The Oil and Gas Regulatory Authority (OGRA) granted K-Electric license to construct and operate a gas pipeline for the supply of Re-gasified Liquefied Natural Gas (RLNG).
KE was granted the license on Thursday to supply RLNG to an upcoming RLNG-based 900 MW BQPS-III power plant and supplement fuel requirements of the power plants located at Bin Qasim Power Complex.
K-Electric Limited will undertake regulated activity related to construction and operation of 14-inch diameter wide, and 2.4-kilometer long, natural gas pipeline along with the ancillary and connected facilities for the transmission of RLNG from Tie-in Point, SSGC Custody Transfer Station located at Bin Qasim to KE Bin Qasim Power Complex, the newspaper reported.
The license shall be valid for an initial term of 25 years with effect from January 6, 2020. However, it can be revoked earlier and can also be modified or amended by OGRA during this period.
KE will not be liable to pay the annual fee under the Natural Gas (Licensing) Rules, 2002, to the authority while the licensee is carrying out the transmission of natural gas exclusively for self-consumption.
This is the first time that OGRA has granted KE has a license in the oil and gas sector. It will also prove to be a vital step towards ensuring that the upcoming BQPS III power plant receives the right amount of gas at optimal pressure.
The K-Electric had applied on May 18, 2020, for this license. With the issuance of the license by OGRA, K-Electric has immediately started construction of the pipeline for its timely availability for commissioning of 900MW power plant.
In the interest of expediting the process, now the company will undertake the construction of the pipeline from the nearest Sui Southern Gas Company (SSGC) Custody Transfer Station on a self-finance basis.
A press release by KE said,
“The addition of the 900 MW RLNG Power Plant along with proposed decommissioning of older and less efficient units will increase the power utility’s generation capacity and lead to improved service delivery. In the interest of the residents of Karachi, and ensuring that they face minimal difficulties in the upcoming summer season, work on the BQPS-III power plant is proceeding on a fast-track basis. Gas turbines and steam generators have arrived and are waiting to be installed so that the first unit of 450 MW can be brought online by summer of 2021, and the second unit by end of 2021.”