Narowal power plant: Hubco seeks permission to import 35,000 MT of furnace oil

ISLAMABAD: Hub Power Company (Hubco) has sought permission from government to import 35,000 MT furnace oil urgently for its 225 MW Narowal power plant.

M/s Hubco's power plant in Sahiwal has been supplying electricity to the national grid, mainly to maintain voltage in the area since 2011.

At present, the power plant is continuously generating electricity to meet the demand of the national grid. However, the power plant's fuel stocks are depleting rapidly.

On October 2, 2002, in a letter to the Prime Minister's Special Assistant on Petroleum and Natural Resources, Nadeem Babar, Chief Executive Officer (CEO), Hubco, Khalid Mansoor, said the power plant has 6,000 tons of RFO stock, which is barely enough for one week of generation at full load.

He further stated that Be Energy Ltd is Hubco's main source of fuel supply under the Fuel Supply Agreement (FCA) of March 2, 2009.

"We have placed a total order for 25,000 MT of RFO for October and November, 2020 as per generation demand, which they are unable to supply to us due to acute shortage of RFO in the local market," he added. The power company argues that keeping in view the fast declining RFO stock at the Narowal power plant due to continuous dispatch by National Power Control Centre (NPCC) and unavailability of RFO within Pakistan, it is essential to immediately import RFO.

In the light of the decision of the Cabinet Committee on Energy (CCoE) in its meeting held on June 20, 2020 to allow IPPs to import RFO through Oil Marketing Companies, the company has requested that its fuel supplier, Be Energy Ltd, be allowed to import 35,000 tons of RFO on immediate and urgent basis to mitigate the shortage of fuel in the country.

According to CEO, Hubco Narowal is committed to take 25,000 tons of RFO to ensure that its power plant remains available for electricity generation in these months.

M/s Hub has requested different relevant ministries that considering the long lead time in terms of the entire import process, it should be given urgent approval for the issuance of No Objection Certificate (NOC).

Copyright Business Recorder, 2020