Month: September 2024

Nepra Warns of Rising Costs as Power Sales Drop by 20%

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power-subsidy

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has raised concerns over a 20 percent reduction in electricity sales, warning that this decline could increase capacity payments to independent power producers (IPPs), ultimately burdening consumers through quarterly tariff hikes. During a public hearing on the Central Power Purchasing Agency-Guarantee’s (CPPA-G) petition for August 2024 fuel charge adjustments, it was revealed that total electricity generation had dropped from 15,959 GWh in August 2023 to 13,179 GWh in August 2024. CPPA-G officials noted a 20.18 percent decline in demand, attributing part of…

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Pakistan Faces LNG Glut as Power Sector Demand Drops, PSO Faces Operational Hurdles

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lng

ISLAMABAD: Pakistan is grappling with an oversupply of LNG due to a significant drop in demand, primarily from the power sector. This situation has created operational and financial challenges for Pakistan State Oil (PSO), which imports LNG under a long-term agreement with Qatar. The Managing Director of PSO informed the National Assembly’s Standing Committee on Energy (Power Division) that power sector consumption, previously at two LNG cargoes per month, has drastically declined. Initially, the power sector consumed 600 million cubic feet of LNG, but now demand has sharply reduced, affecting…

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K-Electric Secures Lowest Bid for 220MW Hybrid Wind-Solar Project

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circular-debt-K-electric-ceo

ISLAMABAD: K-Electric (KE) has announced that Canadian renewable energy firm JCM Power submitted the lowest bid for its 220-megawatt hybrid wind-solar project in Dhabeji, Sindh. The bid, offering an average tariff of Rs8.9189 per unit (approximately 3.0899 US cents), marks a milestone in Pakistan’s renewable energy sector. The project, with a 25-year term, features a tariff structure based on 80% US dollar, 13% Karachi Interbank Offered Rate (Kibor), and 7% Secured Overnight Financing Rate (SOFR). KE received seven bids for the country’s first hybrid renewable project, a step toward reducing…

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Govt Withdraws 35% Gas Sale Plan, Sets New Guidelines for E&P Firms

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Petroleum

ISLAMABAD: The Petroleum Division has retracted its proposal under the amended Exploration and Production (E&P) Policy 2012, which allowed exploration companies to allocate 35% of future gas discoveries to the private sector over seven years, concluding by 2030. Instead, new guidelines require E&P companies to first recover depleted gas before selling 35% of additional output to the private sector. A benchmark pricing mechanism is also being developed to regulate private sector sales. While the Petroleum Division supports deregulating the oil and gas sector, concerns remain over unfair competition for state…

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Malaysia’s PM to Visit Pakistan in October for Talks on Green Energy

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Malaysia-PM

ISLAMABAD: Malaysian Prime Minister Anwar Ibrahim is expected to visit Pakistan from October 2-4, 2024, following an invitation from Prime Minister Shehbaz Sharif, according to well-placed sources. The visit will feature high-level discussions aimed at strengthening bilateral relations across various sectors, including trade, energy, and green technology. Pakistan is set to present a list of green energy projects for potential cooperation with Malaysia. Key topics on the agenda include enhancing collaboration in science and technology, IT, education, and the recruitment of Pakistani professionals in Malaysia. Both countries will also explore…

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