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A World Bank (WB) mission to Islamabad with a "gas-to-power" objective will look into the options of, how to make additional gas available to Pakistan's struggling power sector, official sources told Business Recorder.
This mission has landed in the federal capital shortly before the Economic Co-ordination Committee (ECC) of the cabinet slashed proposed power generation from rental plants from 2250 MW to 1500 MW and directed Ministry of Petroleum and Natural Resources to ensure 200 mmcfd (million cubic feet daily) additional gas per day for the existing thermal power plants to generate 700 MW electricity to fill the gap.
The sources said the mission comprises Raghuveer Y. Sharma, Rashid Aziz and Robert Lesnick, a Bank staff member who deals with gas sector policy issues as well as upstream gas issues (eg enhanced gas recovery from existing fields).
Another member of the mission is John Bowers, gas T&D infra specialist dealing with gas losses etc besides, Javed Hussain.
The mission is holding meetings with the Ministries of Water and Power, Petroleum, pipeline companies as well as with the existing gas producers.
"The outcome would be identifying policy, regulatory and investment measures for finding more gas from the existing system to allocate to power sector. A World Bank funded project could be structured to implement these measures," said the head of the mission, in an email, a copy of which is obtained by this scribe.
According to sources, the mission is of the view that Pakistan's existing gas pipeline losses are 10 per cent than the world average, and therefore can be reduced to a more reasonable level.
"World Bank's offer is very attractive and the policy makers have asked them to structure a complete project for this purpose," said one of the officials who are part of discussions with the mission.
The sources said if the World Bank's intended project materialises, gas requirements for the power sector could be met. At a recent meeting presided over by the Minister for Water and Power, Raja Pervez Ashraf, it was assessed that additional 190 mmcfd gas is required for Pakistan Electric Power Company (Pepco) for generating 700 MW form idle capacity. However, it was decided that the Ministry of Petroleum will ensure a minimum supply of 100 mmcfd to Pepco's power plants all the year round.
According to the sources Pepco will also take up the case of provision of LNG supplies to its Gencos. Petroleum Ministry has been directed to study the possibility of import of LNG and arrangements for receipt/storage and distribution facilities.

Copyright Business Recorder, 2009

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