said the government had planned to add one billion cubic feet of gas per day (bcfd) from local sources by the fourth quarter of next year.
In addition to this, the petroleum ministry has sent a summary to the Economic Coordination Committee (ECC) of the cabinet, proposing import of 1 bcfd of liquefied natural gas (LNG). In this programme, 200 mmcfd of LNG will be imported on fast track and 800 mmcfd will be purchased under long-term arrangements.
Acknowledging that winter this year would be tough in terms of gas shortfall, Hussain stressed that the shortage would be manageable through implementing a load management programme.
He claimed that the gas shortfall would come to an end in two years as the government was making all possible efforts to overcome the crisis.
Following the approval of Petroleum Policy 2012, he said, gas exploration and production companies had accelerated their activities. ENI has discovered reserves of 300 to 400 billion cubic feet and 30 mmcfd will flow every day from this point.
Hussain said the government had cancelled licences of four blocks, which were not performing well and exploration work there was poor. On the other hand, 52 blocks have been auctioned in the last four years.
The Oil and Gas Development Company (OGDC) will explore 36 wells in a year and oil production is expected to increase to 100,000 barrels per day by April next year.
In order to highlight incentives in the new policy and attract investment in oil and gas exploration, the government has planned to conduct road shows in different places including Dubai, London and Houston.
Talking about Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Hussain said negotiations were going on and soon things would be settled.
He also said Pakistan State Oil (PSO) would set up an oil refinery in Khyber-Pakhtunkhwa.
PML-N proposal rejected
Hussain rejected a suggestion from the Pakistan Muslim League-Nawaz (PML-N) that oil prices should be revised once in a month in order
to provide relief to the consumers, terming it an attempt “to put Pakistan into darkness”.
Leader of Opposition in the National Assembly Chaudhry Nisar Ali Khan of PML-N had stated in the house that they would move a resolution for replacing the current weekly review of oil prices with a monthly review.

However, Hussain declared that the government would not change the current mechanism, arguing all over the world fuel prices were revised every day.

Published in The Express Tribune, October 3^rd, 2012.

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In the water and power sector, Russia has expressed interest in investing in many projects keeping in view the power shortage in Pakistan.
The MoU between Russia’s Technopromexport and Pakistan’s Genco Holding Company will help convert Muzaffargarh plants into ones based on imported coal and help construct New Jamshoro Power Plant having planned capacity of 500 to 600 megawatts. Russia is also interested in Tarbela-4 and Keyal Khwar projects.

Speaking on the occasion, the chief trade representative of Russia stressed that Pakistan and Russia had conducted successful discussions and the signing of MoUs would help enhance mutual cooperation.

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The Pakistani government has decided that only Thar coal would be used for coal-based power generation in the future and all conversions of existing and construction of new power projects would be designed on Thar coal specifications.
The landmark policy decision was taken by Prime Minister Raja Pervez Ashraf, while chairing a meeting of the Thar Coal and Energy Board at the Prime Minister’s Secretariat here on Wednesday.
The meeting was informed that the Sindh Engro Coal Mining Company (SECMC) and the Engro Corporation were working on an integrated coal mine and a power project with an estimated cost of 1.3 billion dollars at Block 2 of Thar coal project for mining of 6.5 million tons of coal per annum and a power plant of 1200 MW.
The prime minister also decided in principle to provide a sovereign guarantee to SECMC, a joint venture of the Sindh government and Engro Power, and directed the finance ministry to arrange the same.
Prime Minister Ashraf said that in the present financial situation, there was little space for providing sovereign guarantees. However, this is a strategic decision which has to be taken for meeting the growing energy requirements of the country, he stressed.
The Sindh government had requested the federal government that the conversion of the existing 800 MW and new 600 MW power plants at Jamshoro be designed on Thar Coal specifications.
The prime minister directed the ministry of water and power to sign within a week a Coal Off-Take agreement between the GENCO and the SECMC for the Asian Development Bank financed conversion of the existing 800 MW and new 600 MW thermal power projects at Jamshoro.
“Today we have laid the foundation of an energy policy, which is based on our indigenous resources and will lead to savings of huge foreign exchange presently being spent on the import of fossil fuels to run our thermal power plants,” said the prime minister.
The policy decision will ensure energy security that has been eluding us for such a long time, added the prime minister.
The Thar coal field is estimated to have reserves of 175 billion tons, 68 times higher than Pakistan’s total gas reserves.

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The govt has decided that only Thar coal would be used for coal-based power generation and construction of new power projects will be designed on same specifications.—File Photo

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Germany to help Punjab go solar

LAHORE - A Memorandum of Understanding (MoU) on Solar Energy Project was signed between Punjab Government and Germany’s Solar Power Project Development Firm in Berlin on Saturday.
According to details, the German firm would work on a mega project for generation of solar energy in Punjab. The representatives of Germany’s Solar Power Firm, accompanied by a high-level delegation, would pay a visit to the Punjab in November to launch the solar energy project.
A large business delegation from Germany accompanied by the representatives of German Solar Power Firm would also visit Punjab in November, which would include representatives of well-known energy companies of Germany, and other high-ranking officials.
Terming the signing of Memorandum of Understanding for establishment of solar energy project in collaboration with the German Company in Punjab as a highly welcome step Punjab Chief Minister Muhammad Shahbaz Sharif said that vast opportunities of investment in the solar energy sector exist in Pakistan, especially in Punjab. He called upon German companies to assist Pakistan in finding new and sustainable methods for acquiring energy and said that the German technology is unprecedented in the field of solar energy, throughout the world.
Shahbaz further said that Punjab government would extend maximum facilities and incentives to the German companies as meeting the challenge of energy crisis in an effective manner is the top priority of the Punjab government.
Extending an invitation to the German energy companies for investing in the energy sector of Pakistan, especially Punjab, the chief minister said that large opportunities of electricity generation through coal, hydel and thermal exist in Punjab.
He added that although Pakistan has more than five hundred million tons of coal reserves, its industrial and agricultural production, along with its economy, is getting severely affected due to the energy crisis.
The CM pointed out that the country desperately needs energy and Punjab government desires the German companies to make investment in the solar sector, to meet Pakistan’s energy requirements.

Germany to help Punjab go solar | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

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OMV Pakistan – subisidary of Austria largest company OMV Aktiengesellschaft – and its partners Eni (33.33% interest) and Pakistan Petroleum (33.33% interest) on Thursday signed a lease deed for the development of Latif gas field in Sindh.
Latif field production will contribute around 6,000 barrels of oil equivalent per day to OMV in 2014 and therefore be a key contributor to reaching core country status in Pakistan.

[KudosBot]

Energy Crisis In Pakistan


My recent visit to Thatta revealed great tragedies and wonders of my home land. I was more shocked than amazed at the propensity of resources that Thatta alone holds and have been wondering in calculating to how much can the country actually benefit from these resources.

Starting with the Zorlu wind energy project, a wind farm established by a Turkish based Zorlu group at Jhimpir – it is told that the Gharo- Keti Bandar Wind Corridor spreading 60 km along the coastline of Sindh province and more than 170 km deep towards the land alone has a potential to generate more than 60,000 MW of electricity.

Its total installed capacity is 56.4 MW and has 5 turbines each capable of generating 1.2 MW functional since April’09 when the prime minister inaugurated the project and yet 28 remaining turbines are to be installed which are capable of producing 50.4MW energy collectively. These remaining turbines are decided to be made practical by this December!

The 1st phase of the project has become functional since June2009 and it has already started providing 6MW with its five turbines!

It is further planned that in a few years’ time the work scale will be expanded to 50Mw. This project not only serves the purpose of overcoming the energy crisis but it's also obliging in numerous added significant ways like strengthening foreign ties with the Chinese government as it’s a collaborative work with them and secondly with Turkey as the Zorlu group is an Istanbul based company. Turkey is like a brother county to Pakistan always there to help and support, the project is just another magnanimous example of the strong tie.

Not just that, it has invited many financial investors also both foreign and local which have proportionally putted together $136 million for the project. In recognition of it, Zorlu Energy Pakistan has received the “Middle East Renewable Deal of the Year” for 2011 by Project Finance Magazine. Attaining this prestigious award by Zorlu Energy demonstrates the ease and security of investing in the renewable energy sector in Pakistan.

FFC Company has also made its wind project in the same wind farm’s location at Jhimpir. Its plan is to install 33 turbines each able to produce 1.5 MWs, that would round up to 50MW that this project would share and it’s work is just at the last stages in the pipeline and promisingly will be beginning from this November.

This is not it, in fact much more is yet to come as Alternative energy development board (AEDB) has allocated lands to 45 more companies for the same purpose in Gharo and Jhimpir amongst which most of them will be generating 50-100MW with an exception of at least 8 companies that will be able of producing from 200-350MW. Notable names of those include United energy,3-Gorges China, Fina Enerji Turkey and NBT wind power Pakistan etc.

Worthy mentioning that the construction work is underway for both the projects and it required at least more than 400 of skilled and non-skilled labour in whose induction the local community was more preferred. Thus the wind farm serves as a major source of employment for many of the unemployed and being neglected since long habitants of Thatta.

The project’s to benefit in many of other ways. Mentioning a few like tourism – it already looks really picturesque and with time or when it gets all complete it will surely be an attraction for many visitors of not just the district but from main cities of the country and for sure will make the foreign visitors who are here for the trip of the whole country to show up at the farm also. Apart from the fact about its being very supportive to the local community it will soon be compelling the government to improvise the infrastructure of the area and that will eventually lead to a better life style. For the officers and staff permanently deployed at the site medical facilities have also been available that’s serving the habitants around.

It's just about realizing the available opportunities more and working over to make them profitable. Pakistan in no sense would seem as a failed state!

At least five such locations in Jhimpir and Jatti talukas have been identified by the experts for wind power energy. The locations for windmills have been identified after a thorough survey by the experts as district Thatta’s close proximity with the sea makes it ideal for the project which will enable the people living in coastal areas to avail cheap source of energy. Using the measured wind data the annual gross energy production by an 18 MW wind farm consisting of thirty – 600 kW turbines will be 45 million kWh. Taking into account the wind turbine availability, net losses and wake effects in the wind farm the net annual energy production is estimated to 31 million kWh per year corresponding to a capacity factor of 28%.

Wind generated electricity is no different. The wind is the fuel – unlike fossil fuels it is both free and clean. It drives the turbine which generates electricity into a grid. Wind turbines are giant electrical generators, which rotate due to the wind flow and produce clean electricity. They do not require fuel, water and neither is any other kind of expenditure needed for its functioning.

Pakistan can significantly reduce its oil import bill by shifting to renewable energy and meet its rising industrial and domestic energy demands without burning fossil fuels in thermal power plants, the most expensive form of fuel. At present oil accounts for approximately 45% of total commercial energy supply. The share of natural gas is 34% while that of hydro power remains roughly at 15%. The increase in cost of fossil fuel and the various environmental problems of large scale power generation have led to increased appreciation of the potential of electricity generation from non-conventional sources.

Pakistan has the potential to produce up to 346 GW of electricity through wind energy alone, provided we utilize the God gifted wind energy potential and more companies start their work on building the wind energy projects in the country. If we could produce just 10% of available wind energy potential of 346 GW, i.e. 34 GW in next 15 – 20 years, Pakistan will be well ahead on the path of energy security and prosperity due to utilization of indigenous energy resource.

On way from Jhampir towards Karachi, agriculture fields kept passing across. People reported that water and irrigation issues are like never leaving from here and have ruptured much of the major economic tool of the area. Keenjhar Lake – a picturesque place with magnificent beauty seems to have got completely forgotten by the responsible. Nearly same is the case with Makli necropolis. Ages old graves carved with precious stones representing the sole culture of Sindh are noted of being subjected to theft, places being illegally occupied. Tombs and shrines of well noted scholars are about to fall apart – the havoc like conditions are enough to say that an immediate attention if not given, Sindh may lose its very precious identities and if worked over they can turn it once again as a hub of visitors for education tourism and business purpose exactly like how when Thatta used to be the capital times back!

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A new Oil Refinery is being established in Khyber Pakhtunkhaw. Oil and Gas Development Authority (OGDCL) would dig 36 wells next year.
The training institute of OGDCL would be converted into Petro Chemical Institute. Admissions in the institute would be given strictly on merit. Later on the institute would be converted into a university with the financial assistance of Poland.

PPL has won contracts in Iraq after competing with several countries, he said and added that OGDCL was investing in United States, Afghanistan and Morocco.

The policy of Shale Gas would also be announced soon. Currently the reserves of Shale Gas stands 51 TCF, the reserves of Tight Gas stands 20 TCF.

The demand of Oil in the country stands 380000 barrel per day while production is only 60,000 barrels per day. The production would be enhanced upto 90,000 barrels by April 2013.

Efforts were underway to get Gas from Petronaz. Work was being continued on LNG project. The energy shortage in the country would be soon overcome.

Work has been started in closed gas fields of Sindh. One filed has been given to Kuwait. Road shows would be organized in Dubai, Houstan and London. Bidding for exploring 60 new blocks would be held soon.

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Standing firm: Pakistan to push ahead with IP gas pipeline project

The government on Monday reiterated its resolve to push ahead with the $1.5 billion Iran-Pakistan (IP) gas pipeline project, recalling that its internationally outcast neighbour was the first Muslim country to recognise Pakistan after its creation.
Addressing a seminar on ‘Pakistan’s Potential in Oil and Gas Sector’, organised by the Petroleum Institute of Pakistan (PIP), Inter-State Gas Systems (ISGS) Managing Director Mubeen Sulat said that Pakistan and Iran had made a “lot of progress” on the project.
“Iran has completed almost 90% work on the gas pipeline and we have completed a detailed engineering survey and a bankable feasibility study for the gas import project, which has entered the implementation stage,” he said.
Pakistan will import 750 million cubic feet of gas per day (mmcfd) under the IP pipeline project, with the first flow scheduled for December 2014. “We are now approaching the phase of awarding construction contracts for the pipeline,” he added. He claimed that Pakistan had also “made a lot of progress” on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.
Pakistan will import 1.3 billion cubic feet of gas per day (bcfd) under this project and the Asian Development Bank (ADB) has been playing the role of transaction adviser for arranging financing. “We have received good response to requests for financing the TAPI gas pipeline project from leading investors, during road shows in different countries,” Sulat added.
In his inaugural address, Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain stressed upon exploration and production companies operating in Pakistan to support the Petroleum Institute of Pakistan (PIP) and to help develop it into a think tank for policy initiatives for the oil and gas sector.
Hussain said that Pakistan offers great potential in the oil and gas sector and assured full cooperation and facilitation to all investors who wished to invest in the country.
He further said that the government is also working on tight gas, low BTU gas, shale gas, marginal gases, flared gas and stranded gas policies, in order to tap available resources for the benefit of the country.
Outlining the achievements of the government, Hussain informed the gathering that 1.6 million consumers had been given gas connections at a cost of Rs10.41 billion, while 879 kilometres of transmission lines and 39,707 km of distribution and service lines were added to the existing network with an investment of Rs61.164 billion during the last four and a half years.
“As a result of current efforts, 750 mmcfd of gas is likely to be added to the system by June 2013 – an increase of 20%,” he added.
He said that the government had prepared the National Mineral Policy 2012 to meet the challenges of large-scale mining and to enhance international competitiveness.
It was stated that the country imported oil to the tune of $15 billion, which constituted 36% of the overall import bill of the country. The value of gas produced annually in the country is $4.3 billion and oil produced in the country is $2.4 billion, he added.
Oil and Gas Development Company Limited MD Masood Siddiqui said that incentives announced in the new petroleum policy had had a direct impact on exploration activities. “We have revised our drilling target for June 30, 2013 from 28 to 35 wells,” he said, adding that oil and gas production would also increase due to enhanced exploration activities.
The director general petroleum concessions said that the government had decided to auction 60 blocks after the announcement of the new petroleum policy. “We will conduct road shows in November in different countries to attract oil and gas exploration companies to participate in the bidding process.”
Published in The Express Tribune, October 9^th, 2012.

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The Pakistan Economy Watch (PEW) on Sunday lauded the landmark policy decision of the federal government to use Thar coal for coal-based power generation and said all conversions of existing as well as construction of new power projects will be designed on Thar Coal specifications.
The strategic decision is appropriate because prices of imported oil will never come down to reasonable level as gas supply from Iran and Turkmenistan remains uncertain while reserves of native natural gas are depleting, it said.
President PEW Dr Murtaza Mughal said Pakistan’s energy mix was far from balanced; the power sector was heavily dependent on costly fuel which was among the reasons behind circular debt and high electricity tariff. The government should adopt advanced coal conversion technology to transform inefficient gas-based and dual-fuel fired power plants to coal-fired power plants, he said.
Murtaza Mughal said that government should expedite Environmental Impact Assessment reports and that detailed technical and economic feasibility studies were needed for conversion. He said that government announcement to use Thar coal for coal-based power generation would help cut fuel import bill, create thousands of jobs and achieve energy security.
“Government should also make a plan to develop skilled people who can deal with clean coal combustion technology and develop related machinery locally in few years,” Dr Mughal demanded. He said that government should arrange more funds to safeguard the country's frail power structure and the rights of consumers who needed protection from price spikes as well as power cuts.
Dr Mughal said that government should do more to encourage wind farms and try building latest nuclear power stations to meet growing energy requirements and ensure sustainable socio-economic development of the country.
“There is no harm in using imported coal for few years until country develop skills and infrastructure to utilize Thar coal,” the PEW president observed.
Dr Mughal remarked in the end that some local and foreign elements who did not want to see a prosperous Pakistan would always resist the government’s decision on different grounds.
Thar coal to ensure reduction of power tariff, create jobs: PEW | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

[Tarbela]

Pakistan’s petroleum minister on Tuesday said the country was willing to import diesel and jet fuel from rival India.


The statement by visiting Pakistan petroleum minister, Asim Hussain, was the latest sign of warming ties between the nuclear-armed neighbours who have fought three wars since independence from Britain in 1947.
“If the right prices are given, we have no problems importing (diesel and jet fuel),” Hussain said on the sidelines of a petrochemical conference in the Indian capital, according to the Press Trust of India news agency.

[Tarbela]

Pakistan has removed fuel imports from its list of goods that were banned from being imported from India, it allows import of diesel and jet fuel only by ship.
India, which has refineries across the border, is keen to take the road route to reach fuel-short Pakistan.
“A way could be found (to import via land) as import of (fuel) products is not banned,”
A team from India’s state-run Hindustan Petroleum Corp would soon visit Pakistan to discuss prices.

[Tarbela]

The incumbent government has collected Rs 5.839 billion federal excise duty on petroleum products during 2011-12 from Rs 5.120 billion in previous years with an increase of 14 percent.
Well informed sources told that petroleum products are the highest source of sales tax and contributed more than forty three percent of the total sales tax during 2011-12. The sources told that petrol (MS) is the leading source of sales tax at the import stage and the sales tax on petroleum products recorded a growth of 42.3.

[Alkhalid-19]

Tarbela, on 17 October 2012 - 06:22 AM, said:

Pakistan’s petroleum minister on Tuesday said the country was willing to import diesel and jet fuel from rival India.


The statement by visiting Pakistan petroleum minister, Asim Hussain, was the latest sign of warming ties between the nuclear-armed neighbours who have fought three wars since independence from Britain in 1947.
“If the right prices are given, we have no problems importing (diesel and jet fuel),” Hussain said on the sidelines of a petrochemical conference in the Indian capital, according to the Press Trust of India news agency.

the whole is a serious problem !

[Tarbela]

Consumers of CNG got a pleasant surprise on the eve of Eid: a reduction in the price of the transport fuel by as much as Rs30 per kg, thanks to judicial activism.
The relief came when Petroleum and Natural Resources Secretary Waqar Masood informed the Supreme Court on Thursday that the arrangement of linking the price of CNG with that of petrol on a weekly basis would be abandoned.

[Tarbela]

Pakistan State Oil (PSO) posted an after-tax-profit of Rs4.2 billion during the first quarter of 2012-13 compared to Rs2.5 billion the same period last year, said Chief Executive Officer and Managing Director of PSO Naeem Yahya Mir.
PSO’s revenues touched Rs325 billion as compared to Rs279 billion in the corresponding period last year, representing a growth of 16 per cent.
PSO achieved overall market share of 6.8 per cent as compared to 64.3 per cent during the corresponding period last year.

[Tarbela]

Pakistan had massive solar energy generation potential and an available production capacity of 2.8 million MW,

[Tarbela]

Iran and Pakistan signed a number of contracts in the field of electricity. Last year, exports of Iranian electricity to Pakistan doubled and another power line with a voltage of 230 kV will be put into operation in the near future.

One of the most important joint Iranian-Pakistani projects is the construction of a power line connecting the city of Iranian Zahedan to Quetta in Pakistan.

[Tarbela]

The government of the Punjab province in Pakistan has decided to reward students with solar panels for their academic performance in school. An estimated 300,000 students will be given solar panels, with each having the capacity to power one fan and one light. The cost of the Chief Minister’s Ujaala (Light) Programme (CMUP) is estimated at around $46 million.

[Sanguine]

Turkey calls for early settlement of Karkey issue

ISLAMABAD, Dec 1: Turkish Ambassador Mustafa Babur Hizlan has said the failure to resolve the Karkey issue soon may adversely affect the economic and business relations between Turkey and Pakistan because the barge-mounted rental power unit represented the biggest Turkish investment in Pakistan to date.

During a visit to the Islamabad Chamber of Commerce and Industry (ICCI) on Saturday, Mr Hizlan said the dispute should be resolved as soon as possible because some of the advanced devices on the ship could get damaged with the passage of time.

The Supreme Court of Pakistan has asked the Turkish company to refund $120 million earlier paid to it by the government of Pakistan under the Rental Power Projects (RPP) policy. In line with the verdict, the National Accountability Bureau (NAB) has instructed the Maritime Security Agency and the Port Qasim authorities to prevent the ship from leaving the country.

Meanwhile, addressing members of the local business community, the Turkish ambassador said it was time to translate the already warm and cordial relations between the two countries into improved trade ties.

Mr Hizlan underlined the importance of strengthening rail and air links to boost cooperation between the two countries. The Turkish Airlines should increase the number of its flights to destinations in Pakistan and PIA should increase its flights to Turkey.

On the occasion, ICCI president Zafar Bakhtawari said the Turkish people had always stood beside Pakistanis whenever calamity struck Pakistan. He said the trade between the two friendly countries amounted to only $1.8 billion in 2011. The annual bilateral trade could easily be boosted to $3bn, he added.

Mr Bakhtawari stressed the need to finalise as soon as possible the Pakistan-Turkey Preferential Trade Agreement and create facilitative mechanisms and opportunities for investors of the two countries to boost bilateral trade.

He urged the Turkish Airlines to launch a direct flight to Istanbul from Islamabad via Baku (Azerbaijan).

He called for early completion of the project under which a railway track was to be laid between Pakistan and Turkey via Iran.

http://dawn.com/2012...f-karkey-issue/

[Tarbela]

The Ministry of Water and Power is seeking to do away with electricity subsidy for commercial and industrial units in an effort to cover growing cost of power generation due to poor energy mix and make regular payments to oil and gas suppliers, who are threatening to cut their supplies.
To support its case, the ministry argues that subsidy for the textile industry should be abolished as it has a parallel system of captive power plants (CPPs) that generate cheaper power through gas, officials say. This means the industry not only enjoys electricity subsidy, but also receives gas for CPPs at a cheaper rate.
The ministry only wants to continue providing subsidy for household consumers and the agricultural sector.
In the energy mix, the country mainly depends on thermal power plants that consume expensive furnace oil and diesel, causing an increase in the cost of electricity production.
At present, average tariff notified by the National Electric Power Regulatory Authority (Nepra) is Rs11.90 per unit compared to average tariff of Rs8.88 per unit charged by the government. Average tariff subsidy for power consumers stands at Rs3.02 per unit.
According to tariff breakdown, average tariff set by the regulator for domestic consumers is Rs11.47 per unit, for commercial consumers Rs16.83 per unit, industrial (simple) consumers Rs11.61 per unit, industrial (one-point supply) consumers Rs12.30 per unit and agricultural consumers Rs11.71 per unit.
In comparison, the government is charging Rs7.49 per unit from domestic consumers, Rs14.35 per unit from commercial users, Rs9.72 per unit from industrial (simple) users, Rs10.42 per unit from industrial (one-point supply) users and Rs8.64 per unit from agricultural consumers.
In this way, the domestic consumers are getting a subsidy of Rs3.97 per unit, commercial users Rs2.48 per unit, industrial (simple) consumers Rs1.89 per unit, industrial (one-point supply) consumers Rs1.88 per unit and agricultural sector Rs3.07 per unit.
According to officials, the share of hydroelectric power stood at 52% in energy mix in 1985, but dropped to 32% in 2011. On the contrary, the share of power generation through furnace oil rose to 41% compared to 14% earlier. Gas-based power accounted for 25% of power generation compared to 32% in 1985 because of diversion of gas to captive power plants, which the industrial units installed to meet their demand in the wake of electricity outages.
Sources said the textile industry was getting electricity for running two shifts, but a delegation of the industry in a recent meeting with President Asif Ali Zardari asked for power supply for three shifts.
These days, the country is facing power shortage of 5,000 megawatts following a sharp decline in hydroelectric power generation because of closure of canals for de-silting.
“Conditions will improve in the next 10 days after the Indus River System Authority (Irsa) enhances water releases from reservoirs,” an official said.
Published in The Express Tribune, January 11^th, 2013.

[Felicius]

http://dawn.com/2013...ing-our-energy/


Wasting our energy
By Rina Saeed Khan



While there are many murky conspiracy theories floating around to explain Tahirul Qadri’s long march, one thing that came across loud and clear was the voice of the ordinary people on the streets of Islamabad, demanding an end to the load-shedding of electricity and gas. Perhaps it will be a wake up call for the government – if people do not get basics like energy to light their homes and run their stoves, they will come out on the streets. In fact, with increasing global oil prices, the buzz all over the world now is about “energy security”. Other countries in the region are all scrambling ahead to become self sufficient in meeting their own energy needs.

Can technology fix Pakistan’s energy problems? I recently met an energy expert who visited Pakistan this week, Carl Pope (former executive director of the Sierra Club, an American environmental organisation), who feels that yes, technology can be our salvation. “Pakistan has two very serious energy problems; energy reliability and energy access”, he explained. “For half of Pakistan’s population, renewable energy is the only power they are ever going to get and for the rest renewables can replace the shortfall”.

In his view, the solution to our energy woes is renewable energy wherever possible in the form of small hydro projects, solar water pumps and water geysers to ease the load of electricity and gas, rooftop solar units for homes (which could also replace diesel generators and UPS) and large wind farms on Pakistan’s extensive coastal wind corridor. In addition, there can be smaller initiatives like the sugar mills producing electricity from biomass to feed the grid, garbage companies converting sorted trash into energy and smaller biogas units across farms in rural areas where dung is readily available. Other possible solutions can be run of the river (or canals) turbines to produce electricity locally and extracting methane from our vast low-grade coal supplies in the Thar Desert (an old technology used in the US).


Solar panel powers energy for a mosque in Sindh. -Photo by author

“Every little bit is going to help… The technology for doing all this is readily available”, he points out. All the Government of Pakistan has to do is set the policy right, which in his view, is the fairly easy part. The rest will be done by business. “You don’t have to start from scratch, you can learn from other developing countries like South Africa, Kenya and to some extent India”. If we set out on this path, he says, the “current energy shortage can improve dramatically”. Several companies in Lahore and Karachi are already offering solar technology. What are urgently needed, however, are trusted brand names that can distribute solar products like solar panels, solar geysers, solar pumps, solar streetlights etc. Along with the right distributors, we also need banks to provide the finance to scale all this up.


Community installed wind turbine in Keti Bunder. -Photo by author

We definitely have huge potential for wind, which after hydro is the second cheapest form of energy – particularly on the Makran Coast. Unfortunately, aside from a few small pilot projects set up by different NGOs on the coast, we only have one big 50 MW wind energy project that was recently set up by the Fauji Fertiliser Company. The government does claim, however, that the next year will see at least 10 more wind projects which will be the beginning of exploiting the wind potential of the Gharo-Keti Bandar Wind Corridor – an area that alone has 50,000 MW power generation potential. With the city of Karachi located nearby, distribution costs will not be high.

Given all our rivers and extensive canal systems, we also have great potential for small-scale hydro projects, including run of the river hydro systems. There are also lots of appropriate sites for medium sized dams in the country. These can be developed fast, don’t displace people and don’t tie up our money. So perhaps, it is time to finally bury the controversial Kalabagh Dam project and explore smaller, hydropower projects.

Biogas plants are also a good option in the rural areas of Pakistan, their only problem, according to Carl Pope, is that “they fall apart when you make them too big”. Many NGOs across the country have introduced small biogas units in their project areas and they are working efficiently and effectively. They seem to work best when you only have a few households sharing the load and feedstock.


Stove lit up by bio-gas in Murree. -Photo by author.

Producing biogas out of crushed sugarcane is also a good option for Pakistan given the number of sugar mills in the country. So far, only around seven sugar mills are doing so and selling their surplus power to the national grid. There is however, the potential of producing 2000 MW through the 82 sugar mills in the country.

There are so many feasible and affordable options for Pakistan, if only we started thinking that small is beautiful and not go for potential expensive scams like “Rental Power Projects”. If we go for the renewable options, experts say we could solve our energy problems within five years. If we stick to “business as usual” the problem will only become worse and we can expect to see an increasing number of people coming out onto the streets in protest.

[SUPARCO II]

121 MW Allai Khwar project put on mechanical run
Tuesday, February 19, 2013

Staff Report

LAHORE: The Water and Power Development Authority (WAPDA) completed the 121 megawatts (MW) Allai Khwar Hydropower Project on Monday and put it on mechanical run, however, it will start electricity generation on trial basis by the end of this month.

The commercial generation is expected to start during first week of March. Allai Khwar Hydropower Project has been constructed on Allai Khwar, a tributary of Indus River in district Battagram of Khyber Pakhtunkhwa province. Main components of the project include 88-metre long and 51-metre high concrete dam, 2.3-kilometre long steel-lined tunnel, power house comprising two generating units of 61.5 MW each, at record design head of 687 metres and a switchyard. Environment-friendly Allai Khwar Hydropower Project generates 560 million units of low-cost hydel electricity per annum, resulting in saving millions of dollars on the corresponding generation of costly thermal energy. Annual benefits of the project have been estimated at about Rs 4.5 billion.

Allai Khwar is the second of the three high-head hydropower projects, which has gone operational. The other two include the 72 MW Khan Khwar and the 130 MW Duber Khwar Hydropower projects. The Khan Khwar Hydropower Project has already been completed in November 2010 while the third Duber Khwar Hydropower Project is nearing completion.

Allai Khwar Hydropower Project is a part of least-cost energy generation plan of WAPDA being executed on priority to cope with the increasing needs of electricity and water in the country. Under the plan, WAPDA is working on 26 large and medium-sized projects with cumulative electricity generation capacity of 21,000 MW and water storage capacity of 13 million acre feet (MAF). Of these projects, six multipurpose schemes with power generation capacity of over 400 MW and water storage capacity of 1.23 MAF will be completed in next two to three months.

dailytimes.com.pk/default.asp?page=2013%5C02%5C19%5Cstory_19-2-2013_pg5_12

[Jazba-e-Kashmir]

Energy crisis will be less severe for next govt: Mukhtar


Ahmed Mukhtar says the present government will leave better electricity situation to the next govt.


ISLAMABAD (Online) - Chairing a meeting of the Board of Private Power and Infrastructure Board (PPIB) held here on Wednesday, Federal Minister for Water & Power Chaudhry Ahmed Mukhtar said incumbent government at the end of its tenure will pass on a much better electricity situation to the next government than what it had inherited from the preceding government.

During our five year tenure, we have made important decisions for new projects and made the procedures easy and investor friendly, he said.

He added that serious work has been started for generating power through bagasse and furthermore, power generation through wind and hydro resources has got a boost during our government, thus paving way for more reliance on wind power for future.

Managing Director Private Power and Infrastructure Board (PPIB) highlighted PPIB’s initiatives to tackle the power situation prevailing in the country. He said that with reference to indigenous resources, PPIB has undertaken fifteen (15) hydropower projects of around 6,500 MW power generation capacity in different locations of the country, some of which are at advance stages of completion.

In today’s meeting, important decisions were taken relating to hydropower projects; 7100 MW Bunji Hydropower Project will be undertaken by WAPDA which will soon start studies on development of infrastructure i.e. transmission lines, access roads, land acquisition etc. It was also decided with consensus of Punjab and AJ&K governments that PPIB shall develop 590 MW Mahl Hydropower Project in the private sector.

In order to facilitate and reduce the processing time for IPPs in obtaining Working Capital financing from banks, the Board approved the execution of Direct Agreement by PPIB with Working Capital Lenders.

To encourage cheaper coal based power generation, the Board approved procedures for development of Private Power Projects under Upfront Tarif. This will standardize and reduce the approval time once NEPRA announces tariff for coal based projects.

In his concluding remarks, the Minster appreciated the efforts of PPIB for its relentless efforts to bring in power from the private sector and remarked that 2530 MW have been added to the national grid in the last five years.


http://dunyanews.tv/...for-next-govt-M



laanti, chawwal, khabees, zaleel, jhoota, haramkhoor, incompetent bloody idiot