Govt Allows K-Electric to Purchase LNG from PLL

The government on Wednesday accorded approval to the summary of Petroleum Division to allow K-Electric (KE) to purchase LNG from Pakistan LNG Limited (PLL) Terminal in Karachi.

The approval was accorded in the Economic Coordination Committee (ECC) meeting chaired by the Federal Minister for Finance and Revenue Shaukat Tarin in Islamabad.

The approval will allow KE to operationalize its newly built flagship 900MW Port Qasim (BQPS-III) power plant to augment its stalled electricity generation capacity.

In a meeting on March 27, 2020, the Cabinet Committee on Energy had considered a summary prepared by the Power Division and approved the allocation and firm supply of 150 million cubic feet of RLNG per day (mmcfd) according to the requirement shared by K-Electric through the Pakistan LNG Terminals Limited (PLTL) and PLL from January 2021 to December 2025 at the Oil & Gas Regulatory Authority’s (OGRA) notified rates.

Subsequently, PLL approached the OGRA for the determination of the RLNG sale price for its supply to K-Electric.

K-Electric constructed a power plant with a generation capacity of 900MW which required gas supplies, and according to the Petroleum Division summary, all civil/electrical/ instrumentation works, the laying of pipelines, and the establishing of a metering station had been completed at the project site. The pipeline has connected the power plant with the Sui Southern Gas Company’s (SSGC) custody transfer station.

The Gas Sale Agreement (GSA) for the project was signed in August 2021, which now got the nod from ECC. This is the first agreement of its kind where RLNG is being directly supplied by a government entity to a private sector company.

After the ECC’s approval, K-Electric will be able to operationalize the power plant to enhance its generation capacity.

Faiz Paracha is a seasoned broadcast journalist with over 15 years’ experience in reporting and e...