Wednesday, March 22 2023

Govt should revise tight gas policy
The government should revise its tight gas policy to nudge energy companies towards exploring natural gas that’s obtained from reservoir rocks with low permeability using advanced technology. Addressing a seminar organised by CFA Society Pakistan on Tuesday, energy sector expert Muhammad Asim Subhani said each well that’s dug for tight gas must get a third-party certification in order to receive formal price confirmation from the government. “There’s been a success (in finding tight gas). But companies are reluctant to invest because once they explore, produce (and) flare their gas, they still have to spend years in getting the price confirmed from the authorities,” said Mr Subhani who serves as director of new business and subsurface at Prime Pakistan Ltd, an exploration and production firm that formerly operated as Eni Pakistan. At least one company is currently producing tight gas, even though the country is estimated to have reserves of 100 trillion cubic feet.
Related news categories: business misc oilgas-exploration oilgas-marketing

PSO gets $100m grant to avert default
An emergent meeting of the Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved a special grant of Rs27 billion (about $100 million) for payments to Kuwait Petroleum Corporation to avoid a formal default of the national fuel supplier — Pakistan State Oil (PSO). The meeting presided over by Finance Minister Ishaq Dar also sanctioned Rs2.9bn in additional supplementary grant and supply of 25,000 tonnes of wheat to Gilgit-Baltistan. The ECC had last week allowed a Rs50bn sovereign guarantee for commercial borrowing by Sui Northern Pipelines Ltd for partial payment of over Rs498bn payables to PSO. However, PSO issued a formal “SOS call” that a technical default had already occurred but required an emergent foreign exchange to avoid its repercussions. The KPC had been a long-term fuel supplier to PSO for decades through a credit facility which used to be extended on annual basis. The previous facility expired on Dec 31, 2022. Given the precarious position of the foreign exchange reserves, international suppliers were getting jittery while supplies needed to be ramped up.
Related news categories: business economic-indicators oilgas-marketing
Related symbols: pso (news stock)

Tuesday, March 21 2023

Centre looks to implement ‘discounted’ fuel regime
Just a day after the announcement of Rs50 subsidy on each litre of petrol for the ‘less privileged’, State Minister for Petroleum Dr Musadik Malik on Monday announced the government will provide petrol at Rs100 less than the official rate for motorbikes and cars of up to 800cc. “The initial working was to provide petrol at Rs50 less than the Ogra-notified rate to the people having motorcycles and (up to 800cc) cars, but on Sunday night, the prime minister conveyed to us give petrol to the people Rs100 less than the notified rate,” Dr Malik told a press conference. “However, the petrol for the rich people having cars/vehicles of over 800cc would be costlier, as the objective of the government move is to help a majority of poor people — 210 million of the total 220 million population of the country,” the petroleum minister said. “So we have separated the Pakistan of the poor and the Pakistan of the rich,” he said, adding that giving petrol to the rich costlier “would help us in giving fuel to the poor on cheaper rates”. Talking about gas, he said the gas tariff for the poor and the rich had already been separated with effect from January 1 this year.
Related news categories: business economic-indicators oilgas-marketing

Monday, March 20 2023

Pakistan Steel opposes gas utility’s bid to grab its land at ‘low rate’
The Pakis­tan Steel Mills (PSM) has opposed a bid by the Sui Southern Gas Company Ltd to take over its 1,400 acres for Rs43 billion, a valuation the mill’s management has described as “one-sided”. The takeover bid has been made against the mill’s outstanding liabilities that the gas company’s management has worked out at Rs48bn as of Dec 31, 2022. Informed sources told Dawn that the SSGCL had asked the management of the PSM — the country’s largest distressed and industrial enterprise that has remained closed for some eight years — for a final meeting to settle the matter. The PSM’s caretaker management, however, belie­ves that not only the land evaluation price offe­red by the gas company is one-sided and precariously low, but also the working for liabilities is unfair and strings attached to the offer are unacceptable.
Related news categories: business economic-indicators oilgas-marketing
Related symbols: ssgc (news stock)

Friday, March 17 2023

Another fuel shock as petrol, diesel get dearer
The government on Wednesday increased the prices of all petroleum products, except the insignificant light diesel oil (LDO), by up to Rs13 per litre for the next fortnight. With the latest review, the most inflationary high-speed diesel (HSD) prices made a new record, reaching Rs293 per litre. The HSD price adjustment directly impacts consumer prices because of an increase in transport costs. While keeping the LDO rate unchanged at Rs184.84 per litre, the finance ministry said the per-litre price of petrol had been increased by Rs5 and that of HSD by Rs13. The major impact of the hike in prices was mainly because of about Rs16 per dollar average depreciation over the last fortnight, i.e. since March 1. The ex-depot price of petrol has now been fixed at Rs272 per litre for the next fortnight instead of Rs267 per litre, up by Rs5 or 1.9pc. Likewise, the ex-depot price of HSD has now reached Rs293 per litre from Rs280, up by 4.6pc.
Related news categories: business misc oilgas-exploration oilgas-marketing