KARACHI: K Electric on Wednesday stopped testing its new power plant to supply 150 million cubic feet per day (MMCFD) from Sui Southern Gas Company (SSGC).
“We will test the operation of the first unit of the 900-megawatt plant in March-April, provided we get 150 mm per hour,” K Electric (KE) chief executive officer Monis Alvi told a briefing.
The SSGC is reluctant to sign a Gas Supply Agreement (GSA) with KE for the supply of 150 mmcfd to the developing dual fuel plant under KE unless the previous recipients But do not agree.
SSGC spokesperson Shabaz Aslam told The News, “KE has to pay Rs 122 billion to the SSGC against the supply of gas by 2012, while it acknowledges only Rs 22 billion. “
“We have already sent the terms of reference to KE regarding the appointment of a third party auditor, and they are reluctant to sign it. The GSA will not be signed until the matter is resolved. Because the SSGC is the custodian of public money.
A KE official said that KE could not pay the SSGC as it was not received by the federal and provincial governments. “Besides, if the SSGC is imposing the markup, the KE should impose the same rate on people who are welcome in the government,” the official said.
KE claims that the actual amount paid is only Rs 13.7 billion while the additional Rs 102 billion is only mark-up and surcharge. KE has Rs 220 billion receivable as revenue difference claims and Rs 12 billion from the federal government.
In addition, another Rs 29 billion is due from Karachi Water and Supply Board, Rs 3 billion from Balochistan and Rs 12 billion from Sindh.
Alvi hopes the utility will get gas for the 450-megawatt plant as it has already received all the approvals and licenses to lay the pipeline.
He said, “The first unit of K Electric’s RLNG-based 900 MW (450×2) plant will be ready and tested by April this year, allowing the utility company to build its 210 MW fuel oil by the end of 2021.” Will shut down the inactive plant. “
Earlier this month, the government allowed KE to lay a gas pipeline for fuel to its next RLNG-based power project, Bin Qasim Power Station III.
The gas pipeline, which is 14 inches in diameter and can supply up to 250 mmcfd, will cost ڈالر 4 million, a modest sum compared to the 64 641 million that KEK has to offer. The source is an estimated cost to build two 450 MW power plants.
However, KE said it would continue to do business with SSGC as it needs natural gas up to 180 mmcfd for its other power plants.