The Pakistan Electric Power Company (Pepco) is accusing the Petroleum Ministry of manipulation to allocate dearer natural gas to influential private sector projects. Pepco Managing Director Engr Tahir Basharat Cheema, in a strongly worded letter to Director General Gas has criticised the 'unjust' decisions taken in the past as well as those in the pipeline.
Pepco has written at least 11 letters to the Petroleum Ministry with regard to supply of gas to TPS Guddu from Kandhkot field and Mari deep reservoirs, but the issue remains unresolved. Once again pleading Pepco's case, Tahir argued that the ECC's decision of August 24, 2004 to divert 75 mmcfd Mari Shallow gas to Fatima Fertiliser confirms that "in lieu thereof Wapda would be supplied gas from Mari deep reservoir and Kandkhot gas field"."We understand that ECC decision is being partly followed by SNGPL through supply of 40 mmcfd gas from Kandkhot field over and above the 50 mmcfd already being supplied by them from Kandkhot field through a separate allocation. Despite a valid, long-term and confirmed agreement between MGCL and TPS Guddu for supply of 110 mmcfd gas, the diversion of gas to Fatima Fertiliser was effected," Cheema said. According to him, as a result of this allocation, generation capacity of TPS Guddu was crippled because only two out of all the machines at the complex were capable of running on RFO, thereby leading to 300 MW idle capacity.
"This power, generated on gas, if made available to the country, would not only have decreased the power outages but also the country's circular debt amounting to Rs 230 billion would have substantially reduced", the letter added.
The other part of ECC decision of August, 24, 2004 pertaining to 50 mmcfd Mari Deep Gas, needs construction of 12" dia, 10 km of pipeline for connecting Mari Deep Reservoir to existing 20" dia, Wapda's line from Mari Shallow to Guddu. In a letter number SGMT-85/9283 written on December 01, 2009, SNGPL had requested MPNR to allocate 50 mmcfd Mari Deep gas to SNGPL for onward supply to TPS Guddu so that they can initiate construction of pipeline.
Pepco argued that in the presence of ECC decision of August 24, 2004, there was no need for any further allocation of Mari Deep gas till such time Star Power came into operation.
The following machines at TPS Guddu are undergoing rigorous rehabilitation, that would not only improve their efficiency ratings, but also reduce the much desired cost of service: (i) overhauling of block-1 comprising G-11, G-12 and CCP-13 (From 290 MW to 415 MW) combined cycle power plant with expected completion by end December 2010 at a cost of $30 million with target date of December 2010. Fuel option is gas only (92 mmcfd); (ii) upgrading of block-2 comprising CCP-6, G-9 and G-10 (from 215 MW to 270 MW) combined cycle power plant at a cost of $15 million with target date of August 2010. Fuel option is gas only (69 mmcfd); (iii) overhauling/ upgrading of Btock-3 comprising CCP-5, G-7 and G-8 (From 225 MW to 280 MW) through USAID at a cost of $18.068 million with target date of March 2011. Fuel option is gas only (71 mmcfd); (iv) replacement of units 1 - 4 by setting up of 747 MW state-of-art technology CCP machines with efficiency of 54.4 percent. Expected year of commissioning is 2012. Fuel option is gas only (134 mmcfd ); and (v) installation of 110 MW Rental Power Plant by PPR. Fuel requirement is 30 mmcfd gas.
"After successive completion of above activities, we feel that the label of inefficiency on these units shall be removed and TPS Guddu can be in a position to share approximate 1827 MW load to the national grid against gas consumption of approximately 400 mmcfd in addition to firing of 500 metric tons RFO on units 3&4," sources quoted Cheema as saying. Keeping in view the present average supply of 256 mmcfd at Guddu during 2009-10, the anticipated shortfall is estimated to be 144 mmcfd.
"By all canons of justice, gas supply to an existing consumer carries a definite priority over any new consumer. As such TPS Guddu stands above all other consumers when it comes to requirement of gas for its units," Cheema said. According to Pepco Managing Director, 40 mmcfd Zamzama gas allocated to TPS Guddu through a separate ECC decision that was being supplied to TPS Guddu has been unilaterally taken over by SNGPL since May 2007 to meet the requirements on their own network.
Pepco has requested that SNGPL should be directed to immediately: (i) start supply of 40 mmcfd Zamzama gas to Pepco that they have unilaterally taken over under the pretext of supplying additional 40 mmcfd Kandkhot gas, which in fact is a replacement of Mari Shallow gas allocated to Fatima Fertiliser, as per ECC decision of 2004; (ii) start work on construction of 12" dia, 10 km pipeline for supply of Mari Deep Gas. In the meantime arrangements are in place for payment of already agreed Pepco's share of the project to SNGPL as cost of construction; (iii) finalise GSA for TPS Guddu that has been lying with SNGPL since long simply because Pepco has technically and rightly insisted that the quantities mentioned in the GSA should be amended to 160 mmcfd instead of 120 mmcfd as mentioned in the draft GSA forwarded by SNGPL; and (iv) supply of maximum quantity of gas for TPS Guddu shall reduce the cost of service and go a long way in producing affordable power, which is in accordance with the energy sector vision of the government , outlined by the Prime Minister in April 2010.
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