Month: March 2020

Coal, the dirtiest and usually the cheapest option for energy, is now the world’s most expensive fossil fuel. Oil’s epic collapse over the past month means the global crude benchmark is now priced below the most widely traded coal contract on an energy-equivalent basis, according to Bloomberg calculations. Australia’s Newcastle coal on ICE Futures Europe settled at $66.85 a metric ton on Friday, the equivalent of $27.36 a barrel of oil. Brent futures ended at $26.98 a barrel. While coal use in the U.S. and Europe has fallen because of cheap natural gas and renewables, as…

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The federal government can exercise the clause of force majeure against Independent Power Producers (IPPs) to pull the power sector out of pressure due to outbreak of COVID-19 in the country, said power sector experts. They said the need for any such measure in an emergency situation like the present one when the power division has stopped the distribution companies from disconnections and extended payment dates to facilitate the consumers, including domestic, commercial and industrial. There are around 42 IPPs that contribute significantly to electricity generation in Pakistan. It is…

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ISLAMABAD: The Engineering Development Board (EDB) Thursday circulated the draft Electric Vehicle (EV) policy 2020-25 amongst stakeholders after facing harsh criticism in the Cabinet on March 25, 2020, well-informed sources told Business Recorder. According to the draft policy, since hybrid technology does not require additional infrastructure development, which is one of the major prerequisites for EVs, hence the thrust of this policy is to provide an incentive structure. This is suitable and feasible for establishment of local manufacturing capabilities in EV within the country. The EDB says that since the…

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The government has lately been trying to tackle the growing circular debt in the power sector. The policy thrust has largely been administrative. It has involved power cuts in the low-recovery areas and raises in the electricity prices to recover the costs. This hasn’t produced any tangible results. On one hand, the government plans to float a Rs200bn Sukuk to settle part of the debt and, on the other, it has announced a freeze on electricity prices till June. This is not a wholesome policy as both the Sukuk and…

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Federal Government is under pressure to declare force majeure in its liquefied natural gas (LNG) deal with Qatar following a sharp decline in gas demand in the wake of lockdown due to coronavirus spread, sources said. Petroleum Division is working with Pakistan State Oil (PSO) and two public sector gas utilities – Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Ltd (SNGPL) on a proposal for the federal government to declare force majeure in its long-term deal with Doha in order to halt LNG import that is expensive…

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