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New China deals signal Belt and Road revival in Pakistan
China and Pakistan signed projects worth $11bn, including a $3.9bn hydroelectric dam and a $7.2bn railway upgrade.

by Faseeh Mangi • Bloomberg 16 Jul 2020

China's Belt and Road program has found new life in Pakistan with $11 billion worth of projects signed in the last month, driven by a former lieutenant general who has reinvigorated the infrastructure plan that's been languishing since Prime Minister Imran Khan took office two years ago.

The nations signed deals on June 25 and July 6 for two hydro-power generation projects costing $3.9 billion in the disputed Kashmir region, and another to revamp the South Asian nation's colonial-era railways for $7.2 billion -- the most expensive Chinese project yet in Pakistan.

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The Chinese financing has helped rid Pakistan of an electricity deficit that left exporters unable to meet orders and major cities without electricity for much of the day. Still, the implementation of some investments appeared to stall since Khan came to power, with no new projects announced in 2018 and very few in 2019.

A New Pipeline Could Undo America’s Influence In Asia
By Simon Watkins - Nov 25, 2019

From the moment that the U.S. re-imposed sanctions in earnest on Iran late last year, Pakistan has been looking at ways to resuscitate a deal that had been agreed in principle before the U.S. unilaterally withdrew from the Joint Comprehensive Plan of Action (JCPOA) last May. This deal involved moving as much gas as Pakistan needs from Iran’s Asalouyeh into Pakistan’s Gwadar and then on to Nawabshah for further transit if required. At the same time, China has been in long-running discussions with Pakistan over the specific projects that Beijing wanted to place in Pakistan as part of its ‘One Belt, One Road’ (OBOR) programme. All the while, the U.S. has been trying to stymie any such arrangement but OilPrice.com understands that the Iran-China-Pakistan deal is now back on, and with a vengeance.
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ExxonMobil to help build LNG terminal in Pakistan

By zafar bhutta Oct.27,2019

After getting a liquefied natural gas (LNG) supply contract from private-sector consumers, US energy giant ExxonMobil is planning to build the third LNG terminal in Karachi as a joint-venture partner.

Some time ago, ExxonMobil, in collaboration with Pakistan’s exploration and production companies, drilled an offshore well to search for hydrocarbon reserves in the Arabian Sea. However, the effort could not prove successful.

Now, in a new venture with Energas consortium, the US firm is going to invest in setting up an LNG terminal in Pakistan.

Earlier, ExxonMobil, the world’s largest publicly traded oil and gas firm, had inked an agreement with Universal Gas Distribution Company (UGDC) – an association of CNG station owners and operators – for LNG supply.

This came after the Pakistan Tehreek-e-Insaf (PTI) government allowed the private sector to utilise the idle capacity of existing LNG terminals and pipelines of public gas utilities. It will break the monopoly of public-sector companies and the private sector will be able to bring LNG at cheaper rates.
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Shell, Exxon Close Deal To Build Five LNG Import Terminals

By Irina Slav - Sep 20, 2019

Shell and Exxon are among the companies picked by the Pakistani government to build five LNG import terminals as part of efforts to boost natural gas imports to deal with shortages in supply.

Reuters reports that the terminals could be operational in two to three years, quoting the country’s oil and power minister, Omar Ayub Khan.

With a fast-rising population, Pakistan has been plagued with power outages largely resulting from a shortage of fuel necessary to keep its power stations going. Though there is some local production, in financial year 2017/18, demand exceeded this supply by about 3 billion cu ft daily. Imports of gas and LNG are already on the rise but not fast enough to ensure no more blackouts.

To remedy matters, the government has picked five consortia to build additional terminals. The consortia include, besides the two supermajors, also Mitsubishi Corp, Energas, Trafigura, and Gunvor.

The consortia must submit their detailed plans for the terminals for government approval by November 5 although Reuters quoted PM Khan as saying this approval had already been granted.

Pakistan currently has LNG import capacity of 1.2 billion cu ft per day in two terminals, with plans to add another with a capacity of 600 billion cu ft daily in 2020. One billion cu ft of natural gas equals about 21,000 tons of LNG.

The groups approved to progress are Tabeer Energy, a unit of Mitsubishi, Energas with partner Exxon; Pakistan GasPort and commodities trader Trafigura; Engro with partner Shell, and Gunvor with Pakistani conglomerate Fatima.

Italian and Chinese majors vie for Pakistan’s mega LNG tender

REUTERS July 19, 2019

Italian oil major Eni, China’s overseas energy unit PetroChina and two trading houses are vying to supply liquefied natural gas (LNG) to Pakistan in a tender worth billions of dollars.

The 240-cargo 10-year tender, worth up to $6 billion according to Reuters, was issued last month and closed on Thursday.
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the cash-strapped country, which is plagued by Islamist militant violence.

Eni’s ultra-deepwater Kekra-01 well in the Arabian Sea offshore Pakistan was dry.

May 21st, 2019

According to Rystad Energy, the country had high hopes for the well which had a pre-drill resource estimate of around 1.5 Bboe.

“The dry well comes as a major blow not only for the country, but also for the companies involved,” said Rystad senior analyst Palzor Shenga. “The drilling campaign initially had a budget of between $75 million and $80 million, which later grew to approximately $100 million due to technical complications.”

Eni’s partners were ExxonMobil and local companies PPL and OGDCL.

“It seems unlikely at this stage that there will be another attempt at offshore exploration in Pakistan, despite the fact that the country’s ultra-deepwater zone is competitively priced,” Shenga added. “Most international companies have already fled the cash-strapped country, which is plagued by Islamist militant violence. The disappointing result of this well can be expected to have a negative impact on future offshore licensing rounds in Pakistan.”

Qatar agrees to supply LNG to Pakistan on low rates

May 3, 2019

ISLAMABAD: The government has convinced Qatar to supply 400 million cubic feet per day (MMBFD) of Liquefied Natural Gas (LNG) to Pakistan on low rates under fresh agreements, which would be signed in the near future, sources revealed on Thursday.

Sources in the Petroleum Division told Pakistan Today that the government has convinced the Qatari government to supply LNG at cheaper rates, as compared to the rates and terms and conditions of LNG deal signed by the Pakistan Muslim League-Nawaz (PML-N) government.

They said that both the sides have almost settled major terms and conditions of the new LNG supply agreements, adding that both countries would sign two agreements in this regard.

“One agreement will remain effective for 10 years while the second agreement will remain functional for 15 years. With the new LNG supply agreements, Pakistan’s national exchequer will save approximately $2.5 billion in 10 years,” said sources. “Qatar is likely to provide LNG to Pakistan at 11.5pc of crude oil price under the new ten-year agreement, while it may also provide LNG for 15 years to Pakistan at 11.25pc of crude oil price.”

Last year, Pakistan imported nearly 7 million tonnes of LNG, data from Refinitiv Eikon shows. This year, that could grow to as high as 15 million tonnes and to up to 25 million to 30 million tonnes over the next three to five years, said Adnan Gilani, managing director and chief executive of Pakistan LNG.

Pakistan may soon hit oil, gas jackpot: Prime Minister Imran Khan
The offshore drilling for oil was in final stages and there could be a major find, he said.

PTI | Updated: March 23, 2019,
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Italy's ENI and US oil major Exxon Mobil are jointly drilling for gas offshore in Pakistan's Arabian Sea. Many other Western companies have left more than a decade ago because of Islamist militant violence.

ExxonMobil returned to Pakistan after nearly a decade after surveys were carried out last year suggesting the possibility of big oil reserves within the Pakistani waters.
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