K-Electric wants removal of capping on use of RLNG for its power plants

KARACHI: The K-Electric has sought removal of requirement, imposed by the power regulator, to utilize 130 mmcfd of local gas prior to using RLNG, which would enable it to consume more RLNG to meet its requirement of 190 mmcfd.

Dissatisfied with certain provisions of the decision in the matter of request filed by K-Electric for approval to utilize RLNG as an alternate fuel for its generation plants, the power utility has filed a review petition with the National Electric Power Regulatory Authority (NEPRA).

K-Electric submits that Sui Southern Gas Company (SSGC) is supplying 60 mmcfd of RLNG to KE on firm basis, whereas supply of local gas up to 130 mmcfd is being made on ‘as and when available basis’.

To ensure supply of local gas, K-Electric has reached out to the court. The interim order directed SSGC to supply same quantity of gas as on the date of the order i.e. 130 mmcfd of local gas and 60 mmcfd of RLNG. However, SSGC unilaterally reduces the gas supply and provides it on ‘as and when available’ basis, which is beyond the control of K-Electric.

The power utility requested NEPRA to amend its decision and remove the compulsion to utilize 130 mmcfd of local gas prior to using RLNG.

The company maintained that with post availability of RLNG the redundancy of Bin Qasim Power Station (BQPS-II) and Korangi Combined Cycle Power Plant (KCCPP) has been avoided. Further, increased cost of operations on HSD and its intensive maintenance requirements will increase the tariff and burden government and consumer unnecessarily.

Therefore, the company has requested NEPRA to remove HSD as alternate fuel for these generation plants. Further, K-Electric has also requested NEPRA for a meeting with NEPRA to discuss and deliberate the plan, which shall enable K-Electric to proceed and decide in an informed manner; response to K-Electric’s request of meeting is still awaited.

It may be mentioned here that cost/kWh on local gas is Rs5.03, on RLNG it is Rs14.12 and on HSD it is Rs21.54 at BQPS-II, while the cost/kWh on local gas is Rs5.34, on RLNG it is Rs15.01 and on HSD it is Rs22.91 at KCCPP.[the_ad id=”31605″]

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