The government is facing difficulties in unloading oil consignments from ships because of port congestion and infrastructure limitations, resulting in supply shortages in flood affected areas of Sindh, Khyber Pakhtunkhwa and Northern parts of the country.
Sources in the petroleum ministry told Dawn on Monday that the country’s oil consumption had dropped by about 50 per cent after the recent floods as transport activities had substantially slumped because of damage caused to the road infrastructure.
They said the stocks of petroleum products diesel, furnace oil and petrol were enough for more than 28 days of the country’s usual requirement but transportation problems were resulting in short supplies in many parts of the country, particularly in Sindh and Gilgit-Baltistan.
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Energy, Events, Fuel, Infrastructure, Pakistan, Petrol
flood, Fuel, Petroleum
In our last post on the Synthetic Natural Gas (SNG); we discussed that LPG when mixed with air in right proportion, gives a perfect replacement for Natural Gas. While mentioning, the potential opportunities SNG can provide we said that Industries can use it as an alternate/back-up gas during the Natural Gas (NG) shutdown or curtailments times. In this post we shall discuss the importance of this alternate gas for industries and its need in the coming times.
In Pakistan, NG crisis are no different than energy crisis. Earlier we had NG shutdown hours/days only in winters, now we even have them in summers. With this happening it is easily predicted that in coming times or not thinking of far in the coming winters the NG shortage is going to get worst.
Managing Director Sui Southern Gas Company (SSGC), Dr Faiz Ullah Abbasi, has affirmed this while addressing a recent business gathering. He has said the at the problems regarding the supply of gas in the coming winter would become more serious as compared to the last year, as the demand and supply gap has started to widen.
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Energy, Gas, Infrastructure, Pakistan, SNG
government, Industries, Natural gas, OGDC, ogra, Pakistan, PARCO, SNG, SNGPL, SSGC, Sythetic
When we have clear trade embargoes for no trade with Israel. This comes as an astonishment that how can the state oil company PSO go about a deal with an Israel based company. The excerpt from Dawn has more detail:
The Pakistan State Oil, a government-run oil company, has awarded a contact to an Israeli-based firm, Turpak-Orpak, despite the government’s ban on any kind of trade or agreement with an Israeli entity.
The matter was taken up by the Senate Standing Committee on Interior at its meeting on Monday.
The committee did not only deal with the matter of awarding a contract to any Israeli firm but also expressed doubts over the operation of the company close to sensitive installations in the country.
“It is an Israeli military establishment-funded company which is being headed by a military general,” committee’s Chairman Senator Talha Mehmood told Dawn.
“We have learnt that the company had installed its equipment close to sensitive installations and, therefore, I have ordered an inspection of the equipment to ascertain whether they are being used for monitoring purpose,” the senator said.
Mr Talha said that under SRO 76 (1) issued on Sept 2009, no Israeli company could operate in the country, but the PSO management awarded the contract to the firm in 2008.
PSO officials who attended the meeting said the contract had been awarded by the previous management and they had nothing to do with it.
Read more: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/front-page/19-pso-grants-contract-to-israeli-firm-080-hh-10
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PSO, Pakistan
Israel, oil, Pakistan, PSO, Trade
The state oil company, PSO already in litigation along with Petrosin over the auto-gas deal, it has now being disclosed by the company MD that a power group is involved in supply scams involving selling of cheap oil ahead of monthly price adjustments.
Here is an excerpt that appeared in Dawn News today.
A fresh scam in the oil supply chain surfaced on Thursday when the management of state-run Pakistan State Oil (PSO) officially confirmed that a powerful group in the company was involved in selling cheap oil to influential dealers ahead of monthly price adjustments to enable them to charge higher rates from consumers.
As the managing director of the country’s largest oil supplier, Mr Irfan Qureshi, broke the news before the National Assembly’s Standing Committee on Petroleum and Natural Resources, the committee’s chairman, Shaikh Waqas Akram, demanded an inquiry and its report within a week to identify officials involved in manipulating the supply chain to the benefit of dealers.
Mr Qureshi told the committee that PSO officials were found providing petroleum products to dealers on credit at the end of each month in anticipation of an increase in prices to earn a windfall at the cost of PSO. He said two officials had been held accountable for being involved in the malpractices and an inquiry had been in progress since April.
He said the practice had been going on for years and had now been brought to an end. He said six officials at the Lalpir depot had been suspended for embezzling Rs100 million. He said whenever the PSO took action against corrupt officials, courts reinstated them.
Read more: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/front-page/powerful-group-in-pso-involved-in-supply-scams-370
Fuel, Infrastructure, Oil, PSO, Pakistan
oil, prices, PSO, scam, supply
Pakistan State Oil (PSO) and Petrosin, a Singapore-based company, have entered into a legal battle over scrapping of Rs 10 billion LPG sale contract between the two parties, as the latter has got a stay order from Lahore High Court Rawalpindi Bench, Business Recorder has learnt.
Pakistan State Oil (PSO) Board of Management (BoM) had rescinded its earlier decision of awarding a contract to Petrosin in last week of April for setting up 400 LPG auto-gas stations across the country. The sources said the PSO’s board had earlier approved the deal through a majority vote with Petrosin.
The PSO’s BoM recently gave the go ahead to the management to invite parties for prequalification to participate in the project of LPG supply to the entire net of the autostations. According to sources, Rawalpindi Bench of LHC has issued stay order directing PSO not to proceed with the process of LPG deal as per advertisement given in newspapers seeking parties for pre-qualification till the final verdict of the court. Sources said that the court would resume hearing of the case today (Friday).
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Auto-Gas, LPG, PSO, Pakistan
AG, Auto-Gas, LPG, PSO
The World Bank will provide $250 million for ‘Natural Gas Production Enhancement and Efficiency Project’ to increase availability and affordability of electricity by improving access to natural gas fuel for power generation through gas sector efficiency enhancements.
According to an updated project report of World Bank, the proposed project would comprise design and implementation of energy sector policy, regulatory, institutional and investment measures to reduce unaccounted-for gas (UFG) from the current level of about 8 percent to closer to international norms (around 1 percent), which would involve: (a) pipeline replacement to eliminate leakages and reduce technical losses; and (b) modernised metering and control systems. The investment component may approximately cut UFG in half, or better, depending on the project’s impact on gas theft.
It would reduce residential consumers’ gas consumption through pilot projects to replace old gas appliances (space heating and/or hot water) that have low efficiency (20-30 percent) with modern, efficient appliances (efficiency 50-70 percent), the report said.
To address the thermal efficiency issue concerning appliances in a broad way with impact beyond the pilot, it would design a gas usage optimisation strategy based on a combination of national priorities and economic costs and benefits, implementation efficiency, and conservation measures. It would enhance institutional capacity in petroleum sector governance, including the regulatory authority (Ogra).
Energy, Investment, Natural Gas, Pakistan
Division of natural resources has been a controversial issue for a long time in Pakistan. Recently, members of Parliamentary Committee on Constitutional Reforms have agreed to a joint share of Federation and Provinces in the natural resources ie, lands, minerals and other things of value within the continental shelf or underlying the ocean within the territorial waters of Pakistan, according to sources.
Text of Article 172 (2) :
“(2) All lands, minerals and other things of value within the continental shelf or underlying the ocean within the territorial waters of Pakistan shall vest in the Federal Government.”
The sources said that after the addition of a new clause, any province will have joint territorial ownership of the ocean within 12 nautical miles limit of its jurisdiction with federation. The committee also decided the Federation could not install any hydel project for power generation without the consultation of the concerned province.
According to sources, Council of Common Interests (CCI) would take decisions on all matters relating to provincial autonomy in Federal Legislative List part-II in future. The members of the Committee strongly recommended strengthening of the CCI to resolve all the matters of Federal Legislative List part-II and disputes among the provinces and federation.
The sources said that Committee Chairman Mina Raza Rabbani is taking up first those matters on which the parties have fewer differences. Clauses that have attracted strong reservations of the provinces would be taken up by the committee later. The committee is discussing clause by clause Federal Legislative List for the last four days. The sources said that there are differences among the nationalist and mainstream political parties on Articles-21, 29, 32, 34,49 and 53 of Federal Legislative List Part-I.
Economics, Energy, Pakistan
politics, provinces
FFC Energy Limited (FFCEL) has finalised contracts of Engineering, Procurement and Construction (EPC) and Operation and Maintenance (O&M) with Nordex of Germany for development of 50 Megawatt Wind Power Project at Jhimpir, Sindh.
FFCEL is a fully owned subsidiary of Fauji Fertiliser Company Limited (FFC), while Nordex AG is a leading manufacturer of Wind Turbines in the world. Founder and Chief Sales Officer of Nordex Carsten Pedersen and Lieutenant General Malik Arif Hayat (Retd) CE & MD, FFC & FFCEL exchanged the contract documents, a press release issued here said.
Arif Alauddin, CEO Alternative Energy Development Board (AEDB) Pakistan was also present at the ceremony. FFCEL shall soon be filing Tariff Petition with NEPRA for the project. The construction of the project, shall begin after Tariff approval from National Electric Power Regulatory Authority (Nepra) and signing of Energy Purchase Agreement between FFCEL and Central Power Purchase Agency. The project, once operational, shall address electricity shortage in the country and will also help the economy by providing cleaner, sustainable and economical electricity to the nation.
FFC has further planned to develop and establish more renewable energy projects in Pakistan to contribute towards fulfilling Pakistan’s electricity needs through captive renewable resources. To that end, FFC has already obtained Letter of Intent (LOI) of additional 100 MW Wind Power Projects from (AEDB)
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Clean Technology, Energy, Green, Infrastructure, Investment, Pakistan, Renewable Energy, Wind
Pakistan State Oil (PSO) faces serious debt issues and the finance ministry has said that it cannot help. The National Assembly standing committee on petroleum and natural resources has resolved to take up the issue before Prime Minister Yousuf Raza Gilani. Business Recorder reports that:
Cash-strapped PSO had requested for immediate arrangement of Rs 60 billion to ease its financial woes in a meeting held on Wednesday. Special Secretary, Finance, Asif Bajwa, chaired the meeting which was attended by all stakeholders.
“But Finance Ministry has agreed to release Rs 5 billion to Pakistan Electric Power Company (Pepco), which will make payment onward to PSO,” sources said. “Now the third quarter is going to end, and the Finance Ministry will release money during the next month to bail out oil and power sectors,” sources said, and alleged that poor recoveries by Pepco were also the main reason of the circular debt. During the meeting, it was stated that Pepco had sent bills to the consumers and would make payment to PSO during next month.
Meanwhile, briefing the NA body on petroleum and natural resources, PSO Managing Director (MD) Irfan Qureshi said that PSO dues against its clients had exceeded Rs 105 billion. He said that PSO required Rs 57 billion to mature Letters of Credit (L/Cs) for oil import. “PSO may default its L/Cs by April 20 if it is not provided Rs 57 billion,” he warned.
The Oil and Gas Development Company Limited (OGDC) authorities informed the NA body on petroleum and natural resources that litigation issues were resulting in loss of oil and gas. “The country is losing 6000 barrels per day crude oil, 300 MMCFD natural gas and 500 tons LPG per day due to litigation,” OGDC officials said.
Sui Southern Gas Company Limited (SSGC) representative said that the company was to receive Rs 35 billion from its clients on account of gas supply and refunds from FBR. The outstanding of SSGC against KESC stands at Rs 17 billion and Rs 4 billion from Water and Power Development Authority (Wapda). The gas utility is to receive Rs 10 billion on account of refund from Federal Board of Revenue (FBR).
Energy, Oil, Pakistan
Pakistan State Oil (PSO), PSO
Pakistan Ministry of Water and Power would provide electricity to around 100 villages through solar energy during this year as part of its programme to ensure light in every village of the country. Electrification through Renewable Energy Technologies in remote and off-grid villages of country is the prime focus of the government which has initiated projects not only to overcome power shortage but also to electrify the remotest parts, said an official at the Ministry.
The official said a project has already been approved to electrify 400 remote villages of Sindh and Balochistan through solar energy. Around 49 villages (3000 households) have been electrified in district Tharparker using solar energy through government own funds.
The funds for remaining work in Sindh and the projects in Balochistan are being negotiated with the donors and are expected to be initiated during this year. Moreover, 100 Solar Home Systems in three villages of district Dera Bugti, 119 Solar Home Systems in 10 villages of Deh Tiko Baran district Jamshoro, Sindh and 200 Solar Home Systems in 16 Villages of district Khuzdar, Balochistan are also being installed through which thousands of people would be facilitated.
The official said in view of the electricity crises in the country the government has given a serious thought to both short and long-term measures. Public sector hydro plants with generation capacity of 347 MW will be added to the system at a cost of US $500 million and 1,700 MW of high efficiency public sector thermal generation would start generation between end 2010 and upto 2012. The outlay for these projects is estimated as US $1.5 billion.
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Consumers, Electricity, Energy, Pakistan, Renewable Energy, Solar, power
