Huge potential for solar and wind in Pakistan

Around 3 years ago the general view in the Pakistan electricity sector was that solar and wind power (together termed “variable renewable energy,” or VRE) should not be allowed to go above 5% of Pakistan’s installed capacity. This view was in part due to fears of the variability of solar and wind and their impact on the proper functioning of the grid, but underlying it was also a concern that they would further burden the power sector with high generation costs. The result was a reluctance to issue Power Purchase Agreements (PPAs)…

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Private LNG import likely to start in April, May

The award of unutilised Liquefied Natural Gas (LNG) terminal capacity is currently in process, following which the private sector is likely to start the import of LNG in April or May. According to a senior official privy to petroleum sector developments, a similar trend of importing LNG through private firms may be seen in the future. At present, the official said, the re-gasification volume is at around 1,000 Million Cubic Feet per Day (MMCFD) against the total existing capacity of around 1,200 MMCFD gas.“So, the government has no serious concern…

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Govt to amend OGRA Ordinance

The government is likely to introduce amendments to the Oil and Gas Regulatory Authority (Ogra) Ordinance 2002 in order to give representation to provinces in the regulatory body. Provinces have supported the amendments proposed by Sindh for giving them representation in the regulatory authority. Under the amendments, the government will also appoint a vice chairman from amongst Ogra members for one year from each province through rotation. Following the 18th Constitution Amendment, the provinces have joint and equal role and responsibility in natural resources. Amendments to the Ogra Ordinance have been proposed to…

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Pakistan hopes to save $3bn in new gas deal with Qatar

Pakistan’s landmark, new deal with Qatar for liquefied natural gas at lower rates will save Islamabad a total of about $3 billion over the next 10 years, an adviser to the country’s prime minister said Monday.The agreement, signed last Friday, will save the state $317 million annually due to the reduced price of the gas compared to the 2015 agreement between the two countries, according to Nadeem Babar, Prime Minister Imran Khan’s adviser on petroleum.This “will result in the lowering of the overall cost of liquefied natural gas” imported from…

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A slower quarter for E&Ps

The E&P sector’s production of crude oil and natural gas has been declining in recent years due to depleting reserves and discoveries smaller in size. E&P sector’s production flows in 2QFY21 continued to fall with around 6 and 4 percent fall in oil and gas production year-on-year, respectively. Crude oil production during 1HFY21 fell by around 6 percent year-on-year, while gas production declined by 3 percent year-on-year. Decline in production flows along with falling crude oil prices is a key factor for falling revenues in the E&P sector. Oil prices…

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LNG deal: favourable or not

wo major industries around the world – arms and energy – have continued to dominate for a long time and have driven diplomatic and strategic relations between different countries. Energy diplomacy leads to interdependence on each other. Energy trade is not only confined to commercial business but it also provides opportunities for countries to expand their footprint in foreign markets. Traditionally, the oil lobby has been powerful around the world for decades. However with changing energy dynamics, a liquefied natural gas (LNG) lobby is emerging rapidly as several countries are increasingly using LNG as…

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Govt Opens Energy Market For Power Generation Companies: Omar Ayub

Pakistan Point News – 24th Feb, 2021 ) :Federal Minister for Power Division Omar Ayub Khan on Wednesday said the government plans to open the energy market for the competitive bidding process to be initiated this year soon after the approval of Indicative Generation Capacity Expansion Plan (IGCEP). Addressing Financial Closure ceremony of 250 MW solar power projects, the minister expressed the hope that with the addition of clean and cheap renewable energy (RE) generation, they would be able to achieve the strategic objectives of affordable electricity for all whereas…

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High global oil prices may trigger Pakistan’s economic crisis

As international oil prices rise rapidly, Pakistan needs to gear up to face the economic challenges that it would trigger. This spike in the global oil prices is likely to result in a surge in inflation, a high import bill and an enlarged fiscal deficit. The international benchmark crude oil Brent was up $1.06, or 1.6%, at $65.30 a barrel by 0204 GMT, after earlier hitting a high of $66.38. US crude rose 81 cents, or 1.4%, to $62.51 a barrel, after hitting a session high of $62.73. Both benchmarks…

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Commercial use of flare gas: Dispute among Ogra members creates stalemate

ISLAMABAD: The disagreement among the Ogra members and its functionaries is pushing the future of flare gas to the danger zone as various sectors of economy, including CNG sector, want to use the commodity knowing the fact the country sustains annual losses of $109.5 million because of failure to use flare gas after its proper treatment. This was stated in a letter by Member Gas on February 11, 2021 to the-then acting chairman (member finance) and member oil. The Member Gas said: “Confusion on the issuance of flare gas licenses…

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Pakistan gets $1.1bn financing to import oil, LNG

ISLAMABAD: With sub-optimal utilisation of earlier $4.5 billion worth of three-year financing framework, Pakistan and the International Islamic Trade Finance Corporation (ITFC) on Wednesday signed a $1.1bn trade financing facility for the current year. Under the Annual Financing Plan, “ITFC will mobilise trade financing of $1.1bn during the year 2021”, said an official statement after the signing ceremony. The financing available through this facility will be utilised by the Pakistan State Oil (PSO), Pak-Arab Refinery Ltd (Parco) and Pakistan LNG Ltd (PLL) for the import of crude oil, refined petroleum…

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