Tawanai

Federal Minister for Petroleum and Natural Resources on Friday told National Assembly that the government was making serious efforts to end the load shedding of gas from next year. During question hour, he informed the house that the government was giving incentives to the oil and gas exploration companies for ending load shedding from the country.

Pakistan and Iran are expected to sign an agreement on Iran-Pakistan (IP) Gas Pipeline Project in Turkey during March 8-10, 2010. After signing of the project between the two countries, it would be completed within a period of 3-4 years. This would resolve all issues relating to gas load shedding in the country due to smooth supply of gas from Iran on regular basis, he added.

Responding to a question, he said the government is working on a project to import Liquefied Natural Gas (LNG) to meet the domestic requirements. It would also be instrumental in checking shortage of gas. He said that the load management of natural gas was formally observed for the first time on December 1, in 1982. However, due to lack of proper planning in the past the problem could not be resolved. Load management of gas could only end permanently after matching of supply and demand.

Gas, Natural Gas, Pakistan, Petrol

The Oil & Gas Pakistan Forum 2010 with special emphasis on “Solutions for Sustainability – Pursuit for Steadier Markets” concluded in Islamabad today with speakers providing perceptive insight. Experts stressed on the need to capitalize on the enhanced stability in the global Oil & Gas business, pledging a realignment of policies for a robust future and a collective strategy to recover from the setbacks of the previous years and the need for technology as a driver for future oil and gas initiatives.

More than 300 delegates from government, regulatory bodies, prominent oil & gas companies, stakeholders, members of the Diplomatic Corps and media attended the day-long conference supported by the Petroleum Ministry, MOL Pakistan, Eastern Testing Services and other partners.

The Federal Minister for Petroleum and Natural Resources, Syed Naveed Qamar delivered the Keynote Address, in which he highlighted the most attractive features of the liberal Petroleum Policy and urged the local and foreign E&P companies to proactively enhance their activities and investments in Pakistan for higher productivity. He assured the forum of his complete support and the government’s resolve to protect their interests. Mr. Mehmood Saleem Mehmood, Secretary Petroleum was also present.

Mr. Janos Feher, Chairman, Pakistan Petroleum Exploration & Production Companies Association (PPEPCA) stressed the need for a collection strategy to achieve sustainability and build a steadier, safer and productive market for the oil and gas sector in Pakistan.

Mr. Menin Rodrigues, Chairman of the Conference & CEO of SHAMROCK Communications (Pvt.) Limited in his opening remarks appreciated the efforts of the sector specialists and emphasized the emerging opportunities and challenges in this evident phase of stabilization in this industry across the globe.

Well researched Papers were presented in the various sessions to discuss critical topics including; Regulatory Framework, Incentives, Opportunities, E & P Infrastructure, Business models, Geopolitical Issues; Depleting Reserves, Alternate Energy and Impact of Prices on Economies and an outlook of global perspective. The sessions were chaired by distinguished personalities like; Mr. Saquib Mohiuddin, CEO, Business Support Fund, Ministry of Finance; Mr. Tauqir Sadiq, Chairman-OGRA and Mr. Rune Stroem, Country Director-Asian Development Bank.

The eminent speakers included Janos Feher, Chairman, Pakistan Petroleum Exploration & Production Companies Association (PPEPCA), Dr. Shahab Alam, Director-Petroleum Ministry; Tashfeen Qayyum, CEO, Eastern Testing; Shahrukh Kiyani, Manager Projects, Mari Gas Company Ltd., Sohail Kiani, President-SARF Canada, N.A. Zuberi, Executive Director, Private Power Board; Abbas Bilgrami, Managing Director, Progas and Samir Ahmed, Managing Director, National Commodities Exchange Limited (NCEL).

Mr. Rune Stroem, Country Director Asian Development Bank, gave an indepth overview of the global and regional oil and gas sector opportunities against the backdrop of economic conditions in the respective areas. He said, “Pakistan’s energy issue was a financial issue”. Concluding the conference Dr. Gulfaraz Ahmed, Former Secretary Petroleum eloquently stressed a restructuring of the energy infrastructure with the involvement of professional talent and to harness the country’s vast reserves of natural gas. The conference ended with a vote of thanks and appreciation to the organizers for a well-managed conference

Gas, Oil, Pakistan, Petrol

Shamrock is organizing a conference for Oil and Gas industry in Pakistan. For more details, please visit Shamrock Conferences web site

Events, Gas, Oil, Pakistan

The Pakistan government is offering investors in the Emirates its stakes in nine corporations, including the country’s largest lender and its biggest oil and gas exploration firm, as it seeks to reduce debt.

Officials from Pakistan’s privatisation commission along with JP Morgan, the lead manager on the project, recently concluded a series of presentations to investment houses including the Abu Dhabi Investment Authority, one the largest sovereign wealth funds in the world, as well as Emirates Investment Authority, Abu Dhabi Investment Corporation and Invest AD.

“Eventually the government will sell all its shareholding,” said Waqar Ahmed Khan, the privatisation minister. “We are doing the number crunching, developing baseline formulas and doing evaluations for a number of projects.”

The holdings in the first batch of companies are expected to be sold within the first half of next year, he said.

The government may sell its holdings in firms including the National Bank of Pakistan, which has assets of more than US$10 billion (Dh36.73bn).

Oil and Gas Development Corporation and Pakistan Petroleum, two oil and gas exploration companies, the energy firms Faisalabad Electricity, Kot Addu Power and Jamshoro Power, Pakistan Post Office and State Life Corporation of Pakistan, the country’s biggest life insurer, are also on offer.

The government is also offering its remaining 42 per cent stake in Habib Bank. The Agha Khan Fund for Economic Development owns the majority stake in Pakistan’s largest private commercial bank.

Via The National, Abu Dhabi

Gas, Investment, Petrol

Dawn has published a report which criticizes the exploration effort for gas in Pakistan.

The government has sought a report from the Oil and Gas Development Company Limited (OGDCL) over ‘inordinate delay’ in the exploration of Pakistan’s largest gas field in Balochistan that has the capacity to make all imported fuel options redundant and save billions of dollars in foreign exchange.

Official documents made available to Dawn suggest that the Kohlu exploration block, spread over an area of 2500 square kilometres, possess an estimated reserves of about 22 trillion cubic feet, which are a little less than Pakistan’s total current proven gas reserves of about 29 trillion cubic feet (TCF).

‘This is such a big project for the country’s energy security that the government cannot afford to keep it in cold storage indefinitely,’ a senior government official said.

‘We have also taken up the issue with the prime minister who has assured full support and promised to take it up with the provincial government and security agencies,’ he said.

Of the 22 TCF, according to preliminary estimates, more than 15.4 TCF reserves are described as ‘recoverable.’ At $5 per million British Thermal Unit (MMBTU), the total value of 15.3 TCF translates into about $80 billion or around Rs6800 billion. Based on the current gas demand in the market, these reserves are believed to be sufficient to meet the energy requirements for several decades.

Petroleum ministry sources said that the OGDCL had been asked to furnish a detailed report on the Kohlu block by Dec 25, along with latest position of exploration and development being made to overcome security concerns following the recent Balochistan package announced by the prime minister.

Energy, Fuel, Gas, Pakistan

The picture shows a specially designed rig which is used to drill more than a thousand meters down and gradually turn 90° to follow the gas-rich shale deposit. The rig will drill half a dozen wells at the site in East US.

Photo credit: Technology Review

Gas, Infrastructure

The government is planning to allow the producers either raise the gas tariff or suspend its supply to the CNG stations to reduce increasing consumption by the stations with a view to overcome the possible gas load shedding in upcoming winter.

The price of CNG would be increase by Rs 7 per kilogram if the government allow the gas supplying companies for increase in tariff to avert chances of its load shedding, Chairman CNG Station Owners Association (CNGOAP) Malik Khuda Bux said while briefing the newsmen about the impact of increase an in gas tariff or its suspension to the CNG stations at Karachi Press Club (KPC) on Saturday.

He said according to government announced gas tariff, the industries are paying Rs 339/MMBTU, the trade relating companies are paying Rs 393/MMBTU and Rs 427/MMBTU for CNG operators, which is the highest among the three industries. The gas supplying companies had moved the summary to increase the tariff for CNG stations from Rs 427/MMBTU to Rs 490/MMBTU due to which the difference between petrol and CNG would remain Rs 2/kg, the chairman argued.

He said the federal government has advised to allow the producers to suspend the supply of gas to the CNG stations for the interim period of three months during winter season, which would hit hard the local industry. The statement of Managing Director (MD) Sui Northern Gas Pipeline Ltd (SNGPL), Rasheed Lon for suspension of gas supply to the CNG station of Punjab and NWFP has caused discontent among the investors, he added.

Via Business Recorder

Consumers, Gas

Interesting push from our goverment. Our energy minister has a tough job, I am sure!

Pakistan government is fully supportive of all efforts for production and promotion of solar water heaters in Pakistan, said Raja Pervez Ashraf, Chairman AEDB/Minister for Water and Power, while presiding over the 19th AEDB Board meeting here on Friday. He said that the use of solar water heaters would drastically reduce gas consumption in Pakistan, besides electricity, wood, cow-dung etc were spent on water heating would also be saved. More from the Press Release:

Raja Pervez Ashraf highly praising AEDB and local entrepreneur for establishing the first-ever solar water heaters manufacturing unit in Pakistan near Islamabad directed AEDB to help create a market for the solar water heaters and take all possible steps for promoting the use of solar water heaters in the country.

He also directed AEDB to arrange meetings with the prospective investors, and to especially involve local Chambers of Commerce and Industries to chart out a course of action for attracting investments in this vital sector that would largely help in conserving the fast depleting gas and forest reservoirs and heavy foreign exchange spent on oil imports annually.

Raja Pervaiz Ashraf stressed upon the public sector organisations to immediately take lead in switching over to solar water heating system. The Federal Minister informed the Board that the Federal government would establish Northern Areas Electricity Development Company to facilitate setting up of power generation projects in the region. He said that the decision was taken by the Economic Co-ordination Committee (ECC) on a summary moved by Ministry of Kashmir Affairs and Northern Areas in consultation with AEDB and Ministry of Water and Power.

Read more…

Clean Technology, Electricity, Gas, Pakistan, Solar solar heaters

SNG is a technology which is based on a mixture of natural gas and air. It is cheaper and has been in use at Gwadar. Excerpts from the Business Recorder story:

Owais Mir, head of SNG providing company in country Dynamic Engineering and Automation said that installation cost of SNG plant is six times lesser than LNG plant whereas the cost of one MMBTU SNG is 25 – 30 percent lesser than LNG.

In Gwadar through SNG technology 60 MMBTU gas per hour is being produced and successfully transmitted to the consumers. Moreover textile and ceramic tile industry have already started having the benefit of SNG as alternative source of energy.

He informed that the developing countries like Argentina, Brazil and Chile etc are managing their natural gas shortage through SNG technology. Sui Southern Gas Company (SSGC) has also invited bids for such system which will be a mile stone to fulfil the requirement of natural gas in the country

Clean Technology, Gas, Infrastructure LNG, SNG

According to International Association of Natural Gas Vehicles, as of December 2008, Pakistan has the world’s highest number of vehicles running on compressed Natural Gas (CNG). The number is 2 million. Pakistan also has the World’s highest numer of CNG refuelling stations. i.e. 2600 . This growth has been phenomenal noting that CNG as a fuel was made available in Pakistan, only in 1992.

Via Pakistaniat

Why Pakistan has got so many vehicles running on CNG? I believe, main reason is because gasoline (Petrol) prices in Pakistan are among the highest in the region as well as natural gas is found abundant and locally in Pakistan.

The use of CNG in vehicles brings an added blessing that it is much less polluting than regular gasoline (petrol). The emissions coming out of CNG vehicles consists of water vapors and carbon monoxide (CO). The CO content in CNG exhaust is also 90% less than CO found in gasoline (petrol) exhausts.

In Pakistan, car companies are now offering vehicles which come factory-fitted with CNG kits. These vehicles sell for a premium of approx 30000 rupees (US$ 375) as compared to gasoline (petrol) vehicles.

With Pakistan going full ahead with making CNG as the primary fuel source for transport, one concern is that Pakistan is depleting its Natural Gas reserves faster than ever before.

Cars, Clean Technology, Energy, Gas CNG