October 21, 2020 - Energy Update

The twists and turns of North America’s oil & gas pipelines

October 21, 2020October 21, 2020 Admin

The US and Canadian governments have been desperate to build new pipelines to ferry oil and gas from offshore developments for decades and at every twist and turn they have been met by legal challenges and protests thwarting their plans. We map out the development of some key oil and gas pipelines on the continent. Used to transport liquids and gases over long distances, oil and natural gas pipelines play a substantial role in the energy economy. Despite the fact that North America consumed around 1.02 billion metric tons of oil…

CCoE may approve furnace oil import to meet energy needs this winter

October 21, 2020October 21, 2020 Admin

ISLAMABAD: The Cabinet Committee on Energy (CCoE), in its upcoming meeting, may approve the import of furnace oil to meet the country’s energy needs in the ongoing winter season. According to sources, the Power Division has requested the CCoE to direct the Petroleum Division make necessary arrangements for the import of 736,078MT of high sulfer furnace oil (HSFO) and 362,080MT of low sulfur fuel oil (LSFO), which would be required for Oct 2020-Jan 2021 to maintain adequate supply and strategic reserves. Similarly, the committee was requested to direct the Finance Division…

Sindh govt to be responsible for gas shortage in Karachi as ROW not given: minister

October 21, 2020October 21, 2020 Admin

ISLAMABAD: Energy Minister Omar Ayub Khan said on Monday that the Sindh government would be directly responsible for gas shortage in Karachi as it was not meeting its responsibilities in this regard. Taking to Twitter, the minister said that the Sindh government has not so far given the right of way (ROW) permission for the 17km Sui Southern Gas Company (SSGC) pipeline despite repeated letters and meetings with the concerned officials for the last one-and-a-half-year. “Sindh government will be directly responsible for any gas shortages in Karachi,” he maintained. Separately, Omer…

World Bank likely to enhance assistance for economic reforms in Pakistan

October 21, 2020October 21, 2020 Admin

ISLAMABAD: The World Bank has appreciated the government’s ongoing reform efforts, particularly in the power, governance and financial sectors, and may enhance its assistance to support the reforms process besides balancing a mix between project mode of financing and programme lending. Hartwig Schafer, Vice President of World Bank Group for South Asia Region, during a video conference with Economic Affairs Minister Khusro Bakhtiar, also praised the government initiatives to successfully combat and curtail the impact of Covid-19 pandemic. During the virtual meeting, the two sides discussed the performance of the…

Panel objects to bills about imposition of electricity surcharge

October 21, 2020October 21, 2020 Admin

ISLAMABAD: A parliamentary panel refused on Monday to approve two bills proposing blanket powers for government functionaries to impose surcharges on electricity consumption and powers for police to arrest consumers for theft. A ruling party parliamentarian from Karachi walked out of the meeting in protest over rules that stop parliament from holding K-Electric accountable for the city’s misery. The meeting of the National Assembly’s Standing Committee on Power, presided over by MNA Chaudhry Salik Hussain, saw an exchange of political point-scoring between Energy Minister Omar Ayub Khan and PPP’s Shazia…

Power sector reforms unlikely to pick up’

October 21, 2020October 21, 2020 Admin

LAHORE: Power sector reforms are unlikely to pick up because of the instability in policymaking and poor acceptance of reforms by the employees of distribution companies. It may be noted that the federal government is set to take up power sector reforms with the International Monetary Fund (IMF) which included decentralization of power distribution companies from the centre to provinces, doing away with the countrywide uniform pricing formula, removal of cross-subsidies, targeted cash transfers through Ehsaas Program, the establishment of power commodity exchange, and issuance Sukuk to get rid of…

Power sector to save Rs147bn in 3 years after streamlining LNG consumption matters: Omar

October 21, 2020October 21, 2020 Admin

Minister for Energy Omar Ayub Khan on Monday informed the National Assembly Standing Committee on Power that the government would save around Rs147 billion during a period of three years after it streamlined matters related to the LNG usage in electricity generation. “Initially, it was mandatory to consume 100% LNG in some power generation plants on the basis of take or pay, which was brought down to 66 percent after the officials concerned showed some resistance. Recently, we have ended this condition due to which there is a saving of…

Energy use forecasts pivot dramatically

October 21, 2020October 21, 2020 Admin

Energy outlook season is here. And it’s not rosy. Global energy players and major stakeholders are out with their keenly-awaited and immensely researched outlooks. COVID-19 has turned 2020 into an unusual year, carrying long-term ramifications for the energy world. The Paris-based International Energy Agency has termed the pandemic a disruption not seen since the “world wars and the Great Depression.” Sketching the future, the IEA conceded it depends on: Will there be an effective vaccine for COVID-19 and, if so, when? Will the habits learned during the lockdown, such as…

Worsening gas shortage

October 21, 2020October 21, 2020 Admin

THE proposal to stop connecting domestic gas consumers to the extensive pipeline network of SSGC and SNGPL in future as part of the broader national energy-sector reform plan has been on the table for some years now. The suggestion was put forward to bridge the growing supply gap during winter on account of fast-depleting indigenous resources and the increasing demand of fuel but was never implemented for fear of a backlash. With worsening winter gas shortages a permanent part of our energy crisis for over a decade and a half,…

Mohmand Hydropower Project: AGP smells a rat in award of contract

October 21, 2020October 21, 2020 Admin

ISLAMABAD: The Auditor General of Pakistan has alleged that the contract of Mohmand Hydropower Project to M/s CGGC-DESCON (JV) was awarded without adequate fair competition. The AGP, in its audit report of FY 2019-20, said that as clarification of PPRA “whenever a procuring agency is confronted with such a situation whereby the rate quoted by a single bidder cannot be compared so as to declare it as the lowest rate or otherwise, it may make prudent decision.” AGP said that while making a decision, the following factors may be kept…