Year: 2024

Government and IPPs Agree on Hybrid ‘Take and Pay’ Model to Save Billions

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Power-Plants

ISLAMABAD: After extensive negotiations, the government task force on energy and 17 Independent Power Producers (IPPs) operating under the 1994 and 2002 Power Policies have reached an agreement on a hybrid ‘take and pay’ model. The deal marks a significant step toward addressing inefficiencies in power purchase agreements (PPAs) while reducing the financial burden on the national exchequer. The task force, led by Federal Minister for Power Sardar Awais Khan Leghari, engaged experts and representatives from NEPRA, CPPA-G, and SECP in the discussions. Legal teams from both sides have finalized…

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Hyderabad Industries Struggle Amid Energy Crisis

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Energy-Crisis

KARACHI: Industrialists and traders in Hyderabad have raised alarms over persistent energy issues, including critically low gas pressure, extended load-shedding, and inefficiencies in service delivery by Sui Southern Gas Company Limited (SSGCL) and Hyderabad Electric Supply Company (HESCO). With winter exacerbating gas shortages, industrial and commercial sectors report plummeting pressure levels and air in gas lines. HESCO’s daily six-to-eight-hour load-shedding and frequent power outages further disrupt operations. Muhammad Saleem Memon, President of the Hyderabad Chamber of Small Traders and Small Industry (HCSTSI), highlighted the dire situation, stating that industries face…

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K-Electric Refuses to Reduce Loadshedding in Karachi Despite Winter

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circular-debt-K-electric-ceo

KARACHI: K-Electric (KE) faced backlash during a meeting of the Sindh Assembly’s Special Committee on Wednesday as its CEO, Moonis Alvi, firmly refused to reduce the duration of loadshedding in Karachi, even during the winter season. He maintained that loadshedding would continue in areas plagued by electricity theft, sparking outrage among lawmakers. The committee, formed in September to evaluate the performance of KE, Hyderabad Electric Supply Company (Hesco), and Sukkur Electric Supply Company (Sesco), is headed by PPP member Fayaz Ali Butt and includes representatives from various political parties. During…

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Pakistan Negotiates Postponement of LNG Deliveries Amid Low Electricity Demand

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lng

ISLAMABAD: Pakistan is negotiating with Qatar to postpone 10 liquefied natural gas (LNG) cargoes scheduled for next year, citing reduced electricity demand due to economic slowdown and unaffordable energy prices. Petroleum Minister Musadik Malik revealed that five LNG cargoes under long-term agreements with Qatar for 2025 had already been cancelled, with discussions ongoing to defer another five. “LNG has become surplus as LNG-based power plants are sidelined, and the private sector is unwilling to purchase due to high costs,” he explained. Pakistan typically imports 120–140 LNG cargoes annually, primarily under…

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Oil prices rise ahead of OPEC+ meeting

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Oil prices

NEW YORK: Oil prices rose more than 1.5% on Tuesday as investors await an OPEC+ meeting expected to rubber stamp continued output cuts while a fragile ceasefire between Israel and Lebanon provided additional support. Brent crude futures rose $1.16, or 1.6%, to $72.99 a barrel by 1346 GMT while US West Texas Intermediate crude was up $1.16, or 1.7%, at $69.26. OPEC+ is likely to extend its latest round of oil output cuts until the end of the first quarter when it meets on Thursday, four OPEC+ sources told Reuters.…

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