Use of RLNG cut down by over 50% in power sector

Islamabad : In a new development, Power Division has sliced down the intake of LNG for power generation by over 50 percent that has raised eye brows of many in petroleum division as the latter fears that it will have to pay more idle capacity of LNG terminal and demurrages charges in dollar terms.

Nandipur and Kot Addu power plants and four sister IPPs are no more functional as they are being denied the RLNG. Nepra took the other day the cognizance of the fact that Central Power Purchase Agency (CPPA) had allowed costly furnace oil power plants instead of running the cheaper power plants with fuel as RLNG and had sought the written answer for obliging the furnace oil mafia exposing the consumers to costly electricity.

“This means that influential furnace oil lobby is getting the maximum advantage despite the policy made by former prime minister Shahid Khaqan Abbasi that in winter season, no furnace oil based power plants will be made operational as they generate costly electricity as compared to the power plants based on RLNG,” the official said.

As per latest official document of Nepra, the unit cost of electricity generated RLNG based power plant is Rs9.8 per units whereas the unit cost of electricity generated by furnace oil based power plant stand at Rs14.42 per unit. But the authorities in Nepra during the monthly fuel adjustment hearing pinpointed that furnace oil lobby is being obliged by running the costly power plants instead of cheaper LNG based power plants and authorities in CPPA are punishing the electricity consumers with generation of costly electricity.

Power Division had submitted with Petroleum Division the demand of 822 mmcfd RLNG for power generation for three months of winter, but former has slashed down it to 400 mmcfd putting the LNG supply in jeopardy as it will have to pay more idle capacity and demurrages.

Top official of Power Division said that Pakistan’s electricity demand has tumbled to over 10500MW and all the power plants are being run as per economic merit order and right now no furnace oil based power plant is being run.

He said that Nandipur, Kot Addo Power Plant, other sister 4 IPPs which are RLNG based power plants are closed down as they did not come up to the economic merit order. He said that the electricity is currently being procured from plants based on coal, local dedicated gas, nuclear, wind and RLNG. “More importantly the amole hydro generation is also available in the system.”

He said that hydro generation stands at 3784MW. RLNG based power plants such as Haveli Badur Shah is right now generating 815MW, Bhikki 815MW and Balloki power plant is generating 800MW. The four nuclear power plants are generating 1093MW. Jamshoro power plant is generating 320MW of electricity whereas Guddu 500MW and Guddu747MW, 766MW. In addition, Liberty power plant is generating 164MW, HCPC 77MW, Engro 180MW and Fundtn Drki 180MW.

The additional RLNG has been diverted to zero rated industry that includes textile, leather, carpet, surgical, sports good. CNG sector is also using the RLNG.