Ayan Energy News & Mediahome / News & Media

Advertisements & Announcements

Conversion of furnace-oil power plants to LNG be prioritized says: PM

By News Desk - September 3, 2017

As the power shortfall once again crossed over 5,000MW on Tuesday with generation recorded at 18,500MW and demand at 23,500MW, Prime Minister Shahid Khaqan Abbasi called for the prompt completion and conversion of furnace-oil based plants to gas.

Power breakdowns affected some areas of the capital city of Islamabad, as a transmission line in Rawat broke down, which links Mangla Dam supplies and Sangjani transmission line.

In the PMs first energy sector meeting yesterday, he issued directions for establishment of a committee to be chaired by Secretary Water and Power Yousaf Naseem Khokhar to systematize issues in power projects.

During this meeting, the PM was apprised that 9000MW of electricity was being contributed by Independent Power Producers (IPPs) and 3000MW by state-owned power plants.

Abbasi said the newly constituted committee would be responsible for giving full assistance to power producers who had shown willingness to convert their plants onto LNG fuel to save costs.

Abbasi was apprised that the Balloki Power Plan was ready for opening considering the fact that it was only generating half its advertised power of 1,200MW.

source: pakistantoday.com.pk

SSGC seeks sovereign guarantees for installing LPG air-plants

By News Desk - September 1, 2017

According to sources, Sui Southern Gas Company (SSGC) is seeking the federal governments help to offer sovereign guarantees worth for billions of rupees of bank loans for the establishment of 30 liquefied petroleum gas (LPG) air-plants in various areas of Balochistan and Sindh.

SSGC will be installing most of the LPG air-plants in Balochistan and two in the remote areas of Mithi and Umerkot in Sindh.

The Ministry of Petroleum has urged the government for providing funds to SSGC for this project and the company wants to obtain loans on soft-terms backed-up by sovereign guarantees. Petroleum ministry then approached the finance ministry to assist in getting a soft-term commercial loan of Rs10b alongside sovereign guarantees for a period of ten years at a reasonable interest rate.

The cost of installing these LPG air-plants has been estimated at Rs14b and SSGC already is on verge of completing the second LNG pipeline whose costs it met with Rs18b of its own equity and the balance of Rs40b was raised from sovereign guarantees provided by the federal government.

Engro in collaboration with Shell, Fatima plans constructing LNG terminal at Port Qasim

Engro Elengy Terminal Limited (EETL), in collaboration with Shell and Fatima Group, plans to construct another terminal at Port Qasim with a capacity to regasify up to 600 mmscfd.

Also, with the supply of RLNG, Pakistan is saving about USD 1.7 billion each year due to fuel arbitrage savings between diesel and LNG alone. Additionally, Engro is one of just fifteen companies in the world, which is operating such an advanced terminal storage and regasification technology that enables such efficiencies.