Energy & Power

WORLD WATCH

India, Iran, Pakistan Closer on Gas Pipeline Deal

India, Iran and Pakistan are getting closer to a deal on a multi-billion dollar pipeline to transport gas from energy-rich Iran through Pakistan.
India and Pakistan have agreed to pay energy-rich Iran 4.93 dollars per million British thermal units for its gas, finalizing one of the thorny issues in the fuel negotiations.

Iran would like the formula to be revised every three years instead of the previously agreed seven.

Separately, in bilateral talks, an agreement was reached on some of the fees India must pay Pakistan for the movement of gas through the latter's 1,050-kilometre (650 miles) stretch of the pipeline.

India will pay Pakistan the transport tariff it requested of 0.70-0.75 dollars per million British thermal units but the two countries are yet to agree on transit fees.

Oil ministers of the three countries would meet in July to sign the framework agreement on the 7.4-billion-dollar pipeline, India's Oil Minister Murli Deora said.

The 2,600-kilometre (1,600-mile) pipeline from Iran's giant South Pars gas field will initially carry around 60 million standard cubic meters per day of gas.

Talks on the proposal started in 1994, but have been stalled because of technical and commercial issues.

There have also been strong objection to the pipeline from the United States, which has locked horns with Tehran over its atomic program.

India, which currently imports more than 70 percent of its energy needs, has been seeking new supplies of oil and gas from abroad besides ramping up production from domestic sources to fuel its economic growth.

Ceylon Electricity Board Initiatives Successful

Ceylon Electricity Board (CEB) says that the program for minimizing the losses in electricity production has been successful.

The CEB figures point to a loss of 17% of the entire generation due to various technical defects. Problems related to distribution amounts to 13.1% of the loss.

A CEB senior official said that steps such as fixing meters in crucial points have been taken to minimize the electricity losses.

Oil Crisis Deepens in Nepal

Nepal Oil Corporation's (NOC's) failure to pay outstanding dues in time has spurred a fresh round of reduction in supplies by the Indian supplier, leaving almost all petrol stations in the Valley dry recently.

“Indian Oil Corporation (IOC) has already lowered the daily supply to 1,200 kiloliters from the normal supply of 2,000 kiloliters. Obviously, the current supply is not enough to meet normal supplies,” said NOC spokesperson Iccha Bikram Thapa.

As officials said the supply problem would continue until the domestic prices of fuel are adjusted, consumers vented ire on the government for 'remaining blind' to the problem.

Meanwhile, NOC has paid Rs 1.05 billion to IOC, clearing the import bills of May. “Owing to the monthly losses running to about Rs 250 million, we will start paying June's bill in July,” said a source.

Indian Food-to-Fuel Wins British Award

A project entry from Kerala that converts food waste into cooking gas has been nominated among the winners of the Ashden Awards for Sustainable Energy, while another Indian entry, from Solar Electric Light Company (Selco), which provides affordable solar power systems to the poor, received an outstanding achievement award for companies.

The Kerala-based Biotech has succeeded in tackling the problem of the dumping of food waste in the streets of Kerala through the installation of biogas plants that use the food waste to produce gas for cooking and, in some cases, electricity for lighting; the residue serves as a fertilizer.

The Ashden Trust, one of the Sainsbury family charitable trusts, instituted the Ashden Awards in 2001.

Also on the list were a Chinese entry for a stove fuelled by crop waste, affordable solar power projects from Laos and Tanzania, and a solar energy boat project from Bangladesh.

Each won a prize of Ł30,000 pounds in the five international categories of the Ashden Awards for Sustainable Energy, while Selco received of Ł15,000 pounds for an Indian company.

US$ 1 B Boost for Lankan Power

The Sri Lankan government is embarking on a number of massive electricity projects exceeding an investment of US$ 1,000 million over the next few years to avert any power crisis.

The biggest project is the coal-fired Norochcholai power plant, an investment of US$ 455 million.

“The plant will be fully operational by 2012, adding 900 MW adding to the national grid. The 300 MW first phase will be operational by 2009,” Power and Energy Minister John Seneviratne said.

“The Ministry had already taken steps to add another 3,000 MW to the national grid using coal power in the next six years. Three new coal-fired power plants are due to be constructed in Trincomalee, Hambantota and Mawella apart form the already commenced construction of the Norochcholai power plant,” Minister Seneviratne said.

The Ministry is also building a US$ 326 million Multi Fuel Combined Cycle Power Plant in Kerawalapitiya as a more short-term solution. The significant feature of the plant is that it can be operated using diesel, furnace oil or even Liquified Natural Gas (LNG).