Government approves 1,250MW RLNG-run power project

ISLAMABAD: Government on Wednesday approved nearly one billion dollars of RLNG-run power project with a capacity to generate 1,250 megawatts of electricity as inflows of liquefied natural gas (LNG) are pacing up in the country.  

The cabinet committee on energy, set up to manage energy demand and supply, take policy initiatives and lure investment, sanctioned RLNG-based power generation project near Trimmu barrage in district Jhang, Punjab, officials told Awais Leghari, minister for power during 11th meeting of Private Power and Infrastructure Board (PPIB). 

The board was briefed that the project has an estimated cost of $802 million. It is expected to start generating power in simple cycle mode by December 2018.  Currently, Pakistan imports 4.5 million tonnes of LNG a year and the demand is forecast to top 30 million tonnes by 2022. The country built its first LNG terminal in 2015 and the second terminal is expected to come online early next year.

Minister Leghari said government is cognisant with complex issues facing energy sector.  “The government is assessing the power sector issues in its entirety and will soon come up with a comprehensive plan for future course of action,” he said in a statement. “The power division is assessing and analysing the demand and supply scenarios and evaluating the ground situation.” 

PPIB also decided to advertise 132MW Rajdhani hydropower project on Poonch river in Kashmir under the provisions of Power Policy 2015.  Setting up of hydropower projects will improve energy mix in the country and reduce dependence on imported fuels. The establishment of this project will also be instrumental in generating economic activities as well as creating employment opportunities for the people of the area. 

Currently, four hydropower projects of approximately 1,850MW are under construction, while another 1,124MW Kohala hydropower project will achieve financial close early next year.

Shah Jahan Mirza, managing director of PPIB, said the board is currently handling portfolio of 32 power projects of more than 20,500MW, which are based on hydro, coal and RLNG fuels as well as a 660-kilovolt Matiari-Lahore transmission line project. The transmission line has a designed capacity of transmitting electricity of 4,000MW. China Electric Power Equipment and Tech. Co. Ltd, a subsidiary of State Grid Corporation of China (SGCC), is the project’s sponsor.

PPIB is implementing 12 projects of around 11,000MW out of 32 projects under the China-Pakistan Economic Corridor framework.  The board was briefed that majority of these projects are at advanced stages of implementation, some are in the process declaring commercial operation/testing and commissioning, some are under construction, while others are under financial closing and pre-financial closing stages. 

Power minister and board members expressed their satisfaction on the progress of ongoing power generation and transmission projects being handled by PPIB.  They urged PPIB to keep abreast on the progress of the projects, which are of vital importance in stimulating economic growth by promoting allied businesses in infrastructure development and creating employment opportunities. 

Minister Leghari said the present government has announced various incentives through the power policy of 2015. “The facilitation extended to the new investors in power sector should be further enhanced to support local and international investors.”