Demand for gas supply to captive power plants rejected

ISLAMABAD: The government on Friday rejected a demand of the industrial sector for continuation of gas supply to their captive power plants by suspending its recent decisions but promised to facilitate fresh electricity connections and improved power supplies. According to an official statement, this was the outcome of a meeting at the ministry of energy’s petroleum division. The meeting was attended by a business delegation comprising representatives of the Federation of Pakistan Chambers of Commerce and Industry and the presidents of different associations of industrial areas in Karachi. The government side was…

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ECC forms committee to review OMCs’ margins on petroleum products

Committee okays continuation of general subsidy on five essential items through USC; approves allocation of gas from Mari Petroleum wells to SSGC; defers five-year textile policy for further deliberations The Economic Coordination Committee (ECC) of the Cabinet has constituted a four-member committee to review the margins of oil marketing companies/dealers on petroleum products. The ECC meeting was held under the chair of Finance and Revenue Minister Dr Abdul Hafeez Shaikh on Thursday. According to details, the Petroleum Division had proposed Rs0.45 per litre hike in OMCs’ margin on MS and…

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Ministry seeks cut in port charges

With claims of charging 300% higher port charges on liquefied natural gas (LNG) vessels, the Petroleum Division has approached the Cabinet Committee on Energy (CCOE) with a proposal to reduce the charges. Two state-run energy companies – Pakistan LNG Limited (PLL) and Pakistan State Oil (PSO) – have pointed out that LNG vessels were still facing problems in navigating despite collection of $47.5 million by the Port Qasim Authority (PQA). The two companies have informed the Petroleum Division that the Channel Development Cess (CDC) was collected for the first 200 LNG carriers…

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Ogra approves gas price hike for Sindh, Balochistan

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has allowed the Sui Southern Gas Company Limited (SSGCL) to charge 5.4 percent more charges from gas consumers to recover its multi-billion rupees shortfall. It notified a 5.4 percent increase in prescribed gas price and fixed it at Rs778.59/mmbtu for SSGCL to recover Rs14.27 billion shortfall in estimated revenue requirement (ERR) for the financial year 2020-21 including prior year shortfall of Rs50.983 billion. It also allowed the gas utility to increase the gas meter rent from Rs20 per month to Rs40 per…

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Pakistan aims to divert gas from captive power plants to residential consumers

Karachi — Pakistan has decided to halt gas supplies from Feb. 1 to captive power plants of non-export oriented industries using gas as a fuel to produce their own electricity, in an effort to ensure residential consumers get enough supplies, a government document said. The decision comes at a time when Pakistan is facing a severe gas shortage at home and finding it difficult to source cargoes from the international markets. Industrial units in Pakistan are allowed to install their captive power plants to produce electricity for their own use. And…

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OGDCL plans study to classify shale reservoirs in Indus basin

KARACHI: State-owned Oil and Gas Development Company (OGDC) has planned to conduct a study to classify shale and tight gas reservoirs in the country identified by its initial investigation, it was learnt on Thursday. OGDC has already conducted a shale gas and tight gas study for Indus Basin and delineated 27 unconventionally focused areas which have shown presence of significant in-place shale gas and tight gas resource. Now, the OGDC planned 3D seismic unconventional reservoir characterisation to optimise the advance planning of lateral well trajectory in unconventional reservoir of Lower…

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Comment: China’s carbon markets offer Pakistan a big opportunity

China is all set to launch its carbon emissions trading scheme next month. If successful, it is set to be the largest such system in the world. Carbon trading schemes have been on several countries’ agendas, but their execution has been limited due to fiduciary, technical and implementation challenges. Pakistan has abundant potential carbon mitigation and adaptation options and could benefit greatly from collaboration with China’s emission trading scheme. Read: Is Pakistan really phasing out coal? What is a carbon market? A carbon market is one where you can buy…

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Climate Change

NOT many know Pakistan was elected co-chair of the Green Climate Fund Board for 2020; fewer realise its significance. With $17 billion in the kitty and growing, GCF is the most important global fund for climate change. As contributors, interests of the developed world are well represented on the board. Facing global economic powerhouses, Pakistan, co-chairing with Canada, tackled the challenge of aligning the fund to the needs of 130-plus developing countries that bear the brunt of climate change. Despite Covid-19, it was an eventful year. Pakistan’s leadership increased its…

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Renewable energy projects: FIF seeks amendment in CCoE’s decision

Pakistan Foreign Investors Forum (FIF) has urged the government to amend the decision of the Cabinet Committee on Energy (CCoE) about renewable energy projects thereby paving the way for $470 million. According to Khurram Tariq Sayeed, Founder President, FIF, change in CCoE’s decision of April 4, 2019, would result in the lowest wind & solar tariff of Rs 5.95/kwh and fulfill the vision of Prime Minister Imran Khan to increase the share of green energy in the power mix of Pakistan to 20 percent by year 2025. Sayeed further stated…

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Imported LNG supply in Sindh: Ultimate Energy Services, Energas Marketing sign agreement

ISLAMABAD: The Ultimate Energy Services (Pvt) Ltd has signed an agreement with Energas Marketing (Pvt) Ltd for supply of imported LNG to the CNG stations in Sindh. The CNG industry has been facing severe gas loadshedding since a decade, which has worsened in the last two years. As a result, the CNG consumers have been deprived of their favourite and most-needed, economical and environmentally-friendly fuel. Energas Marketing (Pvt) Ltd was granted a marketing licence to import and market LNG in Pakistan. The company will also establish a LNG terminal. A…

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