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Category: Energy

You can go through stories related to energy. The stories are about changes in petroleum prices and updates on energy sector of Pakistan and world.

  • Mari Petroleum discovers gas in Sindh

    Mari Petroleum discovers gas in Sindh

    KARACHI: Mari Petroleum Company Limited (MPCL) on Monday announced discovery of gas from its exploratory well Hilal-1, drilled in Mari D&P Lease Area, located in Daharki, District Ghotki, Sindh.

    Hilal-1 was spud-in on April 21, 2020 and drilled down to the depth of 1,202m into Sui Main Limestone(SML).

    The well was drilled with the objective to test the hydrocarbon potentials of SML and Sui Upper Limestone (SUL).

    The Drill Stem Tests (DSTs) carried out in SUL Formation flowed gas at a rate of 11 MMSCFD at wellhead flow pressure (WHFP)of 887 Psi at 48/64 inch choke size after acid job.

    While DSTs carried out in SML Formation also successfully flowed 6.88 MMSCFD of gas with 132 barrels per day of water at WHFP of 804 Psi at 40/64 inch choke size subsequent to acid job.

    It is highlighted that this is the 5th consecutive new discovery in Mari D&P Lease Area based on 1,079 sq.km carpet 3D seismic survey of the area in 2015, which was followed by an extensive drilling program.

  • Pakistan’s oil, gas import bill plunges by 28 percent in FY20

    Pakistan’s oil, gas import bill plunges by 28 percent in FY20

    ISLAMABAD: Country’s import of oil and gas fell sharply by 28 percent during fiscal year 2019/2020 owing to significant decline in international prices.

    The import of petroleum group has decline to $10.42 billion during fiscal year 2019/2020 as compared with $14.44 billion in the preceding fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

    Industry sources explained that the slump had been observed in terms of value due to significant decline in international oil prices.

    During the year the international oil prices were remained lower due to conflict between Russia and Saudi Arabia.

    The Russia–Saudi Arabia oil price war of 2020 is an economic war triggered in March 2020 by Saudi Arabia in response to Russia’s refusal to reduce oil production in order to keep prices for oil at moderate level. This economic conflict resulted in a sheer drop of oil price over the spring of 2020.

    Reportedly, on March 08, 2020, Saudi Arabia initiated a price war with Russia, facilitating a 65 percent quarterly fall in the price of oil.

    Unofficial reports suggested that in the first few weeks of March, US oil prices fell by 34 percent, crude oil fell by 26 percent, and Brent oil fell by 24 percent.

    The price war was triggered by a break-up in dialogue between the Organization of the Petroleum Exporting Countries (OPEC) and Russia over proposed oil-production cuts in the midst of the COVID-19 pandemic. Russia walked out of the agreement, leading to the fall of the OPEC+ alliance.

    Oil prices had already fallen 30 percent since the start of the year due to a drop in demand. The price war is one of the major causes and effects of the currently ongoing global stock-market crash.

    Pakistan’s import of retail petroleum products fell by 24.54 percent to $4.74 billion during fiscal year 2019/2020 as compared with $6.28 billion in the preceding fiscal year.

    The imported quantity of the retail petroleum products, however, increased by 3.7 percent during the year under review. The quantity increased to 10.8 million metric tons during fiscal year 2019/2020 as compared with 10.42 million metric tons in the preceding year.

    The import of petroleum crude even fell more sharply by 40.44 percent to $2.72 billion during fiscal year 2019/2020 as compared with $4.57 billion in the preceding fiscal year.

    The import of Liquefied Natural Gas (LNG) has declined by 20.21 percent to $2.66 billion during fiscal year 2019/2020 as compared with $3.33 billion in the preceding fiscal year.

    However, import of Liquefied Petroleum Gas (LPG) registered 17.63 percent growth to $294 million during fiscal year 2019/2020 as compared with $250 million in the preceding fiscal year.

  • Excessive Billing: NEPRA asked to conduct detailed audit of K-Electric

    Excessive Billing: NEPRA asked to conduct detailed audit of K-Electric

    KARACHI: Sindh Governor Imran Ismail on Tuesday asked National Electric Power Regulatory Authority (NEPRA) to conduct detailed audit of K-Electric as many complaints were received related to excessive billing.

    In a letter to Tauseef H Farooqi, Chairman, NEPRA, the Sindh governor said that on a daily basis, a large section of society was complaining against K-Electric (KE) authorities for multiple issues, one out of them is excessive billing. Unfortunately, KE-being the sole electricity provider to Karachi City has an obvious monopolistic approach towards its consumers.

    “It becomes a nightmare for a common person, when he receives an exaggerated bill from KE, as there is a general perception that such situation has no remedy,” according to the letter.

    As a matter of fact, KE instead of giving people relief against their complaints, advise them to pay the billed amount first (to avoid disconnection of electricity) and then wait for what KE decides upon their complaints.

    It is pertinent to add that these complaints are not limited with domestic consumers only, commercial and industrial consumers are also facing similar approach from KE, and voicing against excessive billing at different forum.

    The Sindh governor proposed that the NEPRA to accord instructions for conducting a thorough audit of complaints lodged against KE for excessive billing.

    “And those which are found valid, be refunded their excessive paid amount instantly,” according to the letter.

  • K-Electric seeks stakeholders meeting to explain power generation

    K-Electric seeks stakeholders meeting to explain power generation

    KARACHI: K-Electric, the power supply and generation utility, has requested Sindh governor for a meeting of stakeholders to discuss matters pertaining to power generation.

    The power utility is under serious criticism for continuous breakdown of power in Karachi, the commercial hub of the country. The residents and business community equally suffered with unscheduled loadshedding for hours.

    The power utility has its challenges and wanted to explain. In a letter to Sindh governor, the KSE has requested a meeting with all relevant stakeholders to discuss matters pertaining to power generation, its planning and matter related to financial management, the KE said in a tweet massage a few minutes ago while filing this new item at 1:22AM Saturday.

    Furthermore, KE wants to present the steps taken as safety measures for the upcoming Monsoon season along with highlighting the city wide hazardous issues pertaining to power theft, illegal street light switches, and encroachment.

    Work has been initiated to receive additional power from National Grid upon confirmation last month. Also, work is already in progress for the 900MW power plant for which the first unit will start generation from 2021.

  • Shanghai Electric submits fresh intention to acquire 66.4pc K-Electric shares

    Shanghai Electric submits fresh intention to acquire 66.4pc K-Electric shares

    KARACHI: K-Electric on Tuesday said that it has received fresh Public Announcement of Intention (PAI) from Shanghai Electric Power (SEP) Company Limited (SEP) to acquire up to 66.40 percent voting shares of K-Electric Limited, subject to receipt of regulatory and other approvals.

    This PAI has been notified to the K-Electric Board of Directors on 30 June 2020.

    A copy of the said PAI and disclosure form are enclosed. The SECP and PSX are requested to make the above information immediately available to the shareholders of K-Electric under regulation 5(1) of Takeover Regulation 2017 by placing it on the notice board and through notification on automated information system and make an announcement on the house of the Exchange.

    SEP was established in 1882 and then transformed into a limited company in 1998.With a long history of 138 years, SEP is one of the major electric energy companies in Shanghai and is also a publicly-traded company listed on Shanghai Stock Exchange under ticker 600021.

    It is principally engaged in the development and construction of electricity, as well as its operation and management business.

    For the financial year ended December 31, 2019, SEP recorded an annual net profit of RMB2.0billion (US$289.7million) and an annual power generation of 48.66TWh.

    As of December 31,2019, SEP has an overall installed capacity of 15.8GW, with contributions of 53.92%, 15.16%, 13.58%, and 17.34% from coal power, natural gas power, wind power, and solar power respectively.

  • KCCI urges K-Electric to stop load shedding

    KCCI urges K-Electric to stop load shedding

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has expressed serious concerns of electricity shortfall which caused massive losses to trade and industry.

    Agha Shahab Ahmed Khan, President KCCI urged the K-Electric to immediately stop the ongoing load shedding spell and focus on improving the infrastructure, particularly power generation capacity and distribution network which is in a terrible state.

    In a statement issued, Agha Shahab pointed out that due to K-Electric’s poor performance, almost all the localities of Karachi and also the seven industrial zones have to suffer unannounced load shedding and power failures every day for many hours that results in substantial losses.

    “The industries have suffered badly due to the outbreak of coronavirus and the subsequent lockdown for more than two months and now, K-Electric has also resorted to massive load shedding, which poses threat to the already staked survival of industries,” he said and asked ‘What is the motive behind carrying out immense load shedding in an extraordinary situation?’

    “The unannounced and prolonged load shedding by K-Electric would prove to be the last nail in the coffin of industries and the economy”, he opined and added that People from different walks of life, who have been inhabiting in various localities, sought KCCI’s assistance to exert pressure on K-Electric’s management so that uninterrupted power supply in every area could be ensured.

    He stressed that K-Electric must adopt measures on war footing to minimize the hardships being suffered by the citizens and the business community of the largest city of Pakistan which contributes a lion’s share of more than 70 percent revenue to the national exchequer. Karachiites are already under tremendous mental pressure due to coronavirus pandemic and their sufferings multiply further when they have to go through prolonged load shedding every day and night.

    President KCCI said that K-Electric has been earning huge profits of billions of rupees every year but unfortunately, it has not been adequately investing on improving the dilapidated distribution network which was in a very bad shape as every year whenever the electricity demand shoots up in the city during summer season, K-Electric fails to deal with the situation and the public pays the price for this failure in shape of load shedding.

    Agha Shahab further advised that as Monsoon season is just ahead and heavy rainfalls have been forecasted by the Metrological Department, K-Electric must act sensibly and responsibly, avoid repeating mistakes and adopt stringent measures to ensure uninterrupted and safe power supply during the rainy season. “Dozens of people were electrocuted during last year’s Monsoon season and the same situation may happen this year as well because no safety measures have been adopted so far hence K-Electric’s management must take up this matter on priority and devise effectively strategies to save precious lives in case the city undergoes torrential rains”, he added.

    Agha Shahab requested Prime Minister Imran Khan, Governor Sindh Imran Ismail, Chief Minister Sindh Murad Ali Shah and other concerned ministers at the Federal and Provincial levels to review the situation and issue strict directives to K-Electric to improve its infrastructure and ensure uninterrupted power supply to public and also the business and industrial community who are already suffering terribly because of the outbreak of coronavirus pandemic.

  • Petroleum prices increased up to 66 percent; Petrol enhanced to Rs100.10/liter

    Petroleum prices increased up to 66 percent; Petrol enhanced to Rs100.10/liter

    ISLAMABAD: The federal government has increase prices of petroleum products (POL) up to 66 percent effective from June 26, 2020.

    According to new prices issued by the ministry of finance the maximum increase has been witnessed in kerosene oil by 66.08 percent to Rs59.06 per liter from previous price of Rs35.56 per liter.

    Second major change has been witnessed in Light Diesel Oil that has been enhanced by 46.77 percent to Rs55.98 per liter from previous rate of Rs38.14 per liter.

    The price of petrol has been increased by 34 percent to Rs100.10 per liter from previous rate of Rs74.52 per liter.

    The price of High Speed Diesel has been increased by 26.58 percent to Rs101.45 per liter from Rs80.15 per liter.

  • FIRs lodged against two OMCs for black marketing

    FIRs lodged against two OMCs for black marketing

    ISLAMABAD: Authorities on Tuesday initiated legal action against Oil Marketing Companies (OMCs) for indulgence in hoarding of petroleum products (POL) and creating artificial shortage.

    At least two FIRs have been lodged against OMCs including Hascol Petroleum Limited and Gas & Oil Pakistan Limited for their involvement in black marketing of petroleum products.

    A team of ministry of energy (petroleum division) inspected various OMCs terminal at Kaemari Karachi on Tuesday. The team observed hoarding / black marketing by the OMCs.

    Sources said that the FIRs had been lodged against the Chief Executive Officers (CEOs) of the OMCs.

    In latest development the Oil and Gas Regulatory Authority (OGRA) decided to undertake inspection of all oil depots in the country from Wednesday i.e. June 10, 2020.

    There are 22 oil depots in the country. Around 22 teams of OGRA and HDIP will inspect the depots.

  • OMCs must have 21 days stock of POL products, federal cabinet decides

    OMCs must have 21 days stock of POL products, federal cabinet decides

    ISLAMABAD: Authorities to enforce license condition that Oil Marketing Companies (OMCs) must have 21 days stock in order to ensure availability of petroleum products.

    Prime Minister Imran khan chaired the meeting of the federal cabinet held on Tuesday. The prime minister directed the Minister of Petroleum and Oil and Gas Regulatory Authority (OGRA) to ensure that every OMC maintains 21 days stock to meet its license conditions.

    The cabinet took serious note of the artificial shortage of petrol in the country. The Prime Minister directed that maximum punitive action must be taken against all those responsible for this.

    The following specific directions were given:

    a. The Cabinet noted that OGRA and Petroleum Division have legal authority to physically enter and inspect oil companies storage facilities. The Cabinet directed Petroleum Ministry to form joint raiding teams comprising of representatives of Petroleum Division, OGRA, FIA and District administrations. The teams shall inspect all petrol depots/storage. They have all authority to enter any site. Anyone found involved in hoarding shall face full force of law, including arrest and forced release of such stores.

    b. Any company found not maintaining the mandatory stocks and supply to its outlets, as per their license, shall face punitive actions, including suspension and cancellation of license and heavy fines.

    c. The Prime Minister directed that the Petroleum Division and OGRA take all actions necessary to ensure regular supplies within 48-72 hours.

    d. Ministry of Energy informed the cabinet that while June 2019 total supplies were 650,000 metric tons while supplies arranged for June 2020 are 850,000 metric tons. The cabinet urged the public not to engage in panic buying. The stocks that are being hoarded will be identified and ensured to be available in the market and action taken against hoarders.

  • Petroleum division recommends termination of dealers license on failure to maintain stock

    Petroleum division recommends termination of dealers license on failure to maintain stock

    ISLAMABAD: Petroleum Division has recommended termination of dealers licenses for failure to ensure sufficient stock for their respective Oil Marketing Companies (OMCs).

    The petroleum division is cognizant of the artificial shortage of POL products that is being created in the country by opportunist OMCs and petrol dealers, a statement said on Thursday.

    The petroleum division emphatically states that there is sufficient quantity of petrol stocks in the country.

    Additional production by refineries as well as planned imports are on schedule to meet the monthly needs.

    It is unfortunate that some OMCs and/or their dealers have resorted to such methods for profit maximization that are having an adverse impact on the lives of the esteemed consumers.

    Petroleum Division has asked OGRA to take action against the OMCs who are not maintaining the required stocks or whose pumps are dry.

    “We are also recommending termination of dealer licenses if they do not order sufficient product from their respective OMCs.”

    Information and complaints being received by Petroleum Division are being forwarded to OGRA for deployment of vigilance teams against low stocks and overcharging.

    OGRA has issued show cause notices to six OMCs and demanded immediate response.

    The spokesperson reiterates Petroleum Division’s affirmation in ensuring that culprits are brought to book.

    “If OMCs/dealers are not meeting their licenses conditions, OGRA will consider suspending or cancelling their licenses.”

    Meanwhile the petroleum division has instructed PSO to increase their imports and supplies. Refineries have also been directed to ensure sufficient operations to meet planned imports to meet projected demand.