Month: January 2021

Over $50 billion in gas and LNG projects at risk of cancellation in Bangladesh, Pakistan and Vietnam

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Emerging markets such as Vietnam, Pakistan and Bangladesh that are turning to liquefied natural gas (LNG) as a source of power are likely to be hit by higher and more volatile prices going forward, according to a new briefing note from the Institute for Energy Economics and Financial Analysis (IEEFA). Author of the note LNG/gas analyst Bruce Robertson says new gas-fired power plants and LNG import facilities totalling over US$50 billion are at high risk of cancellation as gas-fired electricity becomes unaffordable in emerging markets. “Asian LNG spot prices have…

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Local POL production increases by 1.50pc during July-November

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ISLAMABAD: Overall production of petroleum commodities has witnessed an increase of 1.50 percent during the first five months of current financial year 2020-21 as compared to corresponding period of fiscal year 2019-20. POL products that showed positive growth include Kerosene Oil the production of which increased by 3.76 percent during the period under review, Pakistan Bureau of Statistics (PBS) reported. Similarly, the production of Motor Spirits, High Speed Diesel, Furnace oil, Jute Batching Oil and Liquefied Petroleum Gas witnessing increase of 16.13 percent, 7.16 percent, 0.97 percent, 5.85 percent and…

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Energy supply chain & SNGPL

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Pakistan is stuck in the quagmire of circular debt since the past more than a decade. This factor has proven to be a major retarder of the performance of the power sector.As per a recent media report, the circulardebt of the petroleum supply chain has also growninto a monster accumulating to1.6 Trillion PKR. It appears that managing the spiral would continue to be a challenge for the economy until it is interrupted by some radical measures. The situation is after all getting more and more fragile and unsustainable. The economy…

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Building strategic reserves for energy security

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Pakistan’s current energy mix is heavily tilted towards oil and gas. Any disruption to their supply chain immediately throws the entire economy off balance. This was amply demonstrated by the disturbance to oil supplies in January 2015 and then in the middle of last year. Similarly, in the case of gas, we are witness to extended queues of vehicles before compressed natural gas (CNG) stations – a familiar sight for years till 2016, which caused colossal losses to the economy. The prevailing shortage of gas is again proving to be…

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Chronic energy crisis persists

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The energy crisis has continued to persist in Pakistan at a time when demand for oil and gas is on a rise following a rebound in industrial production and exports in the middle of the Covid-19 pandemic. “The oil and gas production fell 6% and 4%, respectively, in the second quarter (Oct-Dec) of fiscal year 2021 despite new productions from five oil fields and four gas fields was added in the system,” according to a Topline Research report. Earlier, gas shortfall peaked following a drop in temperature to freezing levels…

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