Diversion of Mari gas to Fatima Fertiliser: government urged to save Guddu TPS from closure

Pakistan Electric Power Company (Pepco) has urged the Federal government to allocate gas for thermal power station (TPS), Guddu, from Kandhkot and Mari deep fields in lieu of 110 mmcfd Mari gas to avoid forced shut downs, official sources told Business Recorder on Saturday.
The sources said that a meeting was held on November 21 with the Director General (Gas) to discuss allocation of gas for the Guddu TPS in lieu of 110 mmcfd Mari gas, which has been diverted to Fatima Fertiliser Company as per the ECC decision. During the discussions, the Director General (Gas) pointed out that in 2004, the Sui Northern Gas Pipeline Limited (SNGPL) had agreed to supply gas equivalent to 75 mmcfd Mari gas to Fatima Fertilisers and, therefore, the SNGPL should fulfill its commitment.
The SNGPL explained that they were ready to bridge the gap in case gas allocation was made from Kandhkot and Mari deep gasfields to the SNGPL for supply of the same to the Guddu TPS. The MGCL revealed that about 50 mmcfd gas of low heating value (530-545 BTU/SCF, ie equivalent to 38-mmcfd Mari gas presently being supplied from Mari Shallow Field) is available from Mari deep gasfield.
This allocation was made to Star Power and because of delay in commissioning of the IPP, the MGCL are in a position to supply the same to the Guddu TPS for two years. The SNGPL informed that a line segment of 9-kilometre was required to be commissioned, costing Rs 120 million to materialise the proposal. The Director General (Gas) said that the three stakeholders - Pepco, SNGPL and MGCL - should share the cost of the line segment.
The Director General (Gas) agreed to prepare a draft summary for the allocation of the said gas for the Guddu TPS in case the stakeholders agree to pick the cost of nine-kilometre line segment. On a query from the Director General (Gas), representative of PPL, explained that they were supplying 100 mmcfd from Kandhkot gas field to Guddu TPS as per gas sale agreement (GSA).
Moreover, 50 mmcfd is being supplied by the SNGPL as per the ECC decision, 40 mmcfd additional gas is also being supplied to the Guddu TPS by the SNGPL from the same field, which can be allocated for the power complex to compensate the loss of gas due to Mari gas diversion.
The Director General (Gas) agreed to the proposal and said that the case would be submitted for approval of the ECC. The PPL representative said that another 40-mmcfd gas was available from Kandhkot gasfield and two companies, ie the PPL and some investors, had approached the PPIB for allocation of gas to set up a 250MW IPP.
According to him, this gas can be allocated to the Guddu TPS if the PPIB agrees and the ECC gives its consent. The General Manager (Thermal), Pepco, explained that 40 mmcfd gas from Zamzama gasfield was allocated by the ECC for the Guddu TPS, which needed to be supplied by the SNGPL immediately.
The SNGPL said that they were supplying the said quantity to the Guddu TPS from Kandhkot gasfield. However, they were ready to supply the same from Zamzama gasfield in case Genco-II signed and executed GSA with the SNGPL. The Pepco General Manager (Thermal) agreed to the proposal. According to Pepco Managing Director Tahir Basharat Cheema, it is evident that 331-mmcfd gas can be made available for the Guddu TPS if the ECC and PPIB accord approved.
A new 700-800 MW combined cycle power plant is being set up at the Guddu TPS. Besides, 110 MW rental power plant is also being commissioned at the power complex. The gas requirement of the power complex is expected to be 340 mmcfd after commissioning of the new plants whereas furnace oil can be consumed maximum at the rate of 500 metric tonnes per day (equivalent to about 20 mmcfd gas only).
The sources said the Pepco had urged the Ministry of Water and Power that to avoid forced shut down of machines of the Guddu IPS due to scarcity of fuel, the PPIB should be approached to agree to the proposal for allocation 40 mmcfd gas from Kandhkot gasfield to the Guddu TPS in place of proposed allocation to the PPL.