The Water and Power Development Authority (Wapda) has lodged a formal protest with the Petroleum Ministry against a cut in gas supply to Kot Addu Power Company (Kapco), official sources told Business Recorder.
They said that Wapda Power Privatisation Organisation (WPPO) Chief Engineer A K Leghari met Director General Gas recently and showed concern over reduction in gas supply to the power plant, forcing the company to consume furnace oil, which is costlier than gas.
"Since you talked to senior mmcfd General Manager, Transmission, SNGPL, for enhancement of gas supply to Kapco, there was slight increase for four to five days. After that, the position is the same," said WPPO General Manager in a letter to the DG, Gas, written on May 29 when supply was 172 mmcfd.
Sources said that gas supply to Kapco in May was not regular. For instance, average daily supply in first four days of May was 262, 247, 239 and 235 mmcfd, respectively, which gradually dropped to 170 mmcfd on May 17. Later, the supply was improved, but on May 29, the allocation was 172 mmcfd against daily average supply of 201 mmcfd in May last year.
The present daily average allocation of Genco-III is 65 mmcfd as compared to average supply of 134 mmcfd in May last year. From the foregoing, WPPO said, it was obvious that less gas allocation has been made to Kapco as compared to the supply in the previous years.
Consequently, the costly low sulphur furnace oil (LSFO), involving huge foreign exchange, has to be imported for consumption at Kapco. It is pertinent to mention that fuel cost component is a pass-through item, which is to be borne by Wapda and ultimately the consumers.
The organisation is of the view that power demand has increased significantly in summer; hence, it is imperative that gas supply to Kapco should be enhanced adequately in the larger interest of the nation. Sources said that DG, Gas had been asked to exert influence on SNGPL to enhance gas allocation for Kapco to about 270 mmcfd in order to enable it cope with the system demand.