The Energy Sector

[Dallas1]

why we want investors for power sector when we are not able to make payments to the current ones?

[Ahmad Rashid Ahmad]

PM asks CX Solar to introduce solar energy in Balochistan

Prime Minister Syed Yusuf Raza Gilani Wednesday urged the leading Korean company working in solar energy to look into the aspects to install solar energy system in Balochistan to operate the tube wells as the province is facing acute shortage of water.

Talking to Chief Executive Officer of CX Solar Dr. Choi Moon Sok who called on him here the Prime Minister asked the company to undertake feasibility study during his visit in April this year to Pakistan, of running the tube wells in Balochistan province on solar energy to save the agriculture of the province from degradation as the water is becoming scarce with every passing day.

[Ahmad Rashid Ahmad]

Energy needs: Russia may be awarded IP contract by April


TAPI project faces a setback as Afghanistan pulls out.

Ignoring mounting pressure from the United States, Pakistan has finally decided to negotiate a $1.5 billion financing and construction contract for Iran-Pakistan gas pipeline with Russia and crucial talks between the two sides are expected to be held early next month.

The government is pressing ahead with the project and has not been deterred by the reluctance of Industrial and Commercial Bank of China (ICBC) to sign a contract for financial advisory services to raise funds for the pipeline apparently due to US pressure.

“Pakistani and Russian officials will hold talks on April 2 in Moscow to discuss the possibility of awarding the gas pipeline contract to Russian energy giant Gazprom,” Petroleum Secretary Ijaz Chaudhry said while talking to the media here on Wednesday.

However, on the other side, the US-backed transnational gas pipeline project – popularly known as Turkmenistan-Afghanistan-Pakistan-India (TAPI) – faced a setback as Afghanistan pulled out of the venture, saying it did not need gas and was only interested in transit fee.

“Afghanistan has refused to purchase gas and wants only transit fee on transmission of gas via its territory,” Chaudhry said, adding final round of talks on the transit fee would be held on April 19 in Kabul.

Under the TAPI project, Pakistan was to receive 1.365 billion cubic feet of gas per day (bcfd), India 1.365 bcfd and Afghanistan 0.5 bcfd. “Now after Afghanistan’s withdrawal, Pakistan and India will share the gas allocated to Kabul,” the petroleum secretary said.

Transit fee is expected to be around 50 cents per million British thermal units (mmbtu), he disclosed.

Replying to a question about the Iran-Pakistan pipeline, Chaudhry said Gazprom had expressed interest in the project. “Gazprom will make all arrangements including fund raising and construction,” however, Pakistan would need to relax rules of procurement.

During a visit of Foreign Minister Hina Rabbani Khar to Russia in February, Moscow had offered to fully finance the $1.5 billion project if Gazprom was awarded the contract without invitation of bids.

Under the project, an 800-km-long pipeline will be constructed from the Iranian border to Nawabshah. The project has entered implementation phase and work on front-end engineering and design, feasibility and detailed route survey has started, which will be completed by June.

Indian crude cheaper than Iranian oil
The petroleum secretary rejected the talk of Iranian oil imports, saying the proposal was not on paper. “Specifications of Iranian crude oil also do not match with refineries working in the country,” he said.

However, Pakistan will get 35% cheaper oil from India because of low transportation charges.

“Pakistani and Indian officials will meet in the third week of April to discuss the quality, quantity, prices and timeframe for oil imports,” he said, adding the Federal Board of Revenue would have to issue an SRO, allowing the government to import oil from India.

Following the notification, Indian oil companies will also be able to work in the upstream sector in Pakistan.

LNG import tenders on the cards
Discussing the rules governing import of liquefied natural gas (LNG), Chaudhry said rules would be announced within a few days. “The government will soon issue two tenders for import of 400 million cubic feet per day (mmcfd) of LNG each.”

The ongoing LNG import project had become unviable as the three private sector parties, which had been allowed to make imports, wanted sovereign guarantees, he said.

Energy conference
Chaudhry pointed out that a proposal, tabled in the recent energy conference in New Delhi, encouraged Asian nations to meet energy needs of fellow countries rather than depending on imports from other sources.

“A proposal has also been floated for laying a gas pipeline from the Central Asian states to China and then to India,” he said, adding the conference participants developed consensus that Asian countries should have their own energy pricing mechanism rather than depending on markets of Middle East, London and Japan.

[Ahmad Rashid Ahmad]

Indian PM’s offer to supply 5,000MW

Traders, others urge govt to accept offer

The Indian offer to supply 5,000 megawatts (MW) of electricity to meet energy requirements, has been welcomed by people belonging to various sectors of the country, stating that such a move would help defuse tension existing between the two sates since 1947 partition.

Lahore Chamber of Commerce and Industry President Irfan Qaiser Sheikh on Friday said that offer from Indian Prime Minister Manmohan Singh to Prime Minister Yousaf Raza Gilani will not only help in overcoming the energy crisis but would also strengthen the relations of the two neighboring countries.

He said the government should accept the offer without further delay as it would definitely bridge the gap between demand and supply of power that hardly crosses the 5,000 MW mark. He said that the Indian offer is a very much doable project as electricity from India can easily be transmitted to Pakistan through Punjab without much delay. He said that electricity shortage has created anarchy-like situation in the country, particularly in the province of Punjab where not only the industrialists and the traders but people from all walks of life are staging protests. The LCCI president said that the crisis in industrial sector is not only causing flight of capital and relocation of industrial units to countries like Bangladesh and Malaysia but has also reduced government revenues drastically.

He said that unprecedented energy crisis has tarnished the image of the government, not only in the eyes of masses, but in the eyes of foreign investors who are making way to other countries of South Asia. He said that business community wants to play its best role for the progress and prosperity of the country but the people sitting at the helm of affairs are doing the other way.

Council for Pakistan Affairs president Mian Qamar-uz-Zaman said the history of worst relationship could be changed to cooperative future between both the neighbourly nations. India can also get many things on good rates form Pakistan. “You know in good neighbour borrowing things, exchanging things and help each other in hardship is a routine thing.” Pakistan must accept this offer for the benefit of its people as well as for the benefit of the people of Asia, because peaceful ties between both countries would be fruitful for the whole community of Asia.

A Pakistani Briton as well as former member British Parliament, Glasgow Chaudhry Ghulam Sarwar said that it is mutually beneficial for Pakistan as well as for India. He said that tensions between both states are heavily reflected in the financial budgets of both countries. “Both nations spend huge parts of their national money on defence budget only to counter the expected threat form each other, and if peaceful ties are established this amount can be used on development budget,” he added.

Faisal Maqsood Printing Press CEO Mehmood Ahmed said that welcoming this offer Pakistan must accept it and give full advantage to its people, industry and business. He said we want peaceful ties with all countries in general and with our neighbouring counties, including India in particular. Anjuman Arayian Pakistan President Mian Muhammad Saeed also welcomed the Indian offer and urged the government to accept this offer in the greater interest of the present condition of Pakistani people for future development of both countries.

[khalid-don]

thats a ridiculous idea. I have been hearing India is not able to provide electricity to most of its villages in what capacity their PM is making this statement.

[siamu maharaj]

This would be a stupid ass move. If there're ever any tensions, India can simply switch off our electricity. We already have water-related problems with India and we'd be dumb as fuck to add electricity to the list.

[PIA777]

well thats stupid, what if some stupid dumb ass bombs their city again, next thing u know, they are stopping the electric power, we already have water coming through india which is our biggest weakness, dont want another weakness through which india can control us

[UnRavelled]

Pakistan to purchase electricity from Iran

CHINA: Prime Minister Yousuf Raza Gilani on Sunday said that Pakistan will be purchasing 1100 megawatts of electricity from Iran, DawnNews reported.

Gilani stated this while talking to the Vice President of Iran Javad Mohammadizadeh in Boao, China.

He especially mentioned that the electricity being supplied from Iran to Pakistan’s Balochistan province would prove helpful in overcoming the energy shortage.

Gilani said that Pakistan wants cordial relations with all of its neighbours and everyone should work for peace in Afghanistan.

The prime minister further re-iterated that Pakistan considers Jundullah as a terror group and also said that Pakistan is interested in buying oil, gas and electricity from Iran and further discussed the projects with Iranian vice president.

Mohammadizadeh said that Iran and Pakistan are bound by centuries old traditions and ties and that he hoped for a prosperous future of the both nations.

[UnRavelled]

LAHORE: Power shortfall has shot up to 6000MW resulting massive increase in loadshedding, Geo News reported.

According to sources, PEPCO was not receiving required quantity of furnace oil and money. The sources said PEPCO required 35,000 tonnes of furnace oil daily.

Meanwhile, power distribution companies including LESCO have started loadshedding in industrial zones as well. Notification of six-hour power outages has been issued even at independent feeder of the industrial zone.

PEPCO sources informed that loadshedding is being carried out in Lahore every other hour.

The power demand in the country is 14,000 mega watts.

[Ahmad Rashid Ahmad]

Credibility gap: Engro may pull out of $3b coal mining project

The govt has failed to clear the energy sector’s circular debt and provide 100mcf of gas per day to Engro’s fertiliser plant in Daharki.

Having been bitten once by the government’s failure to keep its promises, Engro Corporation seems unwilling to let itself be sucked in once again.

The company’s subsidiary Engro Powergen is considering pulling out of its joint venture with the Sindh government for a $3 billion coal mining and power generation project after the government has failed to clear the energy sector’s circular debt and also failed to honour the sovereign guarantee to provide 100 million cubic feet of gas per day to Engro’s $1.1 billion fertiliser plant in Daharki.

Engro has gone about as far as it can on its own in this partnership. It has conducted a bankable feasibility study for a 6.5-ton per day coal mining and 1,200-megawatt power generation project. Were the project to go ahead on time, it would cost about $3 billion and be completed by 2016.

“It is now close to getting into the project execution stage and being able to attract financing and investors,” sources told The Express Tribune.

However, the sources added that Engro’s management is hesitant to pull the trigger on the project for a variety of reasons. The primary reason appears to be the government’s failure to provide the promised gas to Engro’s plant at Daharki, for which the company raised $1.1 billion mostly in debt. While the company is not facing immediate financial difficulty, its ability to continue expansion depends on the success of its previous projects.

“The government also appears non-serious. They have not developed the infrastructure that they promised they would. There is a lack of incentives, and there is low coordination between the provincial and federal governments. And they have not even resolved the issue of tariffs and coal pricing,” said one source familiar with the matter.

In addition, the company appears reluctant to trust the government’s ability to pay the promised tariffs, even once they are agree upon, given the fact that many other independent power producers have been forced to invoke their sovereign guarantees several times in order to get paid.

“No investor wants to their outstanding receivables and payment stuck. However, the government is not keen on solving circular debt,” sources close to the company said.

Engro Corporation officials were unavailable to comment on the record. Some sources also alleged – without naming any names – something more sinister afoot. “Some interest groups are also causing hindrance in the work on the Thar Coal project and these groups are working to disrupt relations between the government and those parties interested in Thar’s coal,” sources said.

The Thar desert in Sindh is estimated to have as much as 175 billion tons of lignite, a variety of coal that is often used in power generation. Thar’s reserves can generate up to 100,000 megawatts of electricity for several decades and are likely to be an important factor in helping reduce the country’s energy import bill.

The Pakistan Business Council estimates that the country will spend $120 billion by 2020 in oil imports to meet its needs, much of which stem from the power sector. The country can currently generate about 14,000 megawatts of electricity but will need to produce about 26,000 megawatts by 2020.

While there are some hydroelectric and oil-fired thermal power plants coming online over the next few years, the bulk of the 12,000 megawatt gap in electricity production will have to come from Thar’s coal fields. Experts estimate that the country needs to generate up to 7,000 megawatts of electricity from Thar. Yet the government’s inability to live up to its contractual obligations appears to be a severe impediment in raising any investment in Pakistan’s power sector.

[Ahmad Rashid Ahmad]

Govt to add 1,050MW new cheap energy by 2013

The government has geared up its efforts to add about 1000 MW clean and cheaper power in the national grid within a year.

The government is utilising all resources to bridge the gap between demand and supply and various measures are being taken in this regard.

As government has decided to change its energy fuel mix and future focus would be on hydel, wind, coal and solar power generation in order to generate cheaper electricity.

Minister for Water and Power, Syed Naveed Qamar has directed Wapda, AEDB and PPIB to expedite their efforts and ensure timely completion of their ongoing projects. They have also been asked to complete the feasibility studies for future projects and bring it for investment.

As per details, about 300 MW small hydel power projects being processed by Wapda would start generation by December 2012.

One project of 18 MW and other of 84 MW will come in the system in early 2013 being processed by Wapda and PPIB, respectively.

Projects of 150 MW (wind) will generate electricity by December 2012 and 400 MW wind power will be added in the system by middle of 2013.

Efforts are being made to generate more than 900 MW through wind power as early as possible. A policy for investors is being developed for investment in the solar generation.

It is planned upfront tariff in this regard would be announced. Naveed Qamar has given directives to the AEDB and asked to finalise the proposals shortly for approval.

The government has also taken measures for coal power generation and investors are being welcomed to invest in this sector. Old public sector plants are being rehabilitated and upgraded to improve their existing generation.

[Ahmad Rashid Ahmad]

Pakistan climbs 'wind' league

"I still cannot fathom how electricity can be produced by the wind," said a nonplused Mohammad Ahmed, a 55-year-old local baker, as he gazed up at a row of giant wind turbines.

These huge windmills, over a dozen of them, stand tall over the horizon, visual long before one actually enters the picturesque town of Jhimpir, about 70 kilometers from the southern port city of Karachi, in the Sindh province.

Some reaching 84 meters, others towering at 94 meters tall, weighing approximately 84 metric tonnes (excluding the weight of the towers) their blades slightly longer than the spread of the wings of a Boeing 747, these wind turbines dwarf some of the tallest buildings dotting Karachi's skyline.

The blades carve through the winds of Jhimpir, producing energy. Four of these, set up by the Turkish company Zorlu Energi, have already been producing and supplying electricity to the government for the past three months.

A year ago, when the entire country was suffering from long hours of power outages and windmills first began producing electricity on an experimental basis in Jhimpir, it was perhaps the only town in Pakistan where the lights never went out.

"It was such a delight but it only lasted a year," said Khair Mohammad Qasi, a poet and a writer based in Jhimpir. "For the entire town, even electricity generated by one windmill is enough."

Arif Alauddin, head of the Alternative Energy Development Board (AEDB), the entity responsible for facilitating the private sector's establishment of windmills, told Inter Press Service (IPS), "Our target for 2013 is to produce over 400 megawatts of electricity based on the land that has been made available. If we have more land, we think we can add 400-500 (additional megawatts) every year."

Pakistan faces a shortage of about 5,000 megawatts of power. Classified as the "best wind regimes" in the country, the energy produced at Jhimpir will go to the national grid, and be spread throughout the country, "wherever it is needed," said AEDB's spokesperson.

At the cut off wind speed of 12 meters per second or higher, the turbines stop operation, Alauddin said. The turbines also don't operate below the speed of 3.5 meters per second.

Overall, the Sindh province has the potential to produce 50,000 megawatts of wind energy, whereas the various pockets around the country can produce as much as 350,000 megawatts, according to the National Renewable Energy Laboratory in the United States.

Every few days, a new turbine is seen rising out of the desert-like countryside.

At the moment there are 18 private companies in the field, with projects at various stages of completion. Each project will have a generating capacity of about 50 megawatts, costing US$130 million, using different turbines. By next year, eight to 10 of these companies will be fully operational.

This means that soon the countryside will be littered with the giant towers, which will catapult Pakistan into the top 20 producers of wind energy. While work on wind energy has been going on for some years, it is only in the last three years that the sector actually went into high gear. But now Pakistan seems to be making up for the lost time.

"[Besides] the developed countries with mandatory emission reduction quotas under the Koyoto Protocol, we will be the third, maybe fourth [largest producer of wind energy] after China and India," estimated Alauddin.

Local resentment
But the rush to produce energy has elicited opposition from local communities.

"Work is going on at breakneck speed but local people are not being employed," said Rasul Baksh Dars, a local teacher. All their hopes that the area would be developed and they would prosper have been dashed, he said.

Anwar Palari, spokesperson of the Kohistan Bachayo Action Committee, told IPS, "They [the companies] justify hiring people from outside by saying they cannot find people with technical know-how locally; but when they launched their projects, why didn't they train the educated youth?"

Hosh Mohammad Jatial, an engineer with Zorlu Energi, which has recently begun generation, insisted, "We have hired 15 locals out of a team of 32. We can't increase our manpower," he said, admitting there is a lot of pressure on his company to increase employment.

He claims that all of the local workers are "non-technical people". "We couldn't even find a welder from the town."

But according to Palari, the few locals who had been hired by these power companies were "qualified engineers who [were given] menial labor-intensive jobs."

Driving away from the Zorlu wind farm, past the Fauji Fertiliser Company turbines, down a dusty, bumpy road, one finally finds the village of Umar Chang, where Mohammad Tayyeb (55), a local farmer, told IPS, "I don't think we will ever get the promised electricity produced by these wind mills."

"They will take it to Karachi, even Nooriabad [the industrial town closest to Jhimpir] but not give even a little bit to our village," he said.

Noor Mohammad, one of the few literate men in the village, said, "It's our land and it's our right to benefit from any good thing happening here."

Tayyeb said the locals possessed land deeds dating back to the period of British colonial rule, proving that their forefathers had lived in that very village.

"We till the soil, and all this," he waves his hand to indicate the vast expanse of land around him "are pastures for our livestock. When these companies erect more of these windmills, they will also fence the farms, thereby [shrinking] our pastures."

Hafeez Ahmed Sial, the district coordination officer, the highest government authority in Jhimpir, is quite aware of these concerns but told IPS, "We have only given state-owned land to the investors." He also pointed out that some people had brought in "fake papers" claiming the land was theirs.

Alauddin acknowledged that among the reasons for delay in unfettered energy production were "claims by the locals to the land". He said that the matter is now in court.

"We want a win-win situation for all - the investor, the local people and even the government and we definitely don't want the local people to feel disturbed. We are trying to ensure that their concerns are not left unattended. We are trying to work out how we can bring in health, water and education benefits to the communities while this development project is being carried out."

[Ahmad Rashid Ahmad]

Govt to install 747MW power plant in Sindh

The government has planned to install an additional 747 megawatts (MW) combined cycle power plant at Guddu, Sindh in order to enhance the power generation for future requirements.

The ministry of Water and Power on Thursday asked the relevant executing department to expedite its efforts and complete the required formalities at the earliest so that the proposed generation may be added to the system. Federal Minister for Water and Power Naveed Qamar will preside over a meeting with the concerned officials of National Transmission and Despatch Company (NTDC) in order to gear up the activities for this project.

According to details, the proposed power project would comprise a 747 MW combined cycle power plant consisting of two gas turbines of 243MW each, two heat recovery steam generators (HRSG) followed by one steam turbine having a capacity of 261 MW and associated equipment. Site for the proposed power plant is located within the premises of the existing Guddu power plant complex in Kashmore district of Sindh. The existing plant includes 640 MW steam turbine units consisting of two 110 MW units and two 210 MW units, 600 MW combined cycle plant and 415 MW combined cycle plant, making a total plant capacity of 1,655 MW. The existing steam and combined cycle units have the facility of dual firing, like, gas and fuel oil. However, fuel oil is used only during interruptions in gas supply. There will be no additional gas required for this new 747 MW plant and the existing supply will be used for this additional generation.

An environmental impact assessment of the proposed project has been conducted in accordance with the stipulations of Pakistan ’s environmental laws and the environmental guidelines of the International Finance Corporation.

The power plant will help the government in coping with the increasing demand of electricity in the country. The installation of the power plant will further enhance the power supply to this area, make the supply more reliable and therefore improve the quality of service. The project will also create employment opportunities in the area.

[Ahmad Rashid Ahmad]

World Bank to provide $850 million for Tarbela extension


After completion of the extension project, the generation capacity of Tarbela Power Station will rise to 4,888 MW.

The World Bank will provide about $850 million for the fourth Tarbela Extension Project. The project is expected to be completed in four years, and will generate an additional 1,410 megawatts (MW) of electricity. After completion of the extension project, the generation capacity of Tarbela Power Station will rise to 4,888 MW.

This was revealed by Water and Power Development Authority (Wapda) Member Syed Raghib Abbas Shah while addressing a delegation of the Pakistan Navy War College here at Wapda House today. He said that in view of the increasing needs of water and power in the country, Wapda is implementing a number of projects in the two sectors. Diamer-Bhasha Dam, with gross water storage capacity of 8.1 million acre feet (MAF) and power generation capacity of 4,500 MW; Bunji (7,100 MW) and Dasu (4,320 MW) hydropower projects; Munda Dam multipurpose project, with gross water storage capacity 1.29 MAF and power generation capacity 740 MW; and Kurram Tangi Dam, with gross water storage capacity 1.2 MAF and power generation capacity 84 MW, are to name a few, he added. These three projects will be completed this year, while 969-MW Neelum Jhelum and 106-MW Golen Gol hydropower projects are scheduled to be completed in 2016, Abbas said.

Earlier, Wapda General Manager Planning Hasnain Afzal, while briefing the delegation, said that 20 million acres of virgin land could be developed for agriculture, provided water is made available by constructing new dams. He also informed the delegation about Wapda’s achievements, future projects, and new initiatives. Pakistan Electric Power Company Coordination and Monitoring General Manager Ziaur Rehman briefed the delegation about the electricity demand and supply scenario, the national power sector energy plan and issues related to electricity tariff.

[UnRavelled]

LAHORE: France has expressed interest in assisting Pakistan in water, irrigation and electricity projects, which will help overcome the energy crisis.

The interest was shown by French Ambassador Philippe Thiebaud during a visit to the Water and Power Development Authority (Wapda) House here on Wednesday.

He was accompanied by French Development Agency (AFD) Country Director Nicolas Fomage and Project Manager Nauman Bhutta.

They were briefed on the current status of Munda Dam and Jabban, Harpo and Basho hydropower projects.

After the briefing, Thiebaud said France was keen to support Pakistan in water development, irrigation and electricity generation projects. He said France was speeding up the process to provide funds for Munda Dam, which would be completed as early as possible.

Currently, AFD is providing €25million for rehabilitating and upgrading Jabban hydropower project in Malakand. In addition to this, AFD has expressed keen interest in giving funds for Munda Dam and the case for financial assistance is being forwarded to the agency’s board of directors for formal approval.

Referring to the Munda Dam multipurpose project to be constructed in Fata, Wapda Chairman Shakil Durrani said the project would help control floods, ensure water supply for agriculture and provide 740 megawatts of low-cost electricity. “Munda Dam, being a multipurpose project, will offer excellent rate of return,” he added.

[UnRavelled]

SINGAPORE: Pakistan bought more than 450,000 tons of fuel oil in March, its highest level this year, led by higher imports of high-sulphur grade fuel, official data showed on Thursday.

Total fuel oil imports, used for power generation, climbed 70,328 tons to 460,688 tons, up around 18%, figures from the Oil Companies Advisory Committee showed.

High-sulphur fuel oil volumes rose by 132,492 tons at 392,499 tons, while low-sulphur fuel oil fell 62,164 tons to 68,189 tons.

The rise was in line with expectations, as Pakistan imported only about 390,000 tons last month, out of the term volume of 890,000 tons state-owned company Pakistan State Oil (PSO) purchased for delivery between February and March.

PSO has also sought similar second quarter volumes, but has refrained from buying expensive low-sulphur fuel oil.

The country is looking to increase its hydropower capacity through a recently approved $1 billion World Bank loan in an effort to reduce its reliance on fuel oil imports.

The bank said $840 million of the loan will be used to boost capacity at the Tarbela hydro power project, northwest of Islamabad, by 1,410 megawatts.

[Ahmad Rashid Ahmad]

Thar coal field a special economic zone: Marri

Sindh Information and Power Minister Shazia Marri has said that foreign and local investors are taking keen interest in Thar Coal Project as government has declared the Thar Coal fields as ‘Special Economic Zone’. Government has approved fiscal incentives packages for coal mining and power projects by giving tax holidays and duty free import of machinery for 30 years.

Talking to mediamen at her office here, she informed that the Oracle Coalfields of UK has invested up to US$610 million in Block-VI of Thar Coalfield to develop a coal mine of 5 million tonnes per year capacity. Initial coal production is expected in 2014 with mine development in late 2012. Oracle has also signed an MoU with the KESC to initially develop a 300MW mine-mouth power plant with a plan to develop it up to 1100MW at the Block-VI site. Another 1200MW by 2016 in Block–II while a Chinese company is working in Block–I to generate 900MW by 2015.Recalling the history, she said that after the discovery of Thar Coal, government of Benazir Bhutto took bold steps for exploration of huge coal resources for energy security of homeland but this project of national interest was abandoned by previous governments.

“Since the PPP-led democratic government came into power in 2008, Thar Coal Project has been resumed with high priority for coal and energy sectors as it is the only viable answer to country’s energy related problems,” she added.The minister said that commitment of provincial government is evident from the fact that it had allocated around Rs30 million in the last four years for coal exploration, block development, mining and infrastructure department as per international standards.Minister Information said government of Sindh also entered in the mining project through a joint venture with Engro group to develop coal mining project in Block–II of Thar coal field and government of Sindh has contributed around Rs200 million in the equity of the project.Development works are underway besides improvement of roads, construction of mining rescue centre, water channel from LBOD to Thar via Nabisar with treatment facility, effluent disposal channel from coal field, establishment of Thar Airport at Islamkot, installation of reverse osmosis plants for provision of potable water to local people and industrial purpose.

Like Sindh government, the federal government has also played its role for expeditious development of Thar Coal and Ministry of Power and Planning Commission focusing on Thar under Coal gasification project, projects of transmission network and provision of canal water. Recently the ECNEC has approved a scheme at a cost of Rs27 billion for provision of water from Makhi – Farash to Thar.She said that because of investment friendly policies of the government, the foreign and local investment is continually pouring into the Thar Coal project

[Ahmad Rashid Ahmad]

Construction of $1.5bn IP gas pipeline project

Gazprom interested in project without int’l bidding

Russian energy giant Gazprom is interested in constructing $1.5 billion Iran-Pakistan (IP) gas pipeline project without any international bidding, sources in the Ministry of Petroleum and Natural Resources said on Saturday.

In this regard a high-level delegation held a meeting with the officials of Gazprom, which started on April 2, 2012 in Moscow for financial and technical assistance for this gas pipeline project.

The spokesman said due to positive negotiations between the two parties, Russian company was ready to facilitate with three services including engineering design, construction and financing for laying 781 kilometres (kms) long IP gas pipeline project.

Chinese Industrial and Commercial Bank of China (ICBC) pulled out itself from the project on US pressure after which, Pakistan sought Russian help in finalising the IP project.

Spokesman in the Ministry of Petroleum and Natural Resources said this decision of seeking Gazprom help was the outcome of the meeting of the sub-committee formed by the Economic Coordination Committee (ECC).

Gazprom expressed its interest to finance the billion-dollar IP gas pipeline project following Foreign Minister Hina Rabbani Khar’s visit to Russia in February 2012.

“There are chances the Pakistani government would likely relax procurement rules to facilitate the IP project,” said Pak-USA Oil Private Limited, Texas Director Fazal Ahmad.

According to Public Procurement Regulatory Authority, the international bidding is necessary, however the matter will be put before the next ECC meeting in order to acquire positive results in this regard, he added.

Pakistan in order to reduce power shortages was importing fuel from various sources, including Iran that resulted in higher domestic oil prices besides crippling the country’s industry, he maintained.

The project on completion would provide around 21.5 million cubic metres (7.8bn c/m) natural gas per year to Pakistan.

The maximum daily gas transfer capacity of the 56-inch pipeline, which runs over 900 kms of Iran from Asalouyeh in Bushehr province to the city of Iranshahr in Sistan and Balochistan province has been estimated at 110 million cubic metres.

Pakistan is also mulling it efforts for the completion of Turkmenistan-Afghanis-tan-Pakistan-India (TAPI) pipeline project.

In this regard, a final round of TAPI project talks between energy managers of Tetra partners is taking place on April 19, 2012 in Kabul.

“Afghanistan is not ready to be a part of TAPI project and in case of its withdrawal from the TAPI project then the 500 million cubic feet per day (mmcfd) share of Afghanistan would be distributed between Pakistan and India.” Under the agreement Pakistan and India’s share is 1,325 mmcfd each.

The 1,680-km-long TAPI gas pipeline backed by the Asian Development Bank would bring 3.2 billion cubic feet of natural gas per day from Turkmenistan’s gas fields to Multan and to the northwestern Indian town of Fazilka.

[Ahmad Rashid Ahmad]

Thar Coal project to generate 10,000 MW power till 2020

Chief Minister Sindh Syed Qaim Ali Shah today presided a high level meeting at Chief Minister House regarding “Energy Conference” being held at Lahore on April 9, 2012. The meeting was attended among others by Sindh Minister for Power Madam Shazia Atta Marri, Sindh Finance Minister Syed Murad Ali Shah, Chairman Sindh Board of Investment Mr. Zubiar Motiwala, Chief Secretary Sindh Raja Muhammad Abbas, Additional Chief Secretary (P&D) Mr. Israr Malik, Secretary Power Sindh Ms. Rabia

Javeria Agha, Secretary Coal Mr. Sohail Rajput, Secretary Board of Investment Ms. Naheed Shah Durrani, Secretary Alternative Energy Mir Hussain Ali, Secretary Finance Mr. Naveed Kmaran Baloch, Secretary Agriculture Mr. Aijaz Ali Khan, and leading businessmen of Karachi Siraj Qasim Teli, Ziyad Bashir Ali Muhammad, Javed Bilwani, Saleem Parekh, Faisal Ahmed, Ashraf Makati, Shabbir Dewan, Tariq Rafi, and others. Secretary Power department Ms. Rabia Javeria Agha presented detailed briefing regarding energy conference and issues. Various options regarding Thar Coal, Energy project and Hydel projects were also discussed. It was informed that total shortage of power is 7000 MW, resulting 10 to 16 hours load shedding, while due to increasing demand of gas, there is shortage of gas and the provincial industry and other factors totally depend on gas.

It was informed that Sindh province is producing over 70% gas in the country but in the larger national interest, the Sindh province does not insist on fulfillment of its needs and demands.

The Secretary Power also gave details of subsequent meetings held at Islamabad, which formed three groups on different subjects and those groups finalized recommendations to meet the challenges, while issues were discussed.

Chief Minister Sindh was informed that the Government of Sindh has cleared all financial liabilities of HESCO and except current billings, there is no any liability in this regard, as all billing and financial disputes have successfully been reconciled.

Chief Minister Sindh said that the provincial government has focused power generation through gas while has emphasized conservation of electricity with its effective use, as the demand of power has increased.

He said that until and unless there are new options, we will utilize the available options in befitting manners. Syed Qaim Ali Shah added that Sindh province is facing acute shortage and need of power with the result; process of investment has badly affected. Chief Minister Sindh added that there is big potential of coal in Thar area and with our collective efforts, we will generate 10,000 MW power upto the year 2020, which will be enhanced later. Syed Qaim Ali Shah emphasized that Thar coal project is a project of Pakistan, which was firstly identified by Shaheed Benazir Bhutto and she had called it Black Gold of Pakistan.

[Ahmad Rashid Ahmad]

20,000 MW hydel projects underway: WAPDA

The Pakistan Water and Power Development Authority (WAPDA) is working on hydropower projects with a cumulative generation capacity of about 20,000 MW. Of these, projects for generating 7000 MW are in the construction phase, while the rest are in the final stage of their detailed engineering designs.

This was stated by WAPDA Chairman Shakil Durrani while addressing a National Institute of Management (NIM) Peshawar delegation at the WAPDA House on Wednesday. The delegation was led by NIM Chief Instructor Dr Faizur Rahman.

The chairman said WAPDA was executing the 969 MW-Neelum Jhelum project, the 4500 MW-Diamer Basha Dam, 1410 MW-Tarbela Fourth Extension, 7100 MW-Bunji, 4320 MW-Dasu and the 740-MW Munda Dam to cope with the increasing electricity demand.

These projects would not only help stabilise electricity tariffs by increasing the ratio of low-cost hydel electricity in the national grid, but also eliminate dependence on imported oil.

Responding to a question, the chairman said WAPDA had procured two state-of-the-art tunnel boring machines to expedite work on the strategically important Neelum-Jhelum Hydropower Project. At present, about 32 percent of the construction work is complete, while the project is expected to be completed by mid 2016, he added.

Durrani, while apprising the delegation of WAPDA’s technical expertise, said the first-ever tunnel boring machine in the world was used in Pakistan during the construction of the Mangla Dam in the 60s.

Earlier, the delegation was briefed on the water and power sector by WAPDA Diamer-Basha Dam Chief Engineer Shamshad Muhammad Khan and PEPCO Energy Management and Conservation Director General Ejaz Rafiq Qureshi.

WAPDA Administration Managing Director Naveed Akram Cheema and Secretary Muhammad Imtiaz Tajwar were also present on the occasion.