WPI, PPL apply for 40 mmcfd gas from Kandhkot

05 Nov, 2009

Pakistan Petroleum Limited (PPL) and Walters Power International (WPI) Limited, of US, have both shown keenness to set up a power plant, and both are competing for allocation of 40 mmcfd additional gas expected from Kandhkot gas field. The decision rests with the Economic Co-ordination Committee of the Cabinet.
The PPL has approached the Private Power and Infrastructure Board (PPIB) to finalise modalities and licensing agreements if the gas is allocated as requested. The capacity envisaged is 250 mw combined cycle independent power project. PPL has also submitted a request to Petroleum Ministry for allocation of 40 mmcfd additional gas from Kandhkot gas field as its confirmation is required.
"PPIB has been actively working for the development of power projects on fast track basis and in this regard. PPL is pleased to make an offer to PPIB for setting up a 250 mw combined cycle independent power project utilising additional gas available from Kandhkot gas field", sources said quoting PPL administration's letter sent to PPIB. PPL administration has assured PPIB that it is technically and financially capable of executing the project in the shortest possible time.
"Encouraged by PPIB's efforts in achieving the reduction/elimination of electricity load shedding in the country, the company wishes to play its due role in accomplishing the ultimate objective in the overall interest of the country," PPL told PPIB MD, adding: "We look forward to an earliest opportunity for discussions and finalisations of modalities and licensing agreements for the proposed installation of combined cycle independent power project at Kandhkot gas field".
Sources told Business Recorder that PPL management has written a letter to PPIB Managing Director (MD) Fayyaz Elahi urging him to finalise the modalities of the licensing agreement to set up 250 mw power plant. PPL is a petroleum exploration and production company in Pakistan and is an operator of prime gas fields like Sui, Kandhkot, Adhi and Mazarani.
PPL is currently committed to supplying 110 mmscfd raw dehydrated gas to Water and Power Development Authority (Wapda) for its Guddu thermal power station (GTPS). In addition to this, 50 mmscfd raw gas is to be supplied to SNGPL for onward supply to Wapda's GTPS. The production and recoveries from Kandhkot with a designed capacity of 210 mmscfd will increase availability by around 40 mmcfd.
Walters Power International (PWI) has also requested the government to allocate 40 mmcfd additional gas from Kandhkot gas field for setting up a 110-130 mw rental power plant. The Economic Co-ordination Committee (ECC) of the Cabinet will take the final decision with respect to gas allocation from Kandhkot gas field. However, the Petroleum Ministry has recommended that the 40 mmcfd gas from Kandhkot gas field be placed at the disposal of PPIB.

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