The government may switch to one day per week gas load shedding for CNG stations under Gas Load Management Plan to provide gas to Pakistan Electric Power Company (Pepco) for power generation in an effort to reduce power shortfall. The government had enforced a two-day closure of CNG stations under its gas load management plan till March 15, 2010.
"The closure of CNG stations for one day a week will result in 50 MMCFD gas saving, to be passed on to Pepco for power generation," the Cabinet Committee on Energy Crisis (CCEC) decided in a meeting held on March 19. The whole country is in the grip of worst power crisis due to declining power generation against its rising demand. Total power generation on Friday stood at 10150 MW, against demand of 14855MW, which is expected to reach 6000 MW in the peak season.
The decision of one day per week load shedding was taken in the light of available oil and gas supply as presented by the Managing Director of Pepco. He informed the body of the cabinet about bottlenecks in demand and supply position of daily oil and gas requirements, status of circular debt, receivables and subsidy claim from government of Pakistan. He also briefed about proposed load management plan from March to December, 2010.
He said that immediate availability of gas was critical for power generation to reduce the load shedding in the country. After detailed discussions and deliberations, the CCEC took the following decisions: (i) Finance Division will arrange an amount of Rs 43 billion to pay to Pepco by April 2, 2010; (ii) Pepco will pay Rs 6 billion out of its receivables to PSO within one week enabling PSO to ensure uninterrupted supply of oil; (iii) PSO will ensure minimum level of 25000 tons supply of furnace oil to Pepco on daily basis with effect from March 22, 2010; (iv) PSO will enhance the credit limit of KESC from Rs 800 million to Rs 2 billion for one month only (up to 20-4-2010). After one month the credit limit will be reduced to Rs 1 billion.
Meanwhile, KESC will make its own arrangements for raising working capital. PSO agreed to provide furnace oil to KESC on credit limit of 30 days (first 15 days credit without interest and next 15 days credit with mark up). KESC and PSO will enter into a Fuel Supply Agreement immediately; and ( v) SSGC would ensure availability of at least 150 MMCFD gas to KESC for its power generation plants.
The SSGC was also directed for early completion of 9 KM gas pipe line on war footing to ensure supply of gas to KESC power generation units in Korangi, which would result in an increase of 200 MW in KESC system. The Committee decided that KESC will ensure duration of load shedding in Karachi of not more than 3 hours a day. KESC will submit load shedding schedule for Karachi.
The Secretary, Ministry of Water and Power apprised the committee on the demand and supply of electricity and reasons for reduction in generation capabilities. He said that due to dead levels of both Tarbela and Mangla dams, the hydel power generation had been drastically reduced from 6444 MW to 1400 MW on average. He hoped that the water situation would improve in the second week of April, 2010 with resultant improvement in hydel generation. He further apprised the meeting that the KESC, Pepco's biggest defaulter, owes Rs 49.598 billion to Pepco on account of purchase of power. He emphasised that KESC must utilise its own system to generate power at the optimum level of generation capacity.
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