Month: April 2022

The receivables and payable of Pakistan State Oil (PSO) have reached Rs508.3 billion as several clients failed to pay their bills for fuel supplies. In first nine months of the financial year 2021-22, the receivable and payable of PSO increased by Rs151.3 billion or 42 percent, according to documents available with Business Recorder. The PSO mainly supplies oil to different clients across the country and besides this area, circular debt has also emerged in the supply of imported liquefied natural gas (LNG) which contributed in circular debt by adding Rs277.8…

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In a new development, the government has moved the London Court of International Arbitration (LCIA) against the defaults of LNG term cargoes by two LNG trading companies — Gunvor and ENI, reveal official documents available with The News. “On account of 10 defaults, seven by Gunvor and three by ENI, Pakistan had to purchase some spot LNG vessels from international market at higher prices up to $25.1 per MMBTU which led to an increase in higher power tariff in the country, resulting into a gigantic increase in input cost of…

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A nuclear power unit in Pakistan using China’s Hualong One reactor started commercial operations on Monday, according to the China National Nuclear Corporation (CNNC). The K3 unit of the Karachi Nuclear Power Plant (or KANUPP) is the fourth nuclear power unit in the world to use the Hualong One reactor, China’s self-developed third-generation reactor. Similar to the K2 unit that was also constructed with assistance from CNNC, the K3 unit will produce 1,100 megawatts of clean energy. Each Hualong One nuclear generator has an installed capacity of 1.16 million kilowatts…

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The cost of generating electricity has increased by 66.2% in just one year, going up to Rs9.22 kWh in March 2022 compared to Rs5.55 kWh during the same month last year. “On YoY basis, the rise in fuel cost is witnessed mainly due to rise in coal, furnace oil, re-gasified liquefied natural gas (RLNG), nuclear and gas based cost of generation,” read a note by Arif Habib Limited (AHL) on Tuesday. Meanwhilem the cost of hydel-based power generation has decreased by 2.1% YoY. The power generation mix shows there was…

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Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said the government will have to swallow the bitter pill of increasing the price of petroleum products in the national interest. The previous government had reduced the price of oil and electricity to trap the new government which has worked, he said. Mian Zahid Hussain said that Pakistan has to import oil and gas while a large amount of electricity is generated through imported…

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