05062016Fri
Last update: Fri, 06 May 2016 11pm

Fuel and Energy: Pakistan

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The government has lifted the moratorium on new gas connections in the country, Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said on Thursday. He said this while briefing National Assembly Standing Committee on Petroleum and Natural Resources held under the chairmanship of Chaudhry Bilal Ahmed Virk. He said that the Prime Minister of Pakistan on 04 May, 2016 accorded approval to the summery of the Ministry of Petroleum and Natural Resources, seeking lifting of ban on gas connections.
Jawwad Cheema has been appointed as the chief executive officer/managing director of Shell Pakistan Limited, said a statement the multinational oil firm issued on Thursday. To take charge from August 1, Cheema would replace Omar Sheikh who is moving on to another senior leadership role within the Shell Group. Cheema is currently the vice president for Shell Business Operations in the Global Real Estate function with Royal Dutch Shell. He joined Shell in 1997 and has held several senior leadership roles in Downstream Operations, in Pakistan and internationally within the Group, with extensive experience in Retail.
A considerable decline in cheap external financing along with falling remittances may create a serious balance of payment (BoP) problems and bring the exchange rate under pressure in case of an increase in oil prices in the international market and a surge in demand for imports. Former Principal Economic Advisor to Finance Ministry Sakib Sherani said the cost of external financing is around 2 to 2.5 percent and like the IMF lending it is for budgetary support.
Amid opposition from stakeholders, Water and Power Development Authority (Wapda) on Thursday appealed to National Electric Power Regulatory Authority (Nepra) to increase hydel tariff by Rs 1.50 per unit to recover Rs 51 billion from power consumers to make payment to Khyber Pakhtunkhwa (KPK) on account of the Net Hydropower Profit (NHP) settlement. The power regulator conducted a public hearing regarding a supplementary tariff petition filed by Wapda to raise power tariff. It was revealed that Wapda had sought an increase in supplementary tariff from the regulator following the directions of Council of Common Interests (CCI). Nepra reserved its judgement.
National Electric Power Regulatory Authority (Nepra) has announced modification in tariffs of High Speed Diesel (HSD) - fired four Independent Power Producers (IPPs) for prescribed fuel price adjustment on account of imported Re-gasified Liquefied Natural Gas (RLNG) variation. According to the determination, there are currently four IPPs, falling under the Power Policy 2002, running combined cycle thermal power plants based on dual fuel (gas/HSD) with the primary source of fuel being pipeline quality gas, namely Halmore Power Generation Company Limited, Orient Power Company Limited (OPCL), Saif Power Limited (SPL) and Sapphire Electric Company Limited (SECL).
Ministry of Water and Power is facing deficit of around 6500MW electricity, which is being managed through a designed load management plan across the country with 6 hours in urban areas and 8-10 hours in rural areas whereas some areas are being supplied electricity based on recovery, well informed sources told Business Recorder. "There is no forced load shedding in any part of the county but those areas which do not pay bills are being supplied electricity based on recovery," the sources added.
The leaders of four nations-Pakistan, Afghanistan and Kyrgyzstan will gather in Tajikistan to launch the construction of the much-awaited CASA-1000 power project on May 12, 2016. Addressing a press conference, Tajikistan Ambassador Sherali S. Jononov also announced direct introduction of flights between Pakistan and Tajikistan, to improve people-to-people contacts and bilateral trade between the two countries. Afghanistan, the Kyrgyz Republic, Pakistan, and Tajikistan have been pursuing the development of electricity trading arrangements and the establishment of a Central Asia-South Asia Regional Electricity Market (CASAREM).