Sui Northern Gas Pipeline Limited (SNGPL) on Wednesday signed a gas sales agreement (GSA) with M/S Savari Power (Pvt) Ltd, for supplying 100 MMCFD gas. SNGPL Managing Director A. Rashid Lone and Savari Power Chief Executive M. Rafi Khan signed the GSA on behalf of their respective sides.
Under the agreement, M/S Savari Power will set up a 500-MW power plant on fast track basis at Faisalabad on SNGPL system. This 100 MMCFD gas would be supplied to Savari Power from the gas reserved for the power sector till such time the other four new IPPs ie Orient Power Company Ltd, Sapphire Electric Company Ltd, Hallmore Power Generation Company Ltd, and Saif Power Ltd, are commissioned. SNGPL has already finalised GSAs with these IPPs, which are expected to be commissioned during 2009.
According to SNGPL, with signing of the GSA with Savari Power, the company has now committed gas supply to five new IPPs, which will produce more than 1400 MWs. This will facilitate in overcoming power shortage around Gujranwala, Faisalabad and Lahore.
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