Oil & Gas Development Company Limited (OGDCL) has discovered oil and gas reserves in Kohat, to produce around 4,000 barrels of oil and 12 million cft per day. With this discovery Pakistan's oil production capacity will increase to app 69,000 barrels from 65,000 barrels per day.

American company AES is planning to set up 5000 MW coal base power plant in Pakistan as disclosed by Brain Miller of AES Corporation while meeting with State Minister for investment Umer Gumman in New York. If this plant set up, power will be available @ 2.5 - 3.5 cents per unit. Other areas of interest for US companies are telecommunication, oil & gas exploration, power generation and financial services.

Engro Foods Limited who had recently set up Dairy industry in Central Sindh (UHT Milk plant) by investing about Rs one billion, further plans to set up a similar set up in Central Punjab and also emerging as Food Giant firstly on National Level and secondly as world class International Food Giant by adding a large number of other food products through investment of $200 million plus, probably envying to emerge as an international food company on similar lines as NESTLE did. The company plans exporting its products to central Asia and Middle East.

Baluchistan Minister for Mines and Minerals, Sardar Masood Luni has said that a Chromite processing plant is being established at Muslim Bagh in Kila Saifullah district costing Rs 30 million investment for the sake of enhancing Chromites exports and employment in this area. The area is blessed with huge chromites potential but it could not be developed for lack of mining and processing technology and so far very little quantity is being exploited and that too by the traders who take away this mineral to Karachi about 1000 km away and then processing and up gradation is done there for local consumption as well as for export.

A Canadian oil and gas company signed a memorandum of understanding (MoU) with Sindh government for establishing a petrochemical plant in the province to produce bye-products of coal including diesel jet fuel, chemical and plastics.
Chief of Kethy Oil and Gas Company, Robert Miller signed the MoU on behalf of his company while Director General Sindh Coal Authority Syed Abbass Ali Shah on behalf of Sindh Government.
Canadian Company would bring in the latest technology to Sindh to dig out methane gas lying below coal reserves. This gas would be converted into diesel, jet fuel and plastics as bye-products of coal and would be sold locally to meet the rising demands for these products.
Robert Millar said that his company would invest about $2 billion on the exploration, development and production of coal bye products. He said that his company would use latest petrochemical, drilling and exploration technology in Pakistan, which was new to his part of the world.
“We will also set up geology, exploration excellence centre in Sindh. In first phase, we intend to invest more than $250 million and we plan to be in field soon and drill 1000 wells”, he said.

Karachi: ICI Pakistan Ltd announced that it was evaluating a further expansion of its Soda Ash plant by an additional 65,000 tons.
“This further investment in Soda Ash is fully in line with ICI Pakistan’s continued commitment towards the development of import substitution industries to cater to the local demand”, the company stated in a notice released at the stock exchanges.
The ICI Soda ash plant located at Khewra is currently undergoing expansion by 50,000 tons and the company stated that the proposed expansion now passed by a resolution of the board, was expected to commence by early 2007 after completion of the outgoing expansion.
“The total nameplate capacity of the plant after completion of the current and the proposed expansion will be around 350,000 tons in 2009”, the company stated.
ICI conveyed the information to investors presumably under the listing regulations of the stock exchangers.

The ICI Pakistan board announced that the company is evaluating a further expansion of its soda ash plant located at Khewra by an additional 65,000 tons. This expansion is expected to commence by early 2007 after completion of the on going expansion of the plant by 50,000 tons. The total nameplate capacity of the plant after expansion of the current and the proposed expansion will be around 350,000 tons in 2009. This further investment in soda ash is fully in line with ICI Pakistan’s continued commitment towards the development of import substitution industries to cater to local demand. 

Pakistan and Kuwait have signed a number of agreements and memorandum of understanding for enhancing bilateral trade and economic relations with particular reference to setting up a world class Oil Refinery at Port Qasim, Karachi with an investment outlay of $ 2 billion, with a refining capacity of about 200,000 barrels of crude petroleum per day, to be operational by 2009. 

British Petroleum (BP) along with state owned Oil & Gas Development Company Ltd (OGDCL) would invest $20 million in offshore exploration. This was disclosed by BP’s President Steve Peacock in a meeting with Federal Minister for petroleum and Natural Resources Amanullah Kahn Jadoon. The Federal Minister lauded the company’s contribution for promotion of oil and gas exploration activities in Pakistan which was producing 12,000 barrels oil per day from Badin field. The minister also invited BP to participate in the forthcoming LNG, Gas pipelines projects and enhance its onshore exploration activities in other parts of the country to the mutual advantage. 

Bosicor Pakistan Ltd is planning to bring an additional refining capacity by 120,000 barrels per day in the next two years, investing about $225 million. The Refinery would consist of mainly crude distillation gas separation, naphtha hydrotreating, plate former, diesel hydro desulphurization, vacuum distillation and visbreaker plant. Universal oil products (UOP) had been given the task of selecting and carrying out a thorough technical and economic due diligence, has selected state of the art Bechtel design. Present operational capacity of the refinery is 18,000 barrels per day refinery and producing all major products. The refinery is, at present, in the revamping process to attain a capacity of 30,000 BPD to be completed by October 2006. The installation of single buoy Mooring to receive large size crude oil tankers and to export products will be completed by November 2006, while an addition of 126,500 BPD isomerisation plant would be completed by December 2007. 

World renowned YKK will set up a project for the manufacturing of zipper and other fastening products in Karachi export Processing Zone Phase II at an investment of US$15 million. YKK are already running similar projects in 70 countries including Bangladesh and Sri Lanka having a turn over of $5billion. The establishment of Zippers production and sales facilities in Pakistan would help in meeting the demand of Apparel manufacturing industry in Pakistan. The infrastructure requirements of YKK consist of 50,000 sq meters of land, quality of water for dye process for zippers tape, electricity, gas, telephone and effluent water system. The unit is likely to go into production by middle 2007. This investment, biggest ever made in export processing Zone, will go a long way in transfer of technology in Pakistan on the one hand and supplement the garment manufacturing industries on the other. 

The Oil & Gas development Company ltd has hit two discoveries, “Sono 7” in Hyderabad Sindh and “Bahu” in district Jhung, Punjab. From Sono 7 OGDCL will get around 2500 – 3000 barrels per day oil and 20mmcfd gas. Its production is expected to increase substantially in the future as the company plans to drill for the third phase. Gas produced from Sono 7 has high BTU value and would be injected into Sui Southern Gas Company. “Bahu” is an exploratory well and will produce 12 – 15 mmcfd gas and 300 barrels condensate per day. The gas produced from Baru field will be supplied to Kabirwala thermal power plant through Sui Northern Gas pipeline Limited. Bahu although a small production to start with but experts forsee a large scale production from this field. OGDC’s 38 well are producing gas and oil to help cut the country’s import bill. In a bid to enhance production OGDC has been granted licenses for another 28 wells both as sole proprietor and as joint venture with other multinational companies. 

Engro Foods (Pvt) Ltd have launched their milk processing project set up at Sukkur (Sindh), in the brand name of Olper’s, marketing UHT Tetra pack milk along with other products like butter, Cheese, Ghee, Yugurt etc. The company has invested Rs one billion for setting up grass root new venture of a capacity of processing 300,000 litres per day, 200,000 litres as UHT tetra pack and 100,000 litres pasturised milk in plastic bags. As a part of their expansion and diversification strategy, the company was looking for joint ventures with internationally renowned brands. Engro foods is further planning to invest another Rs one billion in the next four years to expand the milk plant. 

Construction of Long awaited Diamer – Bhasha Dam on River Indus has been inaugurated by General pervaz Musharraf, president of Pakistan to be completed in next 6 years costing around $ 6 billion, will go a long way in meeting the water and electricity requirement of the country. According to experts, 35 million acre feet of water is wasted every year when country faces shortfall of 9 million acre feet every year, which will grow to 15 – 20 million acre feet by 2020. Further, the country has a capacity to generate 40,000 MW of hydel power, the cheapest source of eletriccity generation but presently it is producing 6,000 MW of hydel power. 

Energy officials from Afghanistan, India, Pakistan reached Turkmenistan on 12th this month and held further discussions on the long - delayed gas pipeline project to export Turkmen gas to Afghanistan, Pakistan and India. Investment outlay on this mega gas pipeline project is estimated at US $4 billion and would have an annual capacity of 33 billion cubic meters of gas. 

US - based investment Group has started work on setting up an Oil Refinery i.e. Indus Refinery Limited of a capacity of 100,000 barrels per day, at Port Qasim, Karachi on 200 acre plot of land, having an investment outlay of $250 million. The Refinery will also consist of a paraxylene plant within the complex. The management of this refinery have also plans to set up various CNG stations across the country. This would be the sixth Oil refinery in the country after Attock Refinery, National Refinery, Pakistan Refinery, Pak Arab Refinery, Bosicor Pakistan Limited. In this context, the company has purchased machinery from Canada, when Oakvile Refinery of Petro Canada would be dismantled, refurbished and relocated to the Port Qasim Site for reinstallation there.Indus Refinery is to start commercial production by the middle of 2007. 

The Govt has decided to offer 7 new sites for undertaking hydropower projects. These new sites are : 548 MW Kagah Hydropower Project (Kohistan NWFP), 240 MW Karit Hydropower Project (AJK) 222 MW Azad Pattan Hydropower project (AJK) 209 MW Asrit - Kadim Hydropower project (Swat - NWFP), 197 MW Kalam - Asrat Hydropower project (Swat - NWFP) 139 MW Chakotti Hattian Hydropower project (AJK) and 65 MW Sehra Hydropower project (AJK). These projects would attract over $2 billion foreign direct investment in the private sector. Furthermore, feasibility study of two more projects - 127 MW Shogo - Sin Hydropower project (chitraLo and 102 MW Shushghai - Zhenddali Hydropower project were being undertaken with the technical assistance of Asian Development Bank. The minister directed all concerned agencies to expedite work on Munda Dam project and asked its sponsors to complete its feasibility study by May 2006 so that the project could be implemented as early as possible. The project will cost $1 billion having a capacity of 740 MW. 

Bago Group of company of Argentina, in collaboration with, Ferozesons Laboratories Ltd are setting up Pakistan's first bio tech pharmaceutical plant to manufacture medicines for the treatment of Hepatitis C and Cancer. It would be followed up to set up Research Centre as well. The plant and research center will be set up on European standards with an investment of $ 10 million. 

SUI Southern Gas Company will supply 45 million cubic feet of gas per day of piped natural gas to Tuwairqi Steel Mills Limited for 10 years with the option to extend the arrangements for another 10 years. The gas will be used primarily as fuel for a directly reduced iron plant with a capacity to produce one million tons of billets per annum. Director projects Zaighum Adil Rizvi initialed the documents on behalf of Tuwairqi Steel and Manawar Baseer Ahmed on behalf of SSGC. 

The Attock Oil Company and its affiliates including Attock Refinery Limited and Attock Petroleum Limited have approved investments of over $400 million in the country. Attock group of companies would also lay a cross -country petroleum pipeline from Machike (Lahore) to Taru Jabba (Peshawar) via Morgah (Rawalpindi) This project is likely to be initiated in July this year. The Attock group is also planning to build a mw power plant in Rawalpindi district. 

The Water and Power Development Authority (Wapda) will spend Rs. 5.9 billion to improve power generation and distribution system in big cities by erecting new 132 KV transmission lines. 66kv grid stations and converting existing 66kv grid stations into 132kv system.

A memorandum of association was signed between M/s Dawchem industries (Pvt) Limited Lahore and Chinese Government for setting up 60,000 tons per annum capacity hydrogen peroxide plant in Pakistan. The plant will be set up at Lahore Sheikhupura road and will start operation by the end of year 2005. the plant will be meeting the requirement of textile and paper industry of Pakistan, besides other consumers.

Engineering, procurement ,construction and project commissioning contract of Gurguri Gas has been awarded to Presson Descon International Limited. The contract has been awarded by a Hungarian oil & gas company (MOL) operation in Pakistan.

Attock Oil Group of companies of Saudi Arabia is setting up 150 MW furnace oil fired power plant with an investment of $100 million and also laying an oil pipeline from Rawalpindi- Peshawar with an investment of $70 million by June this year.

Pakistan may import Natural Gas from Qatar.

Pakistan was offered an indicative price of natural gas in the range of  $ 1.75- $2.10 per million btu from Qatar by a consortium led by UAE based Crescent Petroleum. Interstate is consortium of the country's two state run natural gas utilities. The meeting which was held at SSGCL's headquarters also discussed possible gas supply agreement which need final approval from ministry of Petroleum & Natural Resources. Crescent officials assured Pakistan a sustained supply of natural gas when $ 1.8 billion off-shore pipeline project is completed with a capacity to carry 1.6 billion cft gas.

The pipeline will run from the offshore Qatar North Field to Western Coast of the UAE, overland to the gulf of Oman from where it will run under the sea adjacent to the coast of Iran, moving back into the coastal town of Jiwani in the Southern Pakistan. From Jiwani ,the pipeline will be laid onshore to terminate at the Sui Gas field in the south western Baluchistan. Pakistan which need imported natural gas is seven years to meet soaring demand is interested to finalize one natural gas import pipeline project soon, despite development that has enabled Pakistan to boost gas supply for meeting Power plants to demand which are being switched over to natural gas from imported fuel oil.

Gas Reserve to last for 35 years.

At the present rate of consumption so far confirmed gas reserve will last for 35 years. SNGPL is working speedily on a new Rs. 505 billion gas pipeline infrastructure development project in Sindh which will add 300 million cftd gas in the system from Zamzama ,Sawan, Kandhkot and other nearby gas field to be completed by next year. The company has already completed a project in Sindh in Rs. 9.3 billion instead of Rs.12.5 billion as originally estimated.  This will add 500mcfd in the system raising the gas volume to 1.55 billion cft from last year's 1.05 billion cft , mostly to be supplied to power projects saving $ 80 million per year on furnace oil imports. Company is providing  135,000 new connections every year which will be raised to 150,000 connections per year in the near future.

UAE Group investing in Oil , Gas, Energy sectors.

UAE Group AL- Ghurair are setting up 125 MW power plant in interior Sind based on Mari Gas and also a Coastal oil refinery and oil terminal at Gawadar port. The UAE Group is also interested to diversify its investment in other fields line financial sector and real estate. There is also dire need to invest in Oil & Gas exploration and development sectors for making Pakistan self sufficient in these sectors. Pakistan at present producing 60,000 barrels of oil per day which is just 20% of its present demand. Similarly present off take of gas to the tune of 1.5 billion cft per year is not sufficient for the meeting rising demand particularly in power production and upcoming large demand in automobile in the form of CNG, besides normal growth in demand in domestic, commercial and industrial sectors.

International Power buys 40% interest in Uch plant.

International Power Plc (IPR) has produced 40% interest in 386 MW Uch Power Plant in Pakistan. At present International Power Company hold 20.7% share in Hub Power Company, the country's largest private power project. The International Power Company have also stake in Kot Addu Power company. The interest in Uch power plant will be acquired from Powergen for a total price of 21 million pounds and contingencies liability to a further sum of 8.6 million pounds.

Neelum Jehlum Hydro power project through Gulf financing.

A consortium of Gulf entrepreneurs has planned to invest $ 1.2 billion (Total Rs 88 billion including foreign funding and local allocation) in Neelum Jehlum hydro electric power generation project having total capacity of 1000 Mw in the area of Azad Jummu & Kashmire.

Khawaja group launches Rs 1.6 billion float glass project.

Khawaja Group of industries has launched a Rs 1.6 billion project of state -of- the art float glass projects, of a capacity of 190 tones per day float glass, the first project of its kind in the developing country, especially in Pakistan.

US firm to sponsor solid waste based power plant.

M/s GSB Technologies Inc. USA specialist in advanced pyro-electric system has committed to sponsor a 500 MW coal fired /solid municipal base power plant in Pakistan. The sponsor have estimated $ 500 million as a cost of the project based on pyro- electric thermal conversion system which is stated to be simple in design, lower in cost and far in superior in electro- thermal conversion efficiency than standard coal power plant.

$ 2.9 billion required for power projects.

Pakistan would be requiring $ 2.9 billion by 2007 and 20.4 billion by 2010 -2013 for mega power projects and system's improvement where total cost of 8 major hydropower projects was $ 16 billion. Pakistan currently producing 19404 MW of power and needs 5529 MW additional electricity by 2010 to meet its domestic demand. Capacity for hydropower generation is 6489 MW and thermal power generation is 6042 MW.

Canadian BOW hit gas deposits in Sindh.

Canadian Oil exploration company BOW Energy Resources Limited has recently discovered gas deposit at Sanghar district in Sindh province at 4 drilling sites which is producing around 10 million cft of gas. the production of gas would arise to almost 80 million cft in next two months.