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ISLAMABAD - Engro Elengy Terminal Limited (EETL) intends to set up onshore LNG terminal with an estimated investment of $500 to 600 million. If approved, the project will be built in a phased approach on open access terminal concept, Ammar Shah, General Manager Engro LNG Terminal Limited said Friday. The onshore LNG terminal will offer regasification, bunkering and LNG trucking services, the EETL official said. Amid fast depleting local gas reserves, ‘strategically’ the onshore LNG terminal is much needed to ensure the country’s energy security, longevity of gas market in country and create a strategic national asset.
ISLAMABAD: The oil refining industry is operating on negative returns on equity because of volatility in international crude oil prices, said Petroleum Division. The division made the disclosure in a presentation submitted to the Cabinet Committee on Energy (CCOE). The committee will take up for review the draft of Refining Policy 2021 on Thursday (December 16). The Petroleum Division presented a comparison of the return on equity for oil refineries and other sectors like hydrocarbon exploration, fertiliser, auto and power. Tractor, fertiliser and exploration companies are getting higher rates of return on equity.
LAHORE: The business community Sunday expressed their concern over spiralling electricity and oil prices, which were the main cause of inflation and reduction in economic growth. President SAARC Chambers and Chairman United Business Group (UBG) Iftikhar Ali Malik told a delegation, led by presidential candidate for Federation of Pakistan Chambers of Commerce and Industry Dr Nouman Idris Butt, that gradual hike in electricity and oil prices would affect the supply of other goods. He said that ultimately manufacturers would increase the price of goods and services due to spiralling oil prices. He urged the govt to arrest the price increasing trend of electricity and petroleum products. Iftikhar said common man was suffering a lot because commodity prices were shooting up due to increase in the input costs.
ISLAMABAD: The Oil Companies Advisory Council (OCAC) and the Directorate General of Oil of the Petroleum Division have warned of supply chain challenges and great financial loss to the oil refineries and state-run oil suppliers because of acute refining and storage capacity constraints as power sector backs off commitments. The rare warning by the DG Oil came a day after the Federal Board of Revenue (FBR) claimed before a parliamentary panel on Wednesday that major reason behind surge in import bill was increase in the import of refined petroleum products which could not be curtailed because of higher demand despite price hike.
LAHORE: Sui Northern Gas Pipelines Limited’s board of directors on Friday allowed a waiver of the minimum 66 per cent take-or-pay clause for three government-owned liquefied natural gas (LNG) power plants in Punjab in a bid to reduce the burden of capacity payments and increase the interest of both local and foreign investors in the government’s plan of privatising these projects. The board also approved a proposal in principle for setting up another LNG terminal by a private firm at Karachi port.
The decision to increase the rates of petroleum levy and GST was taken in line with commitments given to the International Monetary Fund, otherwise the prices should have gone down by Rs8-9 per litre in line with decline in international prices. A part of this reduction was consumed by exchange rate loss while the government absorbed about Rs6 per litre reduction through combined increase in petroleum levy and GST rates. A straight increase of Rs4 per litre on petrol and high speed diesel (HSD) was affected through increase in petroleum levy of about Rs2 per liter and through GST.
The Pakistan LNG Limited (PLL) had floated emergency bids for two cargoes to be supplied in November, as the firms involved, Gunvor and ENI, and defaulted on their commitments.
Change Malik Amin Aslam on Sunday said Pakistan would become the world’s best example in green energy revolution as the government was on track to meet its renewable energy targets by 2030 and will raise it to 60 percent through renewable resources. Pakistan was encouraging private sector investment in renewable energy projects to reach its clean energy goal by 2030 and it would produce 60 percent of its electricity from renewable sources.
According to the sources, a delegation from energy major Saudi Aramco has visited Pakistan to discuss the nation's first-ever LNG shipment. "Aramco is starting an LNG trade operation, and we are in discussion over all aspects, including terms and quantity, etc.", said Pakistan's Nadeem Babar. It is expected that Pakistan's demand for LNG will increase three times in the coming three to five years.
The newly established government of Pakistan yesterday elevated natural gas prices by 20%. Regarding it as a tough decision, Petroleum Minister Chaudhry Mohammad Sarwar stated that the decision will enable Pakistan to bridge a 152 billion rupee deficit for the two main suppliers - Sui Northern and Sui Southern. The minister held the previous government of now-jailed Prime Minister Nawaz Sharif accountable for the huge deficit.
Pakistan’s Maritime and Foreign Affairs Minister informed during FPCCI meeting that the American oil giant, ExxonMobil is close to discover oil reserves near the Pak-Iran border. The reserves could be huge, bigger than the Kuwaiti reserves. Exxon has submitted an undertaking to the government for setting up a $10 billion generation complex, the Minister said. VP of FPCCI emphasized the needs of improving the efficiency of Pakistani ports.
Pakistan owns recoverable deposits of approximately 105 trillion cubic feet (TCF) of gas and 9.1 billion barrels of oil, as estimated by US Energy Information Administration (EIA). The third and fourth quarter of 2017 saw major oil and gas discoveries for this Asian country, placing it into the list of top 5 countries with most discoveries in the year. Russia led with 10 discoveries, followed by Australia and Colombia.
As reported by the AFP news agency, the government of Pakistan is planning to drill around 90 exploration and production (E&P) wells across the next fiscal year. This strategy is part of the government’s objective to make the country “self-sufficient in the energy sector”.
According to the Kuwait Fire Service Directorate (KFSD), 15 oilfield workers lost their lives in a head-on crash on Sunday. This tragic incident occurred on the Al- Artal road where two buses were carrying employees engaged in operations near the Burgan oilfield, one of the region’s giant fields. The victims include seven Indian nationals, five Egyptians, three Pakistanis and others who are in a critical condition.
Together with the Pakistani syndicate Energas, ExxonMobil is planning to develop the nation’s third import terminal for liquefied natural gas (LNG). The proposal is to build a $150 million offshore terminal at Port Qasim near Karachi in May. LNG will be supplied to the terminal by Exxon and Qatar. The terminal which will have a capacity of about 5.6 million tons/year is expected to be completed by late 2019.