Comment by Riaz Haq on July 6, 2013 at 9:05am

Here's a Kyodo News Agency report on Pakistan's plans to build two 1100 MW nuclear power plants near Karachi:

Pakistan's Cabinet Executive Committee approved Thursday setting up two 1,100 megawatt nuclear power plants at the Karachi coast, Finance Minister Ishaq Dar said.

He told a press conference the two power plants would be set up by Pakistan Atomic Energy Commission, which is already operating a 137 megawatt nuclear power plant at Karachi known as K-1.

Budget documents had revealed the setting up of only one 1,100 megawatt coastal power plant at Karachi, with Chinese assistance.

The decision to build two plants was taken while Prime Minister Nawaz Sharif is visiting China to seek Chinese help in a number of development projects, including an energy corridor from Pakistan's Gwadar Port in Baluchistan to the border city Kasghar in China.

http://www.globalpost.com/dispatch/news/kyodo-news-international/13...

Comment by Riaz Haq on August 9, 2013 at 10:25am

Here's Daily Times on a TRL refinery planned for Pakistan:

KARACHI: Trans-Asia Refinery Ltd (TRL) has made a major announcement expressing its ‘total commitment’ to building the most complex refinery in Pakistan, producing more than 100,000 barrels a day and 4.0 million tonnes of petroleum products every year. The refinery will be located at Port Qasim, Karachi.
In a major boost to the country’s economy, TRL signalled the end of previous delays with an undertaking that ‘the investors have decided to push the project forward in the interests of all parties and the people of Pakistan’.
TRL’s determination to see the project through to completion is demonstrated by two important initiatives announced yesterday. First is the appointment of Descon to undertake a complete ‘health check’ inspection of the TRL refining equipment. The second is a newly-completed restructuring of TRL management to ensure the project proceeds with all possible haste.
TRL CEO Sultan Al Ghurair said he was delighted to have Descon on board in order to develop the project further. Descon is the leading engineering and construction company of Pakistan. The company said that, since the refinery had been delayed for some time, they will perform a health check of critical equipment before the EPC contractor is finalised.
The TRL project is a direct investment of Al-Ghurair Investment LLC, a UAE-based family conglomerate and one of the most diverse industrial groups in the Middle East. As the majority shareholder, Al Ghurair will play an important role in the future supply of fuel to the nation of Pakistan.
When completed, the TRL Refinery will annually produce 80,000 tonnes of LPG, 455,000 tonnes of Naphtha, 410,000 tonnes of motor gasoline, 422,000 tonnes of jet fuel, 1,000,000 tonnes of gas oil – from which 630,000 tonnes will be treated diesel – 1,050,000 tonnes of fuel oil and 200,000 tonnes of bitumen. All the products of the refinery are in high demand in Pakistan.
The TRL refinery will create at least 350 direct jobs and several thousand indirect job opportunities for Pakistani workers. Ghurair said: “Our parent company and major shareholder, Al Ghurair Investment LLC, has always been about creating long-lasting relationships - and TRL is committed to carrying on that tradition. Al Ghurair looks forward to playing a part in the future prosperity of Pakistan and its people - and the TRL refinery is proof of that commitment.”

http://www.dailytimes.com.pk/default.asp?page=2013%5C08%5C07%5Cstor...

Comment by Riaz Haq on January 18, 2014 at 9:31pm

Here's a Dawn piece on projected primary energy needs in Pakistan in tons of oil equivalent:

KARACHI: Pakistan’s energy deficit is likely to reach 110.8 million Tonnes of Oil Equivalent (TOEs) in the next 15 years if average gross domestic product remains around 4.5 per cent, according to a document issued by the Petroleum Institute of Pakistan (PIP) on Friday.

The document, Pakistan Energy Outlook (PEO) 2013-2028, predicts that country’s energy demand would grow to 147.78m TOEs by 2027-28 against the domestic resources of 36.90m TOEs in the same year.

Addressing a media briefing at the launch of PEO, PIP’s chairman and former adviser to the prime minister on petroleum and natural resources Asim Hussain said that Pakistan Energy Outlook is a flagship document of the institute, and has been prepared with the help of independent consultants taking into account energy demand-supply models based on the economic realities of the country.

“Recommendations identified in this document provide long-term energy solutions for Pakistan to secure higher GDP growth and economic development on sustainable basis,” Mr Hussain said. He maintained that mobilising and generating affordable and environment-friendly energy resources are one of the key challenges.

He urged the government to work together with the petroleum industry in framing the policies.To a question why there is so much stress on import of LNG these days when Pakistan itself has vast gas reserves and other indigenous options, Mr Asim Hussain said, “Expensive fire is better than no fire at all.”

He said that even gas producing countries, like Qatar, are now diversifying their energy mix by considering other possibilities.

He said that besides utilising indigenous resources, Pakistan should also look for import options, too.

Presenting the outline of the PEO, Mr Akhtar Raza of Enar Petrotech said that the energy deficit will have to be met through the import if coal, oil and gas as domestic production is likely to be insufficient.

Recommendations

The document recommends the government and other stakeholders to efficiently utilise natural gas; strengthen regulatory institutions to facilitate partnership between public and private sectors; make policy for aggressive exploration and production (E&P) to incentivise exploration of on-shore and on-shore oil, gas, tight gas and shale gas; fast-track indigenous coal projects, import of LNG and cross-border gas pipeline projects to improve the country’s energy mix, exploit renewable energy resources; cut transmission and distribution losses in the power sector; and develop a competitive market to root out pricing distortions in the energy sector.

The PIP is a non-government body established in 1963 by the oil and gas industry with a vision to establish itself as an energy advisory body.

http://www.dawn.com/news/1080973/steps-urged-to-overcome-energy-sho...

Comment by Riaz Haq on February 2, 2014 at 10:36am

Here's a News report on Pakistan's civilian nuclear efforts:

ISLAMABAD: Despite facing various kinds of embargoes to obtain nuclear equipment, Pakistan will continue to develop its civil nuclear capability in a bid to diversify its energy mix and overcome power crisis, an official said.

Pakistan’s nuclear installations are safe from terrorist attacks as the outer container installed at the nuclear power plants can save them in case of missile attack or even hitting an aero plane similar to that of 9/11 attack on the twin towers in the US.

“Pakistan’s situation is quite different from that of India, as the Nuclear Supply Group has not imposed restrictions on them and even Australia is providing them uranium. We are hopeful that embargoes imposed on us for getting uranium will be lifted down the line over the next five to 10 years,” Pakistan Atomic Energy Commission (PAEC) Chairman Dr Ansar Parvez said, while briefing reporters on the occasion of media workshop organised by the PAEC on Saturday.
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In the concluding daylong workshop, the PAEC chairman said that Pakistan is facing various kinds of embargoes but the government has given its indication that whatever would be possible it would be done to install 42,000MW through nuclear power plants till 2050.

The PAEC chairman said that he was quite optimistic that time will come down the line in the next five to 10 years after lifting of embargoes on Pakistan.
----------

To another question about the possibility of seeking civil nuclear cooperation from the US as it did in the case of India, Dr Parvez said that there is no commercial agreement signed between the US and India.

---

About the cost of nuclear power plants, he said that the nuclear energy plant costs around $4 million per megawatt that was not cheaper but in the long run, the energy generated through these plants costs cheaper as compared to other sources such as fuel and wind.

Despite all difficulties, Pakistan is continuing its nuclear energy programme with the help of China, he said, adding that three nuclear plants are already working in the country and two other are near completion.

Nuclear energy, he said, is important for Pakistan due to its sustainability and low generation cost. In the near future, PAEC is going to start building two more plants in Karachi with 2,200MW generation capacity, which are likely to be completed in 2021.

Dr Inam Ur Rehman, who is among the pioneers of the country’s nuclear programme, said that Pakistan developed the required human resource and now capable to run its programme without the help of anyone.

The scientists of the PAEC briefed about the safety measures and said that there is no safety issues with the nuclear plants in Pakistan and they are built keeping in view the extreme circumstances.

Pakistan, they said, is now using third generation nuclear equipment and that is 500 times safer as compared to the equipment installed in Fukushima and Chernobyl where nuclear accidents took place.

But, they said, that even in the case of Chernobyl and Fukushima no mass killing was observed.

Nuclear energy generation plants are not that dangerous at all, as they are perceived and all the international research reports deny that a mass killing took place after an accident in any nuclear energy generation plant.

There was no chance of leakage of radiation from these plants in any circumstances, they said.

The speakers also said that there are around 71 nuclear plants under-construction worldwide having almost 70,000 megawatts generation capacity.

All the modern and advanced countries were using nuclear power to meet their energy demands......

http://www.thenews.com.pk/Todays-News-3-229956-Pakistan-continues-t...

Comment by Riaz Haq on March 12, 2014 at 5:15pm

Here's an Express Tribune report on Pakistan's commitment to civil use of nuclear energy:

Prime Minister Nawaz Sharif on Tuesday said that Pakistan intended to use nuclear technology in order to address the country’s severe energy crisis.
Talking to Director General International Atomic Energy Agency (IAEA) Yukiyo Amino here at the Prime Minister House, the premier said Pakistan Atomic Energy Commission (PAEC) was helping the country to meet its power requirements with expansion of the Chashma nuclear projects and new nuclear power plants in Karachi.
Terming the help of IAEA as key, Nawaz said Pakistan was making use of nuclear technology in several areas including power production, medicine, agriculture, food preservation and water management for the benefit of the people.
The premier also assuaged fears of proliferation, reaffirming Pakistan’s commitment to nuclear non-proliferation (despite remaining one of the three countries to have never signed the non-proliferation treaty), adding that “all our current nuclear power plants as well as research reactors are under IAEA safeguards and all obligations are being fulfilled adequately.”
Nawaz appreciated the positive role played by the Agency in the development of peaceful use of nuclear technology in Pakistan, for human resource development in various scientific disciplines and establishment of research and development facilities at different centers in the country.
He said the government of Pakistan valued its relationship with IAEA and said this cooperation shall be strengthened in the time ahead.
IAEA director general appreciated Pakistan’s commitment to use of nuclear energy for the benefit of its people and extended his support for the cause.

http://tribune.com.pk/story/681534/pakistans-nuclear-programme-for-...

Comment by Riaz Haq on March 13, 2014 at 7:53pm

Here's a news story about Byco investment in refining and petrochemical sector in Pakistan:

KARACHI: Byco has invested over $800 million on the various projects in the province of Balochistan in recent years out of which more than 50% is foreign investment, said Aatiqa Lateef, Chief of Staff, Byco Industries Incorporated.
“We have commissioned Pakistan’s largest refinery and are soon to start work on the chemical complex. Our single point mooring has ensured that we get an uninterrupted supply of crude and we will soon be implementing its capacity as a point of export as well.
Our retail network is now 242 stations and we are on the verge of launching our own lubricants line. In short Byco is fuelling a nation” said
“We continue to aggressively shun the negativity surrounding investment in Pakistan. In the current economic environment where foreign investors shy away from investments in the country.
These and other measures will make the country Pakistan more self-sufficient in meeting its petroleum requirements, greatly reducing the import burden on the government and easing the energy crisis.
Pakistan is in the grip of crippling energy crises while the government works tirelessly to ease it by enabling domestic solutions. Byco with its oil refining complex and the country’s first SPM, located in the province of Balochistan, is bringing a revolution to the domestic refining capacity, increasing it from approximately 12.5 million metric tons per annum to almost 18.5 million metric tons per annum. Full throughput is expected to produce about 1.6 million tons HSFO, 2.4 million tons HSD, 1.1 million tons of MS and 0.8 million tons of LPG on an annual basis, figures much needed for Pakistan’s consistently rising energy needs. These and other measures will make the country Pakistan more self-sufficient in meeting its petroleum requirements, greatly reducing the import burden on the government and easing the energy crisis.

http://www.dailytimes.com.pk/business/13-Mar-2014/byco-invests-800-...

Comment by Riaz Haq on June 11, 2014 at 9:20pm

Here's World Bank press release on Dasu dam financing in Pakistan:

WASHINGTON- June 10, 2014- The World Bank’s Board of Executive Directors approved on Tuesday a financing package from the International Development Association (IDA), the World Bank Group’s grant and low-interest arm, to help expand hydro-electricity generation in Pakistan through the development of the Dasu Hydropower Stage-I Project (DHP-I). The package consists of an IDA Credit of $588.4 million and an IDA Partial Credit Guarantee (PCG) of $460 million to help mobilize commercial financing for the project.

DHP-I would have 2,160 megawatt (MW) hydropower plant on the main Indus River, which can be expanded to 4,320 MW in future with low additional cost. The project, in addition to facilitating growth and development in Pakistan, will also help build the Water and Power Development Authority’s (WAPDA) capacity to harness the vast hydropower resources of the country in a sustainable manner.

“Dasu Hydropower Project is important for helping the people of Pakistan to reduce their carbon footprint and make electric power generation more sustainable,", said Rachid Benmessaoud, World Bank Country Director for Pakistan. “The program is an important part of the transformational energy initiative of Pakistan, in which the support from across the World Bank Group is focused on helping Pakistan's energy sector out of its crisis and onto a more sustainable path that supports economic growth.”

DHP-I is a run-of-river project located on the Indus River about 240 km upstream from the Tarbela dam, close to Dasu town, in Kohistan district. It is an important element of the government’s strategy to restore Pakistan’s energy sector to a role that will effectively support long-term economic growth. It is a strategic investment that: (i) improves energy security and affordability through a structural shift to a low cost, low carbon fuel mix and reduced cost of electricity generation; (ii) reduces the sector deficit and saves foreign exchange of the Government of Pakistan by displacing high cost imported fuel; and (iii) builds the institutional capacity of WAPDA to harness the hydropower potential of the country in a sustainable manner, in particular the development of the Indus Cascade; and (iv) provides a financing and investment model that can be followed for other large hydropower projects in Pakistan.

The direct beneficiaries of DHP would be the millions of energy users, including industry, households and farmers who would get more electricity at lower cost and suffer fewer blackouts. The project would provide more electricity during the summer months when capacity shortages are most severe. Non-users would benefit indirectly because of higher productivity and employment, particularly in the industrial sector.

“Dasu Hydropower Project will kick start the development of the Indus Cascade that is crucial for reducing the overall cost of electricity generation based on domestic resources,” said Masood Ahmad, Task Team Leader and Lead Water Resource Specialist. “The Project would provide benefits to most sectors of the economy in Pakistan, and the population as a whole would benefit directly or indirectly.”

The DHP-I cost is estimated at about $4.2 billion and the financing plan consists of IDA credits, IDA Partial Credit Guarantees and contributions from WAPDA and the NTDC. This is the first attempt by the World Bank Group to finance a large infrastructure project on a sequential basis through a combination of credits and guarantees to mobilize the full financing over the construction period. The credit is financed from the International Development Association (IDA), the World Bank Group’s grant and low-interest arm. It will be on standard IDA terms, with a maturity of 25 years, including a grace period of 5 years.

http://www.worldbank.org/en/news/press-release/2014/06/10/world-ban...

Comment by Riaz Haq on July 31, 2014 at 10:35pm

Islamabad is striving for development of a low cost and sustainable power sector that would meet its energy needs in a sustainable manner, Musadik Malik adviser to the prime minister on water and energy told the inaugural session of conference, moderated by Robert Hathaway Director Asia Programme.
The conference held the other day was informed Pakistan’s goals include supply of inexpensively generated electricity at affordable rates for its 180 million people, which could be possible through high levels of generation, transmission and distribution efficiency.
Malik aspired to eliminate the demand supply gap, reduce true economic cost of power to single digits and eradicate pilferage in 5 years.
He identified demand supply gap, lack of affordability and inefficiency/pilferage as the three major power challenges in Pakistan.
In 2012 the average generation stood at 10,808 megawatts (MW) pushing the average demand-supply gap up to 4,608 MW.
We will encourage competition by developing energy corridors and favourable tariffs for low cost energy sources and creating a key client management system, adviser said.
In her presentation from Islamabad via a video link, Secretary Water and Power Nargis Sethi focused on a series of reforms needed to revamp the sector including efforts towards rationalisation of tariff and improved recovery.
She underscored the importance of balancing energy mix, pointing out that a high dependence on imported oil for electricity production places considerable strain on the economy as compared to that of domestic gas and hydropower.
Thus Pakistan needs to have an energy mix so it is not dependent upon expensive fuel to generate that energy. Costs can be brought under control by first shifting the generation fuel mix from the expensive residual furnace oil to coal and hydel-based generation.
Javed Akbar an energy entrepreneur called for a policy thrust on encouraging hydel, wind, and solar power growing to 50 percent of electricity generation within 10 years. He particularly advocated the use of solar energy for residential needs.
The participants spoke included Robert Lesnick, senior natural gas consultant World Bank ‘oil and gas’, Khalid Mansoor Chief Executive Officer The Hub Power Company Limited on ‘Coal’, Shannon Grewer Managing Director EMI advisers LLC ‘Coalbed methane, geothermal, and small hydro’ Chair, Ziad Alahdad former director of operations World Bank ‘energy bureaucracy’, Akhtar Ali CEO Proplan Associates ‘energy pricing and efficiency’, William B Milam former ambassador and senior scholar at the Woodrow Wilson Centre and Michael Kugelman senior associate for South Asia.

http://www.dailytimes.com.pk/business/01-Aug-2014/washington-confer...

Comment by Riaz Haq on October 7, 2014 at 4:40pm

Pakistan’s first LNG terminal is finally on track to come onstream by early 2015, but whether the country can afford LNG imports is still in doubt, according to analysts.
Houston-based Excelerate Energy has agreed to install an FSRU off the coast near Port Qasim by the end of Q1 next year, which it will lease to Pakistan for 15 years, Daniel Bustos, Excelerate’s chief development officer, told Interfax. 
Meanwhile, Pakistani conglomerate Engro Corp. is laying the pipelines and other infrastructure needed to deliver the LNG into the market, under an LNG service deal it reached with state distributor Sui Southern Gas Co. earlier this year. 
In addition, consultancy FGE was appointed in September to advise the government in negotiations for “viable and competitive” LNG supplies. 
These agreements have given the project considerable momentum following years of corruption scandals and other setbacks. 
“Previously, the government always tried to get the supply before putting the terminal in place, and that brought delays over and over again,” said Bustos. 
“What they’re doing now is running the process in parallel, but they started with the terminal. The big advantage of that is that when the suppliers see the terminal is a reality, they get more aggressive in dealing with the customers and are more willing to close a deal,” he added. 
The FSRU will have the capacity to store 151,000 cubic metres and import 3.5 mtpa, or 11.3 million cubic metres per day (MMcm/d). According to Engro, the volume would reduce Pakistan’s gas shortfall of 45.3 MMcm/d by 25%. 
---. 
Domestic output – the country’s only source of gas at present – declined from a 10-year peak of 41.2 billion cubic metres in 2012 to 38.6 bcm in 2013, according to statistics from BP. 
The need for more gas could underpin the development of a second terminal close behind the Excelerate FSRU, Bustos said. Local news reports in September said Sui Southern Gas planned to issue a tender within weeks for a 5.7 MMcm/d regasification facility. 
“It’s a market that has tremendous possibilities to grow,” said Bustos. “Pakistan is following in the path of Argentina and Brazil in terms of continuing to add units – once they start seeing the benefits of FSRUs, they keep going back to the same concept.”
Credit problems 
While the terminal’s development appears to be moving ahead, it is harder to discern any progress in the government’s LNG supply negotiations – although the finance minister said it is looking to secure the full 3.5 mtpa. 
Islamabad has been in discussions with Qatar over the past few years, but the seller’s demand for a high oil-linked price was reportedly an issue when the two sides met in July. 
There have also been suggestions Pakistan is beginning talks with Malaysia’s Petronas, which is expanding its large Bintulu LNG complex. 
However, Pakistan’s ability to sign deals for long- or short-term LNG is questionable, particularly because the country’s credit risk would require it to pay more than already high Asian LNG prices. 
“As a marketer of spot LNG, your main concern is your buyer’s creditworthiness, and we’ve seen other credit-insecure LNG buyers such as Argentina having to pay for cargoes with cash in advance – that precedent is already set,” said Benjamin Gage, an associate director of global LNG at IHS.
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“The project will be subject to scrutiny and it will be closely watched, particularly in the context of intensified pressure on the government over its record of attracting investment and bolstering energy security, and as opposition parties seek to seize on opportunities to weaken government credibility,” said Fry.

http://interfaxenergy.com/gasdaily/article/13770/momentum-builds-be...

Comment by Riaz Haq on February 8, 2015 at 7:55am

From India Today:

A Chinese official has confirmed that China is involved in as many as six nuclear power projects in Pakistan and is likely to export more reactors to the country, indicating that the much debated civilian nuclear cooperation between the two countries will go ahead despite concerns voiced that it is in contravention of Nuclear Suppliers' Group (NSG) guidelines.

While China has in the past declined to confirm or share details regarding the extent of its on-going civilian nuclear cooperation with Pakistan, a top official of the National Development and Reform Commission (NDRC), the planning body, was quoted as saying on Saturday that Beijing has been involved in the construction of six reactors in Pakistan.

Wang Xiaotao, vice-minister of the NDRC, was quoted as saying by State media that the NDRC was keen to support further exports to Pakistan and other countries. To this end, the NDRC is drawing up new guidelines to announce supportive financial policies for exports in the nuclear sector. Railways exports would also be supported under the new guidelines, Wang said.

Announcing the guidelines at a Beijing press conference, Wang said that China "has assisted in building six nuclear reactors in Pakistan with a total installed capacity of 3.4 million kilowatts". China was also exporting nuclear technology to Argentina, with the two countries on Wednesday signing a deal for exporting heavy-water reactors.

China's recent projects with Pakistan have come under scrutiny as the NSG does not allow members to supply nuclear technology to countries that have not signed the Nuclear Non-Proliferation Treaty (NPT). India had to seek a waiver from the NSG for its civilian nuclear cooperation with the US, and obtained one only after undertaking a range of commitments.

China only declared the first two reactors it had constructed for Pakistan, Chashma-1 and Chashma-2, at the time of joining the NSG, according to Indian and American officials.

In 2009, the China National Nuclear Corporation signed agreements for two new reactors, Chashma-3 and Chashma-4. The deals became a matter of controversy and were debated at the NSG, with China arguing that the reactors were "grandfathered" as part of its earlier Chashma agreement and were not new projects per se. China also argued that the deals were under International Atomic Energy Agency (IAEA) safeguards and were legitimate.

The two countries last year announced they would undertake a new project in Karachi, with Pakistani media reports saying China would provide $ 6.5 billion to finance two reactors there. At the time, Beijing declined to confirm those reports.

While the Chinese Foreign Ministry has, in the past, argued that China's cooperation with Pakistan "did not violate norms of the NSG", Beijing's main argument was that the Chashma reactors were part of an earlier deal. With China going ahead with building two new reactors in Karachi, it remains to be seen how Beijing will explain the deals' validity under NSG guidelines.

Read more at: http://indiatoday.intoday.in/story/china-pakistan-nuclear-projects-...

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