PPIB approves RLNG supply to IPPs

ISLAMABAD: Private Power Infrastructure Board (PPIB) on Wednesday approved supply of re-gasified liquefied natural gas (RLNG) to four independent power producers.

The board’s meeting, headed by Minister for Power Awais Leghari, authorised PPIB to acknowledge an interim agreement approved by the Economic Coordination Committee of the cabinet for supply of RLNG to four indigenous gas-based IPPs namely Halmore, Saif, Orient and Sapphire.

Currently, the projects are operating on costly high speed diesel due to non-availability of gas. The replacement of diesel with RLNG will cut the fuel price to almost half, thus considerably reducing the tariffs.

Power minister said the investors are now feeling friendly working environment as their cases are being fast tracked due to frequent board’s meetings. He appreciated the board members for their active participation in the meetings.

The latest meeting was the fourth one in last three months.

Leghari said the government has been instrumental in realising the electricity potential “as we believe that electricity plays vital role in improving socioeconomic growth of the country”.

“We are committed to provide affordable electricity in most efficient manner to every single consumer for which we have taken concrete steps and will continue the spirit for future as well,” a statement quoted the minister as saying.

Shah Jahan Mirza, managing director of PPIB said the board is handling seven projects with a total capacity of 5,600 megawatts to encourage indigenous and sustainable energy.

Managing Director National Transmission and Despatch Company updated the meeting of Matiari-Lahore high-voltage direct current transmission line and the flow of power from IPPs based on Thar coal from south to north and its financial impact.

PPIB, NTDC and Central Power Purchase Agency were advised to make a thorough analysis based on the actual commercial operation dates of Thar coal-based IPPs.

The board also approved the procedure to execute coordination and indemnity agreements between the federal and Sindh governments for IPPs in the province and with which provincial government signs land lease and water use agreements.

Government is covering default under the agreements in the implementation agreement. The board told the meeting that the agreement should be concluded within one month.

Under the said procedure, working draft of the agreement will be circulated to the provincial government through ministry of energy (power division) and after it is finalised between the parties, would also be finally vetted by ministry of law and justice before the execution.

PPIB board decided to hold its next meeting on Thar in the second week of February to review the indigenous coal assets.

The board members will also take stock of the projects already under different phases in Thar. It will also provide first-hand knowledge and facilitate the right decisions relating to the Thar coal projects.