Day: September 16, 2021

The country’s fuel oil consumption declined substantially in the last five years following a push by the government to shut power plants running on fuel oil. The commodity has been costlier compared with electricity produced using LNG and coal, draining foreign exchange reserves and boosting the cost of electricity. Fuel oil consumption in the fiscal year ended June 30, 2017, was around 9.559 million mt. Since then, it has declined sharply and in the last fiscal year ended June 30, 2021, it was around 2.987 million mt, although higher than…

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Pakistan State Oil (PSO) is reported to have canceled one LNG term cargo from Qatar for September and has instead bought a spot cargo at a higher price with an impact of $31 million on RLNG consumers. The state-owned company, which imports five term cargoes every month, from Qatar under 15-year agreement at price of 13.37 percent of the Brent cancelled one LNG term cargo at the price of $9.6994 per MMBTU and purchased in its place an expensive spot cargo at $17.54 per MMBTU with an impact of $7.84…

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markets that investment in gas importing, distribution and power production assets will lead to stranded assets and lost wealth, according to analysis from IEEFA. IEEFA warned in January 2021 that over US$50 billion in gas power projects and liquefied natural gas (LNG) import facilities were at risk of cancellation in Bangladesh, Pakistan and Vietnam, as gas-fired electricity became unaffordable in emerging markets. This week the US domestic gas price indicator – from which its increasing exports are priced – traded above US$5 per one million British Thermal Units (mmbtu), up…

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Thar dwellers are facing hardship because of the adverse impacts of mega coal projects in the region, dealing with enforced shifts in land use, livelihood, and socio-ecological patterns, a study showed on Wednesday. The research study was conducted by Rural Development Policy Institute (RDPI) and launched by Alliance for Climate Justice and Clean Energy (ACJCE), a civil society group endeavoring for a transition in Pakistan’s energy sector. The research titled “Coal Rush: The Impacts of Coal Power Generation on Tharis’ Land Rights” was unveiled in a webinar attended by experts…

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The country’s energy sector circular debt has increased by over 2000 per cent to Rs 2.280 trillion in FY 2020-21 from Rs 105 billion in 2008 due to variety of factors including Transmission and Distribution (T&D) losses. This information was shared by the Power Division with the Senate Standing Committee on Power, chaired by Senator Saifullah Abro, soon after a chaotic situation in the committee was witnessed at the absence of Minister for Energy, Hammad Azhar and Secretary Power, Ali Raza Bhutta. Power Division stated that circular debt was Rs…

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