KARACHI: Abraaj Group’s K-Electric Limited (KE) is considering the procurement of 150 mmcfd of re-gasified liquefied natural gas (RLNG), in the initial phase, to meet the fuel requirements of its two combined cycle gas turbine power plants at the Port Qasim complex.
“We have initiated the bidding process, which will determine the preferred bidder and accordingly the regasification terminal proposed by preferred will be used,” a KE official said.
The power utility has invited expressions of interest (EoI) from interested parties to participate in the bidding. The gas to be delivered at plant gate of the Bin Qasim Power Station (BQPS) will meet the requirements of BQPS-II, an existing 560MW plant, and BQPS-III, which is a new 900MW plant that is scheduled to begin operations in 2021.
KE plans to procure 150 mmcfd of RLNG under a three and a half year contract starting from fourth quarter of the year 2020, with the option of contract renewal based on mutually agreed terms.
“Company would procure 150 mmcfd in the initial phase from November 2020, which will increase to 250 mmcfd from mid 2024,” the official said.
According to the initiation for EoI, the bidder must be a terminal developer or a RLNG supplier with experience of handling an equivalent or larger quantity of LNG supply. The last date of submitting the bids is August 09, 2019.
Presently, KE produces electricity from its own generation units with installed capacity of 2,267 MW and in addition, has arrangements with external power producers for 1,362 MW which includes 800 MW from the National Grid, while the demand is around 4,000MW.
Pakistan’s liquefied natural gas (LNG) imports in fiscal year FY19 ended June 30, 2019, stood at $3.33 billion, up 35.96 percent as compared with LNG imports of 2.45 billion in the corresponding period last year.
According to analysts, the gas shortage had made the government unable to provide gas to different sectors of economy including power plants, CNG stations and fertiliser plants, resulting in huge production as well as foreign exchange losses, but the import of LNG has changed the scenario.
With an addition of 700,000 consumers last year, Pakistan’s gas shortfall is estimated to jump by 157 per cent to 3.7 billion cubic feet per day (bcfd) in fiscal year 2019-20 — almost equal to total gas supplies at present.
The estimates have been made by the Oil and Gas Regulatory Authority (Ogra) that put the gas shortfall increasing almost continuously every year to 6.6bcfd by FY2028.
It may be mentioned here the share of re-gasified LNG in the overall gas supply increased to 23 percent in FY 2017-18, while the power sector was the main consumer of natural gas during FY 2017-18, consuming 37 percent of the total available gas.
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