Talks on 'unmanaged' energy issues today

MUSHTAQ GHUMMAN

ISLAMABAD: Washington and Islamabad are holding detailed parleys on the energy sector's 'unmanaged issues' under the auspices of Pakistan-US Working Group on Friday (today).

The Pakistani side will be represented by Minister for Water and Power Ahmad Mukhtar, Prime Minister's Adviser on Petroleum and Natural Resources Dr Asim Hussain and Deputy Chairman of the Planning Commission Dr Nadeemul Haq.

The US side would be headed by Special Envoy for International Energy Ambassador Carlos Pascual and US Ambassador to Pakistan Richard Olson.

The meeting will review the progress on import of Liquefied Natural Gas (LNG) and TAPI gas pipeline project. The Ministry of Water and Power and the Ministry of Petroleum have invited GEI and Engro, but ignored Pakistan GasPort Limited (PGP), one of the three companies given a licence by Ogra for LNG import.

PGP had signed a term sheet with the US State Department's Overseas Private Investment Corporation (OPIC) in October 2011 for financing the LNG project.

The Group will discuss all energy related issues in three sessions, to be attended by the energy experts of both countries. Discussions in the first session will be as follows:

(i) supply and demand shortages (current situation and projections);

(ii) energy sector reforms, progress and challenges (GoP update);

(iii) dispatch management and generation efficiency (GoP);

(iv) regulatory environment and needed improvements (NEPRA and tariffs, DISCO's governance, GoP, USAID), tariff structure and regulators (GoP), dispute resolution (GoP);

(v) financial environment and commercial viability( e.g. circular debt, subsidies), investment climate, Diamer Basha USG) and project financing (Asian Development Bank).

The country's private sector will also give views on power sector issues.

The second session will be dedicated to discussions on the fuel sector which includes an update on current supply demand situation (GoP), fuel mix distribution; investment climate, TAPI; regulatory and policy framework (2012-Petroleum Exploration and Production Policy; Shale and Tight Gas Policies).

The Group will consider contract assistance and US engagement and assistance in investment in LNG in Pakistan. Discussion in the third session will be for hydropower projects, reforms and challenges and Diamer-Bhasha dam, especially the US and IFI engagement.

Other participants of meeting will be Secretary for Water and Power Nargis Sethi, Secretary for Petroleum and Natural Resources Dr Waqar Masood Khan, Secretary, Economic Affairs Division Javed Iqbal, Special Secretary for Water and Power Himayatullah Khan, Director General, Economic Reform Unit Dr Khaqan Najeeb Hassan, Additional Secretary, Water and Power Arshad Mirza, Muhammad Ali Shahzada, Joint Secretary (Admn & Water); M Zargham Eshaq Khan, Joint Secretary (Power Resources); Pervaiz Ahmed Junejo, Joint Secretary (Development Projects); Dr Zafar Nasrullah Khan, Joint Secretary (Entities & DISCOs); Musaddiq Ahmad Khan, Joint Secretary (Power Transmission); Member (Water), WAPDA; Syed Raghib Abbas Shah, Chairman Water & Power Development Authority; Shakeel Durrani, Advisor on Diamer Basha; Sohail Khan, DG (Americas), M/o Foreign Affairs; .Husham Ahmed, AD (USA), M/o Foreign Affairs. Mohsin Khalid, Chairman BoD, IESCO; Sarim Sheikh, CEO, GE Pakistan and a representative of private sector would also attend the meetings. Masood Siddiqui, Managing Director, Oil & Gas Development Company (OGDCL); Peter Seitinger, General Manager, OMV; Erno Liptak, Managing Director, MOL; Ahmet Caliksan/ Farrakh Qayyum, GEH; Sheikh Imran ul Haque/ Muhammad Ali Uddin, ENGRO; Omar Sheikh, Managing Director, Shell.  Ambassador Carlos Pascual, Special Envoy for International Energy Affairs, US State Department; Ambassador Richard Olson, US Ambassador to Pakistan Richard Albright, Coordinator for Economic and Development Assistance, US Embassy Islamabad; Robert Ewing, Counselor for Economic Affairs, US Embassy Ibd; Jonathan M. Conly, Mission Director, USAID Mission Pakistan; Paul Hueper, Director of Energy Programs, Energy Bureau, US State Dept; Denise Marsh, Director, Office of the Middle East and Asia, Energy Bureau, US State Department; Ms Denise Marsh, Director Office of the Middle East and Asia, Energy Bureau, US State Department; Ms. Lauren Culver, Special Assistant, Energy Bureau, US State Department; Ms Erin Krasik, Director, Office of Pakistan Affairs, US Agency for International Development (USAID); Jeremy Chen, Pakistan Desk Officer, US State Department; Ms Melissa Knight, Director, Office of Energy, USAID Mission Pakistan; Vinay Chawla, Deputy Coordinator for Economic and Development Assistance, US Embassy Islamabad; Saeed Anwar, Program Management Specialist, USAID Mission Pakistan; Jaffer Askari, Economic Specialist US Embassy Islamabad; Matt Bonaiuto, Economic Officer, US Embassy Islamabad; James Fluker, Commercial Attache, US Dept. of Commerce, US Embassy Islamabad; Ms. Maegon Barlow, Energy Attache, US Dept. of Energy, US Embassy.