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Oil, Gas and Refinery Projects update
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ghazi52
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Attock Petroleum Limited (PSX: APL) was Incorporated in 1998 an oil marketing company It is part of the vertically integrated Attock Oil Group.
Pharaon Investment Group Limited Holding s.a.l holds the largest shareholding at 34 percent, whereas other key shareholders include Attock Refinery, Pakistan Oilfields Limited, and Attock Oil Company.
APL has a has a strong retail network with over 700 retail outlets nationwide and is engaged in the marketing and distribution of numerous petroleum products including High Speed Diesel, Premier Motor Gasoline, Furnace Oil, Bitumen, Kerosene and Lubricants etc. along with a range of automotive and industrial grades lubricants.
Attock Petroleum Limited (PSX: APL) was Incorporated in 1998 an oil marketing company It is part of the vertically integrated Attock Oil Group.
Pharaon Investment Group Limited Holding s.a.l holds the largest shareholding at 34 percent, whereas other key shareholders include Attock Refinery, Pakistan Oilfields Limited, and Attock Oil Company.
APL has a has a strong retail network with over 700 retail outlets nationwide and is engaged in the marketing and distribution of numerous petroleum products including High Speed Diesel, Premier Motor Gasoline, Furnace Oil, Bitumen, Kerosene and Lubricants etc. along with a range of automotive and industrial grades lubricants.
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Zafar Bhutta
September 17, 2023
OGDCL’s crude oil output stood at 32,000 bpd at the end of last financial year, but it has now crossed 34,000 barrels through renewed efforts. photo: REUTERS
State-run hydrocarbon exploration firm Oil and Gas Development Company Limited (OGDCL) is targeting to boost crude oil production to 50,000 barrels per day (bpd) to meet more consumer demand, which will help curtail imports as Pakistan is facing a dearth of US dollars.
Soon after assuming charge as OGDCL Managing Director, Ahmed Hayat Lak formed a working group on production optimisation to ramp up energy output by optimally utilising modern technologies.
This dedicated group is putting greater emphasis on individual wells and fields to increase oil and gas production with the help of technological interventions.
OGDCL’s crude oil output stood at 32,000 bpd at the end of last financial year, but it has now crossed 34,000 barrels through renewed efforts, company officials told The Express Tribune. They revealed that the company had chalked out a five-year plan to take crude oil production to 50,000 bpd.
According to the programme, some 2,000 bpd will be added to total crude oil production in financial year 2023-24, 9,379 bpd in 2024-25, 12,104 bpd in 2025-26, 16,286 bpd in 2026-27 and 19,583 bpd in 2027-28.
Pakistan is still facing scarcity of dollars, which has led to restrictions on opening Letters of Credit (LCs) for imports by all sectors. Oil refineries and oil marketing companies (OMCs) are no exception as they have also encountered hurdles in opening LCs for oil import.
In this backdrop, any increase in domestic crude oil production will be a welcome relief for the country.
According to sources, the OGDCL management has held consultations with service providers in different countries for making available state-of-the-art technology. “We have added 1,200 bpd from the Besakhi field just by installing electrical submersible pumps,” an official said.
The company has created an “indigenisation unit” to lessen reliance on imports and encourage procurement from the local industry. A dedicated team has started implementing the localisation strategy. In the first phase, imports will be slashed by 25% and local public and private-sector manufacturers will be taken on board as associated stakeholders.
Recently, an OGDCL team held meetings with renowned manufacturers and visited their facilities. The localisation plan will help to significantly reduce imports and save foreign exchange.
OGDCL has announced a remarkable achievement as part of production optimisation initiatives. It has been able to achieve impressive enhancement in production at Siab-1 well, situated in the Baratai Block in Kohat district of Khyber-Pakhtunkhwa.
Since its inception on January 13, 2022, Siab-1 well has consistently demonstrated its capability with remarkable oil and gas flow rates.
It initially recorded 125 bpd of condensate and 6.2 million standard cubic feet per day (mmscfd) of gas at a wellhead flowing pressure (WHFP) of 1,700 PSI in the Lockhart formation. Now, Siab-1 has exceeded all expectations. Through rig-less intervention within the Lockhart formation, OGDCL has embarked on a new era of hydrocarbon production. This intervention has resulted in an astounding increase in output, with the well now producing an additional 265 bpd of oil and 14.3 mmscfd of gas at a WHFP of 4,300 PSI.
The enhanced production at Siab-1 officially commenced on August 28, 2023. Since then, the well has consistently delivered handsome results, contributing a cumulative production of 20.5 mmscfd of gas and 390 bpd of oil.
Other notable accomplishments include the improved performance of Nim East-1 exploratory well.
Following the laying of a 12.5km pipeline, the well has contributed an additional production of 585 bpd of oil, 7.4 mmscfd of gas and 32 metric tons per day of liquefied petroleum gas.
The injected gas was seamlessly integrated into the Sui Southern Gas Company (SSGC)’s network, starting July 20, 2023, and had been continuously monitored till July 28, 2023. Similarly, OGDCL has installed an electrical submersible pump at well-11 of its 100% owned Pasakhi oilfield, situated in Hyderabad district of Sindh. This strategic intervention has enhanced oil production by 1,010 bpd.
At present, the well is producing 1,810 bpd of oil and is under observation to ascertain optimum flow rates. The enhanced production from Pasakhi-11 commenced on July 28, 2023. Meanwhile, the Chak 2-1 exploratory well, jointly operated by OGDCL (62.5%), Government Holdings Private Limited (22.5%) and Orient Petroleum Inc (15%), which located in Sanghar district of Sindh, has demonstrated exceptional potential with rig-less intervention.
Through additional perforations, the well’s production has gone up by 140 bpd of oil, 4.7 mmscfd of gas and 11 metric tons per day of liquefied petroleum gas.
Similarly, the Chak-V Dim South-3 well, situated in Chak-5 Dim South Block, Sanghar district, has shown good results. OGDCL has 100% working interest in the well.
Rig-less intervention with new perforations contributed to an incremental production of 130 bpd of oil, 3.8 mmscfd of gas and 8 metric tons per day of liquefied petroleum gas.
Output to reach 50,000 bpd: OGDCL
Company adopts modern technology to reduce imports, save forexZafar Bhutta
September 17, 2023
OGDCL’s crude oil output stood at 32,000 bpd at the end of last financial year, but it has now crossed 34,000 barrels through renewed efforts. photo: REUTERS
State-run hydrocarbon exploration firm Oil and Gas Development Company Limited (OGDCL) is targeting to boost crude oil production to 50,000 barrels per day (bpd) to meet more consumer demand, which will help curtail imports as Pakistan is facing a dearth of US dollars.
Soon after assuming charge as OGDCL Managing Director, Ahmed Hayat Lak formed a working group on production optimisation to ramp up energy output by optimally utilising modern technologies.
This dedicated group is putting greater emphasis on individual wells and fields to increase oil and gas production with the help of technological interventions.
OGDCL’s crude oil output stood at 32,000 bpd at the end of last financial year, but it has now crossed 34,000 barrels through renewed efforts, company officials told The Express Tribune. They revealed that the company had chalked out a five-year plan to take crude oil production to 50,000 bpd.
According to the programme, some 2,000 bpd will be added to total crude oil production in financial year 2023-24, 9,379 bpd in 2024-25, 12,104 bpd in 2025-26, 16,286 bpd in 2026-27 and 19,583 bpd in 2027-28.
Pakistan is still facing scarcity of dollars, which has led to restrictions on opening Letters of Credit (LCs) for imports by all sectors. Oil refineries and oil marketing companies (OMCs) are no exception as they have also encountered hurdles in opening LCs for oil import.
In this backdrop, any increase in domestic crude oil production will be a welcome relief for the country.
According to sources, the OGDCL management has held consultations with service providers in different countries for making available state-of-the-art technology. “We have added 1,200 bpd from the Besakhi field just by installing electrical submersible pumps,” an official said.
The company has created an “indigenisation unit” to lessen reliance on imports and encourage procurement from the local industry. A dedicated team has started implementing the localisation strategy. In the first phase, imports will be slashed by 25% and local public and private-sector manufacturers will be taken on board as associated stakeholders.
Recently, an OGDCL team held meetings with renowned manufacturers and visited their facilities. The localisation plan will help to significantly reduce imports and save foreign exchange.
OGDCL has announced a remarkable achievement as part of production optimisation initiatives. It has been able to achieve impressive enhancement in production at Siab-1 well, situated in the Baratai Block in Kohat district of Khyber-Pakhtunkhwa.
Since its inception on January 13, 2022, Siab-1 well has consistently demonstrated its capability with remarkable oil and gas flow rates.
It initially recorded 125 bpd of condensate and 6.2 million standard cubic feet per day (mmscfd) of gas at a wellhead flowing pressure (WHFP) of 1,700 PSI in the Lockhart formation. Now, Siab-1 has exceeded all expectations. Through rig-less intervention within the Lockhart formation, OGDCL has embarked on a new era of hydrocarbon production. This intervention has resulted in an astounding increase in output, with the well now producing an additional 265 bpd of oil and 14.3 mmscfd of gas at a WHFP of 4,300 PSI.
The enhanced production at Siab-1 officially commenced on August 28, 2023. Since then, the well has consistently delivered handsome results, contributing a cumulative production of 20.5 mmscfd of gas and 390 bpd of oil.
Other notable accomplishments include the improved performance of Nim East-1 exploratory well.
Following the laying of a 12.5km pipeline, the well has contributed an additional production of 585 bpd of oil, 7.4 mmscfd of gas and 32 metric tons per day of liquefied petroleum gas.
The injected gas was seamlessly integrated into the Sui Southern Gas Company (SSGC)’s network, starting July 20, 2023, and had been continuously monitored till July 28, 2023. Similarly, OGDCL has installed an electrical submersible pump at well-11 of its 100% owned Pasakhi oilfield, situated in Hyderabad district of Sindh. This strategic intervention has enhanced oil production by 1,010 bpd.
At present, the well is producing 1,810 bpd of oil and is under observation to ascertain optimum flow rates. The enhanced production from Pasakhi-11 commenced on July 28, 2023. Meanwhile, the Chak 2-1 exploratory well, jointly operated by OGDCL (62.5%), Government Holdings Private Limited (22.5%) and Orient Petroleum Inc (15%), which located in Sanghar district of Sindh, has demonstrated exceptional potential with rig-less intervention.
Through additional perforations, the well’s production has gone up by 140 bpd of oil, 4.7 mmscfd of gas and 11 metric tons per day of liquefied petroleum gas.
Similarly, the Chak-V Dim South-3 well, situated in Chak-5 Dim South Block, Sanghar district, has shown good results. OGDCL has 100% working interest in the well.
Rig-less intervention with new perforations contributed to an incremental production of 130 bpd of oil, 3.8 mmscfd of gas and 8 metric tons per day of liquefied petroleum gas.
ghazi52
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Sarfaraz A Khan
September 18, 2023
KARACHI: Timing is of the essence in policymaking. A well-timed decision can yield optimal results. Although delays might bring benefits, they can also do considerable damage. Reflecting on the recently introduced oil refining policy for both existing and new projects, one can’t help but wonder about the lost opportunities that might have been seized with more proactive decision-making.
Currently, Pakistan has five oil refineries with a combined potential to produce approximately 20 million tonnes of petroleum products annually, including diesel, petrol, furnace oil, and jet fuel. However, a myriad of challenges, notably the substantial dip in furnace oil demand, has meant that the nation could only utilise 50% to 60% of its total refining capacity.
Data from the Oil Companies Advisory Council (OCAC) showed that the refineries produced less than 900,000 tonnes of refined products in July, equating to an annualised run rate of around 10.8 million tonnes. With low utilisation, the refineries typically fulfil only around 30% of Pakistan’s petrol and half of its diesel requirements. The remainder is imported.
The low utilisation has adversely impacted the oil refineries’ sales and profits. Nearly a third of their production has normally been of furnace oil, a fuel whose demand plummeted after its primary buyer – the power producers – switched to the cleaner and more efficient Liquefied natural gas (LNG). International regulations, particularly the International Maritime Organisation’s revised greenhouse gas emission rules that came into force from 2020, further dampened the demand for the kind of furnace oil our refineries produced.
The challenge here is that refineries inherently produce a spectrum of fuels whenever they process crude oil. The dwindling demand for furnace oil, both domestically and internationally, compelled them to downscale operations.
Yet, the tide might turn with the advent of the new oil refining policy. Aimed at uplifting the industry, the policy offers vital incentives like tariff protection and tax breaks to the sector’s participants to facilitate the modernisation and expansion of their plants.
Furthermore, the policy’s provisions for greenfield projects might invite substantial Foreign Direct Investment (FDI) from Saudi Arabia. The Kingdom has shown interest in developing a new 300,000 to 400,000 barrels per day oil refinery. Reports indicate a potential collaboration wherein Saudi Arabia would hold 30% ownership in the new mega refinery, with the rest funded by others including state-owned entities like Pakistan State Oil (PSO). The project might usher in Saudi Aramco, the world’s biggest oil company, to Pakistan, revolutionising the nation’s oil refining landscape.
The implications of this policy could extend beyond the refining sector. The entry of giants like Saudi Aramco, paired with the modernisation of current refineries, can elevate Pakistan’s oil refining sector to new heights. The resulting investments of around $14 billion or more from both local and international stakeholders will inevitably catalyse economic growth and job creation. Moreover, the ensuing increase in the production of eco-friendly petrol and diesel, in compliance with Euro-V standards, and a corresponding decrease in furnace oil generation, will allow existing refineries to meet more than half of the country’s petrol and all of its diesel demand.
Beyond this, some local refineries have ambitious expansion plans. This, combined with Saudi Arabia’s entry, could potentially double the country’s oil refining output in the foreseeable future. Such unprecedented growth in fuel output might pave the way for two untapped avenues: the export of petrol and diesel to other energy-hungry countries and the development of an indigenous petrochemical industry.
Therefore, if the oil refining policy yields the desired results, its impact on the economy could be monumental. The results can range from substantial forex earnings to job creation, amplified FDI, heightened national energy security, and self-sufficiency in fuel products.
However, it’s crucial to remember that this can’t happen overnight. Developing, expanding, and upgrading oil refineries is a lengthy and complicated process that could take six to ten years, or even more. Factor in Pakistan’s volatile economic and political climate, and the road ahead becomes even more challenging.
Pondering over this evokes a question: What if this policy had been instituted a decade ago? A proactive approach from the policymakers, with the introduction of the policy before the power sector’s transition from furnace oil to LNG commenced in 2015, might have permitted the oil refining industry to adapt timely, maximising petrol and diesel output while curtailing furnace oil volumes.
In this hypothetical scenario, Pakistan could have established a robust refining sector by 2023, potentially earning export revenues, producing large quantities of high-value fuel products, bolstering the petrochemical industry, and reaping other benefits. A strong refining sector might have placed the economy in a substantially better position than the current one.
Unfortunately, that proactive step wasn’t taken.
Although the oil refining policy’s introduction was belated, there’s still hope. The enthusiasm displayed by existing refineries and the potential partnership with Saudi Arabia shine a beacon of optimism. Yet, it’s essential for policymakers to glean lessons from past oversights. Being proactive can make a world of difference. Those at the helm of affairs must learn to anticipate industry shifts and tailor policies accordingly, strengthening Pakistan’s industries at the right time.
Missed opportunities of delayed oil refining policy
Proactive policymaking could have transformed Pakistan’s oil refining sector by 2023Sarfaraz A Khan
September 18, 2023
KARACHI: Timing is of the essence in policymaking. A well-timed decision can yield optimal results. Although delays might bring benefits, they can also do considerable damage. Reflecting on the recently introduced oil refining policy for both existing and new projects, one can’t help but wonder about the lost opportunities that might have been seized with more proactive decision-making.
Currently, Pakistan has five oil refineries with a combined potential to produce approximately 20 million tonnes of petroleum products annually, including diesel, petrol, furnace oil, and jet fuel. However, a myriad of challenges, notably the substantial dip in furnace oil demand, has meant that the nation could only utilise 50% to 60% of its total refining capacity.
Data from the Oil Companies Advisory Council (OCAC) showed that the refineries produced less than 900,000 tonnes of refined products in July, equating to an annualised run rate of around 10.8 million tonnes. With low utilisation, the refineries typically fulfil only around 30% of Pakistan’s petrol and half of its diesel requirements. The remainder is imported.
The low utilisation has adversely impacted the oil refineries’ sales and profits. Nearly a third of their production has normally been of furnace oil, a fuel whose demand plummeted after its primary buyer – the power producers – switched to the cleaner and more efficient Liquefied natural gas (LNG). International regulations, particularly the International Maritime Organisation’s revised greenhouse gas emission rules that came into force from 2020, further dampened the demand for the kind of furnace oil our refineries produced.
The challenge here is that refineries inherently produce a spectrum of fuels whenever they process crude oil. The dwindling demand for furnace oil, both domestically and internationally, compelled them to downscale operations.
Yet, the tide might turn with the advent of the new oil refining policy. Aimed at uplifting the industry, the policy offers vital incentives like tariff protection and tax breaks to the sector’s participants to facilitate the modernisation and expansion of their plants.
Furthermore, the policy’s provisions for greenfield projects might invite substantial Foreign Direct Investment (FDI) from Saudi Arabia. The Kingdom has shown interest in developing a new 300,000 to 400,000 barrels per day oil refinery. Reports indicate a potential collaboration wherein Saudi Arabia would hold 30% ownership in the new mega refinery, with the rest funded by others including state-owned entities like Pakistan State Oil (PSO). The project might usher in Saudi Aramco, the world’s biggest oil company, to Pakistan, revolutionising the nation’s oil refining landscape.
The implications of this policy could extend beyond the refining sector. The entry of giants like Saudi Aramco, paired with the modernisation of current refineries, can elevate Pakistan’s oil refining sector to new heights. The resulting investments of around $14 billion or more from both local and international stakeholders will inevitably catalyse economic growth and job creation. Moreover, the ensuing increase in the production of eco-friendly petrol and diesel, in compliance with Euro-V standards, and a corresponding decrease in furnace oil generation, will allow existing refineries to meet more than half of the country’s petrol and all of its diesel demand.
Beyond this, some local refineries have ambitious expansion plans. This, combined with Saudi Arabia’s entry, could potentially double the country’s oil refining output in the foreseeable future. Such unprecedented growth in fuel output might pave the way for two untapped avenues: the export of petrol and diesel to other energy-hungry countries and the development of an indigenous petrochemical industry.
Therefore, if the oil refining policy yields the desired results, its impact on the economy could be monumental. The results can range from substantial forex earnings to job creation, amplified FDI, heightened national energy security, and self-sufficiency in fuel products.
However, it’s crucial to remember that this can’t happen overnight. Developing, expanding, and upgrading oil refineries is a lengthy and complicated process that could take six to ten years, or even more. Factor in Pakistan’s volatile economic and political climate, and the road ahead becomes even more challenging.
Pondering over this evokes a question: What if this policy had been instituted a decade ago? A proactive approach from the policymakers, with the introduction of the policy before the power sector’s transition from furnace oil to LNG commenced in 2015, might have permitted the oil refining industry to adapt timely, maximising petrol and diesel output while curtailing furnace oil volumes.
In this hypothetical scenario, Pakistan could have established a robust refining sector by 2023, potentially earning export revenues, producing large quantities of high-value fuel products, bolstering the petrochemical industry, and reaping other benefits. A strong refining sector might have placed the economy in a substantially better position than the current one.
Unfortunately, that proactive step wasn’t taken.
Although the oil refining policy’s introduction was belated, there’s still hope. The enthusiasm displayed by existing refineries and the potential partnership with Saudi Arabia shine a beacon of optimism. Yet, it’s essential for policymakers to glean lessons from past oversights. Being proactive can make a world of difference. Those at the helm of affairs must learn to anticipate industry shifts and tailor policies accordingly, strengthening Pakistan’s industries at the right time.
ghazi52
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Pakistan has successfully taken delivery of its first-ever shipment of liquefied petroleum gas (LPG) from Russia, a significant milestone in the growing energy cooperation between the two nations.
The Russian embassy in Islamabad confirmed this development, highlighting the crucial role played by Iran in facilitating the delivery
This comes on the heels of Pakistan's earlier acquisition of Russian crude oil, marking the country's second major energy transaction with Russia this year.
The shipment, totalling 100,000 metric tonnes, was transported through Iran's Sarakhs Special Economic Zone. Ongoing discussions for a subsequent shipment are in progress, although specific details of Iran's involvement and pricing remain undisclosed.
Pakistan had previously conducted the transaction for Russian crude in Chinese currency, though the exact value of the deal was not disclosed.
As energy imports constitute a significant portion of Pakistan's external payments, discounted imports from Russia are viewed as a lifeline amidst the nation's economic crisis and pressing balance of payments challenges, potentially averting a default on external debt
Pakistan has successfully taken delivery of its first-ever shipment of liquefied petroleum gas (LPG) from Russia, a significant milestone in the growing energy cooperation between the two nations.
The Russian embassy in Islamabad confirmed this development, highlighting the crucial role played by Iran in facilitating the delivery
This comes on the heels of Pakistan's earlier acquisition of Russian crude oil, marking the country's second major energy transaction with Russia this year.
The shipment, totalling 100,000 metric tonnes, was transported through Iran's Sarakhs Special Economic Zone. Ongoing discussions for a subsequent shipment are in progress, although specific details of Iran's involvement and pricing remain undisclosed.
Pakistan had previously conducted the transaction for Russian crude in Chinese currency, though the exact value of the deal was not disclosed.
As energy imports constitute a significant portion of Pakistan's external payments, discounted imports from Russia are viewed as a lifeline amidst the nation's economic crisis and pressing balance of payments challenges, potentially averting a default on external debt
ghazi52
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Oct 2, 2023
ISLAMABAD: Petroleum Division has proposed gas sale prices for Mari-based fertiliser plants at Rs.580/ mmbtu for feed stock and Rs.1,580/ mmbtu for fuel-stock from October 1, 2023, sources close to Petroleum Minister told Business Recorder.
Petroleum Minister Muhammad Ali has tailored a plan to unify feed gas prices of fertiliser industry at par with industrial rate of Rs 1,260/ MMBTU instead of subsidised rates, amid accusations that fertiliser industry is not passing on subsidy to the farmers.
The new proposal, if implemented, will result in an increase in urea price by Rs 800 per bag from Rs 3,800 to Rs 4,600 per bag whereas the imported price of urea is Rs 7,700 per bag.
“Unification of gas prices would result in saving of Rs 90 billion which may be routed to small farmers by the provinces,” the sources quoted Petroleum Minister as claiming in his draft papers.
However, fertiliser industry is of the view that the subsidy provision mechanism is the domain of Ministry of National Food Security and Research and not Petroleum Division, as in the past such schemes were massively misused by fertiliser dealers, who pocketed around Rs 60 billion without paying any tax.
There are ten fertiliser plants in the country, out of which six have dedicated supplies from Mari’s network while four plants are allocated gas through Sui’s network. The Gas Supply Agreements (GSA) of six Mari based plants are valid till June, 2024.
The Mari Petroleum Company Limited (MPCL) is entitled to receive wellhead gas prices in accordance with relevant agreements with the government, for gas produced from its various natural gas reservoirs (i.e. HRL, Goru-B and SML/ SUL). The Mari Field wellhead gas prices are determined and notified by OGRA on bi-annual basis, under Section 6 (2) (w) of Oil and Gas Regulatory Ordinance, 2002 read with Regulation (3) of Natural Gas (Wellhead Price) Regulations, 2009.
The wellhead prices so determined depends on the crude oil prices of the imports made in preceding six months as per international crude oil prices and the applicable rupee-dollar exchange rate, as per MPCL’s agreement with the Government. The federal government is empowered under Section 7(1) and Section 8(3) of the OGRA Ordinance, 2002 to advise category wise consumer gas prices.
The federal government has revised the gas sale price for the fertiliser plants on SSGCL and SNGPL from January 01, 2023. However, the gas price could not be revised for the fertiliser plants on MPCL since last OGRA’s notification of October 23, 2020 whereby gas sale price was notified as Rs.302/mmbtu for feed-stock and Rs.1,023/ mmbtu for fuel stock.
According to Petroleum Division, OGRA-notified gas sale prices are not sufficient to meet MPCL’s revenue requirement at notified wellhead gas prices and are consequently resulting in negative differential margin. The estimated financial impact of this negative differential margin during the period from January to June, 2023 is Rs 4.26 billion.
The prescribed price for Mari gas fields is determined by OGRA under a two-tier pricing mechanism approved by the government.
As per tier 1, benchmark production 525 MMCFD, wellhead price Rs 545 per MMBTU, excise duty Rs 10 per MMBTU- prescribed price, Rs 555 per MMBTU. Tier-2, incremental production 115 MMCFD, wellhead price Rs 1686, excise duty Rs 10 per MMBTU, prescribed price Rs 1,696 per MMBTU.
Petroleum Division maintains that sale price of gas supplied out of Mari Field’s incremental production to Engro Old plant and Pak Arab Fertiliser plant is based on Petroleum Policy, 2012, which is being fully recovered. Fauji Fertiliser plant I, II and Ill and Fatima Fertilizer are; however, being charged sales price of Rs.302/mmbtu and Rs.1,023/ mmbtu for feed-stock and fuel-stock, respectively under benchmark production.
Petroleum Division maintains that in case the sale price for fertiliser is not revised, the estimated annual net negative differential margin from fertiliser sector with current sale prices would be over Rs.16.77 billion for FY 2023-24 excluding previous year’s negative differential margin of Rs.4.26 billion.
The sources further stated that on a summary submitted by M/o Industries & Production, the ECC of the Cabinet on March 15, 2023 constituted a Inter-Ministerial committee for submission of recommendations on gas allocations and pricing for fertiliser sector to the ECC.
The committee conducted various meetings and submitted its report to the ECC.
The ECC in its meeting held on August 08, 2023 approved the report, in principle, with the direction to refer the report to Petroleum Division for consultation with Ministry of Industries and Production, Power Division and private sector stakeholders and to resubmit a final implement-able summary before the ECC.
Accordingly, stakeholders’ comments have been requested and the matter will be resubmitted to the ECC in due course of time. However, this process is largely reformatory and may require threadbare deliberation and analysis whereas consumer price determination for Mari is a regular legal requirement, which has serious financial implications.
Keeping in view the current position, Petroleum Division has proposed that gas sale price for Mari based fertiliser plants may be fixed as Rs.580/mmbtu for feed stock and Rs.1,580/ mmbtu for fuel-stock from October1, 2023 or from the date of approval of ECC whichever is earlier. The prices would result in a positive Gas Development Surcharge.
However, gas volumes of Mari entitled to the pricing incentive of Policy, 2012 would continue to be priced in accordance with the Petroleum Policy, 2012.
PD proposes gas prices for Mari-based fertiliser plants
Business RecorderOct 2, 2023
ISLAMABAD: Petroleum Division has proposed gas sale prices for Mari-based fertiliser plants at Rs.580/ mmbtu for feed stock and Rs.1,580/ mmbtu for fuel-stock from October 1, 2023, sources close to Petroleum Minister told Business Recorder.
Petroleum Minister Muhammad Ali has tailored a plan to unify feed gas prices of fertiliser industry at par with industrial rate of Rs 1,260/ MMBTU instead of subsidised rates, amid accusations that fertiliser industry is not passing on subsidy to the farmers.
The new proposal, if implemented, will result in an increase in urea price by Rs 800 per bag from Rs 3,800 to Rs 4,600 per bag whereas the imported price of urea is Rs 7,700 per bag.
“Unification of gas prices would result in saving of Rs 90 billion which may be routed to small farmers by the provinces,” the sources quoted Petroleum Minister as claiming in his draft papers.
However, fertiliser industry is of the view that the subsidy provision mechanism is the domain of Ministry of National Food Security and Research and not Petroleum Division, as in the past such schemes were massively misused by fertiliser dealers, who pocketed around Rs 60 billion without paying any tax.
There are ten fertiliser plants in the country, out of which six have dedicated supplies from Mari’s network while four plants are allocated gas through Sui’s network. The Gas Supply Agreements (GSA) of six Mari based plants are valid till June, 2024.
The Mari Petroleum Company Limited (MPCL) is entitled to receive wellhead gas prices in accordance with relevant agreements with the government, for gas produced from its various natural gas reservoirs (i.e. HRL, Goru-B and SML/ SUL). The Mari Field wellhead gas prices are determined and notified by OGRA on bi-annual basis, under Section 6 (2) (w) of Oil and Gas Regulatory Ordinance, 2002 read with Regulation (3) of Natural Gas (Wellhead Price) Regulations, 2009.
The wellhead prices so determined depends on the crude oil prices of the imports made in preceding six months as per international crude oil prices and the applicable rupee-dollar exchange rate, as per MPCL’s agreement with the Government. The federal government is empowered under Section 7(1) and Section 8(3) of the OGRA Ordinance, 2002 to advise category wise consumer gas prices.
The federal government has revised the gas sale price for the fertiliser plants on SSGCL and SNGPL from January 01, 2023. However, the gas price could not be revised for the fertiliser plants on MPCL since last OGRA’s notification of October 23, 2020 whereby gas sale price was notified as Rs.302/mmbtu for feed-stock and Rs.1,023/ mmbtu for fuel stock.
According to Petroleum Division, OGRA-notified gas sale prices are not sufficient to meet MPCL’s revenue requirement at notified wellhead gas prices and are consequently resulting in negative differential margin. The estimated financial impact of this negative differential margin during the period from January to June, 2023 is Rs 4.26 billion.
The prescribed price for Mari gas fields is determined by OGRA under a two-tier pricing mechanism approved by the government.
As per tier 1, benchmark production 525 MMCFD, wellhead price Rs 545 per MMBTU, excise duty Rs 10 per MMBTU- prescribed price, Rs 555 per MMBTU. Tier-2, incremental production 115 MMCFD, wellhead price Rs 1686, excise duty Rs 10 per MMBTU, prescribed price Rs 1,696 per MMBTU.
Petroleum Division maintains that sale price of gas supplied out of Mari Field’s incremental production to Engro Old plant and Pak Arab Fertiliser plant is based on Petroleum Policy, 2012, which is being fully recovered. Fauji Fertiliser plant I, II and Ill and Fatima Fertilizer are; however, being charged sales price of Rs.302/mmbtu and Rs.1,023/ mmbtu for feed-stock and fuel-stock, respectively under benchmark production.
Petroleum Division maintains that in case the sale price for fertiliser is not revised, the estimated annual net negative differential margin from fertiliser sector with current sale prices would be over Rs.16.77 billion for FY 2023-24 excluding previous year’s negative differential margin of Rs.4.26 billion.
The sources further stated that on a summary submitted by M/o Industries & Production, the ECC of the Cabinet on March 15, 2023 constituted a Inter-Ministerial committee for submission of recommendations on gas allocations and pricing for fertiliser sector to the ECC.
The committee conducted various meetings and submitted its report to the ECC.
The ECC in its meeting held on August 08, 2023 approved the report, in principle, with the direction to refer the report to Petroleum Division for consultation with Ministry of Industries and Production, Power Division and private sector stakeholders and to resubmit a final implement-able summary before the ECC.
Accordingly, stakeholders’ comments have been requested and the matter will be resubmitted to the ECC in due course of time. However, this process is largely reformatory and may require threadbare deliberation and analysis whereas consumer price determination for Mari is a regular legal requirement, which has serious financial implications.
Keeping in view the current position, Petroleum Division has proposed that gas sale price for Mari based fertiliser plants may be fixed as Rs.580/mmbtu for feed stock and Rs.1,580/ mmbtu for fuel-stock from October1, 2023 or from the date of approval of ECC whichever is earlier. The prices would result in a positive Gas Development Surcharge.
However, gas volumes of Mari entitled to the pricing incentive of Policy, 2012 would continue to be priced in accordance with the Petroleum Policy, 2012.
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A delegation of the Pakistani ministry of petroleum has met energy giants from China, Saudi Arabia and the UAE at the ongoing ADIPEC energy industry event in Abu Dhabi to capitalize on opportunities and cooperation avenues to boost Pakistan’s power sector.
Pakistan in June set up a Special Investment Facilitation Council (SIFC) to fast-track decision making and promote investment from foreign nations, particularly Gulf countries.
The council has identified five sectors as priority, namely energy, agriculture, mining, information technology and defense production, as Pakistan deals with a balance of payments crisis and requires billions of dollars in foreign exchange to finance its trade deficit and repay its international debts in the current financial year.
“Minister Muhammad Ali is engaging with energy giants of the world to capitalize the opportunities and cooperation avenues to boost Pakistan’s energy sector,” the Pakistani ministry said in a statement on Tuesday afternoon about the petroleum minister’s engagements at ADIPEC, one of the world’s largest energy events, with 2,200 companies, including ten from Pakistan, participating this year and 30 country pavilions showcasing energy strategies.
Ali held a meeting with a delegation from the Abu Dhabi National Oil Company or ADNOC, the state-owned oil company of the UAE and the world’s 12th largest oil company by production.
“Matters pertaining to LNG and crude supply came under discussion,” a statement from the Pakistani side said.
On Monday, the Pakistani delegation held a meeting with a delegation of ARAMCO headed by the head of ARAMCO Asia.”
“Areas of mutual cooperation including exploration, oil and gas wells digitalization came under discussion,” the Pakistani power ministry said.
In a historic collaboration, Pakistan announced in July that four government-backed oil and gas companies were joining forces with oil giant Saudi Aramco for a USD 10 billion Greenfield refinery project.
A delegation of the Pakistani ministry of petroleum has met energy giants from China, Saudi Arabia and the UAE at the ongoing ADIPEC energy industry event in Abu Dhabi to capitalize on opportunities and cooperation avenues to boost Pakistan’s power sector.
Pakistan in June set up a Special Investment Facilitation Council (SIFC) to fast-track decision making and promote investment from foreign nations, particularly Gulf countries.
The council has identified five sectors as priority, namely energy, agriculture, mining, information technology and defense production, as Pakistan deals with a balance of payments crisis and requires billions of dollars in foreign exchange to finance its trade deficit and repay its international debts in the current financial year.
“Minister Muhammad Ali is engaging with energy giants of the world to capitalize the opportunities and cooperation avenues to boost Pakistan’s energy sector,” the Pakistani ministry said in a statement on Tuesday afternoon about the petroleum minister’s engagements at ADIPEC, one of the world’s largest energy events, with 2,200 companies, including ten from Pakistan, participating this year and 30 country pavilions showcasing energy strategies.
Ali held a meeting with a delegation from the Abu Dhabi National Oil Company or ADNOC, the state-owned oil company of the UAE and the world’s 12th largest oil company by production.
“Matters pertaining to LNG and crude supply came under discussion,” a statement from the Pakistani side said.
On Monday, the Pakistani delegation held a meeting with a delegation of ARAMCO headed by the head of ARAMCO Asia.”
“Areas of mutual cooperation including exploration, oil and gas wells digitalization came under discussion,” the Pakistani power ministry said.
In a historic collaboration, Pakistan announced in July that four government-backed oil and gas companies were joining forces with oil giant Saudi Aramco for a USD 10 billion Greenfield refinery project.
ghazi52
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Oct 5, 2023
After a gap of almost one year, Pakistan on Wednesday received three bids for two additional liquefied natural gas (LNG) cargoes needed for the peak winter demand at a significantly higher premium over the prevailing spot market.
Petroleum Minister Muhammad Ali later announced in the evening that the government had accepted two lowest evaluated bids to minimise winter gas shortage following a decline in domestic gas production so as to maintain load management at around the same level experienced during winter last year.
In an international tender in September, the state-run Pakistan LNG Limited (PLL) had sought bids for procurement of two LNG cargoes for delivery in the second and third week of December with the bidding deadline set at Wednesday noon. In response, two traders submitted three bids.
LNG trader Trafigura Pte Ltd came up with two bids against Dec 7-8 and Dec 13-14 windows at $18.39 per million British thermal unit (mmBtu) and $19.39 per mmBtu, respectively. On the other hand, Vitol Bahrain offered a bid price of $15.97 per mmBtu for Dec 7-8 delivery window.
The bid committee has, therefore, declared Vitol’s $15.97 per mmBtu bid for Dec 7-8 and Trafigura’s single bid of $19.39 per mmBtu for Dec 13-14 as the lowest evaluated bids.
For a reference, the Oil and Gas Regulatory Authority (Ogra) has set basket RLNG transmission stage price for the current month at $11.86 per mmBtu for SNGPL and $11.47 for SSGCL on the basis of $9.76 per mmBtu average LNG price delivered ex-ship (DES) for nine cargoes.
While Trafigura’s bids are quite expensive, even the Vitol’s lowest evaluated bid of $15.97 per mmBtu is almost double the Qatar Gas’s second long-term contract price and over 60pc higher than average basket price of the existing nine LNG cargoes supplying 900 million cubic feet per day (mmcfd).
Qatar Gas is supplying about five cargoes per month at 13.37 per cent of Brent ($10.7 per mmBtu in September) and three cargoes at 10.2pc of Brent ($8.17 per mmBtu), while ENI is supplying one cargo at 12.14pc of Brent ($9.72 per mmBtu).
An official said Vitol’s had bid at a premium of more than $2 per mmBtu or almost 13pc higher that the prevailing spot rates in the international market, apparently because of the country’s credit rating and risk factor.
The bids are, nevertheless, a revival of traders’ interest in Pakistan market after a gap of about 12 months who had shied away because of Pakistan’s low credit rating and foreign exchange challenges.
In July this year, PLL’s bid to test international spot market for additional LNG supplies in peak winter had gone futile when only one bidder turned up with offers at a significant premium, making the price unviable for local consumers.
Low gas output forces govt to book pricey LNG as winter nears
DAWNOct 5, 2023
After a gap of almost one year, Pakistan on Wednesday received three bids for two additional liquefied natural gas (LNG) cargoes needed for the peak winter demand at a significantly higher premium over the prevailing spot market.
Petroleum Minister Muhammad Ali later announced in the evening that the government had accepted two lowest evaluated bids to minimise winter gas shortage following a decline in domestic gas production so as to maintain load management at around the same level experienced during winter last year.
In an international tender in September, the state-run Pakistan LNG Limited (PLL) had sought bids for procurement of two LNG cargoes for delivery in the second and third week of December with the bidding deadline set at Wednesday noon. In response, two traders submitted three bids.
LNG trader Trafigura Pte Ltd came up with two bids against Dec 7-8 and Dec 13-14 windows at $18.39 per million British thermal unit (mmBtu) and $19.39 per mmBtu, respectively. On the other hand, Vitol Bahrain offered a bid price of $15.97 per mmBtu for Dec 7-8 delivery window.
The bid committee has, therefore, declared Vitol’s $15.97 per mmBtu bid for Dec 7-8 and Trafigura’s single bid of $19.39 per mmBtu for Dec 13-14 as the lowest evaluated bids.
For a reference, the Oil and Gas Regulatory Authority (Ogra) has set basket RLNG transmission stage price for the current month at $11.86 per mmBtu for SNGPL and $11.47 for SSGCL on the basis of $9.76 per mmBtu average LNG price delivered ex-ship (DES) for nine cargoes.
While Trafigura’s bids are quite expensive, even the Vitol’s lowest evaluated bid of $15.97 per mmBtu is almost double the Qatar Gas’s second long-term contract price and over 60pc higher than average basket price of the existing nine LNG cargoes supplying 900 million cubic feet per day (mmcfd).
Qatar Gas is supplying about five cargoes per month at 13.37 per cent of Brent ($10.7 per mmBtu in September) and three cargoes at 10.2pc of Brent ($8.17 per mmBtu), while ENI is supplying one cargo at 12.14pc of Brent ($9.72 per mmBtu).
An official said Vitol’s had bid at a premium of more than $2 per mmBtu or almost 13pc higher that the prevailing spot rates in the international market, apparently because of the country’s credit rating and risk factor.
The bids are, nevertheless, a revival of traders’ interest in Pakistan market after a gap of about 12 months who had shied away because of Pakistan’s low credit rating and foreign exchange challenges.
In July this year, PLL’s bid to test international spot market for additional LNG supplies in peak winter had gone futile when only one bidder turned up with offers at a significant premium, making the price unviable for local consumers.
ghazi52
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October 8, 2023
ISLAMABAD: The federal government is giving the final touches to the first-ever Petrochemical Policy aimed at attracting investment in the upstream and midstream industry to start indigenous manufacturing of petrochemicals, well informed sources in Commerce Ministry told Business Recorder.
Sharing the details, Engineering Development Board (EDB) in consultation with public and private sector stakeholders are giving final touches to Petrochemical Policy of Pakistan 2023 to start indigenous manufacturing of petrochemicals, e.g., polypropylene, polyethylene, LAB, etc., and to ensure sustainable development through local availability of plastic resins for downstream engineering industry.
In this regard series of meetings/ consultations have already been conducted. The Secretary, Ministry of Industries & Production (MoI&P) held several meetings to evaluate progress on the policy. Representatives from Pakistan Chemicals Manufacturers Association (PCMA) along with major existing petrochemical producers (private sector), Ministry of Commerce (MoC), National Tariff Commission (NTC), and EDB attended the meetings.
After detailed deliberations with the concerned stakeholders the draft policy was submitted to the Ministry in July 2023 and is in the process of comments from the relevant Ministries/ Divisions, which will be placed before ECC of the Cabinet accordingly.
Petrochemical midstream segment comprises of Monomers and Polymers that are derived from naphtha cracking and used by downstream segment to create plastic products, sheets, film, tubes, profiles, containers, filaments, ropes, etc., which are used in a variety of industries like packaging, construction, automotive, industrial products, wind turbines, solar panels, electrical & electronics, artificial leather, home appliances, bottles & jars, furniture, kitchen wares, households toys, disposable utensils, packaging, etc.
Local companies in Pakistan working in the petrochemicals sector, comprising Lucky Core Industries (Former ICI Pakistan), Gatron-Novatex, Lotte Chemicals, Tufail Chemicals and Engro Corp have suggested to the government to formulate a long-term petrochemical policy, which would facilitate investment in the midstream sector and encourage import substitution of critical chemicals which are currently imported.
Major petrochemical products currently manufactured in Pakistan include Poly-vinyl-chloride (PVC), Polystyrene (PS), Purified Terephthalic Acid (PTA), Polyethylene Terephthalate (PET), Phthalic Anhydride (PA), Linear Alkyl Benzene Sulfonic Acid (LABSA), etc.
The local companies have identified further products which have enough scale in terms of local demand, and that are ripe for investments and local production. These include Polyethylene (PE), Polypropylene (PP), Linear Alkyl Benzene (LAB), Acrylonitrile Butadiene Styrene (ABS), MEG, etc. Import of these products, not manufactured locally, is approximately 2 million tons, at a value of $2.8 billion.
Total local demand of petrochemicals is around $5.3 billion. Out of this, the share of locally manufactured petrochemicals is about $ 1.8 billion, while share of imported petrochemicals meeting the total local demand is around $ 3.5 billion.
According to sources, the proposed Midstream Petrochemical Policy is expected to have a number of benefits which include availability of essential raw material for downstream sectors like textile, construction, automobiles, pharmaceutical, fertilizers, synthetic rubber, etc.; contribute to increase exports in down-stream, value-added sectors like textile, etc., once sufficient local chemical for production of artificial fibre is enabled; contribute to reduction in Pakistan’s trade deficit through import substitution; catalyse growth of SMEs in petrochemical downstream through provision of local raw material; and contribute additional tax revenue to the national exchequer.
Estimates provided by industry indicate the Policy is expected to create approximately 50,000 direct and indirect employments in this sector, attract approximately $ 3.5 billion investment in the sector and contribute at least 1% to GDP.
Summary of key incentives requested by industry are: (i) maintain import tariffs on petrochemicals as at July 2022 for 15 years on locally manufactured midstream petrochemicals; (ii) enhance duty on intermediate and final petrochemicals once local production comes online, and maintain this for 15 years; (iii) exemption from duties and taxes for Plant and Machinery imported for creating this capacity; (iv) income tax holiday for 15 years including minimum turnover tax; exemptions of existing and new taxes, e.g., carbon tax, dividend tax, corporate tax etc ;(v) infrastructure facilitation, and (vi) low-cost financing.
First petrochemical policy getting final touches
- Govt aims to attract investment in the upstream and midstream industry to start indigenous manufacturing of petrochemicals
October 8, 2023
ISLAMABAD: The federal government is giving the final touches to the first-ever Petrochemical Policy aimed at attracting investment in the upstream and midstream industry to start indigenous manufacturing of petrochemicals, well informed sources in Commerce Ministry told Business Recorder.
Sharing the details, Engineering Development Board (EDB) in consultation with public and private sector stakeholders are giving final touches to Petrochemical Policy of Pakistan 2023 to start indigenous manufacturing of petrochemicals, e.g., polypropylene, polyethylene, LAB, etc., and to ensure sustainable development through local availability of plastic resins for downstream engineering industry.
In this regard series of meetings/ consultations have already been conducted. The Secretary, Ministry of Industries & Production (MoI&P) held several meetings to evaluate progress on the policy. Representatives from Pakistan Chemicals Manufacturers Association (PCMA) along with major existing petrochemical producers (private sector), Ministry of Commerce (MoC), National Tariff Commission (NTC), and EDB attended the meetings.
After detailed deliberations with the concerned stakeholders the draft policy was submitted to the Ministry in July 2023 and is in the process of comments from the relevant Ministries/ Divisions, which will be placed before ECC of the Cabinet accordingly.
Petrochemical midstream segment comprises of Monomers and Polymers that are derived from naphtha cracking and used by downstream segment to create plastic products, sheets, film, tubes, profiles, containers, filaments, ropes, etc., which are used in a variety of industries like packaging, construction, automotive, industrial products, wind turbines, solar panels, electrical & electronics, artificial leather, home appliances, bottles & jars, furniture, kitchen wares, households toys, disposable utensils, packaging, etc.
Local companies in Pakistan working in the petrochemicals sector, comprising Lucky Core Industries (Former ICI Pakistan), Gatron-Novatex, Lotte Chemicals, Tufail Chemicals and Engro Corp have suggested to the government to formulate a long-term petrochemical policy, which would facilitate investment in the midstream sector and encourage import substitution of critical chemicals which are currently imported.
Major petrochemical products currently manufactured in Pakistan include Poly-vinyl-chloride (PVC), Polystyrene (PS), Purified Terephthalic Acid (PTA), Polyethylene Terephthalate (PET), Phthalic Anhydride (PA), Linear Alkyl Benzene Sulfonic Acid (LABSA), etc.
The local companies have identified further products which have enough scale in terms of local demand, and that are ripe for investments and local production. These include Polyethylene (PE), Polypropylene (PP), Linear Alkyl Benzene (LAB), Acrylonitrile Butadiene Styrene (ABS), MEG, etc. Import of these products, not manufactured locally, is approximately 2 million tons, at a value of $2.8 billion.
Total local demand of petrochemicals is around $5.3 billion. Out of this, the share of locally manufactured petrochemicals is about $ 1.8 billion, while share of imported petrochemicals meeting the total local demand is around $ 3.5 billion.
According to sources, the proposed Midstream Petrochemical Policy is expected to have a number of benefits which include availability of essential raw material for downstream sectors like textile, construction, automobiles, pharmaceutical, fertilizers, synthetic rubber, etc.; contribute to increase exports in down-stream, value-added sectors like textile, etc., once sufficient local chemical for production of artificial fibre is enabled; contribute to reduction in Pakistan’s trade deficit through import substitution; catalyse growth of SMEs in petrochemical downstream through provision of local raw material; and contribute additional tax revenue to the national exchequer.
Estimates provided by industry indicate the Policy is expected to create approximately 50,000 direct and indirect employments in this sector, attract approximately $ 3.5 billion investment in the sector and contribute at least 1% to GDP.
Summary of key incentives requested by industry are: (i) maintain import tariffs on petrochemicals as at July 2022 for 15 years on locally manufactured midstream petrochemicals; (ii) enhance duty on intermediate and final petrochemicals once local production comes online, and maintain this for 15 years; (iii) exemption from duties and taxes for Plant and Machinery imported for creating this capacity; (iv) income tax holiday for 15 years including minimum turnover tax; exemptions of existing and new taxes, e.g., carbon tax, dividend tax, corporate tax etc ;(v) infrastructure facilitation, and (vi) low-cost financing.
ghazi52
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October 10, 2023
Pakistan State Oil (PSO) is reportedly interacting with Bank of China/Sinopec for establishment of either an oil refinery or petrochemical refinery with an investment of over $ 10 billion, well-informed sources told Business Recorder.
The sources said Secretary Petroleum recently updated Executive Committee of SIFC on discussions with the Saudi side and PSO’s with Bank of China/ Sinopec, adding further progress is expected during the forthcoming visit of caretaker Prime Minister, Anwar-ul-Haq Kakar to China.
The SIFC has also directed Secretary Petroleum, Secretary Finance, Secretary Law and Justice, Chairman FBR and Chairman OGRA that Host Government Agreement (HGA) on TAPI may be finalised as per timelines and consensus be developed among, Finance, Petroleum, Law and Justice, FBR and OGRA, etc, on pending matters.
Secretary Foreign Affairs, Secretary Petroleum and Secretary Planning have been directed to discuss Pakstream gas pipeline project in Working Group and an update be shared with Executive Committee of SIFC.
OGRA will lead as regulator for devising the plan for provision of virtual LNG in collaboration with Petroleum Division, including finalization of codal formalities for issuance of NOC.
Minister for Maritime Affairs (MoMA), Secretary Petroleum and Chairman OGRA have been directed that an Action Plan to fully utilize and optimize existing LNG terminals to import maximum possible LNG, preferably in business to business (B2B) mode, without any obligation on part of government be devised. The endeavor should enable additional LNG cargoes before onset of winter 2023.
$10bn refinery: PSO interacting with Bank of China/Sinopec
Mushtaq GhummanOctober 10, 2023
Pakistan State Oil (PSO) is reportedly interacting with Bank of China/Sinopec for establishment of either an oil refinery or petrochemical refinery with an investment of over $ 10 billion, well-informed sources told Business Recorder.
The sources said Secretary Petroleum recently updated Executive Committee of SIFC on discussions with the Saudi side and PSO’s with Bank of China/ Sinopec, adding further progress is expected during the forthcoming visit of caretaker Prime Minister, Anwar-ul-Haq Kakar to China.
The SIFC has also directed Secretary Petroleum, Secretary Finance, Secretary Law and Justice, Chairman FBR and Chairman OGRA that Host Government Agreement (HGA) on TAPI may be finalised as per timelines and consensus be developed among, Finance, Petroleum, Law and Justice, FBR and OGRA, etc, on pending matters.
Secretary Foreign Affairs, Secretary Petroleum and Secretary Planning have been directed to discuss Pakstream gas pipeline project in Working Group and an update be shared with Executive Committee of SIFC.
OGRA will lead as regulator for devising the plan for provision of virtual LNG in collaboration with Petroleum Division, including finalization of codal formalities for issuance of NOC.
Minister for Maritime Affairs (MoMA), Secretary Petroleum and Chairman OGRA have been directed that an Action Plan to fully utilize and optimize existing LNG terminals to import maximum possible LNG, preferably in business to business (B2B) mode, without any obligation on part of government be devised. The endeavor should enable additional LNG cargoes before onset of winter 2023.
ghazi52
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MOSCOW: Mohammad Ali, Pakistan’s caretaker energy minister, said on Thursday that Islamabad was considering signing a long-term deal to buy between 0.7 million and 1 million tons (up to 20,000 bpd) of Russian oil per year, the TASS news agency reported.
The South Asian nation has started snapping up crude oil that Moscow has discounted after its exports were banned from European markets over Russia’s invasion of Ukraine.
Pakistan’s first cargo, imported by the government, arrived in June and a second government-to-government shipment is under negotiation.
Last week, Pakistan refiner Cnergyico imported the country’s first private-sector shipment of Russian crude oil.
Oil and energy make up the largest portion of Pakistan’s import bill and the country is struggling with a balance of payments crises due to dwindling foreign reserves.
Grappling with high inflation and a foreign exchange crisis, Pakistan has also struggled with spot purchases of Liquified Natural Gas (LNG) fuel after Russia’s invasion of Ukraine last year pushed prices to record highs, leaving the South Asian nation to face widespread power outages.
Earlier this month, Pakistan LNG Limited (PLL), a government subsidiary that procures LNG from the international market, awarded a tender to commodities trader Vitol for the delivery of a liquefied natural gas (LNG) cargo in December, making it the country’s first spot purchase in over a year.
Pakistan seeks deal to import up to 1mn tons of Russian oil per year: TASS
ReutersMOSCOW: Mohammad Ali, Pakistan’s caretaker energy minister, said on Thursday that Islamabad was considering signing a long-term deal to buy between 0.7 million and 1 million tons (up to 20,000 bpd) of Russian oil per year, the TASS news agency reported.
The South Asian nation has started snapping up crude oil that Moscow has discounted after its exports were banned from European markets over Russia’s invasion of Ukraine.
Pakistan’s first cargo, imported by the government, arrived in June and a second government-to-government shipment is under negotiation.
Last week, Pakistan refiner Cnergyico imported the country’s first private-sector shipment of Russian crude oil.
Oil and energy make up the largest portion of Pakistan’s import bill and the country is struggling with a balance of payments crises due to dwindling foreign reserves.
Grappling with high inflation and a foreign exchange crisis, Pakistan has also struggled with spot purchases of Liquified Natural Gas (LNG) fuel after Russia’s invasion of Ukraine last year pushed prices to record highs, leaving the South Asian nation to face widespread power outages.
Earlier this month, Pakistan LNG Limited (PLL), a government subsidiary that procures LNG from the international market, awarded a tender to commodities trader Vitol for the delivery of a liquefied natural gas (LNG) cargo in December, making it the country’s first spot purchase in over a year.
ghazi52
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Saudi oil facility: POL worth $300m imported on deferred payment
ISLAMABAD: Pakistan imported petroleum products worth $300 million on a deferred payment basis under the Saudi oil
ghazi52
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October 26, 2023
ISLAMABAD: Prices of petroleum products are expected to rise with effect from November 1, 2023 owing to a surge in international oil prices due to the ongoing conflict in the Middle East.
Though neither Israel nor Gaza produce any oil, yet fears of oil-rich regional countries being drawn into the conflict is rising each passing day.
Since October 16, 2023 international prices for petrol and high speed diesel (HSD) have increased by $3 and $1 per barrel, respectively. However, there are still six days left before the Oil and Gas Regulatory Authority (OGRA) gives its recommendation, and the government notifies the price of oil products for the next fortnight (1st November to 15th November).
Prices of POL products likely to rise
Wasim IqbalOctober 26, 2023
ISLAMABAD: Prices of petroleum products are expected to rise with effect from November 1, 2023 owing to a surge in international oil prices due to the ongoing conflict in the Middle East.
Though neither Israel nor Gaza produce any oil, yet fears of oil-rich regional countries being drawn into the conflict is rising each passing day.
Since October 16, 2023 international prices for petrol and high speed diesel (HSD) have increased by $3 and $1 per barrel, respectively. However, there are still six days left before the Oil and Gas Regulatory Authority (OGRA) gives its recommendation, and the government notifies the price of oil products for the next fortnight (1st November to 15th November).
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