The government has decided to initiate a survey of electricity consumers to address issues of power theft, line losses, power companies’ losses and circular debt.
According to sources in the ministry of finance, power distribution companies will conduct the survey, which is part of a broader strategy chalked out by the Asian Development Bank, the World Bank and the Planning Commission to tackle the energy crisis.
A survey for the Islamabad Electric Supply Company (IESCO) has already been finalised as part of a pilot project. Feedback from the project will be funnelled into finalising the survey for power distribution companies.
Consumers, Electricity, Energy, Government, Infrastructure
The petroleum ministry has held the Oil and Gas Regulatory Authority (Ogra) responsible for the recent fuel crisis in the country.
In a report submitted to the petroleum minister, the office of director-general for oil said that Ogra failed to perform its duty as a regulator as it did not take timely action to head off a crisis. Ogra’s ineffectiveness resulted in black marketing of petrol and diesel in many parts of the country.
Sources in the ministry said Ogra was supposed to take steps to ensure availability of petrol across the country not only by taking measures against hoarders and black marketers but also through timely imports to meet the shortage created by the shutdown of Parco due to floods.
Government, OGRA, Oil, Pakistan, Petrol
Pakistan will push hard for quick implementation of a long-delayed trans-regional gas pipeline from Turkmenistan in a bid to ease its mounting energy crisis, Petroleum Minister Naveed Qamar said on Tuesday. Senior officials of Turkmenistan, Afghanistan, Pakistan and India on Monday inked the framework of an agreement to construct the project with an estimated value of $3.3 billion.
The project would pump natural gas to Pakistan and India through the southern Afghan province of Kandahar, the stronghold of the Taliban and its birthplace. More energy security could ease pressure on Pakistan’s government, which faces a range of challenges, from a home-grown Taliban insurgency to what will likely be years of economic pain after summer floods caused billions of dollars in damages.
Economics, Energy, Gas, Pakistan
Earlier this week we heard of PSO warning the government of the upcoming power crisis if the case of circular debts is taken up. It is now learned that PSO gets enough founds to keep supplies on to the IPPs. Express Tribune report gives the details.
The finance ministry has released Rs12 billion on an urgent basis to Pakistan State Oil (PSO) in order to help the public-sector oil marketing company avoid default. The release comes a day after the PSO management suspended supplies of furnace oil to independent power providers Hub Power Company (Hubco) and Kot Addu Power Company (Kapco).
“The finance ministry released a payment of Rs12 billion to PSO today (Saturday) and has also given assurances that another Rs24 billion will be paid to the company by Tuesday, September 21,” the PSO spokesperson told The Express Tribune. “In light of the release and commitments, we are resuming supplies to Hubco and Kapco.”
Fuel, Government, power, PSO
The LPG Marketing companies, dealer and equipment manufactures/suppliers are striving hard to bring the autogas stations and provide alternative fuel for vehicles in the country. For the same, the LPG Association of Pakistan’s (LPGAP) proposed for allowing installation in resedential areas following the NFPA-58 regulations which the authority Oil and Gas Regulatory Authority (Ogra) has put down. Business Recoder report gives the details.
According to documents available with Business Recorder, the Authority’s rationale is that in a country like Pakistan appropriate locations of LPG dispensing stations is all the more important due to high population densities, poor traffic conditions, dismal public awareness towards safety and weak emergency response at local level. Authority said that National Fire Protection Association (NFPA-58), an International Code and Standards Organisation, provided guidelines on safety at LPG dispensing stations which do not adequately cover the safety requirements for areas around dispensing stations.
Auto-Gas, LPG, OGRA, Pakistan
The controversy over appointment of Adnan Khwaja as MD, Oil and Gas Development Company Limited (OGDC), is setteled after appointment of Director General (DG) Petroleum Concession Naeem Malik as new MD of the company. Details via Business Recorder
Naeem is a seasoned official with wide experience of dealing issues relating to oil and gas sectors. He has also worked as DG Gas and DG Oil in Ministry of Petroleum and Natural Resources. During the short span of working as DG PC, he had settled issues of oil and gas exploration and granted record exploration licences to companies in the oil and gas sectors.
After retirement of Mahboob Shah Alam, Naeem was given acting charge of OGDC MD. Adnan Khwaja’s appointment as OGDC MD had sparked controversy. However, he resigned from this post on Thursday. The Supreme Court had also taken suo motu notice of his appointment.
We have heard about the IPI gas pipeline on and off. The agreement between Iran and Pakistan was signed for gas pipeline in march this year. The latest is that German Consultants are set to be appointed for this project. Details from paktribune are as below.
Pakistan is set to appoint ILF Consulting Engineers as the consultant for the Iran gas pipeline within six days, making first step toward the much-delayed project to meet energy shortage, a senior petroleum ministry official said on Wednesday.
“The cost of the consultancy project will be $25 million and they will have to complete the technical feasibility within 12 months,” Secretary Petroleum, Ejaz Chaudhry, told our sources. The Germany-based consultants would be working on the pipeline along with National Engineering Services Pakistan Ltd. (Nespak), he said.
Gas, Government, Infrastructure
An interesting report from DAWN summaries the Asian Development Bank report which holds the Ministry of Water and Power and NEPRA (National Electric Power Regulatory Authority) responsible for power crises the country faces.
The Asian Development Bank has held two major power sector stakeholders — the Ministry of Water and Power and the National Electric Power Regulatory Authority (Nepra) — responsible for most of the ills Pakistan’s power sector is facing today, including loadshedding, system losses and high tariffs.
This puts a serious question mark on the performance of the two public sector institutions designed and set up to solve electricity problems and remove consumers’ sufferings. They have been blamed for stalling or delaying reforms launched by the government more than two decades ago.
Consumers, Electricity, Energy, Government, Infrastructure, Pakistan
The Oil and Gas Regulatory Authority (Ogra) has increased the price of Liquefied Petroleum Gas (LPG) by Rs 6 per kg, domestic cylinder by Rs 71 and commercial by Rs 273, Irfan Khokhar, Chairman LPG Distributors Association of Pakistan said in a statement on Wednesday.
He said according to the notification issued by Ogra the new price of gas for domestic users in Karachi would be Rs 85 per kg and in Lahore and Gujranwala Rs 105 per kg. While in Rawalpindi, Islamabad, Bahawalpur, Multan, Rahimyar Khan, Sargodha, Mandi Bahauddin, Sadiqabad, Hyderabad, Jhang, Jhelum, Mianwali the price will be Rs 115 kg and the overall price of a domestic cylinder in these cities will now be Rs 1307. In Azad Kashmir, Swat and Gilgit the new price will be Rs 120 per kg and the domestic cylinder in these areas will now be available at Rs 1366.
via Business Recorder
The case of unsolved circular debts will lead to major oil crises says Parco and PSO. This is a long pending issue and government should now step up to play its role in resolving before it becomes the reason of further loss to the economy. The business recorder news item gives the details.
The country’s oil sector’s largest giants, Pak Arab Refinery Limited (Parco) and Pakistan State Oil (PSO), have warned the government of an imminent massive oil crisis due to the unresolved circular debt problem and have urged it to arrange funds for import of petroleum products, Business Recorder has learnt reliably.
Parco has urged the government to arrange funds via PSO to save it from default on account of Letter of Credits (L/Cs) for the import of crude oil. Parco revealed that its bank borrowing was rising due to non-payment of dues by PSO with Rs 145.4 billion receivables against different clients on Thursday morning.
Oil, Pakistan, PSO, WAPDA