Govt to help KE raise generation capacity by 1,600MW

Dawn News/24-02-2020

ISLAMABAD: Amid delays in K-Electric takeover by the Shanghai Electric Limited (SEL) of China, the government has decided in principle to facilitate the Karachi-based power utility to increase its own generation capacity by 1,600MW and enhance supply from the national grid to 1,400MW on an urgent basis. For this to deliver, the government would immediately allow the KE to start construction of a 700MW coal-based project, provide about 150 million cubic feet of imported liquefied natural gas (LNG) for another 900MW project and enhance power off-take from the national grid to 1,400MW through diversion of upcoming nuclear power projects in Karachi. The power division has moved a case to the Cabinet Committee on Energy (CCoE) for allowing the issuance of tariff notification for Datang Coal Power Limited (2x350MW) at Port Qasim. The CCoE has also been requested to exempt the plant from a 2016 ban on imported fuel-based projects until the local coal from Thar becomes available. The KE will ensure that in case of unavailability of coal from Thar Block II (Phase-III), it may for the purposes of commissioning and operations enter into one or more commercially reasonable coal supply agreements and generate electricity using any local or imported coal. The CCoE’s approval has also been sought for supply of 500MW to the KE from K2-K3 nuclear power projects. The power division has also advocated allocation and firm supply of 150mmcfd re-gasified LNG through federal government companies (Pakistan LNG Limited and Pakistan LNG Terminal Limited) involved in imports with effect from January 2021 to December 2025 at gas rates notified by the Oil and Gas Regulatory Authority (Ogra).