Year: 2022

Energy crisis feared in July as gas supplier defaults again

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After getting a muted response from bidders to purchase spot LNG in three attempts except for one bid at $39.8 per MMBTU for July, Pakistan LNG Limited (PLL) has received another blow as Italy-based LNG trading company ENI once again backed out of its term cargo, scheduled for delivery on July 8, 2021. “The ENI also defaulted in May 2022 and has done that again for July’s supply at a time when Pakistan LNG Limited (PLL) has failed to acquire four cargoes from the spot international market,” senior officials of…

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Karachiites to be charged Rs5.3 more for April power usage

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powertariffs

The National Electric Power Regulatory Authority (Nepra) on Friday notified Rs5.27 per unit additional fuel cost adjustment (FCA) to K-Electric to be charged to consumers for electricity they consumed in April. This will help the Karachi-based private utility to mop up an additional amount of Rs10.16bn from consumers in upcoming billing month of July. The FCAs shall be applicable to all the consumer categories except lifeline consumers, Nepra said. “The authority has approved FCA of Rs5.2718/kWh for April having an impact of Rs10,157 million, to be recovered in the bills…

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Govt opts for Loadshedding over expensive LNG

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Pakistan has decided not to accept the single bid for LNG cargo it received for delivery in July at a record $39.8 per million British thermal unit (mmBtu) for being too expensive and unaffordable amid rising electricity prices and shortages. Therefore, Pakistan would have again only 8 LNG cargoes of about 800 million cubic feet (mmcfd) in July — all under Qatar’s long-term contract. On the last day for bidding on Thursday, Pakistan did not get any bids for three LNG slots for first three weeks of July but received…

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Pakistan Economy: Trapped Between China and US

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On June 20, after multiple rounds of talks failed to produce a deal, crisis-hit Pakistan officially sought Washington’s help to get favorable treatment from the International Monetary Fund for a bailout from the country’s disastrous fiscal situation – at a potential price of tilting away from its relationship with China. The request to the IMF came against the backdrop of rapidly falling foreign exchange reserves (less than US$9 billion), a free-falling rupee (Rs215:US$1) and China’s refusal to provide any additional financial help to what had previously been described as its…

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The World Is Failing In Both Energy Affordability And Climate Goals

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Global energy investment is on the rise and expected to grow by 8 percent annually this year, pushed up by record spending on clean energy, the International Energy Agency (IEA) said in its new report World Energy Investment 2022. On the face of it, that’s great news for global energy supply and climate goals. But in reality, the rising trend is a function of galloping inflation, a deepening divide between developed and emerging economies’ investment trends, and an increase in coal investments as the biggest economies in Asia prioritize energy…

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