Tawanai

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

Pakistan wants to start importing 1 million to 2 million tonnes of liquefied natural gas (LNG) per year from Qatar in six months, Minister of Investment told Reuters on Monday. Qatar is the world’s largest exporter of LNG and Pakistan needs gas to feed power plants and alleviate chronic shortages of electricity. The two countries have held talks for LNG supply, Waqar Ahmed Khan said.

A Qatari official confirmed talks had taken place but were at a very early stage. “We hope to sign the deal soon,” Khan said. “They agreed during the talks to sell Pakistan one to two million tonnes per year, but there is no deal yet.” LNG is a gas super-chilled to liquid form for export in specially designed tankers.

Pakistan is building a pipeline to receive the gas, and wants to lease a vessel that can convert the LNG back to gas offshore before pumping it into the grid, Khan said. “We are now in negotiations with the companies that own these ships,” Khan said.

Gas, Infrastructure

We have been discussing the meetings regarding the Pak-Iran gas pipeline and now it has been reported that the government has made a decision and signed the accrod. Federal cabinet, without taking the matter to parliament or getting the consent of the government and people of Balochistan, agreed to allow the import of one billion cubic feet of gas from Iran at the rate of 80 per cent of the price of crude oil. However, Iran, desperate to export its gas and other energy resources to regional countries, held a detailed debate on the deal in its parliament. Dawn adds:

Officials from the newly formed Inter State Gas System (ISGS) signed the controversial gas sale-purchase agreement silently in Istanbul. According to the price accord, Pakistan will purchase Iranian gas on various prices; there isn’t a fixed rate, which clearly extends great leverage and benefit to Iran to procure a high price for its exported gas. Iran will sell its gas to Pakistan for $7 per MMBTU, if the Japanese Crude Cocktail (JCC) price is $50 per barrel, $9.4 per MMBTU and $13 per MMBTU if the JCC price touches $70 and $100 per barrel respectively. The price does not include infrastructure, security and other costs.

The imported gas price would be 10 to 20 times more costly than the gas being extracted from Balochistan and Sindh by the central government. Pakistan Petroleum Limited is currently paying only 63 cents per MMBTU for Balochistan’s high heating value gas. However, those 63 cents go straight to the kitty of the central government and Balochistan receives only 12.5 per cent royalty against the gas produced. The level of discrimination and exploitation of Baloch wealth can only be gauged by these figures — Balochistan produces $1.4bn worth of gas annually but receives only $116m in royalties.

There are concerns about the pricing and if Pakistan paid too much.

The price formula and the gas deal with Tehran indicate a great level of injustice as well as the inability of the political and official leadership of the country to negotiate a reasonable price formula with Iran; a country faced with immense global and economic pressures caused by international sanctions.

ISGS officials have said that this rather costly gas will be used for power generation. If this is true, then instead of placing thousands of kilometres of pipelines, the Pakistani establishment could save billions of dollars by simply importing cheap and surplus electricity from Iran which has been offered by the Iranian government. Pakistan could also encourage electricity-generating units to be installed within Balochistan near the border towns and supply the produced electricity through the existing power transmission system to the rest of the country.

There are several other unresolved issues which have been ignored and which will minimise the chances of success for the gas pipeline project. These include Balochistan’s unresolved political conflict in Pakistan and Iran, Tehran and Islamabad’s uneasy relations with the Baloch and Balochistan’s role in the overall gas pipeline project.

Via: Dawn

Gas, Infrastructure, Investment, Pakistan

As a part of its drive to secure foreign investments and overcome energy crisis, a two‑day conference on oil and gas exploration in Pakistan is being organized in London (of all the places) next month. The July 23‑24 conference will comprise a series of events and interactive sessions between the various stakeholders for a share in Pakistan’s natural resources. Pakistan Exploration Promotion Conference has been arranged by the Ministry of Petroleum and Natural Resources

Similar moots have also been planned during the month of July at Houston in USA and Calgary, Canada, the two important oil cities in the western hemisphere.

Officials at the Pakistan High Commission said these events will provide an excellent platform for the international companies  to be informed about the upstream oil and gas business in Pakistan and highlight potential investment opportunities in the country.

“The agenda of the events will be based around the recently approved Petroleum Policy 2009 which offers attractive incentives to potential foreign and local investors and companies,” Saira Najeeb Ahmed, Commercial Counsellor, told APP Thursday.

The latest Basin Study of April 2009,confirms the rich oil and gas potential of the country where 934 million barrels of oil has been exploited against the potential of 3675 million barrels.

Similarly, the south Asian country has gas potential of 67 trillion cubic feet of which 54 tcf has been exploited so far.

The official noted that there are still abundant reserves in Pakistan that are yet to be explored and to ramp up production from existing wells and tap into the unexplored reserves, the Government has decided to take serious measures.

Furthermore, in light of the current energy crisis, the Government has introduced a flexible and attractive package for onshore and offshore petroleum exploration through the Petroleum Policy 2009.

In last five years, the Petroleum & Natural Resources Ministry has granted 88 licenses to various Exploration and Production (E&P) companies including 16 international groups such as BP of UK, Eni of Italy, MOL of Hungary, OMV of Austria, BHP of Australia, NIKO Resources of Canada, amongst many others.  The E&P industry has also committed an investment of US $ 486 Million US$ in the oil & gas sector.

Via: APP

Energy, Gas, Investment, Oil, Pakistan

Talks are going on between Pakistan and Iran on the gas pipeline deal. Do you think it will work out or do you think that the conditions are not good for this deal?

Business Recorder writes:

Pakistan and Iran are said to have agreed to resolve the disputes on gas pipeline project in accordance with the United Nations Commission on International Trade Law (UNCITRAL), sources in Petroleum Ministry told Business Recorder.

The two countries are expected to trim the Gas Sale Purchase Agreement (GSPA), possibly during the current week, to materialise the much-delayed multi billion dollars project.

On April 8, 2009, the Federal Cabinet gave approval for the project, subject to the condition that, for the present, Pakistan should not commit to purchasing more than 750 mmcfd gas, against the initial plan of one billion cubic feet, at offered crude oil parity of 80 percent.

Gas, Infrastructure, Pakistan

Both industries and consumers have been hit hard by the natural gas shortage. New connections for industrial areas have been tightly controlled over the last many months. Sui Northern Gas Pipelines Limited (SNGPL) is planning to add 250 mcf per day additional gas in the system from June this year. The natural gas supply in Pakisan has significant problems of theft and other losses. Sui Gas company has large amounts unsetteled with Wapda and consumers as well.

The managing director of SNGPL said that company was trying to reduce line losses. Rs 1.5 billion have been allocated to reduce the losses up to 6 percent from the current level of 8 percent. The company was also trying to minimise gas pilferage as the government has been asked to enact law to award severe punishments to discourage gas theft which is currently 50 percent of total losses, he informed. Currently there is no effective legal act under which gas pilferage complaint is registered and culprits punished accordingly, he added.

Via Business Recorder.

Conservation, Energy, Gas

According to Aleternative Energy Board of Pakistan, a global seismic belt passes through Pakistan and the country has a long geological history of geotectonic events. The Geotectonic framework shown above indicates that Pakistan should not be lacking in commercially exploitable sources of geothermal energy. AEDB is working on a preliminary study on technical, economical and market aspects of geothermal utilization possibilities and detailed feasibility studies for geothermal energy utilization. Let’s take a look at what Geothermal energy is?

We have prepared a concise summary of Geothermal power and its use in the world – aggregated from various top sources.

Geothermal power is energy generated by heat stored in the earth, or the collection of absorbed heat derived from underground, in the atmosphere and oceans.  As of 2008, geothermal power supplies less than 1% of the world’s energy. Geothermal power requires no fuel, and is therefore virtually emissions free and insusceptible to fluctuations in fuel cost. And because a geothermal power station doesn’t rely on transient sources of energy, unlike, for example, wind turbines or solar panels, its capacity factor can be quite large; up to 90% in practice.

Geothermal has minimal land use requirements; existing geothermal plants use 1-8 acres per megawatt (MW) versus 5-10 acres per MW for nuclear operations and 19 acres per MW for coal power plants. It also offers a degree of scalability: a large geothermal plant can power entire cities while smaller power plants can supply more remote sites such as rural villages.

Geothermal resources range from shallow ground to hot water and rock several miles below the Earth’s surface, and even further down to the extremely hot molten rock called magma. Wells over a mile deep can be drilled into underground reservoirs to tap steam and very hot water that can be brought to the surface for use in a variety of applications. Geothermal power is generated in over 20 countries around the world including the United States, Iceland, Italy, Germany, Turkey, France, The Netherlands, Lithuania, New Zealand, Mexico, El Salvador, Nicaragua, Costa Rica, Russia, the Philippines, Indonesia, the People’s Republic of China, Pakistan, Japan and Saint Kitts and Nevis. Chevron Corporation is the world’s largest producer of geothermal energy.

A global seismic belt passes through Pakistan and the country has a long geological history of geotectonic events. Several projects are  on the roll these days which include Remote Sensing Studies, geothermal geology, geothermal hydrogeology, hydrogeochemical Studies, geophysical Studies and preliminary Study on Technical, Economical and Market Aspects of Geothermal utilization possibilities and detailed feasibility studies for geothermal energy utilization. Projects like these if being managed and properly financed by Pakistani government should result in a major solution for meeting the energy shortage.

A 2006 report by MIT, that took into account the use of Enhanced Geothermal Systems (EGS), concluded that it would be affordable to generate 100 GWe (gigawatts of electricity) or more by 2050 in the United States alone, for a maximum investment of 1 billion US dollars in research and development over 15 years. The MIT report calculated the world’s total EGS resources to be over 13,000 ZJ. Of these, over 200 ZJ would be extractable, with the potential to increase this to over 2,000 ZJ with technology improvements – sufficient to provide all the world’s present energy needs for several millennia. The key characteristic of an EGS (also called a Hot Dry Rock system), is that it reaches at least 10 km down into hard rock. At a typical site two holes would be bored and the deep rock between them fractured. Water would be pumped down one and steam would come up the other. The MIT report estimated that there was enough energy in hard rocks 10 km below the United States to supply all the world’s current needs for 30,000 years.

Conservation, Consumers, Economics, Electricity, Energy, Environment, Gas, Renewable Energy, Uncategorized