Tag Archives: LNG power plant

PM okays LNG Plant near Rahim Yar Khan

on 03/07/2017

Prime Minister Nawaz Sharif has allowed raising an LNG (liquid natural gas) power plant. He decided this presiding over a meeting of Cabinet Committee on Energy (CCE). He deferred two agenda items relating to circular debt and load management plan but took interest in a presentation for setting up of a major power plant on what was called `Bhikki model`.At a previous CCE meeting, Punjab CM Shahbaz Sharif had noted that Rahim Yar Khan’s 1,200MW coal based project had been shelved. He asked that the project will be revived after converting it into an LNG plant.PM had directed Water and Power Ministry to evaluate reviving the project after converting it into a LNG plant and whether or not it could be included in projects coming under the China Pakistan Economic Corridor (CPEC).So while Ministry’s evaluation was still awaited, CEO Punjab`s Quaid-i- Azam Thermal Co, Ahad Cheema, made a presentation on the subject. He proposed that a new LNG based project should be launched on  `Bhikki model` and NEPRA (National Electric Power Regulatory Authority)  be asked to give a reference tariff for bidding. The tariff could be adjusted on the basis of bidding.Interestingly, the Bhikki plant has been facing technical and mechanical problems since inauguration by PM in April. The PM had approved the scheme in principle but said the new plant should be situated near main gas pipeline so that expenditures were kept to a minimum, unlike the Nandipur plan. According to a source neither did Cheema mention the proposed location of the project nor did PM asked him to do so. But it was clear from proceedings of CCE`s meetings that LNG project would be located near Rahim Yar Khan. Power ministry would now be required to move a summary to cabinet for approval.Sources said that two coal based projects of 1,200MW to 1,320MW capacity originally planned for Rahim Yar Khan and Muzaffargarh were removed from CPEC list for investments in Diamer- Bhasha dam. An official said a ministerial committee led by Finance Minister Ishaq Dar and comprising ministers and secretaries of Petroleum and Power Ministries that was set up to analyse demand and supply situation of projects being erected for up to September 2018 had completed its work.The PM asked the committee to continue working on plan for period ending in 2023. The committee would submit its report in August this year.The meeting was also briefed on utilising idle capacity of independent power plants under litigation in light of consultation with the law ministry.An official statement said the PM directed that changes be made in scheduled outages of power plants for repair and maintenance from summer to winter season in a way that maximum electricity was provided when most required during months of peak demand. CCE unanimously decided that during Ramazan no power shutdown would be done for development work. It was also decided that increase in use of electricity appliances due to economic prosperity and behaviour patterns of power consumers, be included in estimating projected demand.