Gas Price issue Sindh at loggerheads with federation indh’s government is once again at the loggerheads with the federal government on the issue of price of natural gas and heater share of indigenous gas to Sindh province as it was the biggest producer of natural gas in the country. SSindh Energy Minister, Imtiaz Ahmed Sheikh in his letter to Federal Min- ister for Energy Hammad Azhar clarified that the Government of Sindh does not support and rejects any attempt to alter the present arrangement of WACOG for natural gas produced in the country. After a zoom meeting with Federal Minister for Planning and Development Asad Umar, Special Assistant to Prime Minister for Development and special Initiative Khalid Mansoor and Special Assistant to Prime Minister for Power Mr Tabish Gohar, provincial minster for Energy Imtiaz Shaikh said that any attempt to add RLNG in the present WACOG prices with any ring-fenced options with Tier-I consumers of indigenous natural gas would phenomenally elevate the gas prices upward which is detrimental to and adversely impact domestic, commercial, industrial and CNG sector consumers in Sindh. He requested federal govt. to refrain from adding RLNG price with present WACOG pricing mechanism of indigenous natural gas. As per existing practice, RLNG consumers (i-e Tier-1) shall continue to be ring fenced and kept separate from the regular consumers (i-e Tier-1) ut demands that constitutional rights of the people of Sindh for priority over utilization of natural gas from the wellheads located in the province, in pursuance of Article 158 of the Constitution of Pakistan, shall be safeguarded in letter and spirit. He added that the natural gas allocation quota of Sindh in the SSGCL sys- tem shall be increased so that people of the province can reap the economic benefits of indigenous natural gas. Imtiaz Sha that the natural gas consumers in Sindh shall also be provided with the proportional cost subsidy for the quantity of gas produced in the province, over which Sindh has the first right of utilization, but supplied to other parts and also utilized in power generation which is added in the national grid and production of fertilizer whose benefits are enjoyed by entire country, so, people of Sindh may adequately be compensated for the portion of the gas which is supplied into other parts or utilized for the purposes whose benefits are spread over entire country either by providing subsidy in natural gas or power tariffs or subsidy in fertilizer prices. He said that SSGCL may also be directed to complete all gasification schemes which are pending since 2010 whose construction cost has already been paid Government of Sindh and it shall also be directed to accept new gasification schemes which is being refused since last over five years despite Govemment's assurance of payment of cost over and above per Customer cost criteria fixed by OGRA. Imtiaz Shaikh said that SSGCL may further be directed not to carryout load-shedding in Sindh for the consumers of gas especially industrial and CNG. Besides energy sector, Sindh government was also defying federal govern- ment on various issues including one-syllabus education system. INDEPENDENCE DAY

Afshan Subohi They have seen several bouts of turmoil in the justice and environmental sustainability. past, but still managed to do better. So what’s As far as the single biggest hurdle on wrong here? the path to development is concerned, the akistan turned 74 last week. It has ‘Pakistan’s Olympic squad had eight consensus has yet to emerge. Most economists, travelled a long distance since then, athletes and 24 officials; the ratio 8:24 explains thought leaders, and business representatives but, with 8.5 million people current- clearly why the country is where it is,’ says Dr reached to identify the single most important ly unemployed and around 40 per Nadeem ul Haq drag on development were either reluctant cent surviving below the poverty Experts have traced Pakistan’s economic or confused. Many identified a mix of factors Pline, its economic performance has been far trajectory based on documented facts and responsible for the laggard pace of growth. from being enviable. identified bottlenecks impeding development. Dr Nadeem ul Haq, Former deputy Pakistan ranked a low 129th amongst It might have improved the understanding chairman of the Planning Commission and 193 UN member states in the 2021 Sustainable of economic history, but seems to have done Vice-Chancellor of the Pakistan Institute of Development Report, slipping 14 steps in five little to chart out a course for the future. It is Development Economics (PIDE), who revit- years since 2016. Pakistanis deserve better. relevant to mention that all three major polit- alised the dormant premier institution and What has kept the fifth most populous nation ical parties — PPP, PML-N and PTI — drew initiated a public debate on critical subjects, which is naturally resourceful, geographically on the work done on the subject and global felt that “policies and projects have both well-positioned, and harbouring a 990km hot conventions evolved over the years. They have failed us”. He lamented the lack of water coastline, from realising its potential? broadly similar positions on the economy interest in re-visiting and revising the Was there a systemic fault, mishan- though they differ in their order of priorities. current approach. He was critical of dling of national diversity, weak institu- They all commit to a market-based economy an overarching state. tional setting, capacity deficit, deep-seated for capital formation and promise to limit the To hammer this point, he corruption, culture of patronage, political government’s role to guarantee a level playing recalled Pakistan’s participation immaturity, democratic miscarriages, fragile field in a conducive business environment. legal framework, some genetic flaw in the They pledge to ensure rule-based governance citizenry, incompetent political and corpo- in order to keep dominant players from abus- rate leadership, archaic power structure or a ing their positions and to achieve distributive delusional economic policy framework compromising the very fundamentals of market economy? Better performing peers, like India, Bangladesh, Indonesia, Iran, Turkey, Sri Lanka, Brazil, South Africa, and South Korea, are all inflicted with their own complex sets of problems.

08 ENERGY UPDATE and performance record in the recent Tokyo flounder”. NAB investigations, gross mismanagement of Olympics. “Pakistan’s Olympic squad had He mentioned the growth rates of India agriculture and last, but not the least, knee- eight athletes and 24 officials, no medals, only and China of yore. “Double-digit growth in jerk changes in policies for short-term revenue one sportsman shone in Javelin, but without India and China were unimaginable 40 years objectives, mostly overburdening existing government’s support. Even Qatar, the size of back. It was only when they finally embraced taxpayers, given the weak political will, and so a minor Pakistani city, won two gold medals. the market economy and opened up for inter- far the ability, to broaden the tax base.” The ratio 24:8 explains clearly why Pakistan is national trade the pace of development gained Identifying weak data resulting in the where it is.” momentum. Pakistani economy has to break mismatch of demand and supply leading to He was critical of what he calls the free of the political shackles for the sake of the poor policy decisions, he mentioned the energy ‘brick-and-mortar’ approach to development. future of the teeming millions,” he stressed. sector. He recalled times when the “Planning “Without systematic cost-benefit analysis, Mian Nasser Hyatt Maggo, President of Commission was a model that other countries we build roads and bridges on the whims of the Federation of Pakistan Chamber of Com- emulated, notably South Korea and Malay- leaders to the benefit of the contractors, losing merce and Industry responded thus: “In simple sia”. Fragmentation of authority between the control over time and expense.” words, it is the tax policy, tax collection inves- federation and provinces on the one hand and Dr Rashid Amjad, an economist and a tigation, prosecution and adjudication with between the various federal ministries on the former PIPDE vice-chancellor, talked about one agency — the Federal Board of Revenue — other, he said, created complexity and slowed the “low level of investment in both physical that held development hostage”. down decision-making. and human capital by businesses despite earn- Some leading economists blamed insta- “Investment, especially in the new sec- ing high profits”. He blamed the 1992 PML-N bility. Dr Ali Cheema, an economist associated tors, has been thwarted by lack of policy con- government for relaxing rules for transferring with multiple elite institutions, was one of sistency… hence, exports have suffered from foreign exchange abroad that continue to date them. “Political instability and the failure of low value-addition. Ominously, over half of our with minor adjustments. He saw business ‘ma- state institutions to develop a consensus on exports are in categories for which global de- fias’ controlling and manipulating output and fundamental reforms of the governance system mand is declining. It is premature to celebrate and the economy are the reasons,” he said. recent upsurge in exports which is principally Dr Nadeem Javed, a former chief econo- due to the diversion of orders from Bangladesh mist of the Planning Commission, concurred. and India because of the Covid pandemic rath- “Political instability ruptured the natural er than gains in our competitiveness.” He was process of nation-building and resultantly critical of weak economic diplomacy costing we lagged behind.” the country dearly and mentioned free trade Ehsan Malik, CEO, Pakistan agreements that serve partners better. Business Council, emailed a detailed “The narrative on foreign direct invest- response that was difficult to ment (FDI) is misplaced. The FDI policy has reproduce in the limited space. He failed to differentiate between market seeking regretted the lack of trust in the and export-oriented industries.” business class among other imped- Mr Malik bemoaned the perpetual ing factors. “Of the several factors, neglect of agriculture. “With Pakistan now a the most important are poor long- net importer of food, the mismanagement of term national planning, fragmented agriculture has become a matter of food securi- and silo-centred decision-making, colonial-era ty and unbearable inflation. Textiles, the major regulatory environment, a civil service that export sector, is also denied adequate supply misunderstands and often mistrusts business, of cotton — its principal input.” n decision-making which is paralysed by fear of Writer is Editor Business Desk. Daily Dawn

prices for reaping monopoly profits as an impediment. He mentioned the adverse impact of the Afghan war and termed Pakistan’s problems “struc- tural and not cyclical”. Nadeem Akhtar, a political analyst, was clear and direct. He saw the politici- sation of economic policy at the root of the overall mess. “As long as rulers continue to fiddle with the market fundamentals, I see no hope for the country and its future. If Pakistani businesses can’t access huge markets next door, are nudged to source their imports from certain nations and export to less attractive destinations, it says it all. They can’t beat the competition as they can’t afford and see a point in investing in technology or innovation. Till such time when budget allocations are captive to dictates instead of needs, the country will continue to

ENERGY UPDATE 09 EXCLUSIVE INTERVIEW

to Malaysia using ISO tank containers and Our LNG terminal will be operated out of the Naeem Qureshi the road transport system. So, our company Karachi Port. This is going to be the very first already has a footprint of its work in the near- such initiative in the country as it is to be- by region. We are in the business of SSLNG come Pakistan’s first private and de-regulated NG Easy is going to provide a that is called small-scale LNG that provides LNG terminal as the government will have no clean cooking fuel option to one an end-to-end solution encompassing all up- involvement in it. It will not only become a million destitute rural women stream, midstream, and downstream sectors major contributor to the revenue generation every year in Pakistan as a part of the gas industry under one roof. Similarly, by the transport companies, but also by the "Lof its CSR obligations'', this was disclosed we have operations in Myanmar, Singapore, government owing to the involvement of by CEO, LNG Easy (Pvt) Ltd Pakistan, Yasir and Malaysia. As it is a fast expanding and many state or government entities like the in an exclusive interview with the Energy new developing field, our company has been KPT. The project will pay millions of dollars Update in which he talked at length about the growing organically. We are going to build in as federal taxes. It is a great achievement that plan of his company to establish a virtual gas Pakistan an LNG retail ecosystem from up- the government is going to deregulate this pipeline to deliver SSLNG (small-scale LNG) stream to midstream to downstream. We will sector. for the first time in Pakistan. Following are build the entire infrastructure for the purpose the important excerpts from his interview. as this project involves US $ 200 million of EU: When is your SSLNG project foreign direct investment. The project will going to commence its operation in Energy Update: What are the details engage skilled labour in a very large number. Pakistan? of your company and your upcoming We have got the first license in Pakistan to Yasir: The first phase of our project is going projects in Pakistan? build this virtual LNG terminal and pipeline. to start in the first quarter of the year 2022 Yasir: LNG Easy is a Singapore-based con- We have signed agreements with NLC and that means after six months. After this, our cern. This is the company, which used a vir- Pakistan Railways for providing logistics terminal will become operational. We have tual pipeline to supply LNG from Singapore support for our operations in the country. planned to import 50 to 60 MMCFD in the

10 ENERGY UPDATE first year of our operation as in the second and than the furnace oil and even much cheaper to execute this project. third phase of the project the LNG import will than the diesel. This is a massive market that Yasir: We are getting very good support from be ramped up. has already been consuming billions of tonnes all the relevant federal government depart- of gas every year. You will not be cheaper than ments including the OGRA. The Ministry of EU: Will your one project be enough the natural gas being supplied to the high-end Petroleum has also realised that we need a to overcome the natural gas shortfall domestic customers in the country but you big-scale infrastructure for the purpose. We in the country? will be, for sure, competitive with them. You do need government support in this regard as Yasir: Obviously, our one LNG terminal will are supposed to bring a source of clean fuel we are going to deliver the first private LNG be insufficient to meet the nationwide natural to the country. We are not cheaper than the molecule in the country within the next six to gas demand. It is no secret that there is a sub- government gas rates but we will not be that eight months. All the concerned stakeholders stantial demand and supply gap in the natural expensive as we will be very competitive. related to the SSLNG network in the country gas sector of the country. Pakistan has the It is an astonishing fact that “ Firewood market are required to work with consensus about the capacity to use two FSRU terminals at a time. size ” for Only “heating purposes” is estimated utility of the LNG terminal industry. It is imperative that the government build the somewhere between Rs 220 - 250 Billion ( as infrastructure of SSLNG in the country that in- per household Integrated Economic Survey EU: Is there any plan for LNG Easy to volves a virtual pipeline. The bearing capacity 2018/19, which is much more than Domestic protect the environment? of the Pakistani ports is limited. While build- Gas market). Reason being most of Pakistan’s Yasir: We have a very extensive plan to ing the FSRU terminals, the government at the population is still “OFF GRID” from main Gas protect our environment. The countries like same time should build the SSLNG infrastruc- transmission networks of SSGC/SNGPL. Malaysia and Singapore, where we have ture as much as it could do. This should be Hence “ Firewood” is still the primary source of already been operating, have one of the most done because SSLNG doesn’t require a bigger heating/cooking for most of Pakistan nation- stringent environment safety standards in the paraphernalia, infrastructure, and investment wide especially in rural areas and which also world. These environmental standards cover as compared to a conventional LNG terminal. unfortunately remains the main root cause all the aspects of our operations whether it is No wonder, if up to five SSLNG terminals are behind rapid Deforestation, Pollution , Serious the filling of tanks, trucking, or anything relat- established in the country. The gas pipeline Health hazards especially for women and ed to our core operation. We have requested capacity is a major issue in Pakistan as a big children who primarily cook with wood as fuel the government to adopt similar internation- investment is required to build new pipelines. in rural areas. ally accepted environmental safety standards Only 20 to 25 million people are connected These are all above sectors where we, LNG for operation of our entire industry in the to the networks of SSGC and SNGPL in a Easy can help Pakistan with Poverty Allevia- country as the same set of standards should be country with a 220 million population. The tion by providing Clean Cooking fuel under a followed to develop all the related things. No operation of SSLNG involves direct filling of “Rural Gasification model for Villages nation- doubt, we have been following international the gas at the port as small vessels are brought wide”. guidelines as far as the cause of environmental for the purpose having 10,000 to 20,000 tonnes LNG Easy to deliver “CLEAN COOKING safety is concerned. capacity. While in the case of FSRU, the FUEL OPTION TO DOMESTIC SECTOR & minimum capacity of the vessel is 1,50,000 IMPLEMENT RURAL VILLAGE GASIFICA- EU: What is your CSR plan? tonnes. We will have a mobile filling platform TION NATIONWIDE” Yasir: We also have a very comprehensive to run our operation that will attach with a LNG Easy, after implementation of first ever CSR plan as we are ready to eradicate the berth at the port. The ship will directly fill Virtual Pipeline in Pakistan is also to promote cause of poverty in the country. We have the LNG in up to 18 ISO tanks at a time at the LNG as “ Transport fuel” for Heavy Cargo Ve- aimed to provide the clean cooking fuel option port. The decanting of the entire ship will take hicles & Long Distance Buses in Pakistan. every year to one million destitute families in place in this manner in just three days. This LNG is being adopted worldwide as Transport our rural areas. This is going to benefit a very will then be transported directly to the site fuel and most manufacturers in the world large section of Pakistan’s population as till of the consumer. The off-grid people who are are making “LNG Fueled Trucks” which are today up to 70 per cent Pakistanis live in the not connected to the gas pipeline, those who cheaper to maintain, much cheaper to run rural areas. We aim to involve the World Bank, consume LPG, diesel, or furnace oil, who are than diesel, cleaner for environment and can IFC, and similar other global funding agencies, spread all over the country, could become the travel more long distance without need to in this rural gasification project. This will sure- customers of SSLNG. There is no gas supply refuel. China has converted most of its Heavy ly result in poverty alleviation and increasing network in the northern parts of the country. Cargo Carrying Road Transport and even long the living standards of the would-be beneficia- Then there is also the CNG sector, where the distance Buses to LNG Fuel. On an average, ries of the rural gasification project. The proj- government couldn’t supply natural gas, could LNG Truck or Bus can travel almost 800kms to ect will help the village dwellers to continue also become our customer. This set-up will en- 1200kms after single Fuel Filling only. This will living in their native rural areas. This initiative sure gas supply to everyone obviously at much also promote and enhance Cross Border CPEC will contribute a lot towards the efforts to cheaper rates and of much better quality than Road Trade between Gwadar Port and China. reverse the phenomenon of deforestation in the the LPG. The project also involves minimal Hence LNG Easy intend to establish LNG country. The private sector could do a lot to capital cost. fueling Stations nationwide. accelerate the efforts being made to reverse the LNG Easy has also signed MOU with Pakistan harmful phenomenon of deforestation. LNG EU: To what extent will the SSLNG Railways for Transport of LNG ISO Tanks Easy has a serious pledge to provide a clean be competitive with other fuel op- nationwide. More importantly it has con- cooking fuel facility to one million people every tions available in the country? vinced Pakistan Railways to explore option of year. China used the same method to extricate Yasir: We will not compete with the sector, converting some of its old Diesel locomotive 150 million people from poverty. The private which is being subsidized by the government engines to LNG which will be cheaper than sector is ready to act against deforestation. We as it is not our market. The LPG represents a diesel, more safer and environmentally friendly just need the right direction and support from big and fast growing market in Pakistan. We to operate. the government. This is not going to over- aim to be comparatively more economical than burden the national exchequer as no funding LPG is available to the domestic consumers EU: Tell us as to what extent you are would be required from the government to in the country. Then you will also be cheaper getting support from the government execute this excellent CSR plan. n

ENERGY UPDATE 11 BAD GOVERNANCE

Are we losing our financial sovereignty? Independence on 75th year or dependence?

Sajid Aziz

he nation is celebrating the 75th Independence Day oblivious of the fact that on the same occa- sion we have lost our financial sovereignty as our Central vBank has gone into the clutches of TWorld Bank. About 50 years back, when Pakistan was not celebrating its 25th years of existence the we lost our Eeastern part the country. Again due to conspiracy and lust for power by some so-called leaders. This regime we are having right now has also become a big threat to Paki- stan’s security. Many elders and economic experts were trumpeting that the extremely wrong economic policies by the PTI government are leading the nation into a big trap and now the one can see the drop scene of whatever the present govern- ment has done. Since long time, a former Advisor to Prime Minister on Finance Dr Hafiz Shaikh, a clerk of the donor agencies, was working on this agenda under which the State Bank of Pakistan would not remain under the federal government but will become an independent entity and work under the policies of World Bank. Even its gov- ernor would be appointed by the WB without any interference by the government. Govern- ment will no longer be able to obtain loans from gov but would replaced as statebankofpakistan. are hundreds of clowns sitting in the national central bank as whenever it done so in the past, org. and provincial assemblies and Senate as well it is said by the independent sources that this An executive committee is also being who are just focusing on their own perks and has been done by Imran Khan government to constituted to select deputy directors and other privileges. No one raised voice against the Act, obtain 6 billion dollars loan from the IMF for staff. The decisions could not be challenged by even the majority of the federal ministers have which a number of other conditions were signed FBR or finance ministry. So our monetary policy shown their inability to resist this biggest ever by the government. would be announced by the viceroy but where anti-nation move. n Tenure of the central bank would now be 5 years and if he showed desirable performance to his masters his tenure can be extended. So folks be prepared or another viceroy has come to govern this country financially who will not be punished for any financial irregularities, even money laundering. Under the Act, no agency or FBR can initiate enquirers against him and his staff. The State Bank of Pakistan’s website will not be showing its URL as statebankofpakistan.

12 ENERGY UPDATE

TALK ON POWER TRANSMISSION

Mustafa Tahir distribute electricity. Such rights were granted ederal govt should recognize that to the provinces in accordance with the 18th foremost right belongs to STDC for Constitutional Amendment. The K-Electric is wind corridor, who have also been issued LOIs providing transmission connectivity the buyer of the Nooriabad power project. This by the NEPRA for the purpose, have been vis- to a new power project in Sindh, project was completed in 2018 and its CoD was iting us. They are willing to set up wind power this was stated by CEO of Sindh achieved. The project has been continuing suc- plants but the main issue is to find the buyer for FTransmission & Dispatch Company, Muham- cessfully till to date. The NEPRA has allowed them. We have limited options in this regard as mad Saleem Shaikh, in an exclusive interview that outages of up to 131 hours in a year are we have DISCOs and only a single privatized session with the Energy Update in, which he allowed in the Nooriabad power plant’s trans- power utility the K-Electric for the purpose. informed about the current and future services mission line. Our outages in the latest financial and projects of his provincial energy sector year are not more than six hours. The KE said EU: What is the latest achievement company. Following are the important excerpts that the most dependable transmission line for of STDC after doing Nooriabad from his interview for our readers: it was that of the STDC during the torrential Power project? monsoon rains of last year. Mr. Shaikh: There are four upcoming renew- Energy Update: What are the latest able energy projects in the wind corridor of services of STDC in Sindh? EU: What is the scope of your future Sindh whose cases were processed by the fed- Muhammad Saleem Shaikh: We were work in the energy sector of Sindh? eral government. They approached the STDC. granted the license in 2015 to lay a special-pur- Mr. Shaikh: Sindh has massive potential of The CEO of K-Electric and Sindh Energy Min- pose transmission line for 100 Megawatts electricity generation. The wind corridor of ister both did much hard work in the case of Nooriabad power project. The provinces Sindh alone could generate up to 50,000 MWs these upcoming alternative energy projects. We now have the right to generate, transmit, and electricity. The investors willing to invest in the conducted the technical studies and later on

14 ENERGY UPDATE K-Electric followed suit to evaluate these proj- ects. Finally, these four upcoming power proj- LNG LOSSES ects have been issued LOIs of 225 MWs by the K-Electric. The NEPRA has issued the lowest tariff of Rs 5.8 for these wind energy projects. AGP confirms govt’s grave mishandling The power consumers in Karachi will become the ultimate beneficiaries of this lowest tariff as the K-Electric is going to buy this electricity. LNG sector causing The STDC is going to lay the transmission line of these 225 MW wind energy projects. In the similar manner, we are willing to evacuate elec- massive fiscal loss tricity to be generated by all the forthcoming EU Report report concluded. wind power plants in Sindh as the K-Electric At that time, when the Geo News had would also be willing to buy the renewable asked ex-SAPM Nadeem Babar, he held the electricity to be produced in the province. But he Auditor General of Pakistan K-Electric responsible. The news channel the main obstacle in this regard is caused by the (AGP) has claimed that the federal also produced the factual position that the federal government in the situation when the government has inflicted a loss of Karachi power utility company had ‘timely NEPRA has also been facilitating us to a large billions of rupees to the nation in raised’ its requirements, which is now being extent. The STDC should be given the mandate Tthe LNG sector ever since it came to power in confirmed by the AGP report. of laying the transmission line, which is to be 2018 but continues to deny that. The report also cites the losses of Rs1.31 situated within the jurisdiction of Sindh. The In the first two and a half years, it gath- billion when the demand was timely raised NDTC doesn’t have time to evacuate the elec- ered losses to the tune of Rs122 billion, and but the tenders were floated with delay due tricity of upcoming renewable energy projects so far in 2021 has inflicted a financial damage to which the suppliers refused to oblige and in Sindh for next four to five years. We, in the of Rs35 billion by repeating the past trend of emergency tenders were floated and then meanwhile, also acquired the license as the mistakes. This was the crux of an analysis by historic high bids were received. All of this provincial grid company in 2019. We are more Shahzeb Khanzada in August 11 show of Geo precipitated in a massive power and gas crisis than willing to work in accordance with our li- News programme ‘Aaj Shahzeb Khanzada as the electricity production was generated censes. The federal government and its Ministry Kay Sath’ (ASKKS). through expensive furnace oil due to bad of Energy should recognize that the foremost When the issue of needless wastage planning, the AGP report reveals. right to provide transmission connectivity to a of resources was raised last year by the Geo In 2020 winter, the wizards announced new power project in Sindh belongs to us. News, the federal government, instead of that Pakistan confronts peak demand for Similarly, there is an upcoming project of addressing the issue, came down hard against six weeks only. The AGP has found that a Dutch company Alka Power as the AEDB has the Jang-Geo Group. However, the Auditor the government paid over Rs11 billion from issued to them the LOI and also allotted them General Pakistan, in his latest report, has its kitty for not adequately using the LNG the land to build the renewable energy plant. confirmed the facts presented by the ASKKS terminals. Had the terminals been used to full This project has been conceived to promote related to delay in purchasing LNG, loss of capacity through private sector, the addition- the concept of woman empowerment. It is a billions of rupees, all of which led to a gas cri- al expenses in billions of rupees could have World Bank-funded hybrid energy project sis of epic proportions and justifies the stance been averted, the AGP report says. combining both solar and wind power. This is of the Geo News. Last year, it was said that gas was also going to be the first renewable electricity The AGP, in his 2020 audit report, not required and now it is being said that project of Pakistan that will come with the found it disturbing that LNG for December the problem arose due to NAB cases. When concept of storage batteries. The project will 2020 was contracted at a rate of USD6.7 asked, the NAB rejected the government's generate 300 MWs of clean electricity as they MMBTU very late in November, which in version, saying they never stopped the are also interested to avail our services as the futures was earlier available at USD4.38 government from fully utilising the LNG formal meetings with us, in this connection, MMBTU. The report laid the blame for the terminal to its full capacity. However, this will shortly begin. Moreover, the Engro is also problem to ignoring the historic trend of win- year as of now, the federal government has going to avail our services for a 500 MWs B2B ter gas consumption in the country as well as decided to utilise the LNG terminal to its full power project. international market trends. The LNG prices capacity. n were increasing sharply from July to Oct EU: What is the vision of STDC 2020. The crisis reflected on poor planning by to do its future work in Sindh? the inept wizards at the relevant ministries Mr. Shaikh: Our vision for the power con- for contracting LNG at spot rates, ignoring sumer in Sindh to get the choice of selecting the futures all of which boiled down to the the cheapest service-provider as has been the loss of Rs7.7 bn. Shahzeb reminded that back case of cellular phone service. We are willing in December 2020, the ASKKS had highlight- to supply electricity for the purpose. Our ed the issue. services would be available at 50 per cent less Similarly, the AGP also discussed the cost as compared to the charges of the existing losses of Rs1.65 billion incurred in tenders service providers in the province. The total for spot purchases in August and September length of the transmission line to be laid for 2020. The audit found that the tenders for wind corridor of Sindh would be around 250 to August were floated in the same month and 300 kilometres as this is also going to be help- the sale was contracted at USD3.6 ful in reducing much the line losses. Our sole MMBTU while for September the de- request to the federal government, its Energy livery was contracted at USD4.65 MMBTU. Ministry, and NDTC that they should only let Had the supplies been contracted in July, the us do our work. n losses would have been averted, the audit

ENERGY UPDATE 15 ENERGY ISSUES

to high risks due to potential supply disrup- tions, price volatility, and as we noted above, our ability to pursue an independent foreign policy line. These are not just perceived risks or paranoid thinking; these are very real as well as imminent. One is, therefore, tempted to consider total indigenizing of our energy sup- plies. However, for a host of reasons—lack of resource endowment, technology constraints, locational issues, and economic and financial issues, to name but just a few—this may not be practicable. Also, the problem with energy infrastructure is that it is capital-intensive, long-lived, and once in place, locks a nation into consumption patterns and dependence on energy supplies that cannot be changed quickly and without serious costs. For similar reasons, many countries had tried to eliminate their dependence on foreign energy supplies, but had to settle for indigeni- zation well below 100 percent. Instead, they Dr. Shahid Rahim world, however, “energy independence” may found it more prudent to improve the energy just be a mirage chasing which can lead us to security through a myriad of other efforts. Just isolation and also may not be worth the cost. to illustrate this point, Japan lacks commercial “The price of liberty is eternal vigilance.” A better goal to pursue is “energy security” energy resources but still ranks among the top (Thomas Jefferson) which embraces within its folds, a practicable energy-secured countries, mainly because of proportion of indigenous resources. its strong economic ties with energy suppliers he geopolitical landscape, According to Pakistan Energy Year- and other developed countries. Similarly, Chi- especially that in the Asian book 2019 (the latest available), of the total na also depends a great deal on other coun- continent, is shifting rapidly 83.8 mtoe (million tonnes of oil equivalent) tries for its energy supplies, but any serious and seeing unprecedented primary energy supplies during FY2019- “disruption” to Chinese energy supplies as a realignments among countries 20, we imported 38.2 mtoe (or roughly 45 policy tool is considered implausible since the previously thought unthink- percent). We imported 23 percent of our gas economies of many developed countries and Table. Some countries are using their fuel supplies, 72 percent of crude oil, 100 percent energy suppliers depend a lot on supply of exports as a leverage to influence some other of petroleum products, 28 percent of LPG, cheaper products from China. countries to align them with their policy pref- and over 80 percent of our coal. These imports Therefore, while energy independence erences. This is prompting local strategists to which exceeded USD 16.5 billion that year are may be a pipe dream, energy security is more reiterate the criticality of energy self-reliance costing us not only a high proportion of our plausible, practicable, and achievable. Unlike by shifting from imported fuels to indigenous hard-earned foreign exchange earnings, it also the former, the goal of which is to become energy resources. In today’s interdependent exposes our defense, economy, and society self-sufficient in the production of energy, the

16 ENERGY UPDATE latter focuses on increasing the supply board, but the recently issued National of energy by exploiting all of the sourc- Electricity Policy 2021 (“NEP2021”), es available, not just those restricted to identifies energy security among the three energy. A key point to remember is that primary goals of the country. Section 3.2: NTDC while energy choices are influenced by a Energy Security of the NEP2021 states to build a secure, country’s foreign policy, economic priori- that: “The goal of the Government is to ties, and environmental constraints these diversify the fuel mix of the generation sustainable energy policies and priorities are also influenced capacity in the country, through optimal by the energy choices it makes, thus utilization of energy resources, such as adding another layer of complexity to this hydro, renewable sources, indigenous coal, issue. natural gas, and nuclear.” Unfortunately, a singular focus on Perhaps, for this reason, the NTDC, import reduction or indigenization will in its draft IGCEP2021-30, also recogniz- not address the multiple political, social, es energy security to be a critical goal to economic, and environmental impacts be pursued in its planning. However, it of energy supply, and many other issues. considers energy security to be synony- Many additional considerations should mous with indigenization. Under section drive the energy policy. However, we 6.5: Indigenization of Energy Mix, this must admit that energy security is not a Plan notes that 47 percent of the country’s well-defined concept and also does not installed generating capacity at present EU Report have an agreed upon set of metrics for its relies on imported fuels. The Plan also assessment. According to one published laments Pakistan’s dismal standing at New power automation solution improves report, at least 45 separate definitions of number 99 among the 110 countries ranked grid resilience, visibility, and Pakistan’s largest energy security have been presented in the by the World Energy Council for their en- transmission company, National Transmission academic and policy literature over the ergy security. Keeping it as a key objective, & Despatch Company Limited (NTDC), has past decade and the list is still growing. the Plan envisages improving the indige- awarded a consortium that includes China Ma- Energy security is generally consid- nization ratio from its current value of 59 chinery Engineering Corporation (CMEC) and ered to base on four pillars: availability, percent to over 92 percent by 2030 (Chart Hitachi ABB Power Grids1 a project to deliver an reliability, affordability, and sustainability. 6-4 from IGCEP 2021-30). all-new Load Dispatch System (LDS) to support Availability is the ability of a country to We must also appreciate that energy the country’s sustainable energy goals. secure its energy needs. It requires an ex- security is not a concept that is static in The LDS system will help to improve grid tensive commercial market and sufficient time; it is a dynamic issue and an evolving visibility and automation, enabling the seamless physical resources, investments, tech- theme. It varies not only over time but also integration of renewables. nology, systems, and legal and regulatory from country to country. Continuously Pakistan is aiming to increase the contri- frameworks to back them up. Reliability shifting geopolitical landscape, techno- bution of renewable energy from four percent refers to the extent that energy services logical developments, market trends, and today to thirty percent by 2030. The intermit- are protected from disruption through new knowledge-bases can easily render a tent nature of solar and wind energy production diversification of energy sources and previously energy-secured country vulner- means that an increasing share of renewables supply chains, resilience to handle shocks able to new threats, thus undermining its requires greater observability, real-time monitor- and recover from failures. Affordability energy security. It’s, therefore, desirable ing, remote control and optimization of the pow- involves low and equitable prices relative that both its definition and the metrics er grid. The deployment of Hitachi ABB Power to income and their stability. Sustainabili- to measure it are reviewed periodically, Grids’ industry-leading supervisory control and ty refers to minimizing the socioeconomic or whenever a significant change in the data acquisition (SCADA) application, Network and environmental damages that can background conditions warrants it. Manager, with its energy management and gen- result from energy systems. While new threats are continu- eration management capabilities, will facilitate A study conducted by Asian Devel- ously emerging within and around our efficient, secure and reliable grid operations. opment Bank (ADB) Institute a couple of borders and also at the global level, new To achieve this, the project team will years back had assessed Pakistan’s energy opportunities are also evolving to reduce deploy a SCADA Energy Management System security under a quantitative 4As frame- our dependence on fossil fuels and their (EMS) at NTDC’s national control center in work (availability of resources, applicabili- foreign suppliers, and lessen our reliance Islamabad and at the back-up control center in ty of technologies, acceptability by society, on capital-intensive and high-risk energy Jamshoro. The system will connect the con- and affordability of energy resources) over and power projects. We must also be trol centers with all the power plants and grid the 6-year period of 2011–2017. It indicated ready to review our energy security afresh stations that are not currently monitored in that Pakistan’s energy security improved and frequently since it is a critical link real-time and will help build capacity for future initially over the first 3 years but then to our liberty. And, this may just be the stations and remote ends. deteriorated over the next 3 years. “Despite time to transform our energy and power The project will also involve the installa- significant investments in the energy in- infrastructures to more decentralized, dis- tion of a new mission-critical communication frastructure over the last 5 years, Pakistan tributed, and naturally renewable systems network with a fiberoptic foundation and continues to be energy insecure,” the report which can ensure supplies of socially, eco- featuring a microwave network as back-up. This noted. (ADB Institute: October 2019). nomically, and environmentally sustain- will help to ensure always-on connectivity and Policymakers in Pakistan are also able energy to our nation in the future. n prevent outages resulting from disruptions in not totally unaware of the criticality of the communication network. It will also enable energy security and have been striving to The writer is a freelance consultant, specializing secure data transmission and increased protec- make the country self-reliant in energy in sustainable energy and power system planning tion from cyber threats through tele-protection supplies. An integrated national energy and development. He can be reached via email at: and near real-time encryption of operational policy is, perhaps, still on the drawing [email protected] data and signals. n

ENERGY UPDATE 17 CLIMATE CHANGE

Ali Tauqeer Sheikh

akistani urban planners have failed miserably to plan safe and livable cities for us. Instead of serving as engines of growth, our cities are holding us back from economic development. They are Pfast becoming Pakistan’s climate hotspots, unprepared for urban flooding and heatwaves and other climate-induced disasters with poor urban infrastructure and rarely enforced building codes. Yet, cities have the gravita- tional force to attract the poor from rural areas, making Pakistan the most urbanised country in the region with an unmanageably high population growth rate. The quality of life of the 75 million urban residents is snow- elusive for almost actions balling towards free fall. 30 years, even if there take place While most cities’ administrations lag were at least 42 major de- on the basis behind in providing municipal or environ- viations from the original plan of of DC rates rather mental services to their existing populations, 1960, including the change in zone IV than a fair market waves of new migrants flock to the cities from green areas to residential colonies. value. According to one seeking social and economic opportunities. Numerous small and medium-sized estimate, real estate was deval- Cities have become the epicentres of polluted cities have been encroaching on prime ued by Rs4.5 trillion in Islamabad alone air and water, with disappearing footpaths, agricultural lands, without any compass. by revising DC rates downward and causing parks, graveyards and open public spaces. Policymakers have routinely looked the a revenue loss of Rs30 billion. This has been None of Pakistan’s provincial capitals has other way. In Punjab, for example, while the propelled in recent years supposedly to stim- a master plan to guide its development. entire attention was on Lahore, Rawalpindi, ulate a post-Covid-19 economic turnaround. Karachi’s several master plans since 1951 have Multan and Faisalabad, the 10 cities that This pattern of urbanisation has remained unimplemented drafts. Lahore’s recorded the highest rate of urban expansion marginalised residents, particularly the master plan, ambitiously named Vision 2050, between 1995 and 2015 did not include any poor, women, children and the elderly, by has been wrought with jurisdictional fights of these big cities. In the absence of any cli- restricting their mobility and adding to for decades without seeing the light of day. mate-compatible development, this growth their climate vulnerability. The provincial Peshawar and Quetta, despite a push from has increased inequities and vulnerabilities. political leadership, instead of providing successive governments have also failed to A unique nexus has emerged that defies all vision, has left our cities’ future in the hands develop their city’s visions. political parties and civil and military bu- of real estate developers. No wonder the draft In fact, secondary and tertiary cities reaucracies, as we have recently witnessed in master plans, or their TORs, do not incor- across the country have not fared any better. the case of Rawalpindi’s Ring Road. porate essential components for developing Despite loud announcements by their present In fact, the ring roads that were inclusive, socially vibrant, disaster-resilient, governments, Sindh has failed to develop supposed to steer planned growth, have and climate-smart communities by providing master plans for its 17 cities, Punjab for 154 become a code word for elite capture by land common spaces, green areas, and educational, local governments and cities, and KP for grabbers and real estate tycoons. We have cultural and amusement facilities in neigh- seven divisional headquarters. Except for the seen the trend whereby ring roads promote bourhoods. Instead of engaging the residents, Gwadar Master Plan 2050, no other city in sprawls and enhance the access and commer- local universities, independent experts and Balochistan has a master plan. The revision cial value of elite housing societies. All trans- other stakeholders, the developers only add of Islamabad’s master plan has also proved

18 ENERGY UPDATE layers of concrete to the growing sprawl, without thinking about the centrality of hu- man, social and climate dimensions to urban development Is it possible to have a solar Concerted efforts are needed to bring some sanity to this real estate gold rush and set a direction with consensus by engaging power system and still suffer key stakeholders. The provincial planning departments together with the Planning Commission can perform this function from load shedding? jointly through an umbrella PC-1 that brings the federating units together to agree that city master plans in Pakistan will include the following components: First, cities should be water secure. Since cities do not have the right to water from the Indus and can get water only from their provincial share, it is critical for cities to identify and protect their catchment areas, inject rainwater to recharge their aquifers and use rooftops, parks, playgrounds and greenbelts to serve this purpose. Absorbing every drop is critical to developing sponge cities. Second, cities should steadily reclaim and protect urban water bodies to curtail urban flooding by negotiating their banks as public parks and urban fests. Water bodies are critical to blunt the spikes in tempera- ture during heat waves that are projected Summaiya Nisar during load-shedding hours? to increase in severity and frequency. Third, Most homeowners have solar power cities should plan for low or near zero emis- any of you have got the systems with On-Grid inverters, meaning sions by promoting public transportation latest technology solar the panels are connected to an inverter. and technological transformations to reduce panels installed on your The inverter gets connected to the main AC commuting. Covid-19 has transformed roof making you self-suf- panel in the house and a smart meter. That the future of work, commerce, education ficient in generating your smart meter records two-way energy flow and shopping. As entrepreneurs are find- Melectricity. Your electricity bills are zero or to and from the grid. On-Grid or Grid-tied ing innovative ways for livelihoods, city even negative for a few months. systems work without any battery backup. planners need to help overcome the digital Then all of a sudden, there is an In the case of a grid-tied system, the grid is and technological divide. Master plans can electricity shortfall countrywide. Even considered a giant battery. Excess solar is envision renewable energy-based transpor- though you have a solar system in place, you stored in the grid during the daytime and tation systems and promote infrastructure are wondering why your power goes out as the system draws power during the night- for electric vehicles. Fourth, plan for equity well? Sun is shining on the horizon and you time or when the panels are not producing and inclusion by provisioning seven essential expect the solar system to work. But during enough electricity. When your solar system functions for residents within 15-20 minutes: daytime outages, you are suffering from produces excess energy, you’re selling it to living, working, commerce, healthcare, load-shedding just like everyone else. If you the grid and getting credit for it through net education, entertainment, and access to have a solar power system, you are likely to metering, but when the sun goes down, you public transportation. This can serve as the be connected to the power grid in your area. still need grid power. If your consumption backbone of the urban economy. The notion That means you draw power from the grid and electricity production are balanced then of the 15-minute city is gaining traction in at night, or when your load consumption you will get zero electricity bills. political and planning circles because it increases than electricity produced at any But that also means your home does deals with the neglected scale of planning given time. You are selling excess solar back not have the power, either. In situations like that is localised to the neighbourhood level. to the grid when your panels generate more these, the power produced from your panels This return to local ways of life through than you need. is not utilized at home and it goes nowhere. walkable neighborhoods is particularly When the power goes out, all on-grid Unless you have some way of storing that suitable for Pakistan where the emphasis on inverters are designed to shut down to electricity! walkability and accessibility is essential for stop the system from exporting units into For true peace of mind during electric- women, children and the elderly who have the grid. That is a safety feature designed ity load-shedding, you need a solar power historically been left out of urban planning. to prevent utility workings from getting system with batteries backup. You can enjoy Finally, how cities will be governed, man- electrocuted. After all, you don’t want your energy independence without worrying aged and resourced should be clearly articu- solar panels to be the reason utility workers about the lights going out. You might even lated in over 200 urban master plans that are are injured by live voltage in downed power be the only house in your street with the presently being developed. We must know lines. But you are wondering what good are lights and ACs on after the grid goes down. what the accountability mechanisms and solar panels on your rooftop if they cannot With a solar battery, you will have a seam- what climate change-specific considerations make electricity? There has to be a way to less transition from the grid to batteries. will be addressed in the master plans. n keep your power on even during an outage! Understand your energy requirements The writer is Ex CEO Lead Pakistan Why your solar panels do not work and make a smart decision! n

ENERGY UPDATE 19

Pakistan is also moving toward a com- CLEAN ENERGY petitive electricity market. This market will ensure additionally ancillary services through wholesale market-based transactions. It is also important to note here that where the argument on reserve costs have been sufficiently assumed by the recent World Bank study (also carried out for a much higher volume of VRE scenario at the time), it affirms that “transitioning to a system based on hydropower and VRE could substantially lower costs, improve energy secu- rity, and reduce greenhouse gas emissions — de- creasing overall costs by more than $5 billion”. It is the interaction of VRE and other sys- tem components that determine the additional Naila Saleh tricity mix in Pakistan would require a rapid costs for its deployment. If solar and wind expansion of VRE. uptake is planned optimally from the very start, hile the new Indicative VRE has become currently the fast- a flexible system can be built, and the cost Generation Capacity est-growing source of electricity globally best of transforming the system could be reduced Expansion Plan (IGCEP) captured by innovative and cost-efficient inte- substantially. has invited wide-scale gration strategies. Pakistan already has some In a nutshell, Pakistan could have suffi- criticism, a major over- ideal pro-VRE features which could maximise cient flexible generation to balance adequately looked dimension of this plan is its reduced its net benefits. In dynamic power systems W higher shares of VRE without building addi- ambition for variable renewable energy (VRE). with growing electricity demand such as in the tional reserves. The new paradigm for power IGCEP 2021-30has revised down the case of Pakistan, wind power and solar photo- sectors, therefore, is to prudently plan VRE share of solar and wind in the energy mix to 12 voltaic (PV) are ideal to meet incremental de- expansion, and system-wide transformation per cent — compared to 30pc in the previous mand while facilitating system transformation to harness flexibility. All that is needed is a version which interfaced with the government’s without any economic stress on incumbents. coordinated transformation of the system as a policies and commitment of 30pc non-hydro In the case of solar, its output profile coincides whole. renewable energy by 2030.This is a big reversal. with electricity demand, making Pakistan Also based on the unique pro-VRE And while IGCEP claims that Pakistan has naturally flexible for its integration. characteristics that Pakistan enjoys, the net promising solar and wind potential which also Solar PV generation could be both economic benefits for the country could be sub- have become the cheapest sources for power conveniently integrated and displace fuel-based stantially higher than other regions. Important- procurement — yet due to the associated thermal plants production — contributing ly, new alternatives solutions are emerging such intermittency challenges and need for addition- to enormous variable cost savings. Based on as green hydrogen and cost-effective storage, al reserve requirements as backup generation a thorough assessment of flexibility options which over time will enable 100pc renewable their targets have been revised down. carried out in the World Commissioned study energy (RE) transition. We need to steer the This argument of VRE Integration and planning Study (2020), power sector in the right direction from now, ‘additional reserve require- it visualizes how VRE generation could cover so as to reap maximum benefits of these ongo- ments’ — is not only marred by essential parts of the peak load supply both ing developments. misconceptions and misinfor- during summers and winters.Further, while There are also certain other gaps in the mation but also contradicts Pakistan has an ambitious hydro-expansion plan that need to be addressed. Where on one the findings of the recent plan, the abundant availability of hydropower hand the assumptions on hydropower build- World Bank study (2020) is uniquely placed to provide system-wide out are quite optimistic, IGCEP does not hint which while using the same flexibility to the grid and buffer intermittent at any potential delays/risks of committed Plexos modelling claimed that renewable generation. plants. The plan needs to be very realistic about achieving the least-cost elec- implementation periods or doing at least addi- tional scenarios to account for the stated risks. An ideal scenario in the context there- fore would be to revise back the VRE targets upward since the integration of VRE-hydro- power will enable an econom- ically robust dispatch, while also accommodating for any unanticipated delays/ lags in hydropower uptake via “in- sured” VRE induction.

ENERGY UPDATE 21 TALK ON EV

Amir Hussain CEO, Tesla Technologies, Pakistan

Halima Khan solar technology. Solar power is also being used We are working with some of the oil marketing in the country to reduce the electricity bills. companies to introduce the EV charging facility Solar energy has the shortest payback period as at their existing fuel stations in the country. e are soon going compared to other such alternative power tech- We are also connected with some of the large to introduce the nologies given the power tariff of the country. business groups to introduce the EV charging concept in Pakistan Payback of investment in solar energy is possible facility at the shopping malls, food outlets, and to let people charge in just two to three years depending on whether office complexes. This will let the EV owners their electric vehi- it is commercial or industrial application. So it charge their vehicles during their business hours, “Wcles during their business hours, while at a shop- is a great incentive from the investment point shopping activity, lunch, or dinner time. ping mall, or dining out at a fast food outlet.” of view. The electricity demand is like ever-in- this was stated by CEO of Tesla Technologies, creasing in the country as there will be even EU: How much is the potential of Amir Hussain, during an exclusive interview greater demand for energy in the distant future green energy in Pakistan? session with the Energy Update, as he shared due to the use of electric vehicles. So, in such a A. Hussain: It is a matter of fact that a very about the present working and future expansion scenario solar energy provides a very handy solu- limited number of people in the country have plans of his energy sector company. Following tion as it is all about distributed requirements been exploring the option of green energy. are the important excerpts from his interview and distributed generation. This means where We are encouraging people belonging to the for our readers. there are electric cars, you could build a small industries and businesses that they should start micro-grid or small stations for recharging of the using this option. This will not only help to save Energy Update: What is the utility car batteries. This shows that solar energy has on their energy bill but will also enable them to of solar power in Pakistan's energy huge potential in Pakistan as its application in play their due role to promote a green and clean sector? the country will surely expand. environment in the country. Amir Hussain: Solar power has massive ap- plication in Pakistan. So far, it is being used both EU: What are the latest services of EU: To what extent the operational in on-grid and off-grid commercial applications your company? work of your company is environment in the country. Its use started in the country to A. Hussain: We have started the service of friendly? counter the situation of power load shedding electric vehicles’ charging. We launched this ser- A. Hussain: All our projects are completely as later on the increase in electricity tariff also vice last month as we are going to install this fa- environment friendly as we deal mostly in green compelled the power consumers to adopt the cility very soon in all the major cities of Pakistan. energy. We also deal in CNG equipment as

22 ENERGY UPDATE the CNG consumption also helped in resolving the problem of environmental pollution in large cities like Karachi and TREE PLANTATION Lahore. The problem is that Pakistan is a unique fuel require- ment as its only solution is a balanced energy mix that means part usage of CNG, part LPG, part electric vehicles, and part PM Imran Khan inaugurates consumption of conventional fuel, as this combination could only fulfill our energy requirements. No single fuel is capable world's biggest Miyawaki of meeting our requirements. urban forest EU: To what extent do your companies follow the international standards? A. Hussain: We do follow all the international standards prescribed for our industry as we have to compete with the rest of the world. The basic differences between the Tesla and rest of the imported equipment is that we have re-en- gineered our equipment to cater to the local requirements. These local requirements are not only related to temperature and humidity-level but also adjustments required due to grid fluctuations that damage the equipment. So we are strong in the sense that we do re-engineering of our equipment and products.

EU: To what extent the operational activities of your company are conducted locally? A. Hussain: All our R&D and market research activity is being carried out locally. The hardware designing is also being done locally.

EU: What are the major CSR activities going on in your company? A. Hussain: Internally, in our factories the CSR activities are mostly oriented towards promoting healthy and sporting activities among our employees. Outside the factories, we try to help people who are energy-starved as they don’t have access to electricity as they live in the far-flung areas of the country. We provide them with our equipment and systems Imran Khan has to energise their homes. But we very carefully select only inaugurated the those communities, which have not been earlier supported by world’s biggest the government or any charity. Miyawaki urban forest as part of EU: What are the future plans. of your company? Mmonsoon drive under the 10 Billion A. Hussain: We are not going to invest any more in solar Tree Tsunami project. panels because of the fact that we still pay duty on our raw PM Imran Khan, while speak- material despite five to seven years of manufacturing. This ing on the occasion said that this policy hasn't so far changed despite that we have been writ- would be the largest Miyawaki for- ing to the government on this issue for the last seven years. est in the world and we are hopeful We were like six such companies doing such production to leave a better country for future 165000 plants which will grow ten here, four of them already closed. We will rather be expand- generations. times quicker than a normal forest ing into emerging technologies as that is always our portfolio. He also lauded the efforts of owing to the unique Miyawaki So in the near future, we would be more involved in the the organizers for planting the Miy- technique. business of EVs. awaki Forest. It uses specialized land prepa- He went on to add that effec- ration as well as indigenous varieties EU: What is the future of energy-efficient sys- tive measures have been taken to with varying growth rates to pro- tems and appliances in Pakistan? tackle climate change. duce fast growing urban forests. A. Hussain: There is a huge opportunity present in the The PM further stated that Another 53 Miyawaki forests country to reduce our energy requirements by 50 per cent. Lahore is a city of gardens but unfor- are being grown at different parts of This opportunity still exists despite the fact that we have tunately, it it is now considered one Lahore to create sinks for carbon as started using many energy-efficient appliances like inverter of the most polluted cities. well as for better pollution abate- ACs and LEDs. This opportunity could be effectively grabbed He added that global warming ment in the city.All projects have by doing smart management of our energy supply systems. has caused the earth's temperature to been geo-tagged for monitoring of This is the arena towards which the Tesla is headed. We have rise dramatically. However, Miyawa- their growth and development. ample electricity but the capacity of our transmission lines is ki forests will prove to be helpful in About 500 million trees are limited. No investment is coming to upgrade our transmission controlling environmental pollution. being planted across the country un- lines. So, what we could do is to reduce our energy needs not It is pertinent to note that the der the ongoing Monsoon plantation by compromising on our requirement but by efficiently using Miyawaki forest has been devel- drive which is the largest ever such n the energy equipment. n oped over 100 kanals with a total of drive in Pakistan.

ENERGY UPDATE 23

REFINERY POLICY Pakistan Oil Refinery Policy 2021 finalised Khalid Mustafa deregulation of the sector in till December 31, of rate of return for existing, or new refineries 2027, and once it gets approval from the federal provided by the regulator or the Government of he government has finalised the Pa- cabinet, will be effective immediately. The Pakistan. kistan Oil Refinery Policy 2021 with policy will be implemented with the objective to Under the policy, there will be a tariff a huge package of tax incentives, in- evolve a fully deregulated market environment protection in the form of 10pc import duty on cluding 20-year income tax holiday till December 31, 2027 with participation by all Motor Gasoline and Diesel of all grades as well for all taxes under the Income Tax stakeholders. as imports of any other white product used for TOrdinance 2001 and upgradation of existing and Under the deregulated regime, oil mar- fuel for any kind of motor or engine, effective new deep conversion refineries from the date of keting companies will be free to set the prices from January 1, 2022 to December 31, 2027. The commissioning of the project. However, there themselves, based on the quality of fuels location pricing regime for new refinery projects would will be no product off-take and rate of return (including abolishment of the Inland Freight be given a pricing mechanism, which shall be no guarantee for new and existing refineries. Equalization Margin). less favorable than the prevailing mechanism till And more importantly, the product pric- And to facilitate investment by local and deregulation. ing formula of refineries will be based on “True foreign investors, and for ease of doing business, The government will not provide any Import Parity Price” to be derived from the Arab approvals from various authorities should be product off-take guarantees. Refineries shall be Gulf Mean FOB (Freight On Board) spot price, managed through a one-window operation allowed to sell products to any marketing com- or if not published will be derived from Singa- housed in the Ministry of Energy (Petroleum pany, including their own affiliates in marketing pore Mean FOB price, discloses the final draft of Division). And the existing relevant laws, rules, and distribution. However, import of finished the policy. The new policy, once approved, will procedures and orders etc. will be amended products by OMCs shall be limited to only the also be applicable to those potential investors by the relevant government bodies to reflect projected deficit in accordance with provisions who want to establish a world scale deep these policy changes. According to the policy, of Rule 35(g) of the Pakistan Oil Rules 2016, conversion refinery and petrochemical complex the product pricing formula of refineries will ensuring uplifting of local refined products first. with investment of $10-15 billion in Pakistan. be based on “True Import Parity Price” to be Locally produced crude will be allocated Once the existing refineries give the com- derived from Arab Gulf Mean FOB spot price, or to the closest refinery that can handle crude mitment to the government by December 2021 if not published shall be derived from Singapore with such specifications. Once allocated, the for upgradation, they will be given tariff protec- Mean FOB price. All other elements including same may not be cancelled if a new refinery tion by six years to achieve the goal of Euro-V Premium, Freight, Port Charges, Incidentals, comes up closer to the crude source, unless Mogas (petrol) and diesel. OGRA will monitor Import Duties, exchange rate, provincial taxes as mutually agreed amongst the existing user, the upgradation and modernization projects and applicable and other price adjustments will be new proposed user and the Petroleum Division, submit a quarterly work assessment report to added, as per PSO actual imports, in the FOB to Ministry of Energy. After upliftment of local the Petroleum Division based on the refinery's arrive at True Import Parity Price. crude oil, if so allocated, the refineries will be work plan. Additionally, prevalent Inland Freight of free to import crude oil from any source except The Refinery Oil Policy comprising 10 imported crude oil to refineries and provincial from prohibited countries, with no obligation sections, highlighting the impor- duties, levies or cess and taxes (with import or guarantee on the part of the Government of tance of the existing refineries duty on crude oil, if any) at import of crude oil Pakistan. Refineries will be allowed export of and their upgradation, the need shall be added for refineries. And there shall surplus petroleum products, or products with to install deep conversion refin- be no import duties and sales tax on import of specifications that do not have local demand ery and petrochemical complex petroleum crude oil with effect from July 1, 2022, under the intimation to OGRA and MEPD. in the country with focus on way being the main raw material, by refineries them- No refinery shall be allowed to market, in forward along with a framework selves. The finished products, however, will be Pakistan, petroleum products of inferior quality of fiscal and regulatory regime, subject to import duties and sales tax than those notified by the Petroleum Division will be pitched in the next ECC notified by the competent authority from time to time, unless it has meeting for approval, a senior from time to time. a waiver from the Government official at the Energy Ministry And there will be no guarantee of Pakistan. If it produces told The News. products with inferior quality The much-awaited 58 pag- and does not have a waiver to es and 8,342 worded oil refinery sell it locally, it shall be free to policy containing huge fiscal export the same. n incentives and relaxation Courtesy The news in duty structure with eight policy objectives to provide the enabling frame- work will lead to complete

ENERGY UPDATE 25

ENVIRONMENTAL DEGRADATION Mardan, Dera Ismail Khan and Abbottabad. In such a dire situation, one man has flown the green flag. Blaming Peshawar’s abrupt urbanisation, high-rise buildings, shopping A city yearns plazas and markets for the city’s ever-in- creasing pollution, 70-year-old Misal Khan for its has pledged to make Peshawar a city of flowers again. “Peshawar was once full of flowers and you could see them on roadsides, in gardens and homes,” he says. “We need more floral past greenery in this city, but there seems to be no respite in this concrete jungle.” Tariq Ullah Zia also describes that when Zaheer- uddin Babar invaded the Khyber Pass in Khan, who previously worked as 1505 and stayed in Peshawar in 1519, he saw director physical and health education at here was a time when Pesha- people working in fields around the city that Hazar Khwani Government Higher Second- war was known as the city had trees and flowers. Dr Noor ul Amin, pro- ary School, spent over 20 lakh rupees in 2017 of flowers. Perhaps this was fessor of Landscape and Floriculture at the — including his gratuity — to establish a because of the many gardens University of Agriculture, Peshawar, points nursery at Gulbahar, a few metres away from built in the 16th and 17th cen- out that the city is still home to several large the Grand Trunk or GT Road, the city’s main turies during the Mughal Era. gardens such as Wazir Bagh and Shahi Bagh thoroughfare. After coining the slogan ‘Your Professor Sayed Amjad Hussain wrote in the from the Mughal era, and Cunningham Park Pot, My Plant’, he has distributed nearly T 200,000 saplings of flowers and plants to September 7, 2018 issue of The Friday Times (now known as Jinnah Park) and Company that, “At one time, Peshawar was known by Bagh from the British era. But in 2016, the people across the province, free of cost. her monikers ‘City of Flowers’ and ‘City of World Health Organisation (WHO) ranked “Almost 100,000 plants were given to Seven Colours’. In a not-too-distant past, the Peshawar as the second-most polluted city Peshawar’s Town-1, Town-2 and Town-3 arrival of spring was heralded by flower-sell- across the globe. This revelation is borne on the request of the government in 2017,” ers balancing large baskets of roses on their out by readings from IQAir, a real-time air he says. “Sadly, the government has ignored heads and walking through the labyrinthine quality information platform. Emissions and my requests for a maali [gardener] to assist streets of the old city and shouting ‘It is the fumes from vehicles are the main causes of me because I am growing old.” A variety of spring of roses, come and get fresh roses’.” air pollution in Peshawar. Numerous cars, plants and flowers, including some evergreen Flowers, including roses, were cultivated in motorbikes and rickshaws populate the city species as well as grape vines and pomegran- the surrounding villages on the outskirts of roads, along with heavy-duty vehicles such ate, guava and loquat saplings, are available the city. as trucks and lorries, many of which run on at Khan’s nursery. Khan recalls how he once The city’s name is believed to have diesel, or fuels of considerably lower quality. complained to his father about people cut- been derived from the Sanskrit name for ‘city Peshawar’s traffic police estimates that ting trees near his home and his father had of flowers,’ Poshapura, a name found in an about 700,000 vehicles enter and exit the replied, “Don’t worry too much about trees ancient Kharosthi inscription that may refer provincial metropolis on a daily basis, while being cut, instead plant two trees.” to Peshawar. According to researcher and 35,000 registered two-stroke and four-stroke Khan’s four daughters work for the writer Mohammed Ibrahim Zia, in his book auto-rickshaws ply the streets and add more government, while one son is a doctor and Peshawar Maazi ke Dareechon Mein [Pe- pollution to the city. the other a businessman in Canada, who shawar Through the Windows of the Past], Research on the emission of green- takes care of the family, leaving Khan at during the Durrani rule in 1809, Scottish house gases in Khyber Pakhtunkhwa (KP) leisure to pursue his passion for plants. He statesman and historian Monstuart Elphin- by Dr Asif Khan, a PhD scholar at the Uni- has named his nursery after Abdur Rah- ston spent about four months in Peshawar. versity of Cambridge, reveals that the emis- man Baba, the Pashto Sufi poet. Khan is In his memoir Account of the Kingdom sion of these gases is highest in the transport also known as a ‘pir’ because of his passion of Caubal, Elphinston describes fruit and sector. His research for the Pakistan Forest for Rahman Baba’s poetry. He flower gardens, springs and date trees in Institute shows that the emission has put up a few the northern areas of Peshawar, where of greenhouse gases is the posters in dates couldn’t ripen because of the most in Peshawar, cold weather. followed by

28 ENERGY UPDATE NEWS AND EVENTS his nursery with Rahman Baba’s poetry on them. Khan admits that he may not be able to make the entire city green but wants to do as much as he practically can. He Mari Petroleum extends has also published a few booklets on climate change to hand out to people, to create awareness about tribute to national heroes the importance of greenery for the environment. Khan wants Peshawar’s residents to help him in his mis- sion in giving the city flowers and greenery which will help fight pol- lution. “Neither the government, nor the people have any interest in cleaning up Peshawar’s environ- ment,” says Khan a bit despon- dently. “They would rather wear a mask and inhale polluted air, but no one will make any effort to plant a tree or flowers for their own benefit.” But Hastam Khan, whose family is associated with the nursery business for the last 35 years, believes that Peshawar still ari Petroleum hosted an impres- Pakistan. has the potential to grow good sive light and sound show at the He added that Fauji Foundation, a trust quality flowers and hence can re- National Monument, projecting established in 1954, is dedicated to the wel- vive its past glory of being a city of the struggles and contributions fare of ex-servicemen and their families. The flowers. He is pleased that social Mof our founders for creation of an independent Foundation provides welfare services to its 8 media has created climate change state, Pakistan’s rich history, progression over million beneficiaries, who are our heroes having awareness and that there are the years, vibrant culture and a tribute to the contributed zealously for the safety of our Facebook and WhatsApp groups heroes of Pakistan. homeland. The Foundation’s state of the art through which young people pur- MD/CEO Mari Petroleum Faheem Haider, facilities including 140 Health facilities and 180 chase flowers and plants online. in his speech said that this initiative is aimed Educational facilities are open for all citizens of “People should also be at invigorating our national spirit through Pakistan. growing their own food,” he says. innovative tools of storytelling. He added that It was highlighted that the Foundation “Instead of growing fruit and the show will be demonstrating an immersive operates on a completely self-sustaining basis vegetables, people have turned 3D Light and Sound Show, projecting the story and receives no grants or assistance from any gardening into a luxurious hobby of Pakistan’s independence and a tribute to Government or Non-Governmental Organisa- and prefer growing hybrid plants the heroes of Pakistan. This is a one-of-a-kind tions. The Foundation generates funds through because importing originals is three-dimensional projection mapping experi- its various investments in Fertilizer, Cement, very expensive,” he says. “The ence – a modern technology/tool for storytell- Power Generation, Renewable Energy, Oil & government should look into de- ing, which is cutting edge and unique. Faheem Gas exploration, Marine Terminal, Food and veloping new environment-friend- Haider also highlighted that, in addition to Banking sectors of the country. The funds ly and affordable hybrid plants being the leading Oil & Gas company of the generated from these investments are exclu- and trees.” Having been witness Country, Mari Petroleum is playing its role as sively dedicated for the Foundation’s welfare to Peshawar’s beautiful floral past, a responsible corporate citizen by investing in activities. It is worth mentioning here that the the two Khans hold out hope that social welfare projects throughout Pakistan. Fauji Foundation group paid PKR 1 trillion in the government will yet help them Chief Guest, Managing Director Fauji taxes to the Government of Pakistan in the last establish nurseries at a district Foundation Mr. Waqar Ahmed Malik paid 8 years. n level across the province. n rich tribute to the founding fathers of Pakistan struggle and reiterated the resolve of the Fauji Foundation group towards building a vibrant and prosperous Pakistan. He lauded the achievements of Mari Petroleum in the field of Oil & Gas and the company’s CSR initiatives. He specially emphasized MPCL’s pivotal role in ensuring food and energy security in Pakistan. He also highlighted that, in the last 5 years MPCL contributed PKR 350 billion to the national exchequer in the forms of taxes, levies & royalties and annually saves PKR 270 billion in foreign exchange for the Government of

ENERGY UPDATE 29

TALK ON SOLAR MARKET Uncertified companies providing substandard solar products to the market Muhammad Tahir CEO & Managing Director, Prosun Solar

Muhammad Naeem Qureshi sources of energy? xperienced Chief Executive Officer, A: As Pakistan is Prosun Solar with a demonstrated currently facing energy history of working in renewable and crisis so we aim to produce environment history, Muhammad clean and sustainable energy with Tahir has good command over proj- most economical and High Quality Products. Eect management and strategic planning. He is a Currently our country is producing 64% of its strong business development professional with electricity by using fossil fuel that also requires a Master of Business Administration (MBA) adequate supply of carbon fuel which cause yours have to face while working in focused in marketing from RMIT Royal Mel- environmental disasters but by replacing it Pakistan? bourne Institute of Technology. Energy Update by renewable energy it wont cause any strain A: Many Uncertified companies and local had an exclusive chat recently. He says that... on Pakistan’s environment. Our Vision is to installers are surpassing the counter balance improve the quality of air by offering reliable process and providing sub standard products Q: What are the details of your com- and affordable energy that saves the environ- to the market and misguiding the custom- pany the products? ment from the negative impacts of greenhouse er with their cheaper prices because of low A: Prosun Solar is Originally based in Aus- gases reducing air pollution. Also by promoting quality and are not imported through proper tralia and has been providing its products and renewable energy we will significantly help channel which results in discouraging the com- service for 11 years. We are global distributor, our country to reduce electricity shortfall and panies to introduce new technologies products. offering premium quality renewable products. provide excess energy produced to the national High priority is dedicated to traditional sources Prosun Philosophy has always been focused grid. of energy and lack of structural regulations for on representing High Quality Products with a renewable energy. Limited knowledge about Point of difference that contribute to Australia’s Q: What are the advantages of your modern solar technology, specialized equip- Renewable Sector and now aim to provide the products to energise the off-grid ment and suppliers. most economical and most reliable solution to rural areas in the country? the people of Pakistan. A: In some rural areas of country, providing Q: What are the major CSR activities Prosun Solar is always dealing with the uninterrupted power supply is a major problem of your company? Hi tech products to provide its customers with which is effecting on the growth of rural A: As we are Australian based company we the latest premium quality products. There are areas. Our Solar products will boost the living understand the value that how important it is multiple variables to consider when seeking out standards, employment and economy of the to build a good customer service relationship. the best solar panels on the market. Our major country. We are providing High quality prod- Been a Global distributor and having extensive Products includes the European Tier 1 Modules ucts on such economical rates that the people experience, Prosun Solar’s team aims to benefit with 15 year Product replacement warranty and of rural areas can get benefit from our products all spheres of Pakistan’s society. In order to 25 years linear power warranty. We are pro- as our products are more reliable and we are serve our customers we are providing with pro- viding CATL Battery Cell tech that are also in providing longer warranties of our products fessional and skillful team that will look after cooperated in world top companies like BMW, that helps in getting the uninterrupted power their requirements, inquiries and will provide Tesla, Apple and Samsung. supply to rural areas. Our solar projects in rural solutions to their problems. Unfortunately in areas will not impact on national grid and help Pakistan, Solar companies grant after sales ser- Q:In what manner your compa- to reduce the energy crisis of the country. vice much too little which is fatal as a substan- ny could provide help to a country tial deficits. In future we look ahead to provide like Pakistan to produce most of its Q: What are the major challenges 24/7 customer service for technical support as electricity on the basis of renewable a renewable energy company like our first priority is customer’s satisfaction.n

ENERGY UPDATE 31

academics working on energy access issues. WORKSHOP The workshop was interactive; the dialogue and flow of the conversation was designed to be pretty agile and democratic. To engage with our audience members, we created small groups and asked our audience members to fill Workshop focuses Women in a policy brief matrix created by us. Their in- sights on the policy brief were then discussed in Energy and Stimulus by the organizers and the audience itself. This led to a productive discussion whereby the energy experts in our audience informed us of prospective ideas that could be later incorpo- rated into gender sensitized energy policies. We would also like to give a special mention to Miss Farhana Mazhar- Gender Specialist at Water And Power Development Authority, who presented an educational case study which dissected the phenomenon of en- ergy with a socio-political lens and simplified the idea of gender equity in the energy sector. The insights from our organizers, experts and audience members helped us address the Halima Khan chair WiE, which helped us to identify the key challenges of our current gender-blind energy areas of improvement, mainly: lack of gender policy. It further assisted us in trimming down omen in Energy conduct- disaggregated data and absence of women in key reforms and additions to make our energy ed a workshop on Gen- decisional areas of policy making and field- policy more gender sensitive. There is a need to der Equity and Energy work in the energy sector. This was followed understand that energy cannot be reduced to a Access recently in Islam- by Miss Rihab shedding light upon the key scientific phenomena which merely helps run abad. The workshop has interventions and recommendations on gender appliances and offices but conceptualise it as a Wfocused the discussion on the long neglected responsive energy policy and practice. multi-dimensional phenomenon whose usage aspect of gender in the energy sector. A gender Furthermore, we also invited a panel and access has socio-political and economic based perspective is absent in the energy of experts to share important insights on the consequences on its users. discourse and policy of Pakistan. Our energy policy brief including: Miss. Saadia Qayyum- The workshop was sponsored by Global sector has for long turned a blind eye towards Energy Specialist, World Bank, Mr. Zaigham Sustainability Institute and Anglia Ruskin the discriminatory usage of energy, which is Mahmood Rizvi- Chairman, Naya Pakistan University, as part of the UK Global Challeng- exclusionary towards women’s access to ener- Housing authority, Mr. Shahjahan Mirza- es Research Fund (QR-GCRF) project: Gender gy. We believe that in order to decentralize the CEO, AEDB, Mr. Mehroze Rafique- NEPRA, equity and energy access in the Global South access of energy and observe equitable usage of and Mr. Saad Latif- K-Electric. This was con- and organized by Hira Wajahat from Stimulus energy by all genders per household, we need cluded by a Q&A session from the audience. and Women in Energy, Dr Rihab Khalid from to critique the current gender-blind energy This workshop invited participants from Cambridge University, University of Manage- policies. For this purpose, this workshop gave across Pakistan’s energy sector composed of ment and Technology (UMT), WAPDA, Ce- the stage to Rihab Khalid, a research fellow representatives from policy bodies, regulatory cilia Alda Vidal (Lead Analyst), Sarah Royston at the Cambridge University to share a policy authorities, electric utilities, international (Briefs editor) and Chris Foulds (project lead) brief co-written by Hira Wajahat Malik- co- donor agencies, NGOs, social enterprises, and from the Global Sustainability Institute.

ENERGY UPDATE 33 NEWS AND EVENTS NFEH launches monsoon plantation campaign in KEPZ he National Forum for Environ- ment and Health (NFEH) has joined hands with the Midas Safe- Orient Energy ty and Orix Modarba to launch a Tmonsoon tree plantation campaign in the Systems (PVT) Export Processing Zone, Landhi. The same industrial estate of Karachi Limited was selected some three months back to Orient Energy Systems (PVT) Limited is one plant 300 plant saplings that have grown of the leading multinational engineering com- much due to proper care and protection. pany distributing internationally recognized The back-to-back plantation drives have power generation and industrial solutions played an important role in increasing the and services. Established in year 1996, Orient Speaking on the occasion, NFEH Pres- green cover in the industrial zone. has operations in five countries; Pakistan, ident, Naeem Qureshi, expressed his grati- The saplings of fruit-bearing trees were UAE, Oman and Bahrain. In Pakistan offices tude to Orix Modarba and Midas Safety for specially chosen for the latest plantation are located at Karachi, Lahore, Islamabad, extending all-out support for conducting the drive. The central idea of the event was that Faisalabad & Multan. Orient is a turnkey monsoon plantation campaign in Karachi. instead of displaying buntings on the festive solution provider of power generation, He said that more such events would be held occasion of Independence Day, August 14, including project management and cost-effec- in Karachi to plant saplings in view of the tree plantation campaigns should be con- tive operational services. We offer complete monsoon season and the upcoming occasion ducted across the country to make Pakistan preventive, predictive, corrective and situ- of Independence Day August 14. clean, green, and pollution-free. The trees, ational maintenances with depth of knowl- He said that up to 5,000 tree and plant no doubt, are the best gift to the motherland, edge, expertise and quality commitments. saplings would be planted in Karachi in the said the speakers on the occasion. Partici- With OES, you benefit from One win- current season as they would also be proper- pants of the event prayed for security, safety, dow industrial engineering solutions. ly nurtured for their growth. development, and progress of Pakistan and Competent and expert team that pro- Also present occasion were NFEH also to make our motherland a pollution-free vides you flexible and cost effective solutions. Vice-President Engineer Nadeem Asfraf, state. Reliable and trustworthy products. Raheel Qamar Ahmed CEO of Orix Modarba, Those who attended the occasion Cutting edge technologies from around the Nadir Shah Head of HR, Mehar Zehra AM expressed the resolve to take care of the sap- Globe. Ethical and professional approach HR of Orix Modarba and officials of Midas lings planted at the site and also to do similar to business.Honest and dignified corporate Safety include Hani Ul Nasir, Naveed Abid, plantation campaigns in other industrial culture. estates of Karachi. Farooq, Syed Anas and Sharjeel Ahmed. n

Those who attended the occasion ex- pressed the resolve to take care of the saplings planted at the site and also to do similar plan- PM promises more dams, tation campaigns in other industrial estates of Karachi. Speaking on the occasion, NFEH focus on 'clean energy' President, Naeem Qureshi, expressed his he National Forum for Environment gratitude to Orix Modarba and Midas Safety and Health (NFEH) has joined hands for extending all-out support for conducting with the Midas Safety and Orix the monsoon plantation campaign in Karachi. Modarba to launch a monsoon tree He said that more such events would be held Tplantation campaign in the Export Processing in Karachi to plant saplings in view of the Zone, Landhi. monsoon season and the upcoming occasion of The same industrial estate of Karachi Independence Day August 14. was selected some three months back to He said that up to 5,000 tree and plant plant 300 plant saplings that have grown saplings would be planted in Karachi in the much due to proper care and protection. The current season as they would also be properly tion campaigns should be conducted across back-to-back plantation drives have played an nurtured for their growth. the country to make Pakistan clean, green, and important role in increasing the green cover in Also present occasion were NFEH pollution-free. The trees, no doubt, are the best the industrial zone. Vice-President Engineer Nadeem Asfraf, gift to the motherland, said the speakers on the The saplings of fruit-bearing trees were Raheel Qamar Ahmed CEO of Orix Modarba, occasion. Participants of the event prayed for specially chosen for the latest plantation drive. Nadir Shah Head of HR, Mehar Zehra AM HR security, safety, development, and progress of The central idea of the event was that instead of Orix Modarba and officials of Midas Safety Pakistan and also to make our motherland a of displaying buntings on the festive occasion include Hani Ul Nasir, Naveed Abid, Farooq, pollution-free state. of Independence Day, August 14, tree planta- Syed Anas and Sharjeel Ahmed. n

34 ENERGY UPDATE

DEMAND - SUPPLY GAS Fault lines Engr. Hussain Ahmad Siddiqui down in the past decades due to a variety of Mangla power plant has been operat- factors. The most important of these were the ing largely trouble-free but the quality and long gestation periods and the large amount of reliability of the original electro-mechanical n important factor contribut- funding required for developing medium and equipment has deteriorated due to ageing, and ing to the widening electricity large hydropower projects. efficiency reduced from the designed values demand-supply gap has been In this backdrop, WAPDA had worked and parameters of the respective equipment the inordinate delay in either the out, decades ago, a comprehensive plan of installed. Resultantly, the power plant’s total commencement or completion ensuring least-cost hydropower generation operating capability, which historically could Aof rehabilitation projects related to various capacity to be achieved by optimising the go up to 1,100MW during peak water season, medium and small hydropower plants planned existing operations and maintenance of hydro- has de-rated to less than 980MW. Rehabilita- by the Pakistan Water and Power Develop- power stations through carrying out major ren- tion and upgrading will improve the reliability ment Authority (WAPDA). These projects, if ovation, upgrading and modernization, and to and availability of this power station for the undertaken and completed timely, could di- undertake capacity expansion, primarily with next 30 years, besides providing safe, reliable rectly address the prevalent energy crisis, also a view to attain designed installed capacity and and cost-effective energy generation. resulting in reducing the average generation to optimise water-flow availability. The plan, The refurbishment project was sched- cost of the energy mix. which was to be implemented on fast track, uled to commence in early 2014, and imple- Currently, WAPDA operates 21 has not been undertaken effectively, resulting mented in different phases spanning over hydropower stations — large, medium and in long delays causing loss, as it is now, of at a period of ten years’ time, achieving full small — with a cumulative installed capac- least 340MW capacity in WAPDA’s power commissioning of the power station sometime ity of 9,406MW, and generates more than generation system, which translates into de- in 2024. This is not likely to be achieved, given 37,000GWh of net electrical energy annually. priving the national grid of millions of units of the present status of progress. In the first The large and medium hydropower plants are electricity on annual basis. phase, the works to be completed include main known as Tarbela, Ghazi Barotha, Mangla, The on-going refurbishing and upgrading package for the supply, installation and refur- Neelum-Jhelum, Warsak, Chashma, Duber of Mangla Hydropower Station, being under- bishment of Units 5 & 6 (turbine, generator, Khwar, Allai Khwar, Golen Gol, Jinnah and taken at a total project cost of over $483 mil- governor, excitation system etc) increasing Khan Khwar. Small hydropower stations con- lion, has run into long delays. The project on generating capacity from existing 80MW to nected to the national grid are Rasul, Dargai, completion will not only restore Mangla power 135MW for Unit 5 and existing 100MW to Jabban, Satpara, Gomal Zam, Nandipur, Shadi- station’s designed original power generation 135MW for Unit 6. This critical milestone has wal, Chichoki, Kurram Garhi, and Renala. capacity of 1,000MW, it will also result in in- not reached. Energy experts believe that the only creasing the installed capacity of power station Scope of supply and services of other solution to the energy security, reliability and to 1,310MW, effectively utilising the improved packages include refurbishment and upgrade affordability is the optimal utilisation of hydro- energy potential attained on completed Mang- of powerhouse crane, supply of 169MVA power resources. To achieve the objective, it is la Dam Raising project that provides additional power transformers for eight units, supply, projected that the share of hydropower gener- water storage of 2.88 million acre-feet (MAF), installation and refurbishment of powerhouse’s ation needs to be restored to 70 percent in the and availability of increase in water-head by 40 turbine inlet valves for all ten units, supply and total energy mix (which was maintained until feet. Implementation of the project will ensure installation of mechanical equipment and bal- the 1980s) from the current 24 percent share. optimisation of reliable operations of all its ten ance of plant and civil works, and procurement The development of hydropower, of which generating units, each of 100 MW capacity, and installation of plant control and instru- Pakistan has huge identified potential, slowed constructed from 1967 through 1994. mentation system, switch-yard, and control

36 ENERGY UPDATE automation and protection equipment. All the powerhouse will be restored to its original plants, aiming to harness optimal hydropower these items of machinery and equipment have designed capacity of 243MW and enable it to potential at the sites. This would also ensure reached the site from different sources. generate 1,236GWh of energy. International reliable operations of power stations and Under the second phase of the pro- financial institutions, including France’s AFD, restoring them to the original power generat- gramme, refurbishment of Units 1-4 is to be the European Investment Bank and Germany’s ing capacity. Renala hydropower, the oldest undertaken, while refurbishment of Units KfW Development Bank are financing the power station in Pakistan, was commissioned 7 and 8 is planned under the third and final project. in March 1925. After rehabilitation and refur- phase. Refurbishment of the remaining two Constructed during 1952-1960, the bishment, there is a potential to enhance the units is not considered as these were commis- Warsak Dam is the first medium/large power station’s capacity up to 4MW, utilising sioned in 1994. The different phases of project multi-purpose hydropower project, having full available water discharge. On comple- implementation covered refurbishment of four turbo-generator units of 40MW each. tion, the powerhouse will generate 25.6GWh various power generating units, with a view Two additional units of 41.48MW capacity annually, almost four times its existing power that minimum units are shut-down at one each were commissioned at Warsak during generation. Shadiwal hydropower station is time, and thus, least power generation is lost 1980-81, resulting in a 243MW cumulative currently generating 4MW, compared to its during project implementation stage. Alas, the installed capacity. During these years, the installed capacity of 13.5MW. Commissioned first phase of the project remains much behind project has largely contributed towards im- in January 1961, power station has the potential schedule, as the refurbishment of the first two proving socioeconomic conditions of the area of increasing its total capacity to 27MW. units has not yet been done. This contract was through electrification and irrigation. While Dargai power station has four units awarded to a French company in August 2018. the Warsak power station has been operat- of 5MW each, and was commissioned in It was to achieve commercial operations of ing largely trouble-free, it has been facing a December 1952. Likewise, the Kurram Garhi refurbished Units 5-6 by February 2019. number of problems since the early days. One power station was constructed in 1958. But the detailed design and engineer- of the major problems is the excessive quantity Rasul powerhouse, with two units of 11MW ing was delayed by two years and delivery of and abrasive nature of the silt carried by the each, was installed in July 1952. Nandipur equipment over two years. Due to abysmal river water. Operations of the turbo-generating hydropower (three units of 4.6MW each) performance of contractors the pace of work at units during the monsoon season with river was commissioned in March 1963. Similar- site remained very slow. Thus, the completion water, which is laden with silt containing ly, Chichoki Hydel (three units of 4.4MW) date was revised a number of times. These quartz, causes rapid erosion in the hydraulic has been operating since August 1959, and units are now scheduled for commissioning equipment, which results in severe and chronic generating about 23GWh annually. Over the this year. Consequently, implementation of operations and maintenance problems. years, reliability of the existing electro-me- second and third phases of the project for Remedial measures like regular repairing chanical equipment of these powerhouses refurbishment of other units will be further and rebuilding the worn equipment and re- has deteriorated, and efficiency reduced from delayed, resulting in huge loss of power gen- placement of turbine components are therefore designed values and parameters of the installed eration. Units 5 and 6 of cumulative capacity adapted. Still, the powerhouse remains vulner- equipment. However, refurbishment schemes of 200MW are shut down since 2017, whereas able to frequent breakdowns due to its ageing for these old powerhouses are still at the stages additional capacity of 310MW remains a dream and obsolescent machinery. Thus, its installed of planning and feasibility, though financing yet to be realised. Another critical aspect of capacity of power station has been de-rated for a few schemes have already been committed delay is non-operation of the corresponding to 210MW, which has necessitated major by international donor agencies. irrigation tunnel as the two units are not in rehabilitation. To ensure optimal and reliable operation. functioning of the dam, the rehabilitation proj- TAILPIECE: It is interesting to note Another project facing long delays in ect aims to replace four generators, electrical that, utilising a total power generation capac- implementation is the second rehabilitation components of four units, all transformers, and ity of 9,389MW, WAPDA provided a record project of the Warsak hydroelectric power sta- install a new Scada system and replace all six 37,425GWh of energy to the national grid tion. The project was approved in July 2015 at a runners with erosion-resistant special coating, during fiscal year 2019-20, but with slightly total cost of Rs23.36 billion. It was to be com- in addition to civil works. After rehabilitation increased capacity of 9,406MW in year 2020- pleted within seven years. Sadly, physical work and upgrading, all the turbo-generating units 21 ending June 30, total power generated was on the project has not yet started. Contract will be operable for another 30-40 years, well reduced to 37,147GWh. Of course, annual for civil works was awarded only in April this beyond the dam’s designed useful life. power generated at a hydropower station year, whereas the contract for electromechan- WAPDA also plans to carry out major depends upon water reservoir level and irriga- ical works has not yet been announced. After renovation, refurbishing, upgrading and tion needs. n the project’s completion, installed capacity of modernisation of six of its small hydropower

ENERGY UPDATE 37 (a) processing available 2D seismic data NEWS AND VIEWS (20%), surveying the remaining basins (80%), and making the information available to all interested E&P companies in a centralized People of Pakistan "data repository"; (b) providing "CPEC-style" centralized security cover; (c) transferring shouldn’t be paying twice upstream regulatory functions from Petro- leum Division to an independent Authority (summary approved by Cabinet and now to for same energy asset: be approved by Parliament); (d) conducting more frequent biddings (at least once a year), encouraging "out of court" settlement on litiga- SAPM, Tabish Gauhar tions and surrendered blocks (28 in total), etc. pecial Assistant to Prime Minister Mr. Gauhar further wrote in his letter: (SAPM) on Power and Petroleum, “After a prolonged and facilitative exercise Tabish Gauhar, while talking about (including issuance of provisional construction North South Gas Pipeline project, and transmission licenses, minimum pipeline has said that the people of Pakistan capacity allocation, etc.), we hope the two new Sshouldn’t be paying twice for building the “merchant” LNG terminal developers shall same energy asset. achieve financial close and start construction In a hard hitting letter sent in July, 2021 this year. We do need at least one additional to Federal Energy Minister, Hammad Azhar, import terminal (without any “take or pay” the SAPM suggested that the North South Gas commitment on the part of GOP) by 2023”. Pipeline project should be financed by Rs 321 He said that there could potentially be billion available with GIDC (Gas Infrastruc- up to 300 MMCFD (3+ additional LNG car- ture Development Cess) funds already raised goes per month) of “excess capacity” available from the public for this very purpose. at the existing two RLNG terminals (that He said the funding for the project may be utilized on a strictly private-to-private should not be arranged from the third party i.e. without any GOP “take or pay” payment debt and equity that will add on to the gas con- obligation and on an open / third party access sumer bill. “Simply put, the people of Pakistan bases) to further bridge the demand-supply shouldn’t be paying twice for the same asset,” lower upfront project cost (savings of up to gap, especially in the coming winters for the said the SAPM. $500 million) and quicker timeline (2023 domestic gas consumers, under a “without He said the government would need to versus 2024 completion),” he said. prejudice” arrangement sanctioned by the make substantive headway with the Russian In his letter, the SPAM also suggested to OGRA. consortium in the next couple of months on use the GIDC funds, already collected, to start Mr. Gauhar said that there was a serious this additional Karachi to Lahore gas pipeline, construction of the on-ground LNG storage human resource and governance issue in the which is of critical importance to Pakistan’s facilities at Port Qasim of up to 10 days storage Petroleum Division of the government that energy security. in the Phase 1. He mentioned that the OGRA might not be apparent but is having a direct Gauhar emphasised in his letter that by had been finalizing the third-party access rules adverse impact on its policy making and giving veto right to the Russians on design and in this regard as the government needed to oversight functions across the upstream, mid- construction, it is almost inevitable that they show substantial progress on this proposal by stream and downstream segments. would opt for the larger diameter (56 inch) 2023. r. Gauhar also mentioned that there was “Aside from some key structural changes pipeline that our Sui companies have no track also an urgent need to remove impediments to that are also urgently required (for example, record of. “Whilst according to our local anal- accelerate natural gas drilling activities in the transferring various regulatory functions from ysis, we can meet the projected gas demand for frontier regions of Balochistan and Khyber Pa- the Petroleum Division to OGRA & (upcom- the next 10-15 years with a relatively smaller khtunkhwa. He suggested following methods ing) E&P Regulatory Authority),” he further (42 inch) diameter pipeline at a potentially to achieve this cause: wrote in the letter. n

PAEC Chairman Muhammad Naeem gets highest civil award Nishan-e-Imtiaz On the auspicious occasion of bution of the Commission for Independence Day, President the country. It is pertinent to Islamic Republic of Pakistan, mention here that Mr. Muham- has conferred the highest civil mad Naeem has already been award, Nishan e Imtiaz (NI), awarded both HI and SI earlier. upon Chairman Pakistan Atom- It is a matter of great honour for ic Energy Commission (PAEC), the Commission that this year Muhammad Naeem. The one NI, two Hilal e Imtiaz (HI), conferment not only acknowl- three Sitara e Imtiaz (SI), four edges Muhammad Naeem's Pride of Performance (PoP), and meritorious contribution for achievements during his long five Tamgha e Imtiaz (TI) have the projects of national interest association at PAEC but also been awarded to scientists and and scientific and technical reflects the invaluable contri- engineers of PAEC. n

38 ENERGY UPDATE

NEWS AND EVENTS Engr Aizaz Naya Nazimabad celebrates Ahmad new Independence Day with Tree Plantation MD NTDC

he Naya Nazimabad community Brig Tahir Ayaz, President NN Gymkhana hosts Independence Day cele- S.M. Talha and CEO NN Maintenance Com- brations with national zeal and pany Saeed Ahmed, Anees Younus President zest by arranging a mega event in CSR Club. Tcollaboration with Pakistan Rangers and President Naya Nazimabad Gymkhana National Forum for Environment & Health S.M Talha welcomed the guests by deliv- (NFEH) here at Naya Nazimabad Cricket ering a welcome speech. NFEH President Stadium. Naeem Qureshi shared some valuable infor- Engr Aizaz Ahmad assumed the charge of Independence Day celebrations were mation on the environment, pollution and Managing Director National Transmission followed by Flag hoisting, tree plantation, health hazards especially related to Karachi. and Despatch Company (NTDC). Engr Aizaz national anthem and cake cutting ceremony Qureshi urged the audience to Ahmad did his Bachelors in Engineering from while the Naya Nazimabad residents and play a proactive role in building environ- UET Lahore, MBA from Institute of Business people from different walks of life marked ment-friendly communities to avert serious Administration (IBA)-Punjab University, their presence on the occasion. environmental and health issues. Certified Project Management Professional The National Flag was hoisted by Pakistan Rangers’ representative, Brig and acquired multiple training courses from Chief Executive Officer (CEO) Naya Tahir Ayaz, reiterated the Pakistani Armed renowned institutes of Canada and Saudi Nazimabad Abdus Samad Habib, President Forces’ resolve to stand firm against internal Arabia. NFEH Naeem Qureshi, Pakistan Rangers’ or external threats.

FDI in OMC sector K-E seeks policy for high loss areas the company’s additional investment under threat Salman Siddiqui plans worth Rs140 billion till 2023. There ong-running inquiries by government depart- is an additional cost of supplying power ments into the oil crisis witnessed in June -Electric (K-E) has sought a na- to such high loss-carrying areas and “all 2020 are hindering foreign direct investment tional policy from the regulator the companies (including newcomers) (FDI) in oil marketing companies (OMCs) to sell power at a comparatively should be allowed to recover losses Lsector of Pakistan. In a statement on Wednesday, higher price to the people re- through tariff … K-E has the right to Ksiding in areas where line losses and theft demand a level playing field,” he said. K-E Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Nasser Hyatt through illegal connections (Kundas) will not be alone in facing competition, Maggo expressed concern over the “unfair practices are high and recoveries through monthly but all the other power transmission and of government departments and unjust treatment of billing stand low. distribution companies currently enjoying smaller OMCs”. “The smooth functioning of OMCs The company demanded the policy a monopoly in their respective cities and is indispensable for any economy and consistent from the National Electric Power Reg- towns nationwide will have to operate investments in midstream and downstream sectors ulatory Authority (Nepra) ahead of the in a competitive environment from 2023 are equally desirable,” he said.In the aftermath of the scheduled end to the exclusive rights of onwards. nationwide petroleum crisis in June 2020, the Federal K-Electric for power supply to end-con- At present, the households in areas Investigation Agency (FIA) had been tasked to con- sumers in the city of ports - Karachi - and carrying higher line losses and paying less duct an inquiry. On the basis of the investigation, the potential entry of other companies for in monthly bills face planned load-shed- government directed the Petroleum Division to take the provision of electricity at competitive ding of up to seven to eight hours a day necessary action against the OMCs and fuel stations prices in 2023. throughout the country. involved in creating artificial shortage of petrol. “None of them (power transmission Responding to a question, the CEO Besides, the government also called for intro- and distribution companies) would have said that his company was all set to ink ducing legal reforms and amendments to laws and the capacity to take the cost on their own an agreement to obtain additional gas procedures, and presenting them to the Cabinet Com- pockets of power supply in high loss-car- in a few days for its forthcoming new mittee for Disposal of Legislative Cases (CCLC). rying areas,” K-Electric CEO Moonis Alvi dual-fuel (gas and diesel) power plant of said at an online press conference to share 900 megawatts.

40 ENERGY UPDATE NEWS AND EVENTS Khalid Mansoor appointed SAPM on CPEC affairs Retired Lt Gen Asim Saleem Bajwa was re- man of the CPEC Authority in November 2019 placed by Khalid Mansoor as the authority to amid the opposition’s criticism of formation of lead the affairs of the China-Pakistan Economic the authority. He was also appointed as special Corridor. A notification issued by the Prime assistant to the prime minister on information Minister's Office said Mansoor had been and broadcasting in April 2020. He stepped appointed as Special Assistant to the Prime down from that position in October last year. Minister on CPEC Affairs with immediate Bajwa had served as Commander Southern effect. The appointment will be in an honorary Command before his retirement from the army. capacity, it added. He remained director general of the Inter-Ser- Bajwa announced his departure in a vices Public Relations from 2012 to 2016. Khalid tweet, saying Mansoor was "fully equipped" to Mansoor has more than 32 years of experience lead the authority in the future. in energy and petrochemical sectors in leading "I bow my head before Allah Almighty roles for mega-size projects' development, for giving me an opportunity to raise and steer execution, management and operations. He the important institution of CPEC Authority as recently re-joined the board of the Sindh Engro one window for all CPEC projects, charting the paid tribute to Bajwa for his services "in moving Coal Mining Company (SECMC) as a director. future direction," he said, adding that his work CPEC forward and playing a vital role in broad- Mansoor, who holds a degree in chemical "wouldn’t have been possible without [the] ening of the CPEC scope with a transition to engineering, served as the chief executive of the full confidence and support" of Prime Minister [the] second phase of CPEC". Hub Power Company Limited (Hubco) and is Imran Khan and his government. "The course is He welcomed Mansoor as the special the chairman of Laraib Energy Limited, a sub- set for future progression of CPEC, this journey assistant to the prime minister for CPEC affairs. sidiary of Hubco. He has also previously held will go on. My best wishes to Khalid Mansoor Mansoor's "vast corporate experience, with the position of chief executive officer of Algeria sb, who is fully equipped to take it forward." extensive work with Chinese companies and Oman Fertiliser Company (AOA) and prior to Bajwa termed CPEC as a "lifeline for Pakistan", his direct involvement in leading some of the that, remained the president and CEO of Engro saying it would "transform us into a progressive biggest CPEC projects makes him an ideal per- Fertilisers Limited, Engro Powergen Qadirpur and fully developed country". son to lead the next phase of CPEC", Umar said. Limited (EPQL), Engro Powergen Limited Federal Planning Minister Asad Umar The government had appointed Bajwa as chair- (EPL) and SECMC, the profile says.

The emissions were theoretically accounted to a ship carrying a soybean consignment- a Greased hands impede possibility that the University of Karachi’s International Center for Chemical and Bio- logical Sciences (ICCBS) was not keen to rule probes into Keamari gas leak out. The incident was later opened to probes by various agencies. But during the same time Tufail Ahmed the coronavirus pandemic also sunk its claws into mega city, eventually becoming the sole Multiple hazardous gas leakages that took subject of all public attention. Since then, place last year in the vicinity of Karachi Port, the matter and its inquiry had remained in a have been responsible for claiming dozens of standstill till December of 2020, when another lives and endangering hundreds of others. The gas leak in the same vicinity triggered a new first incident that took place early in 2020, had set of investigations into the case. a death toll of 25 and left over 400 people un- Submitting its investigation report conscious. Whereas, another incident towards on the incident to the Supreme Court, the the end of the year became the cause of death Sindh Environmental Protection Agency for another half-a-dozen people, while over 24 (SEPA), tied the December incident to the gas collapsed from severe asphyxiation. leakage of February 2020. It said that since However, despite the passage of one- the incident, carbon monoxide, small toxic and-a-half years since then, authorities have lethal emission has allegedly greased the palms particles and dust emissions had exceeded remained unable to trace those responsible for of an influential politician, urging him to ex- the prescribed limit in the atmosphere of the the toxic emissions, while the investigation ercise his power in keeping things hush-hush. area. SEPA further added that when the toxic itself has been lingering in the doldrums. All In addition to that, the politician’s foreign gases in the atmosphere were higher than responsible agencies, including the Karachi accounts were reportedly credited with a usual, soybean and petroleum-coke fuels were Port Trust (KPT), Maritime Security Agency, significant amount of money by the same being unloaded at the port from various cargo district administration, health department, importer, to also block all investigative efforts ships, during which there were no health and home department and the environmental pro- on the federal level. It may be recalled that a environmental protection measures taken into tection agency, have chosen to remain mum on chemical reaction in the country’s vast crude consideration. the matter. oil reserves was blamed for the gas leak that It should however be noted that the This case’s stagnancy, they told, is took place in February 2020, but the theory issue has also surrounded a power struggle because the importer whose ship caused the was later rejected due to lack of evidence. between SEPA and KPT.

ENERGY UPDATE 41

NEWS AND EVENTS NFEH Plantation Drive at SPL

Senior delegation comprising of Mr. Mu- ornamental value. Because of its hardy nature plantation activity. The delegation was full hammed Naeem Qureshi-President, Mr. and aggressive root system, it is a good tree to of praise for our management team for taking Nadeem Ashraf-Vice President, Mrs. Ruqiya control soil erosion in the arid and semi- arid this initiative and also offered its services Naeem- Secretary General and Mr. Mustafa areas. Due to scarcity of water in Karachi; the for engaging in plantation activity at SPL Tahir Project Manager visited Security Papers tree is also ideal for plantation as it does not Residential area to our HR & Admin. team Ltd. on Monday, August 16, 2021, for a Tree require huge amount of water unlike other in future. The NEFH team also presented a Planation Drive upon the invitation of our plants. Gulmohar is well known for its beauti- shield as a token of goodwill and apprecia- Management. ful flowers. It also has some medicinal proper- tion gesture to Mr. Q.S. Imran Azam, General The delegation was very warmly received ties like Anti-diabetic activity, Anti-bacterial Manager Integrated Management System for by the senior officials from IMS as well as HR activity, Anti-diarrheal property. The scientific leading this event on behalf of SPL. Mr. Azam & Administration Departments. name of Gulmohar is Delonix regia. thanked the NFEH delegation team for taking Mr. Khalid Farooque, Chairman Hor- NFEH team was thrilled to see their precious time out of their hectic schedule to ticulture Committee at SPL briefed that the name plates (specially designed and arranged make this a highly significant event and urged Gulmohar plant also known as Flame Tree was by our Supply Chain team to mark this mem- to maintain and cultivate long term relation- selected as it is mainly grown for its shade and orable occasion) while participating in the ships in the future. Long-term planning and policy making in energy sector missing in Pakistan ong-term integrated energy planning 1. Advanced Development Program designing specific management programs for and policy-making in Pakistan’s power (ADP). This will significantly enhance techni- power/energy sector, catered towards middle sector has been mostly missing or cal skill sets of engineers and other profession- and senior management professionals to ensure ineffective. The fundamental reasons als in areas of integrated system planning, elec- continuous improvement in capabilities. Lare lack of adequate human resources, static tricity market framework, regulatory practices, The ADP is already under development skill sets of workforce and inaccessibility substation engineering, specialized system in collaboration with Central Power Purchas- to specialized tools. The Energy Institute at studies and many more. The target audience ing Agency (CPPA) as part of building ade- LUMS (“LUMS-EI”) was created purposely are professionals with 5 to 10 years’ experience quate resources to enable a smooth transition to serve as a think tank, knowledge base and in their respective fields and disciplines. to the envisioned competitive market (CTB- network, and capacity-building entity to insti- 2. Professional Development Program CM) in 2022. It will be provided to operations tutionalize an indigenous, sustainable center of (PDP). This will be an induction program for level personnel at DISCOs, NTDC, NEPRA, technical expertise. This can be attributed to fresh engineers joining different entities/partic- CPPA and other key stakeholders, provid- LUMS-EI’s unique position through access to ipants of the power/energy sector, undergoing ing hands-on certified trainings resulting in industry-experienced academics (both foreign a structured and customized training across practical outputs. Courses include demand and local), existing footprint in specialized various occupational areas. forecasting, generation planning, transmis- courses at graduate level, and partnership with 3. Continuous Development Program sion planning, tariff modelling and electricity key entities in the power sector. (CPD). This program is already being offered market framework and regulations. LUMS-EI A three-tier capacity-building program is to management professionals of many sectors will deploy renowned industry professionals, envisioned under its newly established Power through the Rausing Executive Development professors, research associates, and additional Sector Centre of Excellence (PSCE). This Center (REDC) at LUMS. Going forward, foreign and local guest trainers to impart the comprises: LUMS EI and REDC will jointly work in requisite trainings.

ENERGY UPDATE 43

NEWS AND EVENTS 400MW solar-wind plant for industry on the cards Sindh Minister for Energy Imtiaz Ahmed Sheikh that Sindh Energy Department, Engro Energy Limited and a group of Karachi-based in- dustrialists would soon ink a memorandum of understanding (MoU) to establish a 400-megawatt solar-wind electricity generation power house to provide low-cost and uninterrupted power to the industrial units in Sindh, especially Karachi. In a statement, he said that the Sindh government would provide land at Jhimpir for the proposed power plant that would initially pro- duce 50MW electricity in the first phase, and later its capacity will be increased to 400MW. He said that Sindh Transmission and Dispatch Company (STDC) will install a grid and transmission line to supply uninterrupted power to Karachi’s industries from this power plant. He said that the legal mat- ters with regard to the MoU were decided in a meeting held Wednesday in the Sindh Energy Department, adding work on the project will start soon after the signing of the MoU. n Govt plans to power Gwadar Dr. Waqar Qureshi Port with Iranian electricity New Chair of EEA Asset and 220 KV line also be installed the Management Group Mehtab Haider extra power would be provided to the national grid, according to the minutes The EEA Executive he government has decided of the meeting. The meeting also dis- Committee are to start negotiations for cussed the options for the provision of pleased to announce importing 70 to 100 megawatt clean drinking water that was another that they have ap- Iranian electricity to power problematic area to be tackled. The pointed Dr. Waqar Tup Gwadar Port. A decision to this meeting could not take up land dispute Qureshi, GM Net- effect was taken during a session of between Pakistan Coast Guard and work & Technology Cabinet Committee on China Pakistan Pakistan Navy as land of 50 to 70 acres at Horizon Energy as Economic Corridor (CCoCPEC), which would be provided to a Chinese compa- the new Convenor met under the chairmanship of Federal ny for developing Gwadar Master Plan. of the EEA Asset Minister for Planning, Development, The sources privy to the matter said the Management Group. and Special Initiatives Asad Umar. relevant authorities were not available Dr. Qureshi has over Different options were con- so this issue would be taken up in next 15 years experience sidered during the meeting for the meeting. The verification of land record in the energy sector provision of electricity to the deep was underway in consultation with the and has held a range sea port as the 300 MW power plant Defense Ministry and this issue would of technical, management and executive positions. He under-construction in Gwadar would be resolved, they added. gained a Master of Engineering, and doctorate from the be completed by 2023 as it was delayed The Chinese company -respon- University of Auckland. Waqar is a Chartered Professional owing to various reasons. A transmis- sible for developing Gwadar port, gave Engineer; a certified Project Management Professional sion line of 220 KV would also be con- a presentation on the marketing plan (PMP); and holds a Level 3 diploma in Te Reo Maori. structed to connect with the national for developing Gwadar Free Zone. In welcoming Waqar, EEA CEO Peter Berry said, grid, the meeting was told. For the time Out of 2,500 acres of land, the Chinese “We are delighted he has agreed to lead this important being, the meeting observed, the only company had the possession of 70 to 75 group which has a significant work programme around the available option was import of 70 to percent of the land. Pakistani author- management of existing legacy assets and the technical im- 100 MW power from Iran. ities inquired how many international plications of emerging technologies upon future asset man- Tehran was earlier providing investors had so far shown their interest agement. “Waqar has been a leading member of the EEA electricity to Balochistan but after to relocate their industries into Gwadar Asset Criticality Working Group and has been contrib- witnessing decrease in its hydel Free Zone. Chinese company informed uting to EEA conferences, publications, and events since production, it suspended it in the last the CCoCPEC that meeting those 2008. He also brings a strong international perspective as couple of years. The meeting instruct- different provisions such as electricity, a member of the USA-based IEEE Power Engineering So- ed the Power Division to kick-start clean drinking water and other infra- ciety, and the European CIGRE power engineering group.” negotiations for buying 70 to 100 MW structure requirements would be essen- Dr. Qureshi is currently responsible for the Horizon Energy from Iran as currently the neighbour- tial to lure investment into Gwadar Free Group portfolios of Asset Management - Operations; and ing country was enjoying a surplus. Economic Zone. Without basic facili- Technology. His expertise is focused on the impacts of When the local power plant would ties, the expectation of luring investors decarbonisation, electrification and climate change on the be completed over two to three years would remain just a pipe dream. electricity and infrastructure sectors. n

ENERGY UPDATE 45

NEWS AND EVENTS Joe Biden Process for net metering simplified announces new In a bid to boost solar power consumption and ease the fuel economy rules pressure on oil-based power generation, Pakistan's Board of Investment (BOI) and the Na- tional Electric Power Regula- tory Authority (NEPRA) have eased the process of obtaining new electric connections for solar systems i.e. for net meter- ing. The development is part of regulatory reforms being introduced by the government, said the BOI. “Earlier single-phase comprising of hydro-electric, solar, wind and consumers were required to obtain a normal bagasse based technologies and 66% thermal President Joe Biden wants to erase three-phase connection before applying for a plants which comprise of natural gas, local coal, Donald Trump’s rollback of automobile bi-directional meter, which resulted in extra imported coal, RFO, and RLNG based tech- pollution and fuel economy standards. costs of Rs15,000 as well as extra time and nologies, revealed the Indicative Generation He proposed new rules last week and procedures,” said BOI. However, with the latest Capacity Expansion Plan (IGCEP) for 2021 unveiled a nonbinding deal with most au- simplification, consumers can now directly prepared by the National Transmission and tomakers to have electric, plug-in hybrid obtain a bi-directional meter for a net metering Dispatch Company (NTDC). As of May 2021, or hydrogen-electric vehicles make up facility. “This reform will save cost, time and Pakistan has a solar power-installed capacity of half of their US sales by 2030. reduce hassle for consumers. It will also help 400 megawatts. The country aims to transition The moves are part of Biden’s plan SME businesses engaged in providing solar towards renewable sources to meet its energy to fight climate change by persuad- power generation solutions to become more needs. The government by the year 2030 in- ing people to swap their gas-powered competitive and efficient,” read the statement. tends to generate 60% energy from solar, wind, vehicles for those that run on electricity. By the end of May 2021, the total installed and biogas, while 10% gas, 10% nuclear, 10% They basically return pollution and gas generation capacity in the country reached coal, and the remaining 10% come from local mileage requirements close to those 34,501 MW. Of this, 34% remains renewable sources, as per reports. adopted when Barack Obama was presi- dent. The Obama standards required the fleet of new vehicles to average 5 per cent in carbon dioxide emissions cuts every Fatima Fertilizer wins award model year through 2025. Trump rolled that back to 1.5 pc per year and added another year to the for best social media campaign rules. Biden’s plan requires 10pc emis- arsabz Fertilizers (Fatima Fertilizers) sions reductions in 2023 and 5pc every strived to introduce a dedicated day for year after that through 2026. Trump’s farmers through ‘Salam Kissan’ cam- standards ended with the fleet averag- paign, as a first-ever initiative to elevate ing about 29 miles per gallon (mpg) in Stheir image and importance for the national real-world driving. food security. The intention was to let the day The Biden rule should be close to serve as a reminder and drive the stakeholders the Obama mileage requirement, about and policymakers towards a dialogue to come 37mpg. Consumer Reports calculates up with possible solutions, that can benefit that the new standards will deliver only our small farmers and put them on the path to 75pc of the emissions cuts from the orig- prosperity. inal Obama standards because of delays The day, eventually recognized as ‘Kissan caused by Trump and loopholes. They Day’ in 2019, by the Federal Government, is should, although environmental groups now being celebrated every year on December say they don’t move fast enough to 18 to pay tribute to the contributions of Paki- people including general public, celebrities and tackle an acute problem that has warmed stani farmers across the country. In 2020, at influencers joined in to celebrate Kissan Day oceans and spawned more powerful the occasion of the second Kissan Day, Sarsabz with a renewed fervor to highlight the role of storms, wildfires and floods. They also used the fastest growing platform of TikTok these unsung heroes. complain that the standards don’t make to pay tribute to these farmers. The idea for The campaign was also recently recog- up for increased emissions during the the campaign was simple- TikTok users had nized as the best TikTok campaign of 2020 by Trump years, and bemoan credits that to make videos to pay tribute to the farmers of Pakistan Digital Awards. The Pakistan Digital will let automakers offset gas-guzzling Pakistan on the Salam Kissan song produced Awards is an independent platform which rec- vehicles. Some say there should be a plan by Sarsabz. Entries from all over Pakistan ognizes the very best in digital platforms and to phase out gasoline passenger vehicles were received and the ‘Salam Kissan’ campaign talent across the country by rewarding the best entirely by 2030. became a massive hit instantly as millions of performing websites, apps and bloggers. ENERGY UPDATE 47

The next day this newspaper ran a story CLIMATE CHANGE announcing this on the front page. But within hours, Hammad Azhar, the energy minister, took to social media to denounce the story as “fake news” saying this tender had in fact been scrapped days ago. But the question still re- mained: how did Ogra end up notifying a price on the basis of a tender that had already been scrapped? Since both the ministry and PSO have stated their position, perhaps Ogra should now clarify where they received the price deter- mination from since their role begins after bids have been accepted and passed on by PSO. A few hours later, Ogra released a public statement saying only that its LNG price determination issued the previous day is being withdrawn because they have been informed Khurram Husain approve some, reject others and forward an by PSO that the tender has been scrapped. As ‘LNG price determination’ to Ogra, telling the an aside, I think this might be the first time I’ve regulator ‘this is the price at which we will be ever seen Ogra actually withdraw an LNG price his is now getting suspicious. getting LNG for the forthcoming month’. determination. For a day that price determina- What looked like rank incom- The price determination document is tion was up on the regulator’s website and ap- petence about a year ago is now quite detailed, consisting not just of the price at parently nobody from the government noticed. beginning to smack of malfeasance. which the LNG is being bought, but many oth- Most likely some bills were also issued as per In case you have not had a chance er costs that are itemised in painstaking detail, the new price, yet not a squeak from anywhere. Tto follow how this government is repeatedly like transmission losses, retainage fees, margins An LNG price was notified on the basis of a fumbling the business of LNG imports, here allowed to PSO and PLL as well as the terminal scrapped tender and Hammad Azhar only woke is a snapshot of the latest episode on Tuesday. operators who re-gasify this LNG and inject it up to it after reading about it in the newspaper. There are many more. into the country’s distribution network. Some Then his first reaction was to pounce on the In mid-July, Pakistan State Oil tendered of these costs can vary as the days pass, and newspaper and claim it was “fake news” rather in the spot markets for one cargo of LNG to be because Ogra has to notify a price at the start of than ask how this had happened. Consumers delivered in August. When the bids came they the month for the forthcoming month, it calls could be billed according to that notification were priced above 27pc of crude. So if the price its price determination ‘provisional’ because but the media should not report it? under the long-term contract translated to $9.6 a few of the line items in the cost build-up On a good day we could say this was per unit, the spot price in July that Pakistan could change as the days pass. In reality, these a monumental level of incompetence and received in response to its tender was above changes are very small, rarely more than 1pc of foolishness. But Tuesday was not a good day for $20, which would make it the most expensive the total cost. The provisional nature of the cost Hammad Azhar. The cost to the country of the LNG ever to be purchased by the country, and never refers to the price at which the LNG is foolishness plaguing LNG procurement — to possibly in the world at that time. PSO says it being purchased from the supplier since that is be the subject of a future column — is now in scrapped the bid and decided to tender again, fixed as per the tender.On Aug 2, Ogra upload- the hundreds of millions of dollars. And in this on Aug 5 in hopes of fetching a better price. But ed on its website the LNG price determination game one party’s loss is another’s gain. Last somehow the price ended up getting notified by for the month of August as is usual practice year, they received an offer to buy long-term the oil and gas regulator, Ogra, five days later on at the start of every month. From the moment LNG at $4, and they refused it. Today, they are Aug 2 and stayed notified until this newspaper this document is uploaded, those customers paying around $15 instead in the spot markets, carried it in a story. buying LNG start getting billed as per the price compared to $9.6 in the long-term contract Consider how the system works to un- notified in the document. And in this price that they vilify because it was the handiwork derstand this properly. There are two entities notification, Ogra included one cargo of 3.2 of the previous government. Time and again in Pakistan that are authorised to buy LNG million units priced at 27pc of crude, or $20 per we see them doing things whose net effect is — PSO and Pakistan LNG Limited, or PLL for unit, more than double the price at which the to sabotage LNG supplies, either by delaying short. The country’s requirement is communi- LNG from the long-term contract was being orders or driving up the cost or both. It is high cated to them, and they float tenders in global procured in the same month. time to start asking whether or not this might LNG markets asking for bids for delivery on be deliberate.n the specified dates. Once the bids come in they

ENERGY UPDATE 49