Pakistan expects to save about $8 million on LNG procurement

KARACHI: Pakistan expects to save about $8 million by importing low-cost liquefied natural gas (LNG) after Dubai’s Emirates National Oil Company Limited (ENOC) defaulted on its supply commitment last week, a senior official confirmed while talking to Arab News on Saturday.  Pakistan LNG Limited (PLL), a state-owned entity that procures and imports the commodity, said on Friday it had arranged one more LNG cargo at low price for the month of February by floating an urgent tender.  “The price is approximately 22% lower than the price of the bidder that withdrew…

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Lahore-Matiari transmission line to be ready by April

Pakistan’s first and mega High Voltage Direct Current (HVDC) project, Lahore-Matiari transmission line, will be ready by April. According to official sources, the project, launched under the China-Pakistan Economic Corridor (CPEC), would cost $ 1.68 billion and was the first HVDC project in the country and the second in the entire world. They said the project would help evacuate 4,000MW power from plants in south to urban load centres in Punjab. Work on the project was launched in December, 2018 across Sindh and Punjab, they said. The transmission line was…

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Punjab to set up power transmission company

LAHORE: Punjab has accelerated efforts to establish a provincial power transmission and despatch (T&D) firm on the lines of the National Transmission and Despatch Company (NTDC). In this regard, a summary has been initiated by the provincial energy department which seeks approval to establish Punjab Provincial Grid Company and is currently being reviewed by the provincial cabinet, Dawn has learnt. “Sindh has established its own transmission company already. We must have the same arrangement under the 18th Amendment. We are following up on the summary which has been sent to…

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Increasing Power Tariffs

Due to the ongoing circular debt crisis, electricity rates have been increased by Rs1.95 per unit. While the Finance Minister for Energy, Omar Ayub Khan, blames past governments for neglecting the pertinent issue—rightfully so—it is also worth noting that PTI’s tenure has also seen a sharp increase in debt accumulation. As such, to deflect blame entirely is massively unfair. Instead, it is vital to understand that increasing the power tariff is going to burden domestic consumers the most—a faction that neither enjoys subsidies, unlike various industries, nor an uninterrupted provision…

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CCOE opposes LNG supply guarantee

The Cabinet Committee on Energy (CCOE) has emphasised that in future the government should not guarantee any liquefied natural gas (LNG) supplies, which should be based on a competitive market mechanism. So far, the government has guaranteed LNG supplies which has exposed state-run gas companies to financial risk. Already, a foreign commodity trading company has filed a case against state-run Pakistan State Oil (PSO). During discussion in a recent meeting of the CCOE, the committee chairman noted that the main challenge in relation to new LNG terminals was the allocation…

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LNG tender default turns into boon for Pakistan

ISLAMABAD: The liquefied natural gas (LNG) supply defaults last week by two foreign state-owned companies — Enoc and SOCAR — came as a blessing in disguise to Pakistan as two urgent replacement tenders for February fetched about 16-18 per cent cheaper rates as international market plunged. The urgent tender floated by state-run Pakistan LNG Limited (PLL) for second half of next month attracted the lowest bid of $9.58 per million British thermal unit (MMBTU) or 19.5pc of Brent for Feb 21-22 window from Vitol Trading and $8 per MMBTU or…

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Domestic consumers receive electric shock

The Pakistan Tehreek-e-Insaf (PTI) government announced on Thursday Rs1.95 hike in the power tariff, which it blamed on the agreements made by the previous government with “bad-intentions and corrupt practices”. At a joint press conference with Planning Minister Asad Umar and Special Assistant to Prime Minister on Power Tabish Gauhar, Energy Minister Omer Ayub Khan said the government had paid Rs473 billion subsidy to the power sector last year despite economic crunch and the Covid-19 pandemic. The minister said that that previous government intentionally installed power plants based on imported…

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K-Electric’s new plant to begin production in March-April

The federal government and K-Electric are putting in place required infrastructure and new generators to lift power supply by 40%, or 900 megawatts, to the city of ports, parts of upper Sindh and Balochistan ahead of the forthcoming summer season. Ongoing efforts to reduce prolonged power outages during sweltering heat may, however, be partly jeopardised. The power utility has expressed a little bit of doubt about getting new gas connection for its under-construction power plant at Bin Qasim, Karachi. Speaking at a press conference the other day, K-Electric Chief Executive…

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Privatisation Commission fails to take sell-off decision

The Privatisation Commission (PC) board on Thursday could not take decision on privatisation of power distribution companies due to Ministry of Energy’s failure to improve the poor condition of these companies over the past two and a half years. The Power Division has shown its inability to even prepare a roadmap for the privatisation of power distribution companies, saying it lacked the “capacity”, showed official documents. A meeting of the PC board ended inconclusively on the question of whether to outsource the management of electricity distribution companies as their privatisation…

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CCOE bans gas supply to industrial units

Amid a rising circular debt, the Cabinet Committee on Energy (CCOE) has approved the disconnection of gas supply to industrial units for self-generation of electricity through captive power plants (CPPs) in a bid to divert gas to production of cheaper electricity. The disconnection of gas supply to industrial units will result in diversion of 150 million cubic feet per day (mmcfd) of gas, which will help add 3,000 megawatts of cheaper electricity to the national grid and reduce circular debt. The industrial units will be encouraged to take connections from…

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