January 13, 2021 - Energy Update

The World’s Next Giant Oil Discovery Could Be Here

January 13, 2021January 13, 2021 Admin

London – January 12, 2021 – There’s a breaking energy story that could potentially be a repeat of Texas’ multi billion dollar Midland Basin…A basin that has been producing since the 1930s and won’t reach peak production until 2035 at a phenomenal 3.8 million boe/d … Mentioned in today’s commentary includes: British Petroleum (NYSE: BP), ConocoPhillips Company (NYSE: COP), Petrobras (NYSE: PBR), Enbridge (NYSE: ENB), CNOOC Limited (NYSE: CEO). The most trusted name in natural resource assessments—Wood Mackenzie– says this new discovery is analogous not just to the giant Midland, with a development value of $540 million, but to two other world-class…

Bitcoin in the oil & gas industry

January 13, 2021January 13, 2021 Admin

One of the oil mining industry’s big challenges is finding a profitable way to handle the associated gases released during the mining process. The solution could lie in Bitcoin mining. Oil extraction and bitcoin (BTC) might seem like strange partners but BTC might hold the key to tackling one of the oil sector’s big pollution problems. Oil extraction often produces associated gases as one of its byproducts. It is often not financially viable or practical for oil companies to sell this gas, so it is vented into the atmosphere, causing…

Nepra excludes cross-subsidy cost from wheeling charges

January 13, 2021January 13, 2021 Admin

KARACHI: The government has decided not to include cross-subsidy and stranded costs into the electricity wheeling charges on industrial connections, it was learnt on Tuesday. This will promote healthy competition and pressurise distribution companies to improve their performance. Nepra said imposition of such costs would not only discourage wheeling regime in Pakistan but at the same time would also provide no incentive to discos to improve their performance in terms of reduction in transmission and distribution losses, minimise pendency of new connections and increase recoveries. Wheeling target consumers are primarily…

Byco begins civil works on FCC, DHDS units

January 13, 2021January 13, 2021 Admin

KARACHI: Byco Petroleum Pakistan Limited, Pakistan’s largest oil refining company, reached a key milestone in its Upgrade 1 project by beginning civil works construction on January 9, 2021 at the site earmarked at its refining complex for the construction of the project. In an Extraordinary General Meeting held on April 2, 2020, Byco had announced its plans to upgrade its refining complex with the installation of two major new additions to its refineries, namely the DHDS (Diesel Hydro Desulphurizing) Unit, and FCC (Fluidized Catalytic Cracking) Unit. At the ground breaking…

OGRA issues LNG import licenses to private companies in a first

January 13, 2021January 13, 2021 Admin

ISLAMABAD: In a historic first, Pakistan allows its private sector to import Liquefied Natural Gas (LNG) as the oil and gas regulatory body has Tuesday issued import licenses to at least two companies, ARY News reported. Pakistan’s Oil and Gas Regulatory Authority (OGRA) has reportedly issued today 10-year term LNG importing licenses to at least two private sector companies. The authorities claim private sector import will encourage competition in the market hinting that it will likely bring down prices of the utility. Separately earlier last week, OGRA also approved K-Electric’s…

Exclusive: Pakistan’s renewable hydrogen hopes

January 13, 2021January 13, 2021 Admin

Hydrogen holds hope for many nations as they seek to implement the Paris Agreement and its decarbonisation targets. Pakistan has recognised the potential also. There are several properties that make hydrogen an excellent energy vector and its deployment is complimentary to an energy mix that is high in renewables. Generation of electrical power from renewable sources such as wind, solar and hydro schemes is subject to weather patterns, daily sunlight profiles and seasonal rainfall. However, the demand pattern for electricity consumption follows different daily and annual cycles. Hydrogen can be…

Power tariffs: Merit keeps missing

January 13, 2021January 13, 2021 Admin

For the fifth month running in FY21, the monthly Fuel Cost Adjustment (FCA) allowed by the regulator has fallen short of what was requested by the Central Power Purchasing Agency (CPPA). On the surface, this totals to a disallowance of Rs15 billion in five months and may not look a great deal. But as is the case with most things in the power sector, there is more problem beneath the surface than on it. The disallowance has by and large been on account of disregard to the Economic Merit Order…

Sindh to run out of natural gas in 12 years, minister tells PA

January 13, 2021January 13, 2021 Admin

KARACHI: While Chief Minister Syed Murad Ali Shah blamed the federal government for an acute gas shortage as well as plundering the province’s resources, Energy Minister Imtiaz Shaikh told the Sindh Assembly on Tuesday that the province would run out of natural gas in the next 12 years. Tuesday’s proceedings witnessed uproar and a chaotic situation when Speaker Agha Siraj Durrani did not allow Pakistan Tehreek-i-Insaf’s Firdous Shamim Naqvi to address the lawmakers after the chief minister gave a hard-hitting policy statement against the federal government on the ongoing gas…

What blights Pakistan’s electricity system?

January 13, 2021January 13, 2021 Admin

LAHORE: The snag at the Guddu power station, the country’s largest, which triggered one of the worst nationwide power breakdowns late last Saturday night, has also brought focus back on the need for ‘overhauling the collapsing power sector and improving governance for reliable electricity supply to the people’. Many blame poor maintenance of the power system leading to the failure of the safeguards as a major cause for the shutdown. “The power sector is being managed by those who don’t appreciate its technicalities nor are trained to manage it,” Fiaz…

Tabish Gauhar back at work as SAPM on Power

January 13, 2021January 13, 2021 Admin

ISLAMABAD: Special Assistant to PM on Power Tabish Gauhar, who earlier tendered the resignation, is back at work after meeting with Prime Minister Imran Khan here on Tuesday. In the meeting, the prime minister refused to accept his resignation, assuring Tabish Gauhar his full support against the power sector’s unscrupulous elements. The premier extended his all-out support to Tabish for revamping the power sector through reforms. When contacted, Tabish told The News, saying he had submitted his resignation last week due to personal reasons. This afternoon the prime minister asked…