U.S. energy companies begin restoring oil and gas output after hurricane

Chevron Corp, Royal Dutch Shell Plc and BHP Group all said workers were headed back to production platforms in the U.S.-regulated northern Gulf of Mexico. BHP expects to complete the return of workers to its Shenzi and Neptune production platforms on Sunday, spokeswoman Judy Dane said, adding that resuming flows will depend on how quickly pipelines return to service. It can take several days after a storm passes for energy producers to evaluate facilities for damage, return workers and restore offshore production. The companies that operate oil and gas pipelines…

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IMF programme revival

Reports indicate that Pakistani authorities held a video conference with the International Monetary Fund (IMF) mission led by Ernesto Rigo for the stalled 6 billion dollars Extended Fund Facility programme recently in which the Fund team reportedly insisted on raising power tariffs as well as achieving the budgeted tax revenue target of 4.9 trillion rupees for the current year. This comes as no surprise as the second quarterly staff review was stalled in December 2019/January 2020, because the government was unable to do the agreed time bound power sector reforms,…

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Pakistan’s peaceful nuclear programme

Spanning over decades, Pakistan’s peaceful nuclear programme became a great success story though it has been subjected to a politically motivated narrative all along. The peaceful application of nuclear energy relates to power generation, agriculture, health, mineral exploration, industry and of course is vital for socio-economic uplift of any country. In addition, the nuclear power projects provide employment opportunities to thousands of individuals and contributing towards socio-economic development of adjoining communities with provision of healthcare and education facilities. Pakistan started its civilian nuclear power programme in the early 70s with…

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Centre, Balochistan yet to decide development, production of Sui Lease

Islamabad- The Federal government and government of Balochistan have yet to resolve the issue pertaining to the signing of Development and Production of the Sui Lease even after the passage of more than five years of the expiry of the lease in July 2015.  A committee comprising of the Federal and Balochistan government representatives will meet tomorrow (Tuesday) to attempt the resolution of the Sui mining lease issue which is on temporary extensions since 2015, official source told The Nation here. The matter regarding 69 per cent of the Sui…

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OPEC’s No.2 Expects Another Weak Quarter Of Oil Prices

Iraq expects the pressure on oil prices to continue through at least the first quarter of 2021, with oil minister Ihsan Abdul Jabbar expecting the average for Brent during January-March 2021 at $45 a barrel, Bloomberg reports, citing an interview of Jabbar for Iraqi daily Al Sabah. As a result of this expectation, Baghdad will be basing its 2021 budget on an oil price level of $42 a barrel, following the fallout from the coronavirus, the report also noted. Brent is currently trading at $42 a barrel, with West Texas…

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EU Targets Emission Savings From Buildings

The European Union (EU) aims to make buildings more energy efficient to save energy and cut emissions, European Commission President Ursula von der Leyen said on Monday. Public buildings and private homes are currently responsible for 40 percent of the EU’s energy consumption, she said, noting that the process of renovation and retrofitting has already started. “But at the current pace, it would take more than a century to bring emissions from our buildings to zero,” von der Leyen said in a speech today. Regions and cities will be at…

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Gazprom Expects Gas Glut In Europe Will Continue In 2021

Russian gas giant Gazprom doesn’t see the glut in Europe’s natural gas market going away soon, with oversupply extending well into 2021. “The majority of challenges and threats are still here. One of them is general oversupply, which we are likely to see in 2021 as well,” Elena Burmistrova, Director General of Gazprom Export, said on Monday, as quoted by Reuters. The glut in the European market was created earlier this year as demand slumped with the coronavirus pandemic that led to a decline in economic activity. In the spring…

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Middle East Natural Gas Megaprojects Face Major Risks

In a new report, the Arab Petroleum Investment Corporation (Apicorp), the investment fund of the Organization of Arab Petroleum Exporting Countries (OAPEC), states that the ongoing oil market crisis and COVID issues did not have a detrimental effect on committed gas investments in the Middle East and North African (MENA) region. Apicorp reports that gas investments have been steady in comparison to 2019 with planned investments showing an increase of 29% to reach $126 billion. The main driver for the current increase in investment is a regional drive for cleaner…

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The Ticking Time Bomb of Circular Debt

The loan programme of the International Monetary Fund (IMF) suspended in January remains in limbo as Pakistan’s public debt went past 87 per cent of GDP at the end of 2019-20, up from about 72pc of GDP at the end of 2017-18. Pakistan direly needs the IMF support to maintain healthy foreign inflows from bilateral and multilateral lenders to keep servicing over $78 billion foreign public debt. While the circular debt is emerging as one of the key risks to Pakistan’s financial and economic stability, a road map for its…

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Consumers’ Dilemma and the gas sector crisis in Pakistan

Pakistan’s energy crisis resulting from expensive fuel sources, chronic natural gas and electricity shortages, highly inefficient distribution system, culture of non-payment of bills, theft, circular debt, and inadequate and aged transmission and distribution systems – has played a role in the country’s laggard economic growth. But while the country’s power sector woes are much talked about, far less is debated about the natural gas sector despite it mirroring all the ills of power sector. For example, distribution losses in the Power Sector are approximately 18% (equivalent to Rs. 45 Billion…

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