Nandipur power project non-functional for many days

ISLAMABAD: Nandipur project has been non-operational for many days as Sui Northern Gas Pipeline Limited (SNGPL) has halted RLNG supply to it on account of non-payment of Rs1.5 billion, a top official of Power Division told The News.

“The SNGPL is responsible for collecting the arrears to pay either Pakistan LNG Limited or PSO to ensure opening of letter of credit on time for maintaining the LNG supply chain.”

Haveli Badur Shah, Bhikki, four sister IPPs, Kapco and Muzaffargarh are stilling running on RLNG and are producing electricity, but Nandipur is not being provided the RLNG.

The Power Division is hopeful of getting the supply of RLNG restored as it is on the toes to resolve the issue of payment of R1.5 billion to SNGPL, says the official.

Pakistan State Oil (PSO) is also facing another circular debt of Rs18 billion as SNGPL has failed to pay arrears of state-owned oil marketing company. Genco-III, under which Nandipur is being run, is not able to pay Rs1.5 billion to SNGPL increasing the burden on PSO owing to which it lacks the ability to open L/C for ensuring the LNG supply chain.

The News has also learnt that Engro terminal for re-gasification of LNG remained non-operational for 30 hours on maintenance issue and therefore the RLNG supply to the country also decreased from 1.1 billion cubic feet per day to 750mmcfd for one and a half days.

The second LNG terminal of Pakistan Port Gas Consortium (PGPC) stayed functional over and above its live capacity and had been re-gasifying 750mmcfd LNG. The PGPC terminal operated at 750mmcfd for around 30 hours from 0730 hours on June 28 till 1300 hours on June 29

Now PGPC LNG terminal has started re-gasifying 500mmcfd LNG showing that Engro LNG terminal has come on stream again after 24 hours and has started re-gasifying 550mmcfd the imported product.

Spokesman of Engro LNG terminal when contacted said terminal went down for 24 hours for planned maintenance and during this period end terminal of PGPC was run at peak capacity to re-gasify 750mmcfd LNG to cater to the country. “Now we are back and our terminal is re-gasifying 550mmcfd LNG,” he said.