Friday, July 26 2024

Discos seek additional fuel cost adjustment of Rs2.63
In light of the recent increase in base tariffs, government-owned power distribution companies (Discos) have sought an additional fuel cost adjustment (FCA) of Rs2.63 per unit to extract about Rs35 billion more from consumers in the next billing cycle for the electricity consumed in June. The Central Power Purchasing Agency (CPPA), a subsidiary of the power division, has filed a formal petition before the regulator for an increase of Rs2.63 per kilowatt-hour (unit) over the reference tariff of Rs7.14 per unit already charged to consumers in June. This increase comes even though almost 75 per cent of the power supply was generated from cheaper local fuels, primarily renewables. This proposed increase in FCA is on top of an average 20pc increase in annual base tariff effective July 1. As a result, consumers would have to pay excessive bills amid high consumption in hot and humid temperatures. The power regulator Nepra has acce­pted the request for a public hearing on July 31. It said the CPPA had originally sought Rs2.10 per unit additional FCA but revised it to Rs2.63 per unit.
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Energy ministry calls for framework to deregulate fuel prices
The Ministry of Energy has instructed the Oil and Gas Regulatory Authority (Ogra) to finalise the framework for transferring the responsibility of determining petroleum prices to the oil industry. In a letter issued on Wednesday, the ministry directed the Ogra chairman to convene a meeting today (Thursday) to discuss the analysis, implications, and way forward for deregulating petroleum products. The letter referenced Prime Minister Shehbaz Sharif’s directive to delegate pricing responsibilities to oil marketing companies, but notably, the two main stakeholders — OMCs and dealers — have not been invited to the meeting. Currently, four of the eight petroleum fuels consumed in the country — jet fuels for air force and airliners, hi-octane, and furnace oil — are deregulated, while regulated products include petrol, high-speed diesel, light diesel oil, and kerosene.
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Friday, July 19 2024

Foreign firms not interested in offshore oil, gas drilling
The National Asse­mbly’s Standing Committee on Energy (Petroleum Division) was informed on Thursday that no company was interested in offshore oil and gas exploration in the country after Kekra-1, an exploratory well, remained dry in 2019. The session was chaired by Syed Mustafa Mehmood, the committee’s chairman. The members enquired about reasons for the lack of interest being shown by international players in the country’s oil and gas sector. Petroleum Minister Musadik Malik informed the standing committee that major oil and gas companies were leaving Pakistan. The minister said global companies turn to countries where it is easy to do business.
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Thursday, July 18 2024

SNGPL procures rotary meters to cut line losses
Sui Northern Gas Pipelines Ltd (SNGPL) will start receiving over 5,000 rotary gas meters and allied material, including electronic volume correctors (EVCs), in September, as the order has been placed with a Canadian firm. This procurement is a crucial part of a project to significantly reduce Unaccou­nted-for Gas (UFG) or line losses. In phase 1, 1,470 meters were successfully installed at Town Border Stations (TBSs) and gas measurement facilities in five major cities: Lahore, Rawalpindi, Islamabad, Peshawar, and Mardan. Phase 2 will involve the installation of over 5,000 meters at the remaining TBSs in all 16 regions of the company in Punjab, Khyber Pakhtunkhwa, and the Fede­ral Capital, as detailed in a document obtained by Dawn.
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Thursday, July 11 2024

Saudi Arabia raises $12.3b via Aramco share sale
Saudi Arabia raised a total of $12.35 billion from selling more shares in Aramco, after increasing the offering in the world’s most valuable oil company, a document seen by Reuters showed. The success of the share sale and additional proceeds will help further fuel Saudi Arabia’s ambitions to invest in new industries and wean its economy away from oil under its Vision 2030 plan. The kingdom raised an additional $1 billion after exercising a so-called green shoe option, according to the document, which allows banks to place more stock when there is demand from investors. The government last month sold a 0.64% stake, or about 1.545 billion shares, in Aramco at 27.25 riyals ($7.27) a share. Another 154.5 million shares were placed via Merrill Lynch, which was acting as a stabilisation manager on the deal.
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