The government has dumped the proposals for establishment of 25 thermal power projects, of 3964 MW capacity, which would have cost $3 billion, due to non-availability of gas, official sources told Business Recorder.
They said that due to restricted gas supplies, either on 9 months basis from Sui Northern Gas Pipeline Limited (SNGPL) or on 11 months basis from SSGC, the Private Power Infrastructure Board (PPIB) was constrained to process the projects on dual fuel.
They said that it was feared that processing of dual fuel would have negative impact on bankability of the projects, as financing for such projects would not only be difficult but costly.
Apart from upsetting 25 proposals of thermal power project, PPIB has also shelved 900 MW (600 MW Hawkes Bay and 300 MW Gadani) projects in KESC area where power shortage has reached an alarming level, sources added.
Out of the 25 projects dumped, 13 projects were proposed in SNGPL system. They are Faisalabad Power Project, Faisalabad, of 150 MW ($113 million); CMIC, China, Faisalabad, 120 MW ($90 million); Alfa Energies, Faisalabad, 200 MW ($150 million); R& H power project, Faisalabad, 101 MW ($76 million); Gulf Power Project, Lahore, 58 MW ($44 million); PPG Lahore Project, Lahore, 123 MW ($92 million); Global Energy Power Project, Lahore, 120 MW ($90 million); Lahore Power Project, Balloki, 120 MW ($90 million); Kabirwala Power Project, Kabirwala, 150 MW ($113 million); Kashmir Power Project, AJK, 150 MW ($113 million); Escon Project, 200 MW ($150 million); Haseeb Waqas Power Project, Nankana Sahib, 150 MW ($113 million); and Nishat Thermal Power Project, Faisalabad, 200 MW ($150 million).
The projects, which have not been processed for SSGC system, are, Fauji Power Project, Khalifa Point, Karachi, 300 MW ($225 million); Green Energy Power Project, Karachi, 126 MW ($95 million); Transatlantic Power Project, Karachi, 116 MW ($87 million); Emirates Energy Limited Project, Karachi, 260 MW ($270 million); and Rato Dero Power Project, 200 MW ($150 million).
Four proposals in other gas fields areas which have been shelved are OPI Power Project (OPI Gas Field), Hyderabad, Sindh, 200 MW ($150 million); Royal Energy Power Project (Uch Gas Field), Balochistan, 600 MW ($450 million); Pak Power Generation Project (BHP Zamzama), 100 MW ($75 million); and Transatlantic Power Project, Zamzama, 120 MW ($90 million).
The Economic Co-ordination Committee (ECC) of the Cabinet had recently directed the Ministry of Petroleum and Natural Resources to allocate permeate gas (about 75 MMCFD of 200 BTU/ SCF) from Qadirpur field to SNGPL system, and place it at the disposal of PPIB for setting up of new IPP of 150 MW.
It has also been decided to allocate low BTU gas (20 MMCFD of 200 BTU/SCF) from Kandra field to SSGC, which along with 5 MMCFD pipeline quality gas from SSGC system at Sukkur, may be placed at the disposal of PPIB for setting a new IPP of 60 MW.