The Energy Insight Magazine by Thesis Publishing (Pvt.) Ltd.

event calendar 7th IEEEP Fair 2016 Karachi, Pakistan 02-04 Aug, 2016

IADC/SPE Asia Pacific Drilling Technology Conference & Exhibition Singapore 22 ‐ 24 Aug, 2016

Renewable Energy Systems and Energy Efficiency Exhibition Antalya, Turkey 20‐22 Oct, 2016

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04 / LOCAL NEWS

07 / INDUSTRIAL INSIGHT 08 / INTERNATIONAL NEWS

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Middle East Electricity Dubai, UAE 14-16 Feb, 2017 EP China Beijing, China 02-04 Nov, 2016 Solar Middle East Dubai, UAE 14-16 Feb, 2017 The Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) Abu Dhabi, UAE 7‐10 Nov, 2016

Content

18 / ARTICLE

20 / COUNTRY IN FOCUS Published by: Thesis Publishing (Pvt) Ltd. Address: Room No. 706, Business Plaza Mumtaz Hassan Road, Karachi-74000, Pakistan Phone: +92-21-3246-1722 Website: www.energyinsight.com.pk Agent in Malaysia: Al-Shams Global Sources Sdn Bhd, Suite 33, 33rd floor Menera Keck Seng, 203 Jalan Bukit Bintang, Kuala Lumpur 55100 Tel: 603 21163444, Fax: 603 21164445 Printed at: Quick Process, Plot No; 20, Sector 24, Korangi Industrial Area, Karachi.

dear readers

Welcome to the second edition of The Energy Insight Magazine! Pakistan is a developing country. It is a land that is blessed with a unique geographic and economic significance as it counts among its neighbours China and the Russian Federation. This means Pakistan’s has access to the six Muslim Central Asian States through land-locked Afghanistan. With a vibrant port that is a gateway to Europe and rest of the world, Pakistan is primed to grow exponentially. However, despite the strategic economic placement of the country, the biggest factor that has been hampering the growth and profitability of industry in the country is the lack of energy required to power In the past five years, Pakistan’s energy consumption rate has grown at 4.8% annually, but it is postulated to grow at a rate of around 8-10 percent per annum by the end of this decade. Fortunately, Pakistan is blessed with abundant energy resources, and in order to achieve optimum energy utilisation, local and private institutions have planned out an institutionalised strategy. The government has taken measures to achieve exploration of indigenous resources for achieving maximum utilisation to generate power. But instead of focusing on traditional energy resources including fossil fuel, with its fluctuating prices, the government of Pakistan has laid down more emphasis on the generation of hydel-power. It has allocated Rs. 61 billion for the Neelum-Jhelum Hydropower Plant, Rs. 32 billion for the Diamer-Bhasha Dam, Rs. 16.5 billion for extension of Tarbela Dam and 42 billion rupees for the Dassu Power Project in Kohistan in the new budget. Furthermore, the government has emphasised on new technology to expedite the development of these projects in order to make them operational. For instance, in the Neelum-Jhelum project, the government imported tunnel-building machines that will expedite the development of an 18-mile tunnel that will link the Neelum and Jhelum rivers, which is expected to produce almost 1,000 MW. In addition to this, more importance is being given to the Western route of the CPEC (China-Pakistan Economic Corridor) for construction of energy plants. The budget focuses on the power generation and infrastructure developments in Pakistan which shows the energy sector is progressing at a steady growth. On the other hand, countries like Germany, Norway, China, U.A.E., Singapore and Saudi Arabia are channeling foreign direct investment (FDI) into Pakistan by contributing to various energy projects. During the last three years, the Government of Pakistan has generated 2,665 MW of more electricity in the existing system to meet residential and industrial demand of power. Meanwhile, there has been a slowdown in refining operations and constructions in oil and gas industry as there is a tangible shift in demand towards renewable energy which is more cost-effective and environmentfriendly. The greatest threat to this trend remains energy shortage, as annual energy shortfall tends to hover around the 5,000 MW mark. Adding to this situation is lower oil prices, increase of imports of generators, increase in the sale of vehicles and shortage of CNG. It is undoubtedly true that the shift towards alternate energy is mainly because of the cheaper source but the declining trend of oil prices has increased its usage in the transportation sector. From the editorial side, this issue focuses on Renewable Energy options for sustainable growth and innovation, discussing the multitude of ways of generating energy from renewable resources. The developments of solar plants and wind mills have facilitated greatly in bridging the power shortfall in various sectors. The government has also set up major projects in both solar and wind power, like the multi-million Quaid-e-Azam Solar Park in Bahawlpur, as well as facilitating FDI with the Turkish-firm developed Jhimpir Wind Power Plant in Sindh. Such projects as well as the multitude of government-supported power projects are not only going to address Pakistan’s energy problem but also provide much needed impetus to the economy, creating jobs and value as Adam Smith’s ‘invisible hand’ goes to work. There have also been technological developments in the renewable energy sector, with effective usage of bio mass for power generation gaining ground in Pakistan. We trust you will find this issue informative. We would also like express gratitude to our readers, advertisers and subscribers for their appreciation and support. Happy reading!

Our Team

Local News

said authorities had completed three hydel energy projects providing 57 megawatts of energy to the national grid. At the same time, five more projects generating an estimated 214 megawatts would be completed by 2019.

ADB ready to support Pakistan in energy shortages

The visiting Vice President of Asian Development Bank (ADB) Wencai Zhang said that his bank is ready to support Pakistan in overcoming its energy shortages. However, Pakistan government has not formally requested for any assistance for the construction of Diamir Bhasha Dam project, he told a press conference at the ADB office.

Atif went on to say that the department planned 21 long term projects which would generate 3,631 megawatts energy and would cost around $12 billion. Since the government does not have enough funds to finance these projects, it is trying to bring in private investors for the execution. Ayub, meanwhile, said that a feasibility study of 18 projects had been completed and the government had floated international tenders for six projects to invite private investors. He added the projects were at a prequalification stage and would generate 666 megawatts of electricity. Source: Pakistan Today

He said that energy was an important sector for Pakistanâ&#x20AC;&#x2122;s economy and added that the bank would extend support in this sector to help the country overcoming the energy shortages. The vice president stressed the need for diversifying energy sector through exploiting renewable energy including solar, coal, gas and thermal to overcome the energy shortages in the country. He said that the government has achieved a GDP growth of 4.7 per cent. He expressed the hope that Pakistan has potential to enhance its growth to 7 per cent or even more.

Highlighting the importance of private sector, the vice president said that private sector can play vital role in the growth of sustainable economic development. However, he said this requires leveraging of private sector for industrialization, job creation and economic growth. He called for diversifying economy for making the industry more competitive and for prosperity of the country. The ADB vice president further said that China progress by promoting special economic zones (SEZs) by incentivizing the investors in the zones and that Pakistan could also achieve progress and prosperity by promoting SEZs in different parts of the country. Source: Pak Tribune

Sindh Govt. allocates Rs. 6.35 billion for Energy Sector The Sindh government has allocated Rs. 6.35 billion for the energy sector under its Annual Development Plan (ADP) for fiscal year 2016-17. Sindh Finance Minister Murad Ali Shah, while presenting the provincial budget for 2016-17 announced that the provincial government would start different projects with the help of these funds in order to generate energy from both renewable and non-renewable sources. He revealed that the province had framed the Sindh Power Policy to attract private-sector investment. However, in case the private sector does not take interest or initiative to develop energy projects, the provincial government would execute the strategic projects. â&#x20AC;&#x153;One of the greatest news of the current financial year is the achievement of financial close for Sindh Engro Coal Mining Company,â&#x20AC;? said Murad Ali Shah.

The company is a joint venture formed in 2009 by the Sindh government and Engro Corporation to develop the Thar coal block-II. The provincial government holds 54 per cent shares in the company and has pledged Rs. 11 billion in equity share.

KP to generate 1,000 megawatts of energy The Khyber Pakhtunkhwa energy and power department claimed it will generate up to 1,000 megawatts of energy in the coming three to four years by completing hydel power projects and a 100 megawatts solar energy project. Minister for Energy and Power Atif Khan and Pakhtunkhwa Energy Development Organization (PEDO) Chief Executive Akbar Ayub

It has been allocating billions of rupees every year for Thar coal projects terming them the future of energy security in Pakistan. According to Shah, the first project of Thar coal is expected to generate 660 megawatts of electricity by 2018, which will be increased to 1320 MW. Analysts say Engro is increasing its stake in the energy sector, especially in Thar coal projects, by divesting from other sectors.

Moreover, 46 wind power projects with a capacity of 3550 MW are at various stages of development. Total investment in the wind power projects stands approximately at $5.37 billion. The government of Sindh has also planned 24 solar power projects that will add 1,450MW to the national grid and would bring total investment of $2.9 billion, Murad Ali Shah said. Source: Pakistan Observer

Germany, Pakistan to enhance cooperation in renewable energy A high profile German delegation, led by Ministry for Economic Cooperation and Development (BMZ) Afghanistan/Pakistan Division head Dr Stefan Oswald, visited the secretariat of the Pakistan-German Renewable Energy Forum (PGREF) to meet with the representatives of Energy Department. Dr Oswald inaugurated the first secretariat of PGREF at the premises of the department. PGREF is an initiative between the Pakistan and Germany supported by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Ministry for Economic Cooperation and Development (BMZ) to create a network between their respective industries, public sectors and innovation networks in the renewable energy (RE) and energy efficiency field. Source: Daily Times

Italian businessmen keen to invest in Pakistan’s energy sector

Italian businessmen are keen to make investments in Pakistan’s energy sector besides having joint ventures in other fields.

This was stated by the Pakistan Ambassador to Italy Nadeem Riaz while speaking at the Lahore Chamber of Commerce & Industry. LCCI former Presidents Tariq Hameed, Mian Misbahur Rehman, Farooq Iftikhar, Mian Muzaffar Ali, Ijaz A. Mumtaz, Executive Committee Members Rizwan Shamsi, Khadim Hussain and Provincial Secretary Transport Javaid Akbar Bhatti were prominent among the participants.

The ambassador said that there is a huge business potential in the two countries that should be tapped. He urged the LCCI to constitute a sector specific business delegation for Italy to explore trade & investment opportunities. He said that the information of delegation should be provided to the Pakistani mission in Italy at least two months ahead of time so that B2B meetings could be arranged with their Italian counterparts. The former LCCI president Farooq Iftikhar said that Pakistan and Italy should hold sector-wise study to evolve a comprehensive joint strategy to enhance volume of trade between the two countries.

Farooq Iftikhar said that the climate for foreign investors in Pakistan is so conducive that they could now have 100 per cent equity and there are no restrictions on remitting dividend, profits, fee etc. Cost of doing business in Pakistan has also decreased owing to low interest rates and availability of cost effective labour force. Source: Daily Times

Rs. 410 bn reserved for Energy Projects in Budget 2016-17 The government has reserved Rs. 410 billion for energy projects in the financial year 2016-17. The government has reserved Rs. 60 billion for three Liquefied Natural Gas-fired plants, Rs. 61 billion for Neelum Jhelum hydro-power project while Rs. 42 billion for Dasu power project.

In experts’ opinion, the government needs to upgrade transmission lines besides expanding power production. According to authorities at planning commission, there are sufficient funds for power projects in the upcoming fiscal year. However, projects budding from ChinaPakistan Economic Corridor are separate. Timely completion of different energy projects will help limit the shortage and curb energy crisis. Furthermore the government has set aside Rs. 16 billion for Tarbela Fourth Extension Hydro Power Project while recommendation of spending Rs. 22 billion on Chashma Nuclear Project III and IV has been tabled by the authorities concerned. Rs. 31 billion have reportedly been reserved for the Water and Power division, Rs. 32 billion for Diamer-Bhasha Dam, Rs. 22 billion for Chashma coal project and Rs. 2 billion for Gomal Zam Dam. Source: Pakistan Observer

UAE, Saudi Arabia lead FDI revival in Pakistan The UAE and Saudi Arabia are following in China’s footsteps in channelling foreign direct investment (FDI) into Pakistan. A major chunk of these investments are going into energy projects. As these energy projects go on stream, they will have a multiplier effect on the Pakistan economy. Over several years, the whole country and the economy in particular was badly hit by energy shortages. World Bank estimates show that prolonged outages of electricity and natural gas supplies to major industrial units in Pakistan had eroded the economy by a reduction of up to two per cent in the annual gross domestic product (GDP). The State Bank of Pakistan (SBP), the central bank, reported that FDI into Pakistan rose by 4.8 per cent during July-February period of the current fy-2016. The net FDI inflow during these eight months was $750.9 million as compared to $716.2 million in the corresponding period of fy-2015. The gross inflow of FDI during this period was $1.3 billion, while the outflow was $583 million, the central bank

Local News

said. The outflows mainly comprised repatriation of dividends and profits earned by foreign investors. The UAE came second only to China, with an investment of $111 million. Saudi Arabia committed $105 million and Hong Kong $101 million during the July-February fy-2016, the SBP said.

Ahsan Iqbal, minister for planning, development and reforms, who is also the key person on the China-Pakistan Economic Corridor (CPEC) projects, informed Parliament that out of the total Chinese funding of $46 billion, $35 billion are commercial loans which will be invested in Pakistan by the Chinese private sector. The remaining $11 billion are concessional loans. Khawja Asif, minister for water and power, said: “More energy is the key to solve our economic problems. I am glad to see that a major part of the new FDI will go into generating electricity.” Besides China, other foreign investors from the UAE and Saudi Arabia have also committed to invest in energy projects, finance minister Ishaq Dar said. “Our growing energy demand has made Pakistan a big emerging investment destination. The investors are topped by Chinese multinationals, generating power and doing infrastructure development,” Prof Iqbal said. “China, the biggest investor, has invested $447.8 million during July-February fy-2016. It invested $200 million in fy-2015.” The SBP reports that capital investment in Pakistan included $362.2 million in the energy sector during the first eight months of fy-2016. Investment in oil and gas exploration totalled $214 million. Beverages attracted $57.8 million. Foreign investment into coal-fired energy projects was $240.3 million. Source: Source: Khaleej Times

units (mmbtu) but the consumers coming under the first slab were receiving it at Rs. 110 per mmbtu.

Eighty-five per cent of domestic consumers were paying less than 50% of the cost of gas and the industrial and commercial consumers were cross-subsiding the domestic consumers, he said. However, now industrial and commercial consumers were being provided imported liquefied natural gas (LNG), so the burden of cross-subsidy had been shifted to SNGPL that was feeling the strain on its finances. Though the gas production was declining, Latif told the committee that the company would lay pipelines over 8,000 km in the current year. At present, 1.5 million applications for new gas connections are awaiting approval of the company. Source: Express Tribune

MOL Makes Oil, Gas Discoveries in Pakistan MOL Pakistan Oil and Gas Company B.V and joint venture partner Oil and Gas Development Company Limited (OGDCL) have made two new onshore discoveries in Pakistan’s Tal Block.

The Talonj West-1 exploration well, which reached a total depth of 16,210 feet on April 24, flowed 13.1 million cubic feet per day of gas through a 32/64” choke during testing of the Lumshiwal Formation. Testing operations are still in progress at the well to ascertain the true potential of the discovery. The Makori Deep-1 exploration well reached a total depth of 16,624 feet on April 17 and logged an output rate of 2,020 barrels of oil per day and 5.4 million cubic feet of gas per day during testing of the Lockhart-1 formation. This discovery will help to mitigate the energy crisis in Pakistan, according to a company statement.

Tal Block is operated by MOL Pakistan Oil and Gas Company B.V. OGDCL, Pakistan Petroleum Limited (PPL), Pakistan Oilfield Limited (POL), and Government Holdings Private Limited (GHPL) are joint venture partners in the block. Source: Web Research

Azerbaijan and Pakistan agree on supply of oil and gas out of exchanges Pakistan’s oil and gas discoveries touch record Pakistan has made the highest number of oil and gas discoveries in the current month as exploration companies found fresh hydrocarbon deposits in six wells that will add 50.1 million cubic feet per day (mmcfd) of gas and 2,359 barrels per day (bpd) of oil to the existing production levels. Of these, major discoveries have been made in Sindh that already has a big share in total gas output in the country. Petroleum and Natural Resources Minister Shahid Khaqan Abbasi, while speaking during a meeting of the National Assembly Standing Committee on Petroleum and Natural Resources chaired by Bilal Ahmed Virk, said four discoveries were made in Sindh and the remaining two in Khyber-Pakhtunkhwa.

Of these, Oil and Gas Development Company made two finds, MOL Pakistan two and Petroleum Exploration Limited and United Energy Pakistan one each. The discoveries have shown presence of 31.6 mmcfd of gas and 339 bpd of crude oil in Sindh and 18.5 mmcfd of gas and 2,020 bpd of oil in K-P. Sui Northern Gas Pipelines Limited (SNGPL) Managing Director Amjad Latif warned that the country’s gas reserves were depleting and no gas was available for the domestic consumers in Punjab. He pointed out that the purchasing cost of gas for domestic consumers stood at Rs. 510 per million British thermal

Azerbaijan and Pakistan have signed a range of intergovernmental agreements on cooperation in the fuel & energy sector, within the Islamabad meeting of the bilateral intergovernmental commission.

The Pakistani media report that the agreements relate to the supply of crude oil and petroleum products, and liquefied petroleum and natural gas (LNG), and enable the two countries to sign agreements on the exchange of oil and gas, bypassing the process of exchange trading. Also, the Memorandum of Understanding between the State Oil Company of Azerbaijan (SOCAR) and Pakistan State Oil was signed.

The parties agreed on joint research on creation of laboratories and carrying out production testing in oil and gas, as well as on the exchange of scientific and technical developments in the field of exploration and production of oil and gas and training of professionals for the oil industry. Azerbaijan and Pakistan have decided to assess jointly the possibility of cooperation in projects for exploration and production of oil and gas in Azerbaijan and Pakistan, and create in this regard a joint working group on exploration and production of hydrocarbons. The two countries also covered the possibility of participation of Azerbaijani companies in the creation and development of small hydropower plants, wind, solar and bioenergy projects. Source: Azerbaijan Business Center

2015 2016

Total Resource Potential

27 Billion Barrels

Refining Capacity

18.8 Million Tons

86533 Barrels/Day

87744 Barrels/Day

5.77 Million Tons

5.97 Million Tons

21 Million Tons

22.06 Million Tons

Crude Oil Production Oil Imports Consumption

Total Resource Potential

2015 2016 282 TCF

282 TCF

24 TCF

4000 MMCFD

4073 MMCFD

Industrial Consumers

10814

10834

Commercial Consumers

79358

79560

Domestic Consumers

7240253

7494901

Distribution Networks

136265

114982

11155

11538

31058

Recoverable Reserves Production

Transmission Networks GAS Pipelines

Facts & Figures

INDUSTRIAL INSIGHT

International News

U.S. expands Oil and Gas storage facilities by 6 percent in six months

oil and gas sector] there isn’t the same appetite from the west,” said Dolapo Oni, head of energy research for Ecobank in Lagos. Nigeria has historically been Africa’s top oil producer, but a fresh bout of insurgent attacks in the Niger Delta this year has slashed output to its lowest level in 25 years. The government said that production had returned to a healthy 1.9m barrels per day, but industry insiders say that figure seems too high as one of the country’s biggest export terminals, the Shell-operated Forcados facility remains closed after an attack. The violence has coincided with the slump in oil prices that has plunged Nigeria which relies on petrodollars for 90 per cent of its export earnings into a deepening economic crisis. Source: Web Research

The United States expanded its oil storage capacity by 34 million barrels or six percent, according to the Energy Information Administration’s latest report on the matter. The addition marks the largest such capacity growth since the EIA began collecting the data in 2011, Reuters reported. Industry insiders had feared storage capacities would fail to keep up with the speed of American oil and gas production. Low oil prices have led American oil reserves to swell over the course of the past two years. The 15 percent increase in fuel storage has pushed crude oil storage utilization levels to a record high of 73 percent. The fires in Alberta, Canada and reduced output in the United States have led crude oil stocks to decrease, spurring a price increase, albeit with limited effect. The EIA’s report, released every six months, said the expansion of crude storage would help “accommodate the growth in U.S. crude oil inventories, which surpassed 500 million barrels at the end of January 2016.” Inventories of the raw product rose in 24 of the 30 weeks covered in the report, which highlights the need for larger facilities. The Gulf Coast region, surrounding the Gulf of Mexico, saw similarly high utilization rates in their storage sites. Sources: Web Research

ExxonMobil Retains Title as Largest Oil and Gas Company in the World The rankings’ prelude indicates that researchers equally-weighted measures of revenue, profits, assets and market value in order to name the 25 biggest players in the global energy industry. Exxon became one of only five oil majors to remain a part of the Fortune 500 list. The firm took second place overall with earnings at $1.8 billion in the second quarter.

Exxon’s role in shielding the oil and gas industry, particularly in the United States, from incoming changes due to rising environmental concerns has been significant.

The New York Attorney General is currently carrying out an investigation regarding Exxon’s role in hiding the effects of oil and gas production and consumption from the public. The company denies all claims lodged in the case. PetroChina was the second highest oil major on the list, as it and its peers suffered severe financial blows due to production costs that ran from $40 to $60 a barrel in a $50 a barrel global market. Source: Web Research

Nigeria unveils energy infrastructure deals with China

Nigeria says it has signed provisional agreements worth $80bn with Chinese companies to upgrade its oil and gas infrastructure, in a sign of Beijing’s willingness to bolster Africa’s largest economy as it grapples with its worst economic crisis in decades. The memorandums of understanding cover all aspects of Nigeria’s energy sector, from rehabilitating decaying refineries and building new pipelines to developing the neglected gas and power sectors, the country’s state oil company NNPC said in a statement. The agreements were reached during a visit to Beijing by Emmanuel Ibe Kachikwu, Nigeria’s oil minister. NNPC said 38 Chinese companies were involved in the agreements, including Sinopec, an oil group, and Norinco, a weapons maker. However, it was not immediately clear how the deals would be financed and industry observers are waiting to see if the agreements are implemented.

Nigeria badly needs investment to boost oil production and improve fuel and power supplies for its 180m people. In spite of its oil riches, the country imports nearly all of its fuel because its rundown refineries cannot process crude. “Clearly this shows that China is interested [in investing in Nigeria’s

Renewable energy initiative set to become a reality An ambitious renewable energy initiative, envisaging tapping of solar power to irrigate the agriculture fields of tribal farmers in five remote habitations of India under Bangaru Chelka and Mylaram gram panchayats in Kothagudem mandal, is set to become a reality soon. The initiative assumes immense significance for the tribal farmers in the

two gram panchayats as the project is expected to ensure power supply to their agriculture fields in a cost-effective and eco-friendly manner. The renewable energy based project was conceived by the government agencies concerned at an estimated cost of Rs 1.23 crore in the backdrop of the difficulties involved in providing threephase electricity supply to the agriculture fields in the remote tribal habitations in the conventional mode. The project is expected to render concrete benefit to more than 250 tribal farmers in the two gram panchayats. Of the 90 borewells proposed under the project, around 80 borewells have already been drilled under the aegis of the District Water Management Agency (DWMA), sources said. Kothagudem MLA Jalagam Venkat Rao has reviewed the progress of the drilling works with the officials concerned recently. With the drilling works reaching the final stage, the government agencies concerned have expedited the process of procuring the solar powered pumpsets in adherence to the stipulated norms, sources added. According to sources, the solar powered pumpsets are likely to be installed under the aegis of the Telangana New and Renewable Energy Development Corporation soon. The project is expected to render concrete benefit to 250 tribal farmers in two gram panchayats. Source: Web Research

Jordan Investing Heavily In Renewables The expansion of Jordan’s renewable energy segment has seen a marked acceleration in recent years, with nearly 1000 MW of solar and wind projects currently being implemented. These developments dovetail with a national strategy aimed at raising the share of renewables in the energy mix to 10 percent by 2020, equivalent to a generating capacity of some 1500 MW. Development of renewable energy sources has become increasingly critical for Jordan in recent years, as fuel oil imports and electricity subsidies have led to financial losses for the state-owned National Electric Power Company (NEPCO).

Jordan has historically imported around 97 percent of its energy needs at a cost of close to 18 percent of GDP, according to figures from the Ministry of Energy and Mineral Resources (MEMR). Central to the kingdom’s efforts is the Green Corridor project, which is aimed at reducing dependence on hydrocarbons by increasing Jordan’s ability to absorb the loads generated by new renewable energy capacity stemming from wind and solar. The upgrades involve the construction of two new transmission lines – a 400-KV, 150-km line and a 132KV, 51-km line – as well as upgrades to three existing 132-KV lines stretching 100 km each. Additionally, a new 1200-MVA electricity substation will be constructed in northern Ma’an, while the stations at Qatraneh and Queen Alia International Airport will also be expanded, according to local media reports. Last year saw the $159.7m multi-component project awarded key funding. Development is being co-financed by the French Development Agency, which has issued a $54.9m soft loan; the European Investment Bank, which is providing $72m worth of project finance; NEPCO, which has contributed $12.6m in funding; and the EU Neighbourhood Investment Facility, which has offered a grant of $20.2m. Source: Web Research

East Africa joins global network of energy centres An East African Centre for Renewable Energy and Energy Efficiency, or EACREEE, has been launched at Makerere University in Uganda to address energy issues faced by the five East African Community nations of Burundi, Kenya, Rwanda, Tanzania and Uganda.

It joins the Global Network of Regional Sustainable Energy Centres, coordinated by the United Nations Industrial Development Organization or UNIDO.

“The centres respond to the urgent need for increased regional cooperation and capacities to mitigate existing barriers to renewable energy and energy efficiency investment, markets and industries,” UNIDO says. EACREEE has been created by the East African Community or EAC states with support from the Austrian Development Agency, UNIDO and the Australian Agency for International Development, as part of global efforts to make Sustainable Energy for All a reality in 2030, as per the United Nations Sustainable Development Goals. EACREEE’s work will contribute particularly to the cross-cutting areas of the goal on sustainable energy, and the goal on sustainable industrial development. It will work towards limiting average global surface temperature increases. The centre is based in Makerere University’s college of engineering, design, art and technology, and operates through a network of national focal institutions among all East African states.

EACREEE’s main aim is to develop and implement a regional renewable energy policy framework for the EAC, and facilitate its implementation at national levels to ensure the availability of sufficient, reliable, cost-effective and environmentally friendly energy sources. This will be achieved through innovative partnerships within the region and beyond that will tackle energy, climate and development challenges simultaneously. Source: Web Research

Croatia signs contracts for onshore oil and gas exploration blocks Croatia has signed contracts with a local firm and one Canadian company that had been awarded onshore oil and gas exploration blocks in the north and east of the country. According to reports, Zagreb awarded four exploration blocks to Vermilion and one block to INA, whose biggest shareholder is MOL Group.

International News

Prime Minister Tihomir Oreskovic said the country had secured investment worth $75million. He said: “Croatia needs investments and this is a step towards a better investment climate.” The exploration period will last five years and the concession for exploitation will be valid for 25 years.

Another concession was also awarded to Nigeria’s Onando Plc with the contract due to be signed. Economy Minister Tomislav Panenic said he planned to announce another round of tenders for onshore oil and gas exploration soon. Source: Web Research

Government of India is preparing a separate power trading platform. It is to be jointly developed by the Ministry of New and Renewable Energy (MNRE) and Power Trading Corporation of India (PTC), the latter a joint venture of several entities with the government. The envisaged platform would help states buy, sell and trade renewable-based power. States with surplus RE generation could sell and those ones which want to meet their renewable purchase obligation (RPO) would get a platform to do so. As mandated under a national tariff policy, states have to meet part of their energy requirement from renewable sources. RPO, launched in 2010, makes it obligatory for distribution companies, open-access consumers and captive power producers to meet part of their energy needs through green energy. During 2015-16, barring a few exceptions, none of the states has met its RPO, for fifth year in a row. Senior PTC and MNRE officials said the model was under development and was likely to include RE certificates. The latter, launched in 2010, has a problem finding takers. At present, 17.5 million of the 33 million issued are unsold. It is meant for states which don’t want green energy but have to meet their RPO.

India is the fifth largest country globally, in terms of wind power capacity. In the past decade, RE has grown by 89 per cent, while hydro has staggered at 28 per cent. The National Democratic Alliance government has revised the target for renewable energy capacity addition by five times, to 175,000 Mw by 2022.

India delivering components for largest fusion energy project

Source: Web Research

India has started delivering components for a multi-national project to build world’s largest fusion device for carbon-free energy in France. “So far we have delivered less than 10 per cent of total components,” said Dheeraj Bora, director of Gandhinagar-based Institute for Plasma Research (IPR), which is handling the Indian part of the ITER (International Thermonuclear Experimental Reactor) project. India has so far earmarked Rs 2,500 crore for the project and IPR has sought more funds, Bora said at a press conference. The project will pave the way for a new form of clean energy through processes that undergo inside the Sun and the stars. It is expected to be ready by December 2025, he said.

India is supposed to contribute 9 per cent of components, or 15 packages. Other countries involved in the project are European Union, China, Japan, South Korea, Russia and the US. Private companies such as Larsen & Tubro Hazira, L&T Construction Chennai, INOX India Limited Vadodara, Linde India Limited Kolkata and ATL Bangalore are building components including Cryosat, cooling water systems, vessel in-wall shielding blocks, radio frequency heating sources, cryo distribution and cryolines, power supplies, diagnostic neutral beam system and diagnostic systems. Source: Web Research

Gulf Power expands wind energy investment Gulf Power is expanding its wind energy output. The company filed a petition asking the Florida Public Service Commission to approve adding 94 megawatts of wind energy from the Kingfisher Wind farm in Oklahoma. The diversification of the energy sources that Northwest Florida customers use to power their homes means less price fluctuations as a result of natural disasters like hurricanes or extreme heat or cold.

The original Kingfisher Wind project went online in January and has been producing 178 megawatts of wind-generated energy. Gulf Power is seeking approval of a second agreement of that wind project that would add 94 megawatts of wind energy to its energy mix, for a total of 272 megawatts. The Kingfisher Wind project has 136 wind turbines capable of producing enough energy to power about 77,150 homes for a year. Gulf Power is moving away from coal power and toward more natural gas and renewable energy sources. Source: Web Research

Indian renewable energy to soon get a separate trading platform With the increasing share of Renewable Energy (RE) in the grid and the likelihood of it disturbing the existing power systems, the

A Dialogue with CEO Alternative Energy Development Board Mr Amjad Ali Awan entrusted to act as a forum for evaluation, monitoring and certification of renewable energy projects and products.

Alternative Energy Development Board (AEDB) is the sole representing agency of the Federal Government that was established in May 2003. With its mission being to facilitate, promote and encourage development of Renewable Energy in Pakistan, it plays a pivotal role to introduce Alternative and Renewable Energies (AREs) at an accelerated rate. Amjad A. Awan is the Chief Executive Officer (CEO) of the Alternative Energy Development Board (AEDB). Armed with a vast professional experience of working in diverse leadership positions for the government and private sectors, he has been trained from esteemed academic institutions including Massachusetts Institute of Technology MIT, Harvard University (USA) as well as Universities of Lancaster and Birmingham (UK). A qualified Electrical Engineer and an MBA, he has specialised in energy, infrastructure and institutional development matters and brings to the table a multi-faceted skill base in the technical, management and policy spheres. He was recently kind enough to grant time to The Energy Insight team and discuss AEDB’s role in detail. Here is what he had to share: Q. What is the role of AEDB in Pakistan’s energy sector? How is it facilitating renewable energy projects? A. AEDB is an autonomous government body with the mandate to promote and facilitate utilisation and usage of renewable energy resources in the country. It is also mandated to develop national strategies, policies and plans for utilisation and promotion of alternate and renewable energy. AEDB coordinates and facilitates commercial application of renewable energy technologies along with assisting private investors. It is also

Q. Please tell us about your current and future projects as well as the targets that you aspire to achieve. A. Alternative Energy Development Board (AEDB) has been pursuing the development of Alternative and Renewable Energy (ARE) based power projects through private investors under the Renewable Energy (RE) Policy 2006. The current status of the RE power generation projects is as follows: • Six wind power projects of 308.2 MW cumulative capacity are operational and providing electricity to the grid. Nine wind power projects of 479 MW have achieved financial closing and are under construction. • One solar project of 100 MW is operational and three solar project of 100 MW capacity each are under construction. • Four sugar mill based bagasse cogeneration projects of 142.1 MW capacity are also operational. • More than 1300 MW capacity wind and solar projects are in the pipeline. Q. What are the challenges that you foresee in the energy industry? A. The energy sector faces several challenges which include development of grid infrastructure for the future power generation projects, up-gradation of the existing transmission and distribution network, demand side management and arranging financing for power projects and grid infrastructure. The increasing demand of natural gas for power generation and domestic sector requirements and depleting reserves is also a crucial challenge. Q. What strategies have the AEDB devised to cope up with the above challenges facing Pakistan’s energy sector? A. AEDB is promoting optimal use of renewable energy technologies for

power generation near the load centers and distributed generation using RE technologies and both large scale level and small scale / consumer level in order to lessen the load on the national grid and do away with long distance transmission network requirements. The use of RE technologies in the domestic sector for power generation and space / water heating is also being promoted.

Personality in Focus

Paving the way to prosperity - AEDB

Q. How successful is the 26 MW cogeneration power plants at JDW Sugar Mills at Rahim Yar Khan and Ghotki? A. The framework for Power Co-generation (Bagasse/Biomass) 2013 was announced by the government in order to utilise the available potential for power generation from the existing sugar mills. The high pressure boiler based plants set-up by M/s JDW Sugar Mills at the facilities in Rahim Yar Khan and Ghotki are the first two projects developed under this framework and are successfully supplying their spillover electricity to the national grid. Q. Enlighten our readers about the potential of the alternative energy sector of Pakistan. How do you see Pakistan’s renewable energy sector to look like in the next five years? A. Pakistan has an immense alternative and renewable energy potential comprising of wind, solar, biomass and hydro resources. The large scale wind and solar power projects can easily contribute up to 1015% share in the energy mix of the country. Small /mini/micro hydro has a potential of more than 3000 MW, especially in the northern areas. High pressure boiler based bagasse co-generation from sugar mills has the potential of about 1500–2000 MW. Apart from large scale power generation projects, small scale applications such as solar systems in the domestic, industrial and commercial sectors and village electrification using renewable energy technologies will play an important role in demand side power management.

Pakistan has an immense alternative and renewable energy potential comprising of wind, solar, biomass and hydro resources 11

Events News

ADIPEC 2016 Now Host of World’s Largest Oil and Gas Technical Conference Programme

Landmark Energy Event Continues Record-Breaking Success with 2,775 Proposals from 571 Organisations in 71 Countries Achievement Represents an Impressive 22% Year-on-Year Increase in Number of Abstract Submissions Global industry leaders, experts, and decision makers are gearing up for what is anticipated to be the largest Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) yet as organisers reveal another milestone for the world’s most influential oil and gas event. The distinguished ADIPEC Technical Conference Programme received a total of 2,775 proposals for this year’s edition of the event, marking a 22 per cent increase from last year, and once again breaking all known records for the number of submitted abstracts in the oil and gas industry. Technical papers came from 571 organisations across 71 countries, with more than half of submissions from outside the Middle East, underlining ADIPEC’s expanding international reach and its worldwide recognition as the global meeting place for knowledgeexchange in the energy sector. It is anticipated that this year’s edition of ADIPEC will be the largest event to date. The ADIPEC 2016 technical committee, which is comprised of 140 industry leading experts, convened on 22nd May, where 717 quality abstracts were selected following a thorough and rigorous selection process across ten technical categories, representing an acceptance rate of nearly 26%. “Sharing industry best practice, knowledge, research, and innovation has never been more important and critical to the industry than it is today,” said Mr. Fareed Abdulla, Senior Vice President – North East Bab (NEB) Asset at the Abu Dhabi Company for Onshore Petroleum Operations Ltd. (ADCO), ADIPEC 2016 Technical Conference Chairman, and SPE Middle East Board Chairman.

“The energy sector is currently witnessing a transformation marked by a special focus on efficiency, and stakeholders recognise they need to adapt both their business strategies and on-the-ground implementation to survive. Every year, we not only see an increase in the number of submissions, but also in the quality of papers we receive – making the ADIPEC Conference Programme truly the go-to event for the latest developments in the world of oil and gas.” Held under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, ADIPEC 2016 will take place from 7-10 November, and is hosted by the Abu Dhabi National Oil Company (ADNOC), organised by dmg events – Global Energy, and supported by the UAE Ministry of Energy. The ADIPEC Technical Conference Programme, organised by the Society of Petroleum Engineers (SPE), is now one of the largest events focusing on the energy sector, attracting technical engineers

from the world’s leading national and international oil companies and service companies, and key decision makers from across the industry. Mr Ali Khalifa Al Shamsi, CEO of Al Yasat Petroleum Operations Company and ADIPEC 2016 Chairman, said: “Energy plays a central role in the development of the economy, and with global demand set to increase by one-third over the next two decades, there is a pressing need to create long-term strategies that promote safe and reliable access to energy. The high-level academic discussions that will take place during the ADIPEC Conference Programme have the potential to shape policies that will pave the way to a sustainable energy future.” The overall theme for this year’s conference is “Strategies for the New Energy Landscape”, and the event will explore regional and global views, with more than 700 speakers and 8,500 delegates from both technical and non-technical functions within the oil and gas industry.

Christopher Hudson, President – dmg events, Global Energy, said: “The ADIPEC Conference Programme addresses all the different specialties and sub-specialties in the energy sector, enabling industry professionals to acquire valuable information for every aspect of their business. The growing international participation in this comprehensive forum is testimony to the market’s thirst for knowledge that will allow organisations to thrive in today’s dynamic business environment.” The 2016 edition of the ADIPEC Conference Programme will feature 2 Ministerial Sessions, 3 Global Business Leader Sessions, 8 Panel Sessions, 5 VIP Briefings within the Middle East Petroleum Club, 3 Breakfast Sessions, and 3 Luncheon Sessions that will tackle some of the most imminent topics in the energy sector. Taking place in a purpose-built waterside theatre, 8 Offshore and Marine sessions will look at industry-specific topics ranging from developing offshore oil and gas fields to new technologies and enhancing safety. ADIPEC’s acclaimed ‘Women in Energy’ conference will also be back this year to address the challenges and opportunities for women professionals in the industry.

The technical categories that will be covered within the ADIPEC 2016 Conference Programme are: E&P Geoscience, Unconventional Resources, Field Development, Drilling and Completion Technology, Projects Engineering and Management, Operational Excellence and HSE, Gas Technology, Offshore and Marine, and People and Talent.

Pakistan Power & Renewable Energy Investment Conference

Euroconvention Global organized “Pakistan Power & Renewable Energy Investment Conference” on May 18 - 19, 2016 in Islamabad – Pakistan. The conference hosted eminent personalities from public and private sector stakeholders that enlightened the participants about the potential of renewable energy infrastructure in Pakistan and opportunities available for the investment with the local companies. The Renewable Energy Business Conference aimed at bringing various dignitaries on one platform and let them discuss the Business and commerce related contingencies of the regulatory framework of alternative energy resources. The Business Conference was honoured by Jean-Francios Cautain, Ambassador, Delegation of EU to Pakistan, Werner Liepach, Country Director, Asian Development Bank, Pakistan and Ross E. Hagan, Director, Office of Energy, USAID Pakistan.

Prominent professionals from different public and private sectors conducted the session at the two day business conference and highlighted that the promotion and development of renewable

energy’s technology have generated a record investment in just one year, revealing the interest of investors in this sector. Foreign investors poured over $3 billion into the renewable energy sector in Pakistan over the last year. The Alternative Energy Development Board stated that letters of interest have been issued for 25 solar power projects representing 663 MW of cumulative capacity. All these projects are expected to be commissioned by 2018. The provincial government of Punjab has also issued letters of intent for 600 MW of solar power capacity. The National Electric Power Regulatory Authority of Pakistan has presented earlier this year its 2016 solar feed in tariff scheme and IFC has launched a guidebook for solar project development in the country. At the end of the conference all the speakers and participants expressed that the authorities should have focus on the ease of regulations in order to attract the investment from international and local firms.

Saudi Power 2016

Humoud Al-Ghubaini Senior Vice President, Communications and Public Relations, Saudi Electricity Company, said: “Sponsoring the Saudi Power Exhibition 2016, comes in line with the Saudi Electricity Company’s efforts to nationalize the electrical industries in the Kingdom. This show is the ideal platform to showcase the development of the local energy sector, explore the latest related techniques, study the projects within the power sector, and support the growth of local companies through reducing the consumption and waste of energy. ”

Saudi Power exhibition took place from 9-11 May, 2017 at Riyadh International Convention & Exhibition Center. Dr. Saleh Bin Hussein Al Awaji inaugurated the Saudi Power 2016 exhibition organized by Riyadh Exhibitions Company in collaboration with Informa Company. The show brings together more than 220 exhibitors from 19 countries and has witnessed a remarkable increase of 43% in visitor numbers, bringing the total number to more than 5000 visitors. On the sidelines of the exhibition, Prince Saud Al-Abdullah Al-Faisal bin Abdulaziz, Chairman of Riyadh Exhibitions Co, said “the Saudi Power exhibition is a dedicated platform for all specialized companies operating in this sector, it attracts hundreds of local and international companies seeking to further position themselves in the Saudi market and showcase the latest products, services and technologies. The exhibition also provides an opportunity to close business deals, thus supporting the development of the power and HVAC sector in the Kingdom. ”

Abdullah Alkhorayef, CEO, Alkhorayef Commercial Company, said: “We are participating in this leading exhibition to announce for the first time in Saudi Arabia, a medium voltage Gulfpower diesel generator set has been assembled locally in cooperation with Cummins, in addition to showcasing our most prominent services offered in the field of energy solutions for an audience of specialized professionals.” Saudi Power 2016, organized by Riyadh Exhibitions Company in collaboration with Informa Company, aims at raising the awareness level of the energy users, through introducing the latest related products and services, highlighting the electricity sector in the Kingdom and discussing potential solutions and strategic projects. This edition witnessed the participation of more than 200 local and international companies showcasing the latest power solutions, services and supplies.

Saudi Aircon, the partner event to Saudi Power, is the leading exhibition in the Middle East region for HVAC & refrigeration. Saudi Aircon showcases the latest equipment, technology and innovative solutions for the heating, ventilation, air-conditioning and refrigeration industries. Demand for indoor cooling is growing rapidly in Saudi Arabia due to high population growth, rising affluence and numerous mega projects currently under construction.

Exclusive Coverage

POGEE - Post Show Report

Opening Ceremony

Opening ceremony of POGEE 2016 was graced by Mr. Sher Ali Khan - Minister for Mines & Minerals, Government of Punjab, and also joined by Ms. Iffat Farooq - Additional Secretary Energy, Government of Punjab, Mr. Amjad Ali Awan - Chief Executive Officer, Alternative Energy Development Board (AEDB) - Ministry of Water & Power GOP, Mr. Shah Jahan Mirza - Managing Director, Private Power & Infrastructure Board (PPIB) - Ministry of Water & Power GOP. The Conference was opened by Mr. Shahid Khaqan Abbasi - Federal Minister for Petroleum and Natural Resources, Government of Pakistan.

340 Exhibitors

Countries Participation: Australia, Austria, Bahrain, Bangladesh, Belgium, Canada, China, Denmark, Egypt, France, Germany, Hong Kong, Iran, Italy, Japan, Korea, Malaysia, Netherlands, Pakistan, Poland, Russia, Saudi Arabia, Scotland, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, UAE, UK, USA

Over 8000 Visitors

LOCAL: Karachi, Lahore, Islamabad, Gujranwala, Jhelum, Hyderabad, Nooriabad, Rawalpindi, Ghotki, Faisalabad, Lasbela, Jamshoro, Gujrat, Rahim Yar Khan, Peshawar, Tooba Tek Singh, Nawabshah, Nasirabad, Muzaffargarh, Multan, Mirpur Khas, Wah Cantt., Khairpur, Sahiwal FOREIGN: Thailand, Singapore, United Kingdom, UAE, China, United States, Bahrain, Saudi Arabia, Turkey, Malaysia, Oman, Germany, Taiwan, Nigeria

Conference Highlights

• 12th International Conference for Oil, Gas & Energy Industry was held on 21st May 2016 at the Expo Centre Lahore and was based on the theme “Designing A Sustainable Energy Mix” • Conference featured two exclusive sessions on the themes “Energy Sector Reform: Prospect & Challenges” and “Coal & Indigenous Renewable Resources” • Mr. Shahid Khaqan Abbasi, Federal Minister for Petroleum and Natural Resources graced the occasion as the Chief Guest. • The sessions were chaired by Dr. Gulfaraz Ahmed, Advisor R&D, Mari Petroleum, Former Federal Secretary MPNR and Dr. Suhail Zaki Farooqui, Director General, Pakistan Council of Renewable Energy Technologies (PCRET) • Eminent speakers participated at the conference were Sergi Transformer Protector - France, Oil and Gas Regulatory Authority (OGRA), Schneider Electric - UAE, Khyber Pakhtunkhwa Oil & Gas Company Ltd. (KPOGCL) Pakistan, Centre for Coal Technologies, Punjab University - Pakistan, National University of Science & Technology (NUST) - Pakistan, Adaptive Technologies (Pvt.) Ltd. Pakistan and FFC Energy Ltd. - Pakistan. • Over 150 participants attended the conference which includes academia, policy makers, government officials and private sector • The conference also received international participation from USA, Turkey, Finland, Bahrain and UAE

Mr. Hamza A. Wazir- DIRECTOR, Power Vision Systems (Pvt.) Ltd. POGEE 2016 was a good fair. We have participated here for the first time. We encourage and look forward to participate next year as well. The visitor flow was not high but there were quality visitors at the show. The energy industry of Pakistan is getting very critical. It needs support from the Government. It is also very encouraging to see that companies are working diligently for this industry. This will also give the support to the industry as a whole. Mr. Hafiz Murtaza- Head of Customer Care (R&D Department), Inverex Power There is a lot of potential in the Pakistani market. Fortunately, the country is also blessed with plenty of natural resources which can be utilized for power generation. We can produce enough energy but we lack in evacuation. Recently, Unilever has shifted its business in Rahim Yar Khan to run its operations entirely on solar energy. For agricultural sector, we are setting up solar tube wells. The basic problem in the country is that crops are destroyed due to scarcity of water and shortfall of electricity. So we are looking into this problem and trying to help the farmers. I think POGEE 2016 is excellent. We came across many clients who have been working with us for a long time. We usually work with

large companies but we participate in trade exhibitions to be recognized in the industry. Syed Imran-Chief Manager, SSGC SSGC have been participating in POGEE for the last 7-8 years and have received best winning awards. Beside this, recognition is also important for us that we have been getting here for the last 4-5 years. This year a lot of people have showed their interest in LNG project. It is indeed one of the largest projects that SSGC has taken over. We hope that our partnership with Pegasus would continue. This POGEE has been a very fruitful one because we are working towards the improvement of energy sector in Pakistan. I would also love to see Sui Northern, our sister concerned company to participate here. POGEE is a good exhibition and provides a brilliant opportunity to showcase our products. Mr. Bilal Samad Khan- Country Manager, Industrial Lubricants MAL Pakistan Pakistani market has a lot of potential in every sector. The only problem here is the investment. The investment was halted before prior in the last 7-8 years. Actually, in the last 8 years the industry has not grown. Now more investment is coming; especially if the Pak-China Economic Corridor (CPEC) starts and become functional then it will give new life and economic growth to Pakistan.

Mr. Louis Paul- Manager Marketing & Sales, PetroMarys It was the first time that we are exhibiting at POGEE. The exhibition was absolutely outstanding. I would definitely share my experience with my fellow companies in Dubai and hopefully we will participate next year too. Mr. Roger Guo-Key Account Manager, Canadian Solar This is the second time that we have participated in this exhibition. We see POGEE as the most proportional exhibition for the energy in this country especially for solar and a lot of resources from the exhibition. The visitors are also good and they are discussing information with us. We got to know that people are more familiar with the solar technology. We also hope that government should support the companies to work for this country so that we can make it more popularized for the commercial as well as residential sector. Mr. Muhammad Nasir Paul- General Manager (Mktg. & Pvt. Sales), PEL Power Division POGEE is good and people like it. It is a successful exhibition. We have seen here different companies and they are here to exhibit new technologies in the energy sector. It should be continued in future.

Mr. Shahid Khaqan Abbasi, Federal Minister for Petroleum and Natural Resources receiving souvenir from Mr. Aamer Khanzada, Managing Director, Pegasus Consultancy (Pvt.) Ltd. on his visit to POGEE 2016

Product News

GasGard® 100 Control System The GasGard 100 Control System is a newly introduced scalable, high performance data acquisition/data-logging platform that offers an intelligent approach to data acquisition and control for fixed flame and gas detection. Open Ethernet connectivity with webbased configuration and data monitoring functions allow GasGard 100 Controllers to provide a wide range of monitoring and historical logging functions. View real time trends via web browser from any PC without special software. GasGard 100 Control System provides fully integrated measurement, display and recording platforms, that when equipped with MSA’s extensive line of transmitters and sensors, forms a complete gas detection solution.

Doosan Portable Power G325 T4i

Generator

Doosan Portable Power’s G325 T4i is one of the coolest and quietest generators in the market. The G325 utilizes a revolutionary enclosure that creates separate compartments for the power train and cooling system combined with the industry’s first mass production application of radial cooling fan technology, Doosan Portable Power now delivers the coolest and quietest mobile generators on the market without sacrificing performance or reliability - even at extreme temperatures. With 25-hours of onboard fuel, the G325 T4i is set up for the long-run.

99HA.01/.02 GAS TURBINE (50 HZ) MOUVEX Abaque Peristaltic Hose Pump

With more than 20 years of experience pumping and transferring difficult chemicals and fluids, the Abaque Peristaltic Hose pump will handle your toughest pumping needs – from abrasive and aggressive to shear-sensitive and viscous fluids. Abaque pumps currently operate in some of the most demanding environments including mining, water and wastewater treatment, energy, chemical processing and OEM applications. Your solutions for abrasive products containing suspended particles (Up to 77 m3/h) 16 bars pressure (232 psi).

TRIO-20.0-TL/27.6-TL The three-phase commercial inverter offers more flexibility and control to installers who have large installations with varying aspects or orientations.

The dual input section containing two independent Maximum Power Point Tracking (MPPT) allows optimal energy harvesting from two sub-arrays oriented in different directions. The TRIO features a high speed and precise MPPT algorithm for real power tracking and improved energy harvesting.

99HA.01/.02 GAS TURBINE (50 HZ) is the world’s largest and most efficient heavy-duty gas turbine. With its simplified aircooled architecture, advanced materials, and proven operability and reliability, GE’s 9HA units deliver exceptionally low life cycle cost per megawatt. The economies of scale created by this high power density gas turbine, combined with its more than 62 percent combinedcycle efficiency, enables the most cost-effective conversion of fuel to electricity to help operators meet increasingly dynamic power demands. • Streamlined maintenance with quick-removal turbine roof, field replaceable blades, and 100 percent bore scope inspection coverage for all blades • 4-stage turbine with 3D aerodynamic hot gas path, cooling and sealing improvements, single-crystal and directionally solidified blades, and double-wall casing for improved clearance control • 14-stage advanced compressor with 3D aerodynamic airfoils with super finish, 3 stages of variable stator vanes, and field-replaceable blades • DLN 2.6+ combustor with axial fuel staging is proven through 45,000 starts and >2 million hours • Combustor enables improved turndown and greater fuel flexibility • Reduces need for on-site gas compression; fuel pressure requirements as low as 435 psi/30 bar • Reaches turndown as low as 30 percent of gas turbine baseload output within emissions compliance • Fuel flexible to accommodate gas and liquid fuels with wide gas variability, including high ethane (shale) gas and liquefied natural gas

GE’s HA gas turbine auxiliary systems are pre-configured; factory assembled and tested modules engineered to reduce field connections, piping, and valves. This translates to a simpler installation that reduces field schedule and installation quality risks while improving overall installation times—up to 25% quicker compared to GE F-class gas turbine enclosures.

Article

Understanding the Thai renewable energy market 8 GW new PV and 5 GW wind until 2040: will they be enough to support the growth in the seven most rapidly increasing regions in the world? Thailand’s energy consumption is to jump by 75% over next two decades according to the Thailand Power Development Plan of 2015 – even calculated under conservative assumptions such as

1. the number of inhabitants to remain stable at 66 million until 2040, 2. growth of the gross domestic product (GDP) of this upper middle-income economy to be 3.4% per year until 2040, i.e. the lowest within the ASEAN, where GDP is expected to double by 2030 from the current US$ 2.6 trillion, 3. a successful implementation of the Energy Efficiency Program to reduce energy use by 30% by 2036 (to the 2010 standards) and 4. a smart grid development.

High electricity demand and old power plants

Power estimates were elaborated considering relatively high capital costs (CAPEX) of US$ 1.6m/MWp for PV and US$ 1.7m/ MWp for wind. With the current lower CAPEXs, the deployment of wind and solar shall be higher. Also, power energy demand is rapidly increasing in the strong local paper/pulp sub-sector. At the transport level, several high speed train projects shall be realised which have also not been considered in the calculations. Finally, domestic demand will dramatically increase in a country where 23% of the population still uses biomass for cooking.

In addition to this higher power demand, the Thai’s old power fleet needs to be replaced by renewables. Midd-2014, the peak power demand was as high as 27 GW and almost the same amount (25 GW out of the operational capacity 37 GW) needs to be decommissioned.

Renewables set to grow while nuclear and coal power plants on hold Another important motivation is Thailand’s

increasing dependence on energy import, which is expected to grow from 42% (2013) to 78% (2040). The share of natural gas imports almost doubles due to declining domestic production and the high demand for power generation. To limit energy imports, the national power plan (AEDP 2015-2036) foresees that, by 2040, biomass shall have the largest share with 13% (11 GW), followed by PV with 9% (8 GW), wind with 6% (5 GW) and hydropower with 5% (4 GW). Plans to add 2 GW of nuclear power have been on hold since 2007 and no financing is available to support the government’s wished increase of 7.5 GW in coal/lignite power plants. Carbon capture and storage technologies are still immature and the Fukushima accident has driven specific investment costs for nuclear to unfeasible levels.

Solution: increase renewable energy shares For all these figures, it is expected that the figure of 22 GW of new capacity based on renewable energy, which is supposed to be reached by 2036 (PDP2015), will be increased (again) in the national power plan. Consequently, Thailand’s ambitious 10-yearaction plan for renewables (Alternative Energy Development Plan (AEDP)), that aims to achieve a 25% energy consumption from renewable energy sources by 2021 (currently 8%) will need to be adapted. The AEDP 2015-2036 plan considers plants located in Thailand, but also in neighbouring countries. Thai companies or private investors shall sign power purchase agreements (PPAs) with renewable projects located abroad. As solar resources are plentiful (up to 1,400 kWh/kWp) in Thailand, it is expected that mainly hydropower and wind energy will be acquired from the neighbours.

Are the tariffs for renewables attractive? In 2006 Thailand was the first country to implement a feed-in-tariff (FiT) for renewables in the ASEAN. The programme, called “adder”, added a premium to the wholesale electricity price. Though the wholesale price is volatile and the premium was guaranteed for periods of only 7 to 10 years, depending on the technology, the

level was attractive: 4 TBH/kWh (approx. 10 €-ct/kWh in 2014). This volatile support mechanism expired on 31 December 2015 and was substituted by a FiT plus a premium model which was especially supportive for projects of a size up to 10 MW – and exceptionally for PV projects of up to 50 MWp. Under the FiT plus premium program, approx. 2 GW (31 projects) have already signed a PPA with the Electricity Generation Authority of Thailand (EGAT) as per March 2016. The EGAT and, to a lesser extent, the Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority (MEA) have been the main off takers. Off takers are monitored by the Ministry of Energy or the Thailand Village Fund, which decided last year not to award further PPAs. The intention was to avoid the risk of a power financial deficit or increase on household electricity bills. The first PV projects were cross-funded by fossil fuel levies. With the reduction of oil prices, the ASEAN reduces fossil subsidies as well. Thus, it is not surprising that the updated power plan sets as a condition to expand wind and solar capacity, levellised electricity costs to be in the range of LNG.

In a country with a comparatively low GDP per capita (US$ 5,977 according to world bank data) it is understandable that the government tries to avoid an increase of households’ electricity bills (and industry’s power costs). Lifeline rates have been introduced by the Energy Regulatory Commission since 2011 to provide free access to electricity to households. Also, the power prices for high household-consumers of 400 kWh/p.m. are comparatively low at 3.9361 TBH/kWh (9.9 €-ct/kWh). Competitive bidding shall replace the FiT plus premium incentives (for all technologies except PV) in an attempt to keep power prices low and quickly increase the power fleet with renewables. To this end test tenders are running for biomass and biogas projects in three southern provinces. With a stable BBB+ (S&P as of 31/03/2016) and thus a similar rating as in Mexico, Poland or Spain, the government expects international investors will be attracted to enter this new market. Japan and the UAE

are expected to be major investors, whereas European utilities like Engie already have well-established entities in Thailand.

In addition to the FiT and tender incentives, the “Investment Policy for Sustainable Development Campaign for Renewable Energy Projects” offers several tax incentives. For instance, an 8 year exemption on corporate income taxes on net profits and a 50% reduction the following 5 years, 8 year tax exemption on dividends as well a 25%

subsidy on capital costs in some specific cases.

Conclusion Until now the Thai government has focussed on promoting small projects to gain knowledge. However, this will hardly enable the country to achieve the target of 25% renewable energy generation by 2021. The situation is expected to radically change, especially in terms of the PV installed

capacity. PV module producers are already preparing for a deployment of PV in Thailand and the ASEAN, having ordered 68% of the contracts of German PV equipment suppliers last year. Source: http://www.sunwindenergy.com/ review/understanding-thai-renewableenergy-market

Global Shale Gas Market 2016 Size, Shares, Growth, Trends and Forecast to 2020 By: Richard Carter

Shale gas, an emerging concept presently popular only in few regions (namely U.S., Canada) and industries has the potential to impact global energy industry significantly. The increasing popularity of shale gas in various industries has advocated a growing awareness regarding the benefits of shale gas as an energy resource. The significant number of shale reserves all over the globe and the competitive price of shale gas are factors which supplement the growth of the shale gas market.

Shale gas has been commercialized only in developed regions such as North America, where individual countries produce the gas. Moreover, advanced technologies such as hydraulic fracturing & horizontal drilling are used in the extraction of shale gas; this drives the growth of shale gas in the United States and frees the country from dependence on other natural gas resources. Top players are adopting acquisition, joint ventures, partnerships and collaborations as major developmental strategies to help expand their global reach, and improve their services, thereby enabling them to penetrate the global shale gas market. For instance, Baker Hughes has acquired BJ Services to diversify their international pressure pumping business. The acquisition has helped the company to broaden its portfolio by enhancing the technologies used in the exploration of unconventional gas and deepwater fields. Also, Anadarko have signed an agreement with FMC Technologies to develop new generation subsea production equipment and systems. There is a growing tendency among the companies to enter into the most potential market as the demand for shale as a natural gas would increase in future. As a substantial number of shale reserves are available across various regions, shale gas production enables companies to capture value from the market. The ability of shale gas to burn cleaner than

other fossil fuels such as coal has encouraged its adoption in various industries; Shale gas is therefore gaining prominence as a cutting edge resource that could be a game changer for various countries as well as industries. Additionally, emerging markets such as China, Algeria and indonesia provide substantial opportunities for the production of shale gas as there is an abundance of shale reserves in these regions. The global shale gas market is anticipated to grow to $104 billion in 2020 (volume production of 19.6 tcf), at a CAGR of 9.3% from 2014 to 2020.

The global market is segmented based on technologies used in extraction of shale gas, its various applications and geography. Geographically, the market is segmented into different regions such as North America, Europe, Asia Pacific and LAMEA. The rising production of shale gas in the North America is impacting the global production as it is the only region generating highest revenue for the global shale gas market. Moreover, AsiaPacific and European region has tremendous potential to grow as a significant number of reserves are untapped in these countries.

KEY BENEFITS

• The study provides an in-depth analysis of the global shale gas market with current and future trends to elucidate the imminent investment pockets in the market • Current and future trends are outlined to determine the overall attractiveness and to single out profitable trends to gain a stronger foothold in the market

• Quantitative analysis of the current market and estimations through 20132020 are provided to showcase the financial caliber of the market • Drivers and opportunities are evaluated to highlight the top factors responsible

for market growth. Various segments are carefully evaluated to gauge the potential of the market

• Porters Five Forces model and SWOT analysis of the industry illustrates the potency of the buyers & suppliers participating in the market • Value chain analysis in the report provides a clear understanding of the roles of stakeholder involved in the value chain

KEY DELIVERABLES

• The global shale gas market is categorized based on technology, applications and geography.

KEY MARKET SEGMENTS

MARKET BY TECHNOLOGY • Horizontal Drilling • Hydraulic Fracturing • Water Usage

MAKRET BY APPLICATION • Power generation • Industrial • Commercial • Residential • Transportation MARKET BY GEOGRAPHY • North America • U.S. • Canada • Europe • U.K. • Poland • Asia-Pacific • China • Indonesia • RoW • Algeria

Country in Focus

German contribution to Pakistan’s work on Renewables to solve the energy issues

In Pakistan, energy has been a hot topic for decades and continues to frequently feature in political discussions and the daily news. With international support and experiences crucial in addressing the “energy crisis”, it’s time to look at the German contribution to solving the pertinent issues. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ, German Development Cooperation) has been working in Pakistan on behalf of the German Government, mainly the German Federal Ministry for Economic Cooperation and Development (BMZ), since the bilateral agreement signed in 1972, with a permanent representation in Pakistan since 1990. With a total of 16 projects and programs at present,

the Pakistan portfolio is one of GIZ’s largest worldwide. Energy has been a topic from 2005 with contributions on Renewable Energy (RE) technology development as well as Energy Efficiency (EE) by the Renewable Energy and Energy Efficiency project (GIZ REEE).

Germany as a forerunner in Renewable Energy

Germany is often seen as synonymous with ‘energy transition’ and the promotion of renewable energies today – and for good reason. However, it is worth keeping in mind when looking at Pakistan’s case that a decade

ago, Germany was nowhere near its current status and countries like Denmark still have much higher share of energy generated from renewable sources today – over 40% of electricity consumption with wind power facilities alone accounting for around 30% of Denmark’s energy production.

Meanwhile, Germany is approaching 100GW of installed capacity in RE (98 GW as of 2015, almost half of its overall installed capacity). Renewables hold a 30% share in the electricity market as per 2015 and 12.5% in overall primary energy consumption. While this is above average for OECD countries (ca. 18%), the most impressive element is not the overall percentage but the quick growth of the contribution from RE technologies. The German approach is thus not internationally unique; however, the speed (having gone from 6% RE in the electricity source mix, which happens to be almost identical to Pakistan’s current situation when excluding hydropower, to 30% over the last 15 years) and scope of the Energiewende (German for energy transition) are exceptional. This is based on the level of determination in the endeavor that has been undertaken which makes Germany stand out in the international comparisons. Based on said commitment and investment in RE, Germany can rightly be seen as the forerunner in a growing wave of international activity, with 2015 marking more investment globally in RE compared to fossil fuels for the third year running.

Historically, after a long period of growing levels of support for environmental topics starting in the 1970s, including the orientation towards RE especially in the early 2000s after the Renewable Energy Act from 2000, Germany turned almost all its focus on RE and away from unclean coal and unsafe nuclear power, mainly from 2010 and 2011 onwards (respectively).

The German approach is thus not internationally unique; however, the speed (having gone from 6% RE in the electricity source mix, which happens to be almost identical to Pakistan’s current situation when excluding hydropower, to 30% over the last 15 years) and scope of the Energiewende (German for energy transition) are exceptional. This is based on the level of determination in the endeavor that has been undertaken which makes Germany stand out in the international comparisons. Based on said commitment and investment in RE, Germany can rightly be seen as the forerunner in a growing wave of international activity, with 2015 marking more investment globally in RE compared to fossil fuels for the third year running. Historically, after a long period of growing levels of support for environmental topics starting in the 1970s, including the orientation towards RE especially in the early 2000s after the Renewable Energy Act from 2000, Germany turned almost all its focus on RE and away from unclean coal and unsafe nuclear power, mainly from 2010 and 2011 onwards (respectively).

inverter technology and batteries.

solutions, too.

The RE industry’s success with several world market leaders or tier-1 products is complemented by the flourishing research and policy sectors and the private investors and producers of RE, meaning some 400,000 people are involved in some way in the RE sector based on rough estimates. Larger companies have increasingly woken up to the call after much of the initial impetus came from SMEs, another hopeful sign for Pakistan. One last thing to be kept in mind is the contribution that energy efficiency (EE) is making and expected to make in the future, with 50% savings in primary energy consumption based on EE targeted for 2050 compared to the 2008 baseline, primarily in the buildings (80%) and transport (40%) sectors.

Electricity generation from RE since 1990 (excluding geothermal) in GWh Source of the data: Zeitreihen zur Entwicklung der erneuerbaren Energien in Deutschland (February 2016) by BMWi (Bundesministerium fur Wirtschaft und Energie, http://www.erneuerbare-energien.de/EE/Navigation/DE/ Service/Erneuerbare_Energien_in_Zahlen/Zeitreihen/ zeitreihen.html), Graphics: Wikipedia

In summary, issues remain even in Germany and it has not all been smooth sailing, including necessary improvements regarding the grid and the cost to consumers who carry the main load since the industry’s rates have been partially frozen to avoid an adverse effect on growth in export-oriented

One can clearly identify the positive impact of each legislative intervention on the growth of the RE sector

Most striking about the German case is the interplay of factors on various levels that led to the current success of RE in Germany despite mediocre natural conditions. The policy sector showed a determination and created a stable policy environment that allowed investors to feel safe in their investment (through guaranteed feed-in tariffs for up to 20 years and long term policy goals), while also getting the people behind the transition, despite rising electricity costs above the European standard. By turning people’s mindset from being mere consumers to “prosumers”, the large majority of the population was won over with support figures sometimes hitting the low 90s in overall percent. Other contributing factors were the support and space given to innovations, start-ups and crowd funding as well as continued research investment (e.g. ca. €1.5 billion in 2013 alone) to remain market leaders, as well as commercial and industrial flexibility, moving from solar panel production to becoming an innovation, high-end and service industry in the former core sector as well as developing

What is also worth noting when discussing the Pakistani case is the role of decentralization and increased transparency of the RE sector in Germany, especially in solar energy, which next to the powerful wind energy sector is one of the two pillars of the Energiewende. The renewables transition in Germany constituted more of a revolution to some rural areas, especially in the North and the structurally weaker East of Germany since these areas are now providing the electricity for the major centres which themselves are dependent on them. Additionally, by making RE technologies not a peripheral but a central policy approach, the individual household and cooperatives or communities gained much more relevance compared to the big utilities that continue to be in charge mainly of the necessary base load coverage, but increasingly see the need to invest in RE

Germany. However, when weighing these against the benefits and long-term gains and growth potential, Germany’s investment in RE appears to have paid off – with some valuable lessons learnt for later starters who can benefit and leapfrog some early developments as is the case for Pakistan with its vast RE potential.

Germany’s motivation to get involved – the potential for RE In Pakistan

Around half of Pakistan’s population, especially in rural areas, is without reliable and affordable power supplies. Inefficient energy usage hinders competition and is holding back development in the production

Country in Focus

(currently 5%), mainly solar PV, wind power and biomass. Additionally, EE measures need to contribute by adding demand-side management to reduce the relative need for energy (decoupling). The overall potential for energy savings from EE is estimated at approximately 30-50%.

sector. Altogether, Pakistan’s energy sector is marked by a substantial electricity shortage of about 6000 MW installed capacity, affecting economic growth as well as social development.

According to international estimates, energy-sector investments in Pakistan are set to double over the next twenty-five years, following the international trend

The case for net-metering: Net- Metering Regulation of Pakistan

The energy crisis leads to expensive fuel imports and dissatisfaction among the population. Access to modern, clean, and crucially reliable and domestic sources of energy is a core ingredient to escape this trap. For this to happen, Pakistan faces a significant challenge in fully harnessing its considerable natural resources to address its energy problems but also of revamping the

Net-metering is an incentive scheme for consumers of an electric grid related to Distributed Generation, typically through RE sources. It aims at maximizing the utilization of a renewable system installed at consumers’ premises through off-taking power through the electric grid at times when the production of the system exceeds the consumers’ own consumption. A consumer who installs an onsite RE generator, primarily for reducing his own grid dependence, is now able to supply any surplus energy units from his installation to the grid. These units are recorded and lateron “netted-off”, subtracted, against the units consumed from the grid. Thus, a net-metering scheme provides an incentive to consumers to install decentralized RE systems by giving them certainty that they benefit from any electricity produced through the system, either through own consumption or through compensated feeding of electricity into the grid, from which the energy-deprived state at large benefits simultaneously. In this scenario, a bi-directional electric meter is placed between consumers’ connection points and the grid, which records any units drawn from the grid or fed into the grid. The main benefits of the distributed renewable generation are: • Additional electricity to reduce the load gap • Relief for the grid from increasing demand • Reduction of line losses and improved financial proposition for DISCOs • Avoiding expensive fuel imports • Increased acceptance of or enthusiasm for RE in the public • Climate change mitigation through reduction of GHG emissions

described above. Meanwhile, at approx. 12% per annum, the increase in electricity consumption in Pakistan is outpacing economic growth. By way of response, RE are scheduled to make up at least 5% of the overall energy consumption by 2030. Projections indicate that on top of a 10% increase on the current 30% of electricity provided by hydro-power in Pakistan, up to 30% of Pakistan’s electricity in the next decade could come from other RE

transmission network for stable electricity supply. Moreover, keeping the German case in mind, motivating the population to get involved in the solution to the energy crisis is a crucial step. Thus, the Government of Pakistan announced net- metering regulations in September 2015 after policy advice from GIZ REEE. The main objective is to promote investment in the generation of small-scale distributed RE, specifically solar and wind energy.

Throughout Pakistan, approximately 700,000 customers are connected to the national grid with threephase meters which qualify them for installation of small scale RE projects under the net-metering regulation. It is envisaged that at least 10% with an average installation of 10kW each will come online in the next two years, adding approximately 700MW of clean indigenous power supply to the national grid (partly via self-consumption) to contribute to a solution for the energy crisis.

Formerly German Pakistan Trade and Investment

German Pakistan Chamber of Commerce and Industry (GPCCI) is the first European chamber in Pakistan. It is the premier, recognized body with the aim of promoting trade and investment relations between Germany and Pakistan. GPCCI provides a platform to connect and engage with businesses from both the countries helping to create networks and partnerships that would foster economic activity.

GPCCI shares the mission to promote, develop and further the economic well-being of its members by providing a collective voice in advocacy to represent and protect member’s interest, as well as quality services to help members enhance their competitiveness and succeed in their businesses thereby contributing significantly to the economic progress of both nations. For further information please email info@gpcci.com.pk. German Pakistan Chamber of Commerce & Industry (GPCCI) is now an official representative for the Senior Experten Service (SES). SES is a nonprofit organisation supported by the German indus¬try and sponsored by the Federal Ministry of Economic Cooperation and Development.