K-Electric, PLL sign 150mmcfd gas supply agreement
KARACHI: The K-Electric Limited (KEL) and Pakistan LNG Limited (PLL) have signed a gas supply agreement for the supply of 150mmcfd re-gasified liquefied natural gas (RLNG) for K-Electric’s 900MW plant at Port Qasim (BQPS-III), a government official said.
Once fully operational, the $650 million, 900MW plant will bolster Karachi’s power supply, as the project is part of the KEs planned initiatives designed to bridge Karachi’s demand-and-supply gap by the end of ‘the financial year 2021/22.
Federal Minister Hammad Azhar tweeted: “Pleased to share that the first of its kind GSA between @KElectricPK and @PAK-LNG has been signed. This is for the supply of 150mmcfd LNG to K-Electric. The benefits include enhanced power supply to Karachi. Congratulations to both the entities.”
The National Electric Power Regulatory Authority (Nepra) had already approved the modification in the generation licence of K-Electric, with the addition of the 900MW RLNG-powered BQPS-III to the power utility’s generation capacity.
The power plant is being built as per the power utility’s investment plan, approved under the multi-year-tariff for the control period FY 2017/23.
The development of the spur pipeline, which will be supplying RLNG is complete. Not only will this pipeline supply RLNG to the 900MW BQPS-III plant, it will also supplement the fuel requirement of the power plants located at the Bin Qasim Power Complex.
The Oil and Gas Regulatory Authority (Ogra) approved K-Electric’s application earlier this year, which was a key step in ensuring a consistent and smooth supply of gas at the right pressure to BQPS-III.
In the notification issued on January 6, 2021, Ogra granted a licence to K-Electric Limited to undertake regulated activity related to construction and operation of 14-inch diameter x 2.4 kilometre natural gas pipeline along with the ancillary/connected facilities for the purpose of transmission of gas from tie-in point, Sui Southern Gas Company (SSGC) Custody Transfer Station located at Bin Qasim to KE Bin Qasim Power Complex.
The addition of the 900MW RLNG power plant along with the proposed decommissioning of older and less efficient units will ultimately increase the power utility’s generation capacity and lead to improved service delivery.
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