K-Electric expects lower tariff after LNG use in plants

KARACHI: K-Electric has sought the regulatory authority’s approval for consumption of imported liquefied natural gas (LNG) in electricity generation in place of comparatively expensive fuels like furnace oil and diesel.

“The proposed change will result in lower tariff for the consumers as opposed to the consumption of high-speed diesel or furnace oil,” K-Electric Director Finance and Regulations Muhammad Aamir Ghaziani said in an application to the National Electric Power Regulatory Authority (Nepra).

K-Electric has installed power production capacity of 913 megawatts from natural gas. For this, it requires 180 million cubic feet per day (mmcfd). In case, the required volume is not available from Sui Southern Gas Company (SSGC), it is bound to use alternative fuels like furnace oil and diesel to generate maximum electricity.

Published in The Express Tribune, 2nd May, 2018