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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.

  • Hubco declares commercial operation date for 1320MW coal-based power plant

    Hubco declares commercial operation date for 1320MW coal-based power plant

    KARACHI: China Power Hub Generation Company (CPHGC) – a joint venture between The Hub Power Company Ltd. (HUBCO) and China Power International Holding – has declared the Commercial Operations Date (COD) of its 1320MW imported coal power plant and integrated jetty with coal transhipment capacity of 4.2 MTPA, a statement said on Sunday.

    Developed in record time, as per schedule and within projected costs, the CPHGC project is a part of the early harvest energy projects under China Pakistan Economic Corridor (CPEC) framework, making it truly a project of national and strategic significance.

    The plant will add 9 billion kWh of electricity to the national grid every year, meeting electricity needs of 4 million households in the country. The Project’s two units achieved synchronization with the National Grid on December 28, 2018 and May 28, 2019, respectively, while the Integrated Coal Jetty became operational in December 2018 with arrival of the first shipment of coal.

    “The successful completion of CPHGC project has fortified the dream of energy independence of Pakistan. Since the synchronization earlier in May, we conducted extensive testing of the systems to make sure we deliver quality while keeping HSE as our top-priority. I am glad that this Pak-China synergy has resulted in engineering excellence and has fulfilled our promise of providing Pakistan with affordable and ample energy” said Khalid Mansoor, CEO HUBCO.

    It is important to note that the Project has also delivered on various social commitments for improving the lives of the local community of Hub and Lasbella.

    Together with its partners, CPHGC has setup a school in Gadani, a floating jetty for fishermen in Abbas Village and has conducted various training and development programs for the local youth of Balochistan.

    The Pakistani principal of the project, The Hub Power Company Limited currently produces over 2920 MW through its four plants spread over Baluchistan, Punjab and Azad Jammu & Kashmir.

    HUBCO is the only power producer in Pakistan with four projects listed in the CPEC out of which three are under-construction namely Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Block II.

    The power generation capacity of the Company will enhance to over 3580MW after completion of the aforementioned power projects.

  • SBP revises refinance scheme for renewable energy

    SBP revises refinance scheme for renewable energy

    The State Bank of Pakistan (SBP) on Friday announced a revised refinancing scheme aimed at boosting renewable energy projects. The new scheme sets a maximum loan amount of Rs6 billion for individual projects up to 50 megawatts.

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  • OGDCL announces discovery of oil and gas in Sindh

    OGDCL announces discovery of oil and gas in Sindh

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Wednesday announced discovery of oil and gas in District Sanghar of Sindh province.

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  • Hascol, Vitol Dubai enter $42 million financial arrangement

    Hascol, Vitol Dubai enter $42 million financial arrangement

    KARACHI: Vitol Dubai Limited (VDL) has agreed to provide financial facility of $42 million to Hascol Petroleum Limited, an announcement said on Monday.

    The announcement informed Pakistan Stock Exchange (PSX) that Hascol Petroleum Limited and Vitol Dubai Limited, a major shareholder of Hascol, had entered into financial arrangement whereby VDL had agreed to provide facilities of $42 million.

    The financial facilities included: Bank guarantee facility of $15 million; open credit limit facility of $12 million; and stock availability at HTL Port Qasim Terminal of $15 million.

    The company said that the arrangement would further strengthen the supply chain of the company.

    Hascol Petroleum Limited is engaged in the purchase, storage and sale of petroleum products such as High Speed Diesel, Gasoline, Fuel Oil and FUCHS lubricants.

    In February 2005 Hascol was granted an oil marketing license by the Government of Pakistan and since then, Hascol has been engaged in developing a retail network under Hascol brand and have commissioned over 500 retail outlets in the four provinces of Pakistan and Azad Jammu and Kashmir.

    Hascol Petroleum Limited has extensive links with the domestic and international oil trading companies and today is the second largest importer of petroleum products after PSO.

    Hascol also markets LPG. At present 15 Automax LPG Stations across Pakistan are in various stages of approvals with the government of Pakistan.

    Hascol has become a member of the highly esteemed listed companies of Pakistan Stock Exchange and its share price has appreciated considerably since the listing in 2014, keeping in pace with the phenomenal growth of the company.

    This massive growth has been made possible due to the strategic vision of the Board and excellent execution by Senior Management.

    Hascol has made major headway in constructing storage facilities at Keamari, Daulatpur, Shikarpur, Mehmood Kot, Machike and Amangarh. New storage facilities are compeleted for Sahiwal, Kotlajam and Thalian.

    In 2016, VITOL, the largest independent oil trading entity in the world, acquired 15 percent equity in Hascol which was later increased to 27.46 percent making VITOL the single largest shareholder in the Company.
    In joint venture with VITOL, Hascol has also set up an LNG marketing company, VAS LNG (PVT) LTD.

    Hascol will have a 30 percent stake in this company and VITOL 70 percent. Hascol has also signed a Technical Services Agreement with VITOL Aviation enabling Hascol to start fueling aircrafts at Karachi, Lahore and Islamabad airports.

    Additionally, a separate joint venture company with VITOL, Hascol Terminals Limited (HTL) has constructed one of the largest Petroleum Terminals in Pakistan at Port Qasim, having a capacity of 197,000 Metric Tons. Phase I of this terminal was commissioned in March 2019.

  • Pakistan starts receiving Saudi crude oil on deferred payment

    Pakistan starts receiving Saudi crude oil on deferred payment

    KARACHI: Pakistan has started receiving crude oil on deferred payment from Saudi Arabia. In this regard two ships carrying 116,276 metric ton crude oil arrived at Karachi port on Saturday.

    Sources said that ships namely M T Quetta and MT Lahore reached Karachi port carrying the Saudi crude oil.

    MT Lahore is carrying 58,158 metric ton of crude oil and MT Quetta is carrying remaining 58,118 metric ton of crude oil.

    Saudi Arabia has pledged to provide $275 million worth crude oil monthly on deferred payment.

    The supply of crude oil on deferred payment would remain continue for next three months. In total the oil rich country would provide crude oil amounting $9.9 billion during next three years.

    The agreement for providing crude oil on deferred payment was signed during the visit of Saudi Arabia’s Crown Prince Mohammad bin Salman to Pakistan in February 2019.

  • Engro starts commercial operation of 660MW coal-fired power project

    Engro starts commercial operation of 660MW coal-fired power project

    KARACHI: Engro Powergen Thar (Private) Limited on Wednesday started commercial operation of its 660 Megawatts Coal-Fired power generation complex at Thar Block-II, District Tharparkar, Sindh.

    In a notice to Pakistan Stock Exchange (PSX), Engro Corp said that a power purchase agreement on May 04, 2015 was entered into between Engro Energy Limited (EEL’s) subsidiary EPTL and the National Transmission and Dispatch Company Limited, through its Central Power Purchasing Agency on behalf of ex-WAPDA Distribution Companies, in relation to EPTL’s 660 MW (Gross) coal fired power generation complex at Thar Block-II, District Tharparkar, Province of Sindh, Pakistan.

    It said that pursuant to the terms of PPA, EPTL has declared the commercial operation date of the project with effect from July 10, 2019.

    Furthermore, EEL’s associated company, namely, Sindh Engro Coal Mining Company Limited (a joint venture between Sindh government, EEL, Thal Limited, Hub Power Company Limited, Habib Bank Limited, CMEC Thar Mining Investment Limited and Houlinhe Open Pit Coal Investment Company) (SECMC) has also declared its commercial operation on the COD date and SECMC shall start the supply of Thar coal to EPTL for its project.

    The company said that the projects would usher in a new era of energy security and prosperity for Pakistan which would not have been possible without the support extended by the provincial and federal governments and all other private stakeholders.

  • FBR issues uniform 17pc sales tax rates for petroleum products

    FBR issues uniform 17pc sales tax rates for petroleum products

    ISLAMABAD: Federal Board of Revenue (FBR) on Sunday issued uniformed sales tax rates for petroleum products effective from July 01, 2019.

    To implement the sales tax rates for petroleum products from July 01, 2019 the FBR issued SRO 700(I)/2019 on Sunday.

    In the earlier SRO 602(I)/2019 dated May 31, 2019, the FBR fixed the sales tax rate included: petrol 13 percent; high speed diesel oil, 13 percent; kerosene oil 17 percent; and light diesel oil at 17 percent.

    The FBR sources said that the sales tax rates have been increased on the two major products including petrol and high speed diesel oil, which are main revenue spinner.

    The FBR has been given Rs5,550 billion target for fiscal year 2019/2020, which is apparently an impossible target on the back of weak economic conditions and lower manufacturing output.

  • New petroleum policy to offer incentives to foreign E&P companies: Imran Khan

    New petroleum policy to offer incentives to foreign E&P companies: Imran Khan

    ISLAMABAD: Prime Minister Imran Khan has said that the government is working on a new petroleum policy, which will offer incentives to foreign exploration and production (E&P) companies.

    The prime minister said this at a meeting with Chief Executive Officer Kuwait Petroleum Shaikh Nawaf Saud Al-Sabah, along with his delegation, which called on Prime Minister Imran Khan at Prime Minister’s Office on Wednesday.

    The prime minister said that in order to capitalize the existing potential of the sector, the fovernment was working on a new petroleum policy offering incentives to foreign exploration and production (E&P) companies and removing impediments in way to undertaking smooth and profitable business ventures.

    Minister for Energy Omar Ayub Khan, Minister Energy Punjab Dr. M. Akhtar Malik, Secretary Petroleum Mian Asad Hayauddin and senior officers were also present during the meeting.

    Shaikh Nawaf Saud Al-Sabah briefed the Prime Minister about Kuwait Petroleum’s business ventures in Pakistan since 1980s in the area of exploration.

    He evinced keen interest in further expanding business activities in the country.

    The prime minister welcomed Shaikh Nawaf Saud Al-Sabah and his delegation to Pakistan and assured Government’s continued support to the company in their smooth business operations.

    The prime minister highlighted various steps that the present Government has taken for improving ease of doing business and facilitation of foreign investment.

    The prime minister observed that exploration remained a neglected area in past.

    Imran Khan appreciated company’s contribution towards imparting training to the local manpower in E&P sector.

    Minister Energy Punjab Dr. M. Akhtar Malik also briefed the meeting about various initiatives being taken by Punjab Government in Petroleum sector.

  • OMCs sales sharply decline by 25pc in 10 months

    OMCs sales sharply decline by 25pc in 10 months

    KARACHI: The sales of Oil Marketing Companies (OMCs) massively declined by 25 percent during first ten months (July – April) of current fiscal year owing to slowdown in economic activities.

    The sales of OMCs fell to around 15.28 million tons during July – April 2018/2019 as compared with 20.4 million tons in the same period of the last fiscal year.

    Analysts at Topline Securities attributed the massive fall in sales to slowdown in economic activities and sharp decline in furnace oil.

    They said that Pakistan OMCs sales continued to suffer, where volumetric sales for April 2019 nosedived 16 percent YoY on back of 33 percent YoY lower furnace oil volumes and decline in high speed diesel volumes by 18 percent YoY.

    FO sales continued to feel pinch amid availability of RLNG/Coal for power generation. While, HSD volumes are down on YoY basis due to slowdown in economic activities.

    Petrol sales touched 20-Month high (in absolute terms), +2 percent YoY vs. +17 percent YoY in April 2018.

    Lower growth in MS could be attributed to increase in its prices by around 15 percent YoY coupled with overall slowdown in economy.

    In MS oil segment, PSO witnessed increase in market share by 4.3ppts YoY to 39.6 percent, while Hascol share has declined by 8.3ppts YoY to 7 percent as the company has changed its focus from higher volumes to higher margins.

    Similarly, unlisted player GNO gained 3.4ppts YoY in its market share.

    On HSD front, Hascol has lost 7.5ppts YoY in its market share to 7.1 percent, while GNO has gained 7.5ppts YoY and now commands 12 percent of the market.

  • ExxonMobil chief discusses offshore drilling with minister

    ExxonMobil chief discusses offshore drilling with minister

    ISLAMABAD: Chairman of ExxonMobil, Alex Volkov with his team met Ali Haider Zaidi, Minister for Maritime Affairs here on Tuesday.
    In a tweet message by the minister stated that productive discussions took place on the LNG requirements in Pakistan and the offshore drilling project off the coast of Karachi.