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KARACHI: The Pakistan Chemical Manufacturers Association (PCMA) has raised concerns that moving chemical plants from captive power to grid power connections could compromise their safe, efficient, and sustainable operations.

In a letter to the Ministry of Energy (Power Division), PCMA has highlighted that these plants are equipped with captive power generation infrastructure, classified as co-generation/ combined cycle power plants (CCPP).

This arrangement ensures an efficient and reliable supply of power and steam, both of which are critical for the continuous operation of these plants.

Recently, the government has decided to shift all captive power plants to the grids of the relevant Power Distribution Companies (Discos)/ Karachi Electric (KE) to comply with IMF requirements.

Consequently, the Petroleum Division has also revised its gas supply merit order by removing captive power plants from its list of prioritised sectors.

According to the PCMA, “Transitioning these captive power plants to the grid would only meet the electrical power requirements of these chemical plants but would not meet their essential steam requirements. Separating the production of power and steam would significantly reduce overall efficiency, as an enormous amount of natural gas would still be needed to generate the necessary steam, which was previously an inherent by-product of CCPPs.”

The apex representative body of chemical industry also expressed reservations over the ability and infrastructure of distribution companies to provide reliable and uninterrupted power to cater to the needs of these industrial units.

Power interruptions and even power quality issues, like voltage and frequency excursions, could cause plant shutdowns, with restarts typically requiring 5-7 days.

The letter added that currently no comparable process plants are connected to the grid, and these plants remain highly vulnerable to power interruptions and voltage/ frequency excursions. This exposes them to huge safety risks, including potential releases of hazardous gases and equipment failures.

Therefore, in the letter it is requested that the government “continue with existing captive power arrangements and not to depend on the grid connections to ensure sustainable and reliable operations hence the exclusions be made for these chemical process plants accordingly.”

Copyright Business Recorder, 2024

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