Peshawar—Managing Director, Bank of Khyber (BoK) Bilal Mustafa has said that the bank is committed to cater the banking requirements of Islamic as well as conventional banking in a befitting manner to promote economic activities in the region.

He was speaking at the formal inauguration of BOK Raast Islamic Banking branch at Shahrah-e-Resham, Mansehra in a simple but impressive ceremony.

The inaugural ceremony besides elites of the area and business community of the area was attended by former chairman & Managing Director BOK Mr. Bhashir Ahmed Khan, Executive Director, Mir Javed Hashmat, Group Head Credits Imran Samad, Head of Islamic Banking Group, Kamran Masud Khan, Head Islamic Business Development Sohail Khan, Head Special Assets Management Muhammad Yasin Chaudhry and Head Marketing Syed Ali Nawaz Gilani.

The Managing Director said that Raast Islamic Banking of BOK has trader friendly network in all major cities of the country and they are further expanding it by establishing more branches in calendar years 2012 and 2013.

He said that BOK has also been serving Islamic Banking clients by providing them all Banking services through its net-work across the country successfully since 2003. Mr. Bilal Mustafa also mentioned that BOK Raast Islamic Banking is supervised by proper Shariah Compliant Committee as per State Bank of Pakistan’s rules.

In this regard Islamic Banking Group and full time Shariah Compliance Department is ensuring proper compliance of all Shariah rules. This is a prime responsibility of BOK to provide Shariah Compliance schemes which are now getting encouraging results from the clients.

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SINGAPORE: Oil fell in Asian trade Monday amid mounting worries over Europe's debt crisis and calls by major crude producer Saudi Arabia for prices to fall further, analysts said. New York's main contract West Texas Intermediate crude for delivery in June was down 84 cents to $95.29 per barrel while Brent North Sea crude for June shed 41 cents to $111.85 in morning trade.

Debt-laden Greece's political crisis is at the centre of investors' thoughts after emergency talks between party leaders failed to forge a unity cabinet, making the prospect of new elections increasingly likely. "As always with Greece it's not about one peripheral European economy but the widespread contagion on fellow members," said Justin Harper, market strategist at IG Markets Singapore.

"Spain, Italy and Portugal are also sources of constant concern," he added. Market sentiment was also weighed down by a Saudi call for crude prices to fall further. "We need to get prices at a level around $100. Now, it is still high," Saudi oil minister Ali al-Naimi was quoted as saying on Sunday by Dow Jones Newswires.

He was referring directly to Brent crude, the most widely traded oil contract worldwide. Speaking to reporters in Australia, al-Naimi added that global crude stocks were likely to increase ahead of an anticipated seasonal rebound in demand starting from July.

"It is very important to recognise that supply today is 1.3 million to 1.5 million barrels per day over demand, which is good. It is going into inventory and bringing inventory up -- that should give comfort to consuming countries," al-Naimi said.

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ISLAMABAD: Pakistan has once again asked China to finance the Iran-Pakistan (IP) gas pipeline project, as Beijing appears to be least interested in the face of pressure from the United States. “No Chinese government official gave assurance about participation in the project,” a participant of a meeting of the Pak-China Joint Energy Working Group told The Express Tribune.

The final round of the working group, which concluded here on Tuesday, was held under the chairmanship of Water and Power Minister Naveed Qamar and Chinese delegation head Wu Guihi, which reviewed financial and other aspects of energy projects and cooperation between the two sides.
In the meeting, private oil and gas exploration company United Energy Group (UEG), however, expressed interest in participating in the IP gas pipeline project. A representative of UEG, which has recently acquired assets of British Petroleum (BP) in Pakistan, said the company was willing to participate in the project.

Sometime ago, the Industrial and Commercial Bank of China (ICBC) had been given the role of financial adviser for the project, but it backed out apparently due to US pressure. In remarks made at the conclusion of the meeting, the head of Chinese delegation said the energy crisis in Pakistan could be resolved through cooperation between the two sides. Discussing concerns of Chinese enterprises, he stressed the need for infrastructure development for ongoing and forthcoming energy projects for easy transportation of machinery and equipment to the project site.

It was proposed to set up an infrastructure fund to finance power projects. “Banks may contribute to this fund from where investors will be able to get financing,” Naveed Qamar told the media after the meeting.
Qamar said China was also willing to contribute equity to the Diamer-Bhasha dam and power project. Private parties of China could assist in setting up power houses, he said. In the past, Chinese wanted contracts for projects like Guddu and Uch power plants. “But now these companies have agreed to participate in the bidding process in line with Public Procurement Regulatory Authority (PPRA) rules,” he added.

Qamar stressed that matters relating to Nandipur power project had been resolved six months ago. “Now, there is an issue of demurrages and the government is mulling over to waive them,” but the penalty issue would be resolved through dialogue.

Later, a signing ceremony was held for three wind energy projects. These included signing a letter of intent (LoI) for 150MW project between United Energy Pakistan and China Development Bank Cooperation and inking a memorandum of association for 350MW project between Three Gorges and Pakistan. A document was also signed between Dawood Power and Hydro China Engineering Company for a 50MW project.

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LAHORE – Pakistan Railways Secretary/Chairman Arif Azeem has said that about 350 locomotives are needed to put Railways on track. Talking to reporters he said that only 150 locomotives are working, however the railway is purchasing 150 more locomotives.

He hoped that deficit of the department had been reduced during couple of months by efforts of the administration. He said the government would allocate sufficient amount in budget for revival of the department. He appreciated the performance of the Railway Academy and hoped the academy would not be affected due to financial crisis. He gave away certificates to participants of the 110th Pakistan Inter Regional Railways Technical College (PIRRTC) Advance Railway Course. A total 18 officers from various countries including Cambodia, Korea, Guinea, Malawi, Myanmar, Nigeria, Pakistan, Sri Lanka, Thailand and Veitnam attended the course.

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Dr Choi moon-sok, chief executive officer of the Concentrix Solar of Korea, who called on federal minister for water and power Syed Naveed Qamar along with a four-member delegation said that the company plans to set up first project of 50MW within eight to 10 months, while the total duration for 300MW will be three years. The projects will be both off-grid and on-grid and mostly will be established in Sindh, he said.
 
He also said that the first initiative will be conversion of the Prime Minister House into solar power and it will be a gift from Korea to Pakistan.
 
The Prime Minister House will be converted to solar energy within three to four months and will be off-grid backed by batteries. Chandka Medical College, Larkana and Civil Hospital, Hyderabad were already being shifted to solar technology with the Korean loan, he added.
 
Welcoming the delegation, the minister appreciated Korea for interest to invest in the power sector and said that upfront tariff would be announced soon for solar projects in order to encourage investors in this sector.
 
The government has exempted the solar panel and other related equipment from the sales tax and customs duty, he said, adding that the government has initiated solar water pumping project for agriculture sector and solar water heater with the help of donors.
 
He assured that the Pakistan government will support and facilitate the Korean investors and welcome their investment in the solar power projects.

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Singapore: Oil retreated in Asian trade on Wednesday as investors took profits from recent gains, while renewed concerns about the eurozone's debt problems also pressured prices, analysts said.

New York's main contract, West Texas Intermediate (WTI) crude for delivery in June was down 36 cents to USD 105.80 per barrel while Brent North Sea crude for June shed 23 cents to USD 119.43 in morning trade.

"There has been some profit-taking in the market after the WTI reacted very positively to strong US and Chinese manufacturing data," said Victor Shum, senior principal at Purvin and Gertz energy consultants in Singapore.

Crude prices had surged in late trade New York trade yesterday, supported by stronger-than-expected industrial data in the US and China, the world's top energy consumers. Meanwhile, traders remain wary over the troubled state of the eurozone economy, analysts said.

World Bank president Robert Zoellick yesterday said that Europe would struggle to achieve needed economic reforms without growth to support them, adding that investors' focus is on the situation in Italy and Spain. The two countries "are undertaking fiscal consolidation and structural reforms but that's very hard to do in a no-growth environment," he said.

Italy and Spain, the third- and fourth-biggest economies in the eurozone, are in recession. Investors fear Spain, in particular, may be the next in the bloc to follow Greece, Ireland and Portugal to seek an international bailout.

"There is a bias towards the upside because of the signs that the US economy is recovering, but the debt situation in the eurozone will continue to be closely watched by investors," said Nick Trevethan, senior commodities strategist at ANZ Research.

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Karachi—The international price (Saudi Aramco Contact Price) of liquefied petroleum gas (LPG) has been declined by $ 124 to $ 869.50 per ton for May 2012, creating hopes for a price cut in the domestic market.

This was stated by the pattern-in-chief of All Pakistan LPG Distributors Association and chairman FPCCI Standing Committee on LPG Abdul Hadi Khan here on Monday. He said that propane and butane have been slashed by $ 180 and $ 100 per ton, but local producers did not reduce their prices in accordance with international cut.

He, however, hoped that LPG can come under the reach of general consumers with the decline in international price and said that chances have also been brightened for a rise in local sale of LPG upto 70 percent after a long time. This sale was been reduced to 40 percent in the last ten months, forcing about 800 distributors to close down their businesses, he added.

Hadi pointed out that 14,940 tons of LPG was imported in the country in January 2012, and since then no importer has ever entered into any contract for LPG. He said that due to falling sales of LPG, marketing companies and local producers had slashed prices twice each, bringing down the overall LPG price by 7 percent in the country.

Hadi said this price cut has lifted local sale by only 5 percent, which means that consumers were still reluctant to go for LPG. They are still preferring other fuel options over LPG, he observed. He suggested the government to devise a policy for a judicious distribution of quota for local LPG production, before promoting LPG in automobile sector.

This should be followed by boosting local production of LPG on the one hand, and introduction of an effective price mechanism on the other, with the consultation of all stake holders for promoting LPG as an economical alternate fuel.

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London—Dow Chemical’s winter doldrums have given way to some spring optimism.

The chemical manufacturing giant said volumes improved in every sector and most geographic regions in March, as customers began rebuilding inventories from last year’s low levels. That helped offset sluggish sales in January and February.

The company’s net income dropped 34 percent in the first three months of the year in part because of a $357 million pre-tax charge related to plant closures that occurred as a result of weak business conditions in Europe.

For the first quarter, Dow Chemical reported net income of $412 million, or 35 cents per share. That compared with $625 million, or 54 cents per share, during the year-ago quarter. Net income in both quarters included $85 million in preferred stock dividends. Revenue was flat at $14.7 billion.

Excluding restructuring costs related to the plant closures and other one-time items, Dow said it earned 61 cents per share.

Analysts, who typically exclude special items, expected earnings of 59 cents per share and revenue of $14.96 billion, according to FactSet. The Midland, Mich., manufacturer said that overall sales volume rose 3 percent, driven by a 12 percent jump in agricultural products and a 7 percent increase in feedstocks and energy. That was offset by flat to slightly lower volumes in other business segments.

Demand improved in the U.S. Latin America remained strong and a rebound in China markets picked up in March. There were positive signs in Germany but, overall, Europe continued to struggle. That demand momentum is expected to continue in the second quarter and throughout 2012, although Europe is “still a bit of a wait,” said Dow Chemical chairman and CEO Andrew N. Liveris.

“We don’t want to be irrationally exuberant, but there’s good tailwinds coming out of March,” he told analysts during a conference call.

Morningstar Inc. analyst Jeffrey Stafford said that the improvement reported in March “gave me confidence that results for the company will improve in the coming quarters”.—Newswire

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NEW YORK: US natural gas for delivery this fall is trading at a record premium, signaling the fuel may be poised to rebound from its worst quarter in two years because of production cuts and rising demand from power plants.

Gas futures for delivery in October traded at an all-time high of 48.1 cents per million British thermal units above the May contract on April 11, when prices dropped below $2 (Rs 106.74) per million British thermal units for the first time since 2002. The spread was 19.7 cents on January 30.

Near-month gas may rebound to $4 (Rs 213.49) "relatively quickly," Goldman Sachs Group said in an April 24 report. Prices have tumbled 31% this year as the fourth- warmest winter on record crimped demand and output from shale formations increased.

Energy companies including ConocoPhillips and Encana (ECA) have responded with production cuts, reducing the chances that supplies will overwhelm storage before winter. Demand for gas from power plants will climb 16% in 2012, according to the Energy Department.

"We're going to see production curtailments and an uptick in power demand this summer that will prevent us from reaching maximum storage capacity," said Scott Hanold, an analyst at RBC Capital Markets in Minneapolis. "Short-term gas contracts can take a beating, but investors have a more constructive view of longer-term contracts."

Natural gas for May delivery increased as much as 6.9 cents to $2.137 (Rs 114.05) per million British thermal units in electronic trading on Thursday on the New York Mercantile Exchange, and traded at $2.12 (Rs 113.15) per million Btu at 8:57 a.m. That follows Wednesday's gain of 4.7%, the biggest since February 16, and brings this week's increase to 10%. The spread between May and October futures was 40.7 cents.

Gas is the worst performer this year on the Standard & Poor's GSCI Index of 24 commodities, falling 39% on a total-return basis. Prices on the Nymex dropped 29% in the first quarter, the biggest decline since the first three months of 2010.

The futures slid to $1.902 (Rs 101.51) per million Btu on April 19, the lowest price since September 2001. Gas plunged as an inventory surplus to the five-year average reached 61% at the end of March, the biggest gap in six years. Marketed gas production will increase 4.5% this year to average 69.22 billion cubic feet a day from an all-time high last year, the Energy Department estimated April 10 in its Short-Term Energy Outlook.

Stockpiles totaled 2.512 trillion cubic feet in the week ended April 13, a record for that time of year, department data show. Barclays and Bank of America predicted that inventory levels would approach or exceed 4.103 trillion cubic feet, the department's estimate for physical storage capacity, by the end of October.

That outcome is less likely now that prices at 10-year lows have prompted energy companies to scale back production, according to Hanold, who was third among gas-price forecasters ranked by Bloomberg in the eight quarters ended March 31.

ConocoPhillips (COP) said April 23 that first-quarter output of oil and gas fell 3.8%. Encana, Canada's biggest natural-gas producer by volume, plans to reduce production by 600 million cubic feet a day, according to the Calgary-based company's first-quarter earnings statement on Wednesday. The number of rigs drilling for gas has tumbled 22% this year, data from Baker Hughes Inc. in Houston show.

"There is a current weakness in market fundamentals due to an oversupply of natural gas and it is clear that a continued reduction of drilling activity will be required to restore market balance," Encana said.

Natural gas may rebound as production growth slows and colder weather returns later in the year, Goldman Sachs said in its report this week. The 2011-2012 winter was the warmest since 2000 in the contiguous U.S., according to the National Climatic Data Center in Asheville, North Carolina.

About 51 percent of U.S. households use gas for heating, Energy Department data show. Gas may drop below $1.80 if hot summer weather fails to materialize, Laurent Key, a gas analyst at Societe Generale SA in New York, said in an April 24 telephone interview.

The possibility of an El Nino, a warming of the mid-Pacific Ocean, has forecasters predicting lower temperatures across the U.S. this summer, which may mean less electricity will be needed to run air conditioners, according to Weather Services International in Andover, Massachusetts. About 35 percent of U.S. gas demand comes from power producers.

The El Nino pattern may also cause a below-average Atlantic storm season, with four hurricanes expected this year compared with 19 last year, according to researchers at Colorado State University who pioneered long-range Atlantic forecasting. About 6.4 percent of U.S. gas production comes from the Gulf of Mexico, where storms can disrupt supplies.

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Right now the Hyperion Oil Refinery is tied up in litigation over it's air quality permit, but it hopes to break ground by mid-March, 2013. It's hard to picture now, but Hyperion wants to transform this South Dakota land into a massive oil refinery.

It wants to break ground sometime in march 2013 and it hopes to be fully operational by 2017. "We are committed to this project. We spent scores of millions of dollars, and we're here to stay in Union County, and we are going to move this project down the road, and create a tremendous opportunity for the area," said Preston Phillips, V.P. of Hyperion Refining.

The refinery would need 4,500 construction workers for 4-5 years, and would create 1,800 high paying permanent jobs. "For each of those jobs created, economists anticipate that there will be 3 jobs for each one of those jobs. So if you do the math there, we're talking about really substantial numbers," said Chris McGowan, Siouxland Chamber of Commerce President.

In addition to changing Siouxland economically, it would also profoundly change the Elk Point area physically. Something some folks in Union County are strongly against.

"We've put 5 years into trying to save our home here, and we're not about to give up.From what we hear, there's less people now in favor of a refinery getting built in Union County than there was 5 years ago," said Dale Harkness, Elk Point, SD. A major reason Harkness opposes the oil refinery is because he and others would be forced to move their homes.

Why is Hyperion looking to build this oil refinery in Union County, South Dakota?  

Hyperion thinks it's a great location, because the oil would be coming from the tar sands in Canada. Almost all of the big refineries in the country are currently in the Gulf of Mexico.  So rather than bring the crude all the way down to the gulf, Hyperion wants to take the crude half that distance and refine it in Siouxland. Hyperion wants to leverage the geographic advantage into a booming business here.

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