Month: March 2021

American LNG Can Be Biden’s ‘Sharpest Diplomatic Tool’

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American natural gas is the sharpest diplomatic tool the Biden administration can wield in energy-related foreign policy and international trade negotiations. As newly confirmed energy secretary Jennifer Granholm has made clear, liquefied natural gas exports “play an important role” in helping countries grow their economies and reduce greenhouse gas emissions. Nations around the globe are scaling up decarbonization efforts and need affordable, reliable U.S. gas to meet their energy demands. That is where expanded American liquefied natural gas (LNG) exports underpin the global energy transition. U.S. LNG export demand rebounded to…

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LNG imports push Australia’s projected gas supply gap out to 2026

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MELBOURNE, March 29 (Reuters) – Plans by billionaire Andrew Forrest to have a liquefied natural gas (LNG) terminal ready by 2022 means Australia won’t suffer a supply shortfall until 2026, two years later than previously forecast, the energy market operator said on Monday. “This development comes at a critical time, as existing Victorian production is declining faster than previously projected,” Nicola Falcon, group manager of the Australian Energy Market Operator said in a statement accompanying the AEMO’s closely watched outlook. Producers’ forecasts for maximum daily capacity from existing, committed and…

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Pak-Denmark energy working group forms to develop TORs for GtG agreements

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Islamabad, March 29,2021 : Federal Minister for Energy Mr. Omar Ayub Khan chaired a meeting with Danish technical energy team along with Her Excellency Ms. Lis Rosenholm, Ambassador of Denmark to Pakistan at Power Division this noon. Mr. Tabish Gauhar, Special Assistant to Prime Minister on Power and Mr. Zafar Ali Bhutta, Secretary Power Division also joined the meeting. During the meeting, both sides deliberated upon the findings and recommendations by Danish Energy team on G2G-collaboration between Denmark and Pakistan in energy sector in view of newly approved Alternative Energy…

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The electric vs hybrid conundrum

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The debate over the new auto policy, which will determine the government’s plans about which route — electric or hybrid — it intends to take for developing the automotive industry and reducing carbon emissions and fuel imports from now onwards, is getting a bit intense. The government has already approved and announced its electric vehicle (EV) policy for the next five years, allowing significant tax concessions for potential Chinese investors intending to set up their assembly plants in Pakistan. This has prompted existing Japanese manufacturers to demand more or less…

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Tariff hike: some caveats and reform proposals

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The government has announced plans to increase power tariff by Rs5.65 per unit, an estimated 40% increase. Gas utilities have asked for similar or even higher increase in their tariffs. In this space, we will examine the non-tariff options to deal with problems of rising cost and circular debt, which has forced the government to propose the increase in power tariff. Over-capacity and high cost agreements will have a long shadow over the current and future tariff issues. However, reforms are overdue. Without undertaking reforms and increasing efficiency, the tariff…

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