The Energy Sector

[Ahmad Rashid Ahmad]

LNG import: As Qatar seeks high price, Pakistan turns to Algeria


Pakistan and Qatar have already signed a memorandum of understanding for import of 500 million cubic feet per day.

With Qatar adamant on charging a high price of $18 per unit for liquefied natural gas (LNG), Pakistan has decided to explore the option of cheaper LNG import from energy-rich Algeria.

A senior official of the Ministry of Petroleum and Natural Resources told The Express Tribune that LNG import would come up for discussion in the second session of Pakistan-Algeria Joint Ministerial Commission (JMC) scheduled to be held from April 14 to 19 in Algeria.

The petroleum ministry will lead the Pakistani side while joint secretaries of Economic Affairs Division (EAD) and Foreign Office will also attend the meeting. Petroleum Minister Asim Hussain will join later on either April 16 or 17.

Quoting agenda of the meeting, the official said main focus would be on mutual cooperation in the oil and gas sector. “Pakistan is vigorously pursuing LNG import to overcome energy crisis and the Algerian side will be asked to export LNG and set up a terminal in Pakistan,” he said.

The petroleum ministry is exploring different options for LNG import to achieve a competitive price. Last month, a Pakistani team visited Qatar, but Doha refused to offer gas at less than $18 per million British thermal units (mmbtu).

“The ministry also tabled a summary on an integrated LNG import project in a meeting of the Economic Coordination Committee (ECC) on Thursday, but the matter was deferred to next meeting,” the official said, adding this was also one of the options to buy gas at a competitive price.

Earlier, the government had allocated pipeline capacity to private LNG importers for supply of 1.4 billion cubic feet per day of gas, but they also quoted the price of $18 per mmbtu.

Pakistan and Qatar have already signed a memorandum of understanding for the import of LNG on government-to-government basis. According to the agreement, Pakistan will import 500 million cubic feet per day (mmcfd) of gas, which will be utilised to generate 2,500 megawatts of electricity.

The government will also inject LNG into the pipeline network of Sui Northern Gas Pipelines and Sui Southern Gas Company and charge a weighted average price of gas. This may lead to a hefty increase in domestic gas prices to $9 per mmbtu compared to existing $4.5 per mmbtu, which will affect all categories of consumers.

“Many power producers are using furnace oil, which costs a price equal to $20 per mmbtu and LNG import at $18 per unit is still affordable for the companies using furnace oil,” the official insisted.

Other matters for JMC
“Pakistan and Algeria are also expected to sign a bilateral trade agreement to enhance the volume of trade,” the petroleum ministry official said.

In 2010-11, Pakistan’s exports to Algeria stood at $32.033 million against imports of $2.525 million.

They will also consider enhancing cooperation in the fields of technology, textile and mining. “There is also a proposal to sign a news exchange agreement between state news agencies of the two countries,” the official said.

According to sources, defence cooperation will also be discussed and a draft of agreement in this regard has been submitted to the Algerian government. There are expectations that the two sides will make some headway in defence matters.

[Ahmad Rashid Ahmad]

PM inaugurates Rs 1.38 bln Sui gas project in Ali Pur

Prime Minister Syed Yusuf Raza Gilani Saturday inaugurated Rs 1.38 billion Sui gas project that would benefit majority of the population in NA-178, 179 and 180 constituencies of district Muzaffargarh.

The Sui gas facility was already available in Muzaffargarh city, Khangarh city, its surroundings, and Shah Jamal and the newly completed project has ensured availability of this facility to majority of the rest of the population.On this occasion, the Prime Minister announced to complete all the schemes of strengthening of embankments including Langar Wala, and establishment of an information technology campus.Gilani announced Rs 160 million development funding including Rs 100 million for 25 kilometre long road schemes, Rs 50 million for village electrification schemes and Rs 10 million for construction of Mochiwala road.

[Ahmad Rashid Ahmad]

Sindh govt to allot 26,000 acres for windmills

Sindh government has decided to allot 26,000 acres among 12 investors which include four local investors and eight foreign investors who are bound to generate 3,000MW power within 18 months.

This was decided in a meeting chaired by Chief Minister Sindh Syed Qaim Ali Shah regarding grant of state land for producing Alternate Energy through construction of Wind Mills held at the Chief Minister House on Monday.

It was informed that there is precious corridor of wind in Jhimpir and with energy generation, employment opportunities will be generated. It was decided that new investments in windmills will be finalised after talks with federal government while the previous allotments will be continued in consultation and cooperation of the allotees.

The meeting was attended among others by Chairman Sindh Board of Investment Zubair Motiwala, Chief Secretary Sindh Raja Muhammad Abbas, Additional Chief Secretary (P&D) Malik Israr, Senior Member Board of Revenue Sindh Shahzor Shamoon, Secretary Finance Sindh Naveed Kamran Baloch, Secretary Land Utilization, Secretary Sindh Board of Investment Naheed Shah, Deputy Commissioners of Thatta and Jamshoro and Coordinator (BOR) Nazar Muhammad Leghari.

The meeting discussed in details the old and new policy for grant of Land specifically for Wind Power Project. Earlier, Secretary BOI Naheed Shah Durrani in her view point and Secretary Land Utilization (BOR) Sindh Ghulam Mustafa Phul in his briefing pointed out statement of conditions for allotment of Land for Wind Power Project in Thatta and Jamshoro districts. In easement policy, he said that land was being allotted in blocks for 30 years lease at the rent of Rs500 per acre per annum for first ten years. He further informed that only area under direct impact will be leased which include turbine, switch room, service road, electrical cables and service facility.

He further informed that minimum rent of Rs50 per square yard per annum will be charged.

The chief minister stressed that efforts be made for power generation from coal together with the alternate energy to be obtained through construction of windmills.

[Ahmad Rashid Ahmad]

New 375-MW hydropower station at Warsak

The consultants of Pakistan Water and Power Development Authority (WAPDA) have suggested constructing a new underground hydropower station of 375 mega watt (MW) at Warsak as replacement for the existing power house of 243 MW. Till commissioning of the new power station, the existing power house will also continue to operate, wherein only the most-required rehabilitation works will be carried out.

The consultants, comprising a Canadian and a Pakistan firm, have been tasked to the review of the dam, spillway and detailed engineering design of the new Warsak Power Station by the end of 2012, which will be followed by initiation of construction work on the project. The proposed 375-MW Warsak Hydropower Project is a component of the two-pronged strategy being implemented by WAPDA on priority for optimal utilisation of the water resource to inject low-cost electricity to the National Grid. Under the strategy, WAPDA is, on one hand, constructing new hydropower projects, and on the other hand, rehabilitating and upgrading its old hydel power stations. Currently, up-gradation of Jabban and Tarbela is underway, while feasibility study for rehabilitation of Mangla Power Station has also been completed, which recommends that generation capacity of Mangla could be increased to 1310 MW from the existing 1000 MW. It is pertinent to mention that the existing Warsak Hydel Power Station is located on the River Kabul 30 kilometres from Peshawar.

[united pakistan]

RAWALPINDI: The first wind power generation project in Pakistan has recently been recognised by Project Finance Magazine. The financial magazine, in circulation for the last twenty years, is widely read by financiers, advisers, management consultants, stakeholders managing and developing projects globally and senior government officials.
Turkish-based Zorlu Group showed interest to set up the first wind farm in Pakistan. To turn this into a reality, the company decided to open a subsidiary in Pakistan called Zorlu Energy.
The Alternative Energy Development Board (AEDB) played a crucial role in helping Zorlu Energy to initiate this project.
The Alternative Energy Development was founded by the government in 2003. The purpose of AEDB was to reduce Pakistan’s dependence on hydro and fossil fuel based power generation by identifying alternative energy resources like wind, solar, biogas and micro based run of the river projects. The other major task of AEDB was to help foreign firms invest in this sector.
AEDB had earlier identified that Pakistan has the wind power potential to generate 50,000MW from this free and clean source of energy. Unfortunately, there was no bankable wind data, the data available with the Met department was not at the required turbine hub height and the banks or the investors were not comfortable by these claims alone. AEDB came up with a novel idea of providing ‘wind risk’ data to the investors, making Pakistan the first country to provide such data.
Zorlu Energy was the first company to move ahead with guarantees and assistance from AEDB in setting up the first wind turbine in Jhimpir area of Sindh. Zorlu Energy is investing $136 million in this pioneer wind farm project.
The Istanbul-based company borrowed $38.1 million from the World Bank’s International Finance Corp., $36.8 million from the Asian Development Bank, $20 million from the Eco Trade & Development Bank and $16.2 million from Habib Bank Ltd. (HBL) of Pakistan for the project.
Other investors like Fauji Fertilizer Company, China International Water & Electric Corporation have also keenly followed the progress of this project and have initiated projects in this lucrative new and clean energy generation sector.
In recognition of its wind power project in Pakistan, Zorlu Energy Pakistan has received the “Middle East Renewable Deal of the Year” for 2011 by Project Finance Magazine.
Attaining this prestigious award by Zorlu Energy demonstrates the ease and security of investing in the renewable energy sector in Pakistan.
The government has been late in identifying the potential of free, clean and renewable power sources in the country. In October 2011, the National Electric Power Regulatory Authority approved an Rs12.61 per KWh feed-in tariff for foreign financed wind power projects. This tariff has been approved to encourage foreign financiers to invest in this lucrative energy sector in Pakistan.
AEDB is expecting to achieve a target of harnessing renewable energy sources to produce 400MW by the end of this year. The target will be a record in itself as no country has been able to harness 400MW within six years of its first plant.
The writer comments on the energy sector and social development
Published in The Express Tribune, April 23rd, 2012.

[Ahmad Rashid Ahmad]

2,000MW nuclear plants being planned in Karachi

The government is planning to install two coastal nuclear power pants (CNPP-1, CNPP-2) each with the capacity to generate 1,000MW in Karachi to meet the future electricity needs of the business capital of Pakistan.

“The presidency and GHQ are showing great interest in the projects which will have substantial allocations in the next budget,” a senior Pakistan Atomic Energy Commission (PAEC) official, requesting anonymity, told The News.

“We have briefed the military leadership about the project and the presidency is also showing too much interest in the coastal nuclear power projects. Due to this reason, we are seeking major allocations in the public sector development plan for 2012-13,” the official added.

“Right now we are in the process of carrying out the seismic survey of the coastal area where the nuclear pants are expected to be installed.”There exists only one nuclear power plant in Karachi that can generate maximum 80MW of electricity.

In addition, the authorities concerned will also install four nuclear power plants on Taunsa Punjnad canal about 32 kilometres away from Muzzafargarh. They will generate 1,000MW of electricity.

The work on Chashma Nuclear Power Plant-3 and the Chashma Nuclear Power Plant-4 is underway. The Chashma Nuclear Power Plant-3 is scheduled to be operative by December 2016 and Chashma Nuclear Power Plant-4 in 2017.

However, authorities concerned are hopeful to complete both projects some eight months before their scheduled time.Each plant will have capacity to generate 325MW of electricity. In Chashma, Pakistan already has two nuclear power plants of 650MW that are functional.

Under the Energy Security Plan (2005-2030), the PAEC official said, the target was to generate 8,800MW of electricity. “Our objective is to increase the nuclear electricity share in the current electricity mix up to six percent from existing two percent.”

[united pakistan]

Originally Posted by Ahmad Rashid Ahmad

2,000MW nuclear plants being planned in Karachi

The government is planning to install two coastal nuclear power pants (CNPP-1, CNPP-2) each with the capacity to generate 1,000MW in Karachi to meet the future electricity needs of the business capital of Pakistan.

“The presidency and GHQ are showing great interest in the projects which will have substantial allocations in the next budget,” a senior Pakistan Atomic Energy Commission (PAEC) official, requesting anonymity, told The News.

“We have briefed the military leadership about the project and the presidency is also showing too much interest in the coastal nuclear power projects. Due to this reason, we are seeking major allocations in the public sector development plan for 2012-13,” the official added.

“Right now we are in the process of carrying out the seismic survey of the coastal area where the nuclear pants are expected to be installed.”There exists only one nuclear power plant in Karachi that can generate maximum 80MW of electricity.

In addition, the authorities concerned will also install four nuclear power plants on Taunsa Punjnad canal about 32 kilometres away from Muzzafargarh. They will generate 1,000MW of electricity.

The work on Chashma Nuclear Power Plant-3 and the Chashma Nuclear Power Plant-4 is underway. The Chashma Nuclear Power Plant-3 is scheduled to be operative by December 2016 and Chashma Nuclear Power Plant-4 in 2017.

However, authorities concerned are hopeful to complete both projects some eight months before their scheduled time.Each plant will have capacity to generate 325MW of electricity. In Chashma, Pakistan already has two nuclear power plants of 650MW that are functional.

Under the Energy Security Plan (2005-2030), the PAEC official said, the target was to generate 8,800MW of electricity. “Our objective is to increase the nuclear electricity share in the current electricity mix up to six percent from existing two percent.”

good idea but not suitable location for the nuclear plants at coastal areas of karachi

[siamu maharaj]

Yeah. Knowing Pakistan and seeing what happened in Japan I would say keep them as far away from the sea as possible.

[Aashiq]

Why would they even think about building nuclear reactors near the coastal areas of the biggest city? Also isn't Karachi prone to earthquakes and rising sea levels? It's a major disaster waiting to happen.

[Dallas1]

where else than? the whole country is prone to the earthquakes...build them in Baluchistan? and supply it to the rest of the country?

[bablo124]

Originally Posted by Dallas1

where else than? the whole country is prone to the earthquakes...build them in Baluchistan? and supply it to the rest of the country?

security in baluchistan is nt gd at the moment.... they always destroyed gas pipelines in baluchistan... so think abt wat they gonna do wiv nuclear plant...

[united pakistan]

they are not left with any other choice they can't built them anywhere else on coastal line due to security problems and headquarter of Pak Navy is also there.It is a necessary evil, we can not do with out nuclear energy to meet the energy demands of present and future

[Kleemann]

Awesome Solar Tech. We should be thinking on these lines, instead of burning money in projects like RPPs

http://www.youtube.com/watch?v=QN-8DMZLpyI

http://www.youtube.com/watch?v=LMWIgwvbrcM

[smfarazm..]

S Korea plans to set up 300MW solar projects



South Korea has planned to invest in solar power projects to produce 300 megawatts of cheaper electricity.
Leading a delegation, Con*centrix Solar Chief Executive Officer Dr Choi Moon-sok said this in a meeting with Water and Power Minister Naveed Qamar here on Wednesday.

The CEO said the company would first set up a 50MW project in eight to 10 months and would be generating 300MW in three years. The projects will be both off-grid and on-grid and mostly will be established in Sindh.

[B]In the beginning, he said, the Prime Minister’s House would be converted to solar power, which would be a gift from Korea to Pakistan. The PM House will run on solar power within three to four months and will be off-grid, backed by batteries, he added.

Chandka Medical College, Larkan and Civil Hospital, Hyderabad are already being shifted to solar technology with a Korean loan. Speaking on the occasion, Qamar encouraged investors to invest in solar projects as an upfront tariff will be announced soon.

In other incentives, the government has already exempted solar panels and other related equipment from sales tax and customs duty. It has initiated a solar water pumping project for the agricultural sector and introduced solar water heater with the help of donors.
Qamar assured the delegation that the government would support and facilitate Korean investors willing to pour money into solar power projects.

[GoBaby]

Originally Posted by siamu maharaj

Yeah. Knowing Pakistan and seeing what happened in Japan I would say keep them as far away from the sea as possible.

NPPs are built near large water bodies...to ensure safe supply of cooling water. So pakistan has very limited options if you look at security situation and water availability.

[khalid-don]

Hoti launches action plan: KP to generate 2,100MW power

Chief Minister Ameer Haider Khan Hoti inaugurated the 10-year Hydro Power Generation Action Plan of the provincial government by opening work on Dral Khawar Power Project in Bahrain here on Monday.

According to the action plan, 24 projects would be initiated in the province to generate 2,100 megawatts electricity. The action plan would cost Rs330 billion.

“The action plan has been prepared in consultation with all political parties to ensure its continuity,” the chief minister said while addressing the inauguration ceremony of the project.

He said that the power generation projects would prove instrumental in self-sufficiency and development of the province besides ending loadshedding.

The chief minister termed inauguration of work on Dral Khawar project a historical moment. The project having a capacity of generating 36.6 megawatts electricity would be completed within three years at a cost of Rs7 billion.

Mr Hoti said that protection to the rights of local people was his top priority. He said that the project wouldn’t affect environment. The project would no effects on water for drinking and irrigation purposes, he added.

He said that sacrifices of the people of Swat for protection of country and nation had become a bright chapter of history.
“Extremists are enemies of development and peace and their thinking is limited to their interests,” he added.

ANP central leader Afzal Khan Lala, Senior Minister Rahimdad Khan, Minister Wajid Ali Khan, MPA Jafar Shah, Sher Shah, Rehmat Ali, Noor Sehr, ANP provincial general secretary Arbab Mohammad Tahir, vice president Eng Abbas, ANP local office-bearers, Malakand commissioner and district coordination officer were also present on the occasion.

The chief minister said that preference would be given to locals in recruitment for the project. “The province has a capacity to generate 30,000 megawatts electricity and 24 areas have been identified for utilising this capacity under public and private partnership,” he said.

Mr Hoti said that work on 11 projects would be started soon while feasibility reports of the remaining 13 schemes were being prepared. He said that those projects would be carried out with the assistance of national and foreign investors. “Foreign investment in this connection will be welcomed,” he said.

The chief minister said that all political parties had promised to keep the action plan continue. He said that the amount of hydel profit would be spent on setting up power units.

Responding to the welcome address by MPA Jafar Shah, the chief minister approved Rs20 million and Rs600,000 for water supply and sewerage system respectively in Bahrain, Rs20 million for resettlement of the people to be affected by the project and Rs200 million for setting up a degree college in the area.

He said that work on reconstruction of Maden-Kalam Road that was washed away by floods would be started soon with the assistance of Saudi Arabia. The chief minister thanked UAE, Saudi Arabia, UK and other friend countries for their assistance in reconstruction activities in Swat.

Mr Hoti said that peace was restored in Swat owing to sacrifices rendered by personnel of army and police.

He said that he would inaugurate Mataltan Hydro Power Project in June that would generate 84 megawatts electricity. He said that the newly built Gamen Bridge would be inaugurated soon.

http://dawn.com/2012/05/01/hoti-laun...-2100mw-power/

[brightside.]

This is good. When planning for development, all political parties should be on-board to ensure continuity of the projects. But our politicians love inaugurating things with their names on the plaques. That needs to stop.

[khalid-don]

Good thing is that KP at least took the initiative to generate electricity. Other provinces including Punjab and Sindh are way behind.

[Ahmad Rashid Ahmad]

4,000MW to be added from Thar coal by 2015: CM

He said that over 4000-MW electricity will be added to the system from Thar coal by the year 2015.

In his speech on the Sindh government’s four-year performance, the chief minister came down hard on PML-N chief Nawaz Sharif. He held the premier responsible for the current energy shortfall. He recalled that he had put a question about the reasons for shelving the Keti-Bundar and Thar coal projects, initiated by Benazir Bhutto’s first government in 1988. “Chaudhry Nisar Ali Khan, the then federal minister for petroleum and natural resources, replied the government couldn’t waste money on the Thar coal project.” Qaim further said if the Thar Coal project was not shelved, at least 10,000-MW electricity might be added to the system. Criticising Nawaz Sharif, the chief minister said the PML-N chief whenever came to the province he called himself as “a friend of Sindh”.

He went on to say, “Nawaz Sharif lacked wisdom and leadership qualities.”

Talking about the coal reserves, the chief minister said that during the PPP’s second government under Benzair Bhutto, the reserves, identified by the PPP, contained 175 billion tonnes of coal that would be sufficient for “our next 100 years energy needs”.

[Ahmad Rashid Ahmad]