Short-term measures to lessen loadshedding: power plants to be installed at gas fields to generate 1500 megawatts

The government has decided to install power plants at gas fields to produce upto 1,500 megawatt electricity as a short-term measures, for which modalities are being worked out and interested companies are conducting survey to identify suitable gas fields.
State Minister for Petroleum and Natural Resources Jam Kamal Khan while talking to Business Recorder here on Thursday said that the government had decided in principle to allow installation of power plants at 46 gas fields with utilisation of 300 Million Cubic Feet per Day (Mmcfd) gas to increase power production by 1,500 megawatts. He said that these power plants would be portable and with a capacity to produce 31 MW. The minister said that the Prime Minister would formally approve the plan to install the power plants this month.
"We have indicated 46 such gas fields to the government and the gas-based power plants will be installed at those low Btu gas fields situated near national grid so that electricity produced can easily be transferred to the national grid," Kamal added. He said that the step would reduce the on-going prolonged power load-shedding as well lessen power tariff rate, as at present bulk of the power generation is based on furnace oil and diesel pants, which are three times costly when compared to gas-fired plants.
The minister said the government was not in a position to provide natural gas to the Compressed Natural Gas (CNG) stations in Punjab from current month to the end of February 2015, but allowed CNG stations of the biggest province to import Liquefied Natural Gas (LNG) to keep their businesses running.
The minister said the government would try to facilitate the CNG sector and the fuel would remain 35 percent cheaper than petrol, adding that at present the government was facing serious problems in meeting the requirements of the domestic gas consumers, as with the arrival of winter domestic sector's demand has sharply increased.
He said that the government had started supplying power to the industrial sector, as it was not in a position to continue gas supply to Punjab-based industries due to gas shortage. Kamal said that the Prime Minister has lifted a ban on new gas schemes and the Oil and Gas Regulatory Authority (Ogra) will increase the gas tariff for new schemes.
He added that the Petroleum Ministry has forwarded summaries regarding reduction in prices of Liquefied Petroleum Gas (LPG) to the Council of the Common Interests (CCI) and after the approval of the summaries the government will determine LPG prices. He said the government has decided to import 2 Billion Cubic Feet per Day (BCFD) of LNG for which investors have submitted expressions of interests (EoIs) and first LNG terminal will be ready to start LNG operation in Port Qasim Karachi by the end of February.