Tag Archives: Sindh

Pakistan Petroleum Limited (PPL) Commences Oil and Gas Production in Punjab, Marking a Major Advancement in Domestic Energy Exploration.

on 16/10/2024

Pakistan Petroleum Limited (PPL) Commences Oil and Gas Production in Punjab, Marking a Major Advancement in Domestic Energy Exploration

Pakistan Petroleum Limited (PPL), one of the country’s leading state-owned energy enterprises, has achieved a significant breakthrough by initiating commercial oil and gas production from a newly discovered field in Punjab. This development signals an important stride in the nation’s ongoing efforts to enhance indigenous energy exploration and production capacities, with the goal of strengthening energy security and reducing dependence on imported fuels.

In an official announcement, PPL confirmed that extraction operations have begun at the newly tapped field, contributing to the national energy grid through the supply of both crude oil and natural gas. The commencement of production from this field is a noteworthy accomplishment for the company, particularly in light of the increasing energy demands in Pakistan, driven by rapid industrialization, urbanization, and population growth. The successful operationalization of this field is expected to play a pivotal role in addressing the country’s persistent energy shortfall.

The production from this new field is anticipated to make a considerable impact by increasing the domestic output of hydrocarbons, thus helping to mitigate the need for costly energy imports. By bolstering the national energy mix, PPL’s latest endeavor is aligned with the government’s broader vision of achieving energy self-sufficiency and long-term sustainability.

As Pakistan continues to navigate the complex dynamics of energy production and consumption, this milestone underscores PPL’s enduring commitment to expanding its exploration and production footprint. The company remains steadfast in its mission to identify and develop new reserves, harnessing the country’s untapped hydrocarbon potential. In the future, PPL plans to pursue further exploratory initiatives and technological advancements to maximize the efficiency and yield of its operations.

With this latest development, Pakistan Petroleum Limited has reaffirmed its leadership position in the domestic energy sector, contributing not only to the economic growth of the country but also to its strategic goal of reducing external reliance on energy imports. This is an important step forward in ensuring a more secure, sustainable, and self-reliant energy future for Pakistan.

Navigating Thar Coal Dilemma: A Complex Energy Future for Pakistan

on 09/10/2024

In the heart of Pakistan’s energy discourse lies the Thar coal gasification debate, a contentious issue that juxtaposes the nation’s pressing energy needs against its environmental commitments. A recent study has surfaced, shedding light on the complexities surrounding coal gasification—a process argued to have a lesser environmental footprint compared to the direct burning of coal for power generation. However, the steep costs and intricate technology associated with coal gasification present formidable challenges for Pakistan, raising questions about its feasibility and sustainability.
At the launch of this pivotal study, former Minister for Climate Change Malik Amin Aslam articulated the gravity of Pakistan’s situation. “We are caught in a serious dilemma,” he explained. “On one hand, we require affordable energy, which can be harnessed from our indigenous resources like Thar coal. On the other, we face international obligations that discourage us from expanding our reliance on fossil fuels, given their significant contributions to climate change.”
To extricate the nation from this paradox, Aslam emphasized the urgent need for innovative technological solutions. “We must pursue methods that allow us to generate cheap energy while minimizing our carbon footprint,” he stated. He underscored the necessity of complementary nature-based solutions to offset the carbon emissions generated during power production. However, he was candid about the financial barriers that obstruct such advancements. “Both the technological and nature-based solutions demand substantial investment that Pakistan currently lacks. It is imperative that developed nations and international financial institutions recognize this reality. Without their support, we may have no choice but to exploit available resources, regardless of the environmental consequences,” he cautioned.
The study, conducted by the Policy Research Institute for Equitable Development (PRIED) in collaboration with the National University of Science and Technology (NUST), provides a comprehensive analysis of coal gasification’s potential and pitfalls. It highlights that while coal gasification offers a relatively cleaner alternative to coal burning, the associated costs and operational complexities may prove insurmountable for a developing country like Pakistan.
Environmental activist Ali Tauqeer Sheikh also weighed in during the event, stressing the importance of aligning energy policies with Pakistan’s commitments under the Paris Agreement. “Our energy decisions must not only fulfill our international responsibilities but also address the concerns of communities that bear the brunt of these projects,” he urged. Sheikh emphasized that a more equitable approach is needed to ensure that energy development does not come at the expense of vulnerable populations.
Haneea Isaad, an energy finance expert, echoed these sentiments, pointing out that several coal gasification initiatives have floundered in countries like the United States, India, and Indonesia, even when substantial subsidies were provided. “The government must conduct a thorough examination of viable alternatives before moving forward with coal gasification projects in Pakistan,” she advised.
Researcher Manzoor Ahmed Alizai, also affiliated with PRIED, reiterated the trend of project failures, warning that the past should inform future decisions. “The global landscape has seen multiple coal gasification projects either fail or be abandoned. We must learn from these experiences to avoid repeating the same mistakes,” he remarked.
Dr. Majid Ali, a faculty member at NUST and the study’s lead author, presented a critical comparison of energy sources. He argued that while coal gasification presents certain advantages over direct coal burning, it still cannot compete with renewable energy sources like solar power, especially when considering price and environmental impacts. “In the long run, solar energy and other renewables stand as the more sustainable and economically viable options,” he concluded.
As Pakistan grapples with its energy crisis, the discourse around Thar coal gasification serves as a microcosm of the broader challenges facing developing nations. Striking a balance between meeting immediate energy needs and adhering to global climate commitments remains an uphill battle. The way forward necessitates not only innovative solutions but also robust international cooperation and financial support to ensure that Pakistan can forge a sustainable energy future that benefits both its citizens and the planet. – ISLAMABAD: ER Report

OGDC HANDS to construct climate-resilient houses in Balochistan

on 03/01/2024

In continuation of its strategic collaboration for uplifting the local community, Oil and Gas Development Company Limited (OGDCL) has partnered with the Health and Nutrition Development Society (HANDS) for the construction of 84 climate-resilient houses at Umaid Ali Rawtani village of Jhal Magsi district of Balochistan province.
The transformative initiative aimed to uplift the community of Jhal Magsi in Balochistan. The groundbreaking ceremony for the construction of climate-resilient houses took place at Umaid Ali Rawtani village, marking a significant milestone in this collaborative endeavor. OGDCL and HANDS signed a memorandum of understanding (MoU) to establish a Model Village at Umaid Ali Rawtani village in Jhal Magsi district, with a total cost of Rs. 84.929 million. OGDCL, with a Corporate Social Responsibility (CSR) focus on health, infrastructure, water supply, and environment, aims to make a positive impact on the lives of the local communities in Jhal Magsi, an area that has faced challenges of poverty and flood-related adversities.
This strategic partnership between OGDCL and HANDS lays the foundation for the construction of 84 climate-resilient houses. Each house will consist of a 15 x 15 room, a washroom, a kitchen, and a veranda, providing essential amenities for the residents. The construction is expected to be completed within a timeframe of 4 to 6 months. The initiative underscores OGDCL’s commitment to social responsibility and community welfare. OGDCL remains steadfast in its dedication to sustainable development and positive societal impact.

Learning from China a must to promote sustainable development of chemical industry

on 03/01/2024

Moazzam Ghurki, president of Pakistan China Joint Chamber of Commerce and Industry (PCJCCI), said during a think tank session held at PCJCCI Secretariat the other day that Pakistan does not have mature technology to produce petrochemical complex facilities or cracking units, which is a very big constraint to the development of its chemical industry. He stressed that Pakistan can collaborate with China and learn from China’s experience to promote the sustainable development of the chemical industry and give full play to the industry in the national economic construction. President PCJCCI also highlighted that there is a vast potential of Pakistan in chemical manufacturing and processing. Our vision was to transform the chemical industry of Pakistan from an import-oriented to an export-oriented industry. Fang Yulong, senior vice president PCJCCI, further added that with the rapid development of biotechnology, the biochemical industry has injected new vitality into the traditional chemical industry and opened up new development directions and insights. He further explained that China has a growing influence in the field of biochemical industry globally. Both approaches will be of great benefit to Pakistan. Zafar Iqbal, chairman Standing Committee on Chemical Industry (PCJCCI), said that with the continuous growth of economy and population base, the demand of Pakistani citizens for chemical products is increasing day by day. The country is highly dependent on imported oil products, and the shortage of oil products has even affected national security. He added that China’s successful chemical park model can provide Pakistan’s small and medium-sized enterprises (SMEs) with the necessary resources and facilities, so as to achieve cluster development. Hamza Khalid, vice president PCJCCI, said that Cracker is an important link in the transfer of chemical production to downstream and upstream operations. It is significant to establish a chemical industrial park with facilities such as common effluent treatment plant, a sound supply network of water, electricity, centralized steam generating facility to reduce capital & operating expenditures for chemical manufacturers. With the promulgation of the SME Policy, Pakistani government is taking rational and challenging steps to develop SMEs for their growth.

AIIB approves US$250 m loan after WB’s US$350m to help Pakistan

on 03/01/2024

The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors have approved a loan of $250 million to help Pakistan strengthen its response to the social and economic fallout from the Covid-19 pandemic, said the financial institution in a press release at the end of year 2023.
The AIIB said that the loan is co-financed by the World Bank, adding that this development policy financing will help bolster the government’s Resilient Institutions for Sustainable Economy Program.
The RISE Program is a part of a set of measures Pakistan has undertaken towards recovery from the impact of the pandemic. The program aims to stimulate investment in human capital, expand social safety nets, improve the emergency health infrastructure and foster economic growth.
The investment bank stated that the latest loan brings AIIB total support to Pakistan’s Covid-19 response to $750 million.
The statement mentioned that the health crisis is expected to have far-ranging and long-term repercussions on growth, which may undermine the hard-fought progress the country has made in restoring macroeconomic stability.
The AIIB said that pandemic has taken a toll on employment in the formal and informal sectors, with the poor, women and other vulnerable groups disproportionately affected.
“The pandemic has rapidly evolved in Pakistan and now threatens to undo many of the hard-won gains made in reducing poverty over the past two decades,’ said AIIB Vice President, Investment Operations, Konstantin Limitovskiy.
“Our immediate support is critical and will contribute to the government’s efforts to mitigate pandemic-related shocks, so that the country may continue on its path to sustainable development,” he said.
The AIIB said it does not have a regular instrument for policy-based financing, the Bank is extending such financing on an exceptional basis under its Covid-19 Crisis Recovery Facility to support its members through projects co-financed with the World Bank or the Asian Development Bank.
It merits mentioning that The World Bank had announced in December 2023 that its board of directors had approved the long-awaited $350 million loan ‘2nd Resilient Institutions for Sustainable Economy (RISE-II) Operation’ to Pakistan to support key macroeconomic reforms in energy, taxation and business environment.
As per the announcement of the bank, the financing was aimed to strengthen fiscal management and promote competitiveness for sustained and inclusive economic growth
The operation contributes to better fiscal management by improving fiscal policy coordination, enhancing debt transparency and management, strengthening the taxation of property, and improving the financial viability of the power sector, the bank had said, adding that the financing seeks to foster growth and competitiveness by reducing the cost of tax compliance, improving financial sector transparency, encouraging the use of digital payments, and promoting exports by lowering import tariffs.
The bank believed that Pakistan needed urgent fiscal and structural reforms to restore macroeconomic balance and lay the foundations for sustainable growth.
“RISE-II completes the first phase of tax, energy and business climate reforms geared to raising additional revenues, improve the targeting of expenditures and stimulate competition and investment.”
World Bank’s team leader for the operation Derek H. C. Chen said that based on the foundations laid through RISE II and parallel support by other international financial institutions, Pakistan had the opportunity to tackle long-standing structural distortions in its economy after the upcoming general elections. “Failing to use this opportunity would risk plunging the country back into stop-and-go economic cycle,” he said.
Importantly, the combined $600m program would help Pakistan shore up foreign exchange reserves while taking measures to enhance the policy and institutional framework for improved fiscal management and regulatory conditions that support growth and competitiveness.