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Khyber Pakhtunkhwa to establish thermal power plant, urea refinery
The provincial government of Khyber Pakhtunkhwa has decided to establish a thermal power plant and urea refinery in the oil and gas producing districts of the province, stated a document on the performance of Oil and Gas during the last four and half years.
The document said that the PC-II of the project would be submitted soon to the appropriate forum for approval and accordingly a consultant would be hired to carry out the feasibility study for the establishment of the plant. It said that a study would also be conducted soon to have a 200 MW thermal power plant, based on flared gas from the oil field.
Similarly, the present ANP-led provincial government has also decided on the establishment of its own urea refinery in the Oil and Gas producing districts of the province. In this connection, a PC-II will be submitted soon to the appropriate forum for approval and accordingly a consultant would be hired soon to carry out the feasibility study for the establishment of the Urea Refinery Gas is the main ingredient for urea fertiliser.
Furthermore, the provincial government has also decided to establish its own Oil Refinery for the crude oil available in the province. The signing of a formal memorandum of understanding (MoU) in this regard is in the final stages of signature. The project would be implemented as a joint venture by the Provincial Government of Khyber Pakhtunkhwa and Pakistan State Oil (PSO) and a private sector investor.
Khyber Pakhtunkhwa has already established an Oil & Gas Limited Company for participation in oil and gas exploration businesses like OGDCL, MOL and PPL etc. The mandate of the company would be to initially provide service to companies, who have taken blocks and are unable to carry out 2D/3D seismic data acquisition. The KPOGDLC will have its own equipment to carry out work on 2D/3D seismic on payment and after getting experience for 2-3 years, will enter into exploration process as operator.
The provincial government has also made efforts for exempting the province of gas load shedding. As per Article 158 of the Constitution, priority of requirements of natural gas, the province where a well-head of natural gas is situated shall have precedence over other parts of the country in meeting the requirements from the well head, subject to the commitments and obligations as on the commencing day.
In this connection, the provision government is protecting the rights of its people by defending the case in Supreme Court of Pakistan and has hired the services of Senior Lawyer, Wasim Sajjad. It is the reason that gas load shedding is avoided in Khyber Pakhtunkhwa.
The Department of Energy and Power, Khyber Pakhtunkhwa is also making efforts for utilisation of alternative energy sources and renewable energy. For this purpose, it has also decided to carry out feasibility study for determining solar and wind potential in the province for establishment of power generation plant based on renewable energy.
The PC-II in this regard will be submitted soon to the appropriate forum for approval and accordingly a consultant would be hired soon to carry out the feasibility. Sources in Energy and Power Department, Khyber Pakhtunkhwa say that the provincial government is utilising the powers granted under 18th Constitutional Amendment in Oil and Gas Sector.
Under the Article 167 of the constitution, the province are now allowed to raise domestic or international loans or give guarantee on the security of the provincial consolidated fund within such limits and subjects to the conditions as may be specified by the National Economic Council (NEC).
Similarly, under Article 172, sub-clause "3" mineral oil and natural gas within the province shall vest jointly and equally in that province and the federal government, which was previously fully owned by the federal government. After getting this right on natural resources in the oil and gas sector a lot of exploration activities are going on in the province, which will help generate maximum benefits for the locals of the area.
The provincial government is likely to receive a royalty to the tune of Rs 22.157 billion from the hydrocarbon sector during the current financial year 2012-13. It will include a royalty of Rs 11.747 billion on crude oil, Rs 4.241 billion on natural gas, Rs 2.468 billion in head of excise duty and Rs 3.700 billion in head of gas development surcharge.
For getting maximum benefits from the potential of hydrocarbon sector, the Director General Petroleum Concession (DGPC), which is regulating, monitoring and granting body for issuance of licenses has been re-organised and under the new policy the provincial representation is made part of it. The new policy has improved the role and voice of the province in the institutional structure and now it is part of decision making process.
Khyber Pakhtunkhwa to establish thermal power plant, urea refinery | Business Recorder
The provincial government of Khyber Pakhtunkhwa has decided to establish a thermal power plant and urea refinery in the oil and gas producing districts of the province, stated a document on the performance of Oil and Gas during the last four and half years.
The document said that the PC-II of the project would be submitted soon to the appropriate forum for approval and accordingly a consultant would be hired to carry out the feasibility study for the establishment of the plant. It said that a study would also be conducted soon to have a 200 MW thermal power plant, based on flared gas from the oil field.
Similarly, the present ANP-led provincial government has also decided on the establishment of its own urea refinery in the Oil and Gas producing districts of the province. In this connection, a PC-II will be submitted soon to the appropriate forum for approval and accordingly a consultant would be hired soon to carry out the feasibility study for the establishment of the Urea Refinery Gas is the main ingredient for urea fertiliser.
Furthermore, the provincial government has also decided to establish its own Oil Refinery for the crude oil available in the province. The signing of a formal memorandum of understanding (MoU) in this regard is in the final stages of signature. The project would be implemented as a joint venture by the Provincial Government of Khyber Pakhtunkhwa and Pakistan State Oil (PSO) and a private sector investor.
Khyber Pakhtunkhwa has already established an Oil & Gas Limited Company for participation in oil and gas exploration businesses like OGDCL, MOL and PPL etc. The mandate of the company would be to initially provide service to companies, who have taken blocks and are unable to carry out 2D/3D seismic data acquisition. The KPOGDLC will have its own equipment to carry out work on 2D/3D seismic on payment and after getting experience for 2-3 years, will enter into exploration process as operator.
The provincial government has also made efforts for exempting the province of gas load shedding. As per Article 158 of the Constitution, priority of requirements of natural gas, the province where a well-head of natural gas is situated shall have precedence over other parts of the country in meeting the requirements from the well head, subject to the commitments and obligations as on the commencing day.
In this connection, the provision government is protecting the rights of its people by defending the case in Supreme Court of Pakistan and has hired the services of Senior Lawyer, Wasim Sajjad. It is the reason that gas load shedding is avoided in Khyber Pakhtunkhwa.
The Department of Energy and Power, Khyber Pakhtunkhwa is also making efforts for utilisation of alternative energy sources and renewable energy. For this purpose, it has also decided to carry out feasibility study for determining solar and wind potential in the province for establishment of power generation plant based on renewable energy.
The PC-II in this regard will be submitted soon to the appropriate forum for approval and accordingly a consultant would be hired soon to carry out the feasibility. Sources in Energy and Power Department, Khyber Pakhtunkhwa say that the provincial government is utilising the powers granted under 18th Constitutional Amendment in Oil and Gas Sector.
Under the Article 167 of the constitution, the province are now allowed to raise domestic or international loans or give guarantee on the security of the provincial consolidated fund within such limits and subjects to the conditions as may be specified by the National Economic Council (NEC).
Similarly, under Article 172, sub-clause "3" mineral oil and natural gas within the province shall vest jointly and equally in that province and the federal government, which was previously fully owned by the federal government. After getting this right on natural resources in the oil and gas sector a lot of exploration activities are going on in the province, which will help generate maximum benefits for the locals of the area.
The provincial government is likely to receive a royalty to the tune of Rs 22.157 billion from the hydrocarbon sector during the current financial year 2012-13. It will include a royalty of Rs 11.747 billion on crude oil, Rs 4.241 billion on natural gas, Rs 2.468 billion in head of excise duty and Rs 3.700 billion in head of gas development surcharge.
For getting maximum benefits from the potential of hydrocarbon sector, the Director General Petroleum Concession (DGPC), which is regulating, monitoring and granting body for issuance of licenses has been re-organised and under the new policy the provincial representation is made part of it. The new policy has improved the role and voice of the province in the institutional structure and now it is part of decision making process.
Khyber Pakhtunkhwa to establish thermal power plant, urea refinery | Business Recorder
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