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  • Nov 16th, 2017
  • Comments Off on Availability of LNG to determine conversion scale
Ministry of Energy (Power and Petroleum Divisions) is working on drafting a detailed plan to convert 6052 MW power plants - Gencos and IPPs - from furnace oil to LNG, depending on the availability of LNG, an official of Ministry of Energy told Business Recorder. The deadline for the finalization of the plan is end 2019. The official further maintained that once the plan has been finalized it would be submitted to Cabinet Committee on Energy (CCoE) for approval and stated that it would then be revisited by the Power Division to ascertain its feasibility.

The official added that it is a very complex subject and until complete data is available, it would be difficult to make a projection. Availability of gas as well as its price, which may well fluctuate, would be major factors in the decision.

At present, Pakistan has one operational LNG terminal, owned by Engro, with a capacity to unload 600 mmcfd of LNG. The second LNG terminal, also with a similar capacity, constructed by Pakistan GasPort Consortium Limited (PGPC) is scheduled to become operational on 28 November, 2017 which would increase the country''s capacity to import 1200 mmcfd of LNG.

Currently, LNG is being supplied to power, fertilizer, CNG and industry in Punjab. Director General (Gas) is working on a plan to allocate the imported gas to three LNG-fired combined cycle power plants- Balloki, Haveli Bahadur Shah and Bhikki Power Plant. Well-informed official of Oil Companies Advisory Council (OCAC) told Business Recorder that any ad hoc decision of the government with respect to conversion of Independent Power producers from oil based power plants to LNG would not be acceptable.

Chief Executive Officer of Attock Refinery Ltd (ARL) Adil Khattak has reportedly written a letter to Secretary Petroleum Division and Director General (Oil) urging them to address their concerns with respect to plans for this proposed conversion; he noted that unless refinery issues are resolved prior to this decision begin implemented then the refineries may have no option but to shut down. When asked OCAC did not deny that such a letter was written but Director General (Oil) did not confirm that he had received the letter.



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