K-Electric Intrested to Build Electricity with LNG of 900MW

K-Electric has planned to start construction of 900-megawatt re-gasified liquefied natural gas (RLNG)-based Bin Qasim Power Station-III following month in an attempt to supply cheap power to the customers of Karachi.”The company will spend $650 million in constructing the Bin Qasim Power Station-III and work will commence in December.

He said the job had obtained all necessary approvals and was part of K-Electric’s planned initiatives, which could lead to investment of around $3 billion across the power value chain during the upcoming few years.

K-Electric has awarded contract to the 900MW job to Siemens AG and Harbin Electric International.He emphasised that the Bin Qasim Power Station-III represented one of the largest private-sector investments from the nation’s power industry and was in accord with the power utility’s vision of enhancing its own generation efficiency.

“The job is part of why K-Electric’s company plan formulated after a detailed study to examine all probable options for increase in the generation capacity for example long term offtake of additional power from the national grid together with the purpose of bridging the supply-demand gap and decommissioning of its previous furnace oil-based Bin Qasim Power Station-I,” Alvi said.He ruled out the belief that the undertaking is a drain on the national exchequer as it’d operate on imported gas.

“We are replacing old and inefficient furnace oil-based components with fresh low-cost and effective generation components; this can be a very effective combined-cycle plant with around 60% efficacy against 30% efficacy for elderly plants,” he said.”The 900MW RLNG plant is going to lead to lower import prices for the authorities, affordable power for the users and a far smaller carbon footprint”Alvi pointed out that natural gas was a dwindling source in Pakistan and also the change to RLNG was a practical compromise in each way.

K-Electric was becoming in an average around 105-110 million cubic feet of natural gas per day (mmcfd) against allocation of 276 mmcfd, he said, adding that the nation was already undergoing a situation in which families were facing reduced gas pressure.

“We should have RLNG in elderly, less-efficient plants and also we should not miss out on gaining the maximum advantage from changing away from furnace oil,” he stressed, adding that the new power station would be constructed with only 5 percent advance payment after re-negotiation of provisions and the initial unit of 450MW will be commissioned in just 19 months instead of 24 weeks.Alvi pointed out that at current National Transmission and Despatch Company (NTDC) was providing 650MW into Karachi.

K-Electric had hunted additional power from the national grid last year but NTDC refused to supply, mentioning overloading and system stability worries, he said.NTDC, nevertheless, allowed an additional 150MW from wind power plants in Gharo for a couple of years, which K-Electric was already getting, he revealed. But, wind power plants rely on the average wind strain, which fluctuates substantially, rendering supply less reliable.

Additionally, he said, K-Electric asked for the import of 500MW in the national grid during the under-construction nuclear power plants Kanupp-II and III and when that was made available, K-Electric will be able to replace the remaining ineffective power plants.

Saying that the present source of 650MW was without a valid contract that K-Electric and NTDC/Central Power Purchasing Agency (CPPA) still had to signal, Alvi worried that K-Electric was ready to put money into interconnections when and when an agreement was set in place for the distribution of additional power.

Looking at Karachi’s desperate needs, a thorough analysis was undertaken and at August 2017, the K-Electric board approved the building of this 900MW power plant at the Bin Qasim Power Complex.Alvi pointed out that when the National Electric Power Regulatory Authority (Nepra) decided K-Electric’s multi-year tariff (MYT), that was advised by the authorities in May 2019, the projected 900MW plant was also part of their tariff and investment plan, which substantiated the fact that the project fulfilled all regulatory, operational and financial needs.

What’s more, if Nepra made some changes to its determination, though the job was already approved,”we went through the approval procedure once again”.

Leave a Reply