LNG Shippers Are ”Printing Money” Despite Huge Volatility

Shippers of containerized goods were caught off guard this year. Never before had container spot rates risen so far, so fast. But shippers of liquid and dry bulk commodities know such cost swings all too well. When bulk commodity transport demand exceeds supply, shipping spot rates can keep rising until cargo shippers’ profit margins are erased. The spectacular rise and fall of liquefied natural gas shipping rates is the latest example. LNG carriers boast the highest day rates of any cargo vessel type. Shippers can afford to pay eye-wateringly high…

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Govt-Aptma agree to restore textile sector’s gas supply

The conditional restoration will be done on best-efforts basis from December 29, 2021 on the conditions that industry would have to submit affidavit for not initiating litigation. Moreover, conducting energy audit through third-party arrangement by June next year has been made mandatory for captive power producers. Otherwise, gas will be disconnected permanently. An industry representative also confirmed deal done with the government. He said for restoration of gas supply, it has been decided to provide 75MMCFD, which is about 42 percent of last three months average gas consumption. Similarly, senior…

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National Refinery shuts down operations as FO stocks pile up

Refinery_akhbar

National Refinery Limited (NRL), reeling from months of lackluster fuel oil demand and an abundance of inventory, has temporarily shut down its operations, The News learnt on Monday. Furnace oil stocks have been piling up at refineries, with the situation getting further aggravated due to lack of buying from independent power producers (IPP). This has led to the temporary shutdown of three refineries so far. Pakistan Refinery Limited (PRL) and Cnergyico Pak Limited (formerly Byco) have already closed their operations on high fuel oil inventories. On December 16, 2021, PRL…

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Conditional gas supply to textile sector approved

After a month-long impasse, the government on Monday conditionally agreed to provide 50 per cent gas supply to textile manufacturers for co-generation on a best effort basis provided they surrender in writing their stay orders and get their energy audits conducted. Energy Minister Hammad Azhar told Dawn that a government team and a delegation of All Pakistan Textile Mills Association (Aptma) on Monday reached an agreement under which textile mills would be provided half of their requirement — 75 million cubic feet per day (mmcfd) instead 150 mmcfd — on…

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Richly Poor

According to the 2017 census, the poverty rate in southern Balochistan is 46%, the highest in the country – the lowest rate being 16.3% recorded in Punjab. Ironically, Balochistan is also the province richest in terms of natural resources. The official website of the Balochistan government says the province “possesses a great unexplored potential of metallic and non-metallic minerals” including coal, chromite, barites, sulfur, marble, iron, quartzite and limestone. “Balochistan’s coal can cater to the existing and future energy requirements of our country to a great extent. More than 90%…

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IPAK Embraces Energy-Efficient, Sustainable Initiatives

International Packaging Films Limited (IPAK), a packaging firm known for producing high-quality packaging films, has taken sustainability to a new level by incorporating a specialised combo heat recovery system at their power plants in a bid to cut down on carbon emissions. According to company, having become a major player in the packaging industry in a short amount of time with a focus on maintaining and enhancing the quality of its products, IPAK has adopted a number of practices targeted to control the damaging effects on the environment as much…

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Sour Notes

The year 2021 was a year of misery and disappointment for the people of Pakistan, and would haunt them for years with little hope that the year 2022 would be any better. The excellent handling of Covid-19 by the present regime was nullified by its subsequent loss of writ. There was an increase in economic activities, but that was accompanied with difficulties for the common man. Increase in productivity was not accompanied with new jobs. The increase in taxes was mainly due to massive decline in rupee value and equally…

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Karachi Looks for Alternative Fuels Amidst Gas Crisis

Amidst gas crises, citizens have been forced to look for alternative heat sources like LPG cylinders and burning coal, wood or biofuel. Resultantly, the price for these alternative options has also gone up by 20 to 30 per cent, backed by increased demand from domestic as well as commercial sectors. Ayesha Khatun, a working-class woman who is a resident of the Musa Colony area, said that she cannot even afford to buy LPG, so her only option is to burn wood like the dark ages. “You would think wood is…

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Record-Breaking Gas Prices Prompt Iran To Boost Production

As great as Iran’s oil reserves are, its gas reserves are even greater, with official estimated proven natural gas reserves of 33.78 trillion cubic metres (Tcm), second only to Russia, 17 percent of the world’s total and more than one-third of OPEC’s. If the new-found reserves in the Chalous field were added – as exclusively revealed by OilPrice.com – then Iran would have a total natural gas reserves figure of 40.9 Tcm (bigger than Russia’s, given required adjustments to that figure). In tandem with its key superpower allies – Russia…

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Natural Gas Price Forecast – Natural Gas Markets Continue to Consolidate

Natural gas markets have initially fallen during the trading session on Monday, but then turned around to show signs of life again. By doing so, it looks like we are simply hanging around in the same range that we have been in for a while and therefore I am not expecting much at this point in time. On signs of exhaustion are more than willing to start selling, but quite frankly this week is probably going to be more micro movements than anything else. I do not anticipate that this…

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