Monday, 7 November 2016

SUNRISE CAPITAL (PVT) LTD | 08 November 2016 | TAKE OFF

OGDCL’s LPG plant to begin processing by June 2017
he Pakistan’s biggest liquefied petroleum gas (LPG) processing plant is all set to begin operation from the next June, an official said on Monday.  The plant with a processing capacity of 98 million cubic feet/day is located at the Nashpa field of the Oil and Gas Development Company Limited (OGDCL) in Khyber Pakhtunkhwa.  In 2015, OGDCL awarded Chinese firm HBP the contract to install, construct and commission LPG processing and recovery. “The Nashpa and Mela gas fields are located in Karak district of Khyber Pakhtunkhwa and the objective of the project is to construct a gas processing facility at Nashpa to process raw gas of the locality and separator gas from the Mela field,” the official said.  “The project covers wellhead facilities, gas gathering system (excluding flow lines) and gas processing plant.
Ecnec approves Rs187bn development projects:
The Executive Committee of the National Economic Council (Ecnec) on Monday approved eight development projects, most of them in the power sector, worth about Rs187 billion. Presided over by Finance Minister Ishaq Dar, the meeting also approved a Rs16.415bn transmission line project for a 1,320-megawatt power project at Hub whose capacity has already been reduced by half by the Private Power and Infrastructure Board (PPIB). An official announcement said that Ecnec, the country’s highest project approval authority, okayed a project to evacuate power from the imported coal-based power plant at Hub with a total cost of Rs16.415bn, including foreign exchange component (FEC) of Rs7.876bn. The finance minister, however, directed that the power evacuation project should be started after achieving financial close of the power plant.
Domestic demand: Cement sales shoot up 15.88% in October
Sales of cement in the domestic market accelerated 15.88% in October 2016 after a modest growth of only 2% in September. Exports, however, declined by 1.96% as opposed to a robust growth of 11.79% in September. According to data released by the All Pakistan Cement Manufacturers Association (APCMA), in the first four months of the current financial year, the cement industry posted a growth of 11.26% in local sales compared to the same period of previous year. Exports recorded a growth of 1.73% in July-October 2016 compared with the same period of last year. Overall sales during the first four months recorded a 9.57% growth. The APCMA spokesman said domestic sales in October 2016 were 3.008 million tons, up 15.88% from the previous month, while exports stood at 0.518 million tons, reflecting a negative growth of 1.96%.
Panama Papers: parties asked to substantiate claims without further ado
Granting last chance to all parties in Panama Leaks case to produce documents in support of their claims, Supreme Court on Monday ruled that it will take decision in appointing commission after examining all documents on November 15. A five-member larger bench led by Chief Justice Anwar Zaheer Jamali resumed the hearing of four pleas including Pakistan Tehreek-e-Insaf (PTI), seeking Prime Minster Nawaz Sharif and family members' disqualification for their alleged involvement in Panama Papers' controversy.
Power sector: secretary explains non-cash adjustment of circular debt
on-cash adjustment of Rs 138 billion circular debt refers to settlement of energy sub-sectoral dues to each other, Secretary Finance Dr Waqar Masood clarified. Talking to Business Recorder, Dr Masood said that part of the outstanding dues to WAPDA by government ministries/departments were settled through non-cash adjustments. Another official, requested anonymity, revealed that loans procured by the federal government from external sources for Wapda that have yet to be cleared by Wapda though they have been cleared by the government, have also been adjusted to the tune of Rs 90 billion; while similar loans by NTDC/GENCOs to the tune of Rs 25 billion to the government have also been adjusted. Ministry of Water and Power shared details of circular debt settlement with Senate Standing Committee on Finance and maintained that while settling pending circular debt a Rs 138 billion non-cash adjustment was also made.
Export proceeds: SBP gets $58 million repatriated through judicial proceedings
The State Bank of Pakistan (SBP) got repatriated some $58 million of the pending export proceeds into the country through judicial proceedings during last fiscal year (FY16). The non-receipt of export proceeds for considerably long period of time has been a challenge for SBP-Banking Services Corporation (SBP-BSC), therefore SBP is continuously making efforts to getting the pending export proceeds repatriated into the country. A special dedicated department, ie, Foreign Exchange Adjudication Department exists in the BSC to adjudicate cases of non-receipts of export proceeds by exporters. This department has the mandate to levy fines and penalties on the exporters, who failed to bring the export proceeds within the timelines given by the department.
Gas utilities to invest Rs71 billion
Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) are improving their transmission networks to maintain gas pressure, especially for tail-enders in the winter season. “Gas companies will spend around Rs71 billion on upgrading their transmission networks to meet future needs of the country and address consumer complaints regarding low gas pressure,” an official told APP. According to officials, the reinforcement of the transmission system is a necessity, keeping in view the injection of additional volume of re-gasified liquefied natural gas into the transmission system, ongoing liquefied petroleum gas air-mix projects, planned Iran-Pakistan and Turkmenistan-Afghanistan-Pakistan-India gas pipeline projects. The gas companies have planned to invest Rs13.896 billion in transmission projects, Rs32.739 billion in distribution projects and Rs24.408 billion in other schemes, making a total investment of Rs71.043 billion during the current fiscal year. Discussing last year’s performance of the two companies, the officials said SNGPL and SSGC built 116km gas transmission, 1,848km distribution and 679km service pipelines as well as connected 203 villages and towns to the gas supply network. During the period, the utility companies invested Rs9.959 billion in transmission projects, Rs8.705 billion in distribution projects and Rs13.705 billion in other projects with total investment at Rs31.919 billion.


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