ISLAMABAD: Karachi Electric (KE) and CEO Pakistan LNG Limited (PLL) Tuesday signed a Gas Supply Agreement (GSA) for the provision of 150 MMCFD RLNG for power utility's 900 MW RLNG-based power plant at Port Qasim.
The first of its kind GSA between a public sector energy company and a private sector power utility was signed by CEO KE Moonis Alvi and CEO Pakistan LNG Limited (PLL) Masood Nabi. Minister for Energy Muhammad Hammad Azhar witnessed the signing ceremony.
The signing ceremony took place at the Petroleum House in the presence of senior management from both organizations.
Special Assistant to the Prime Minister on Power and Petroleum Tabish Gauhar, and Secretary Petroleum also attended the ceremony. Senior officials from the Government of Pakistan and both the companies were also present on the occasion.
Minister for Energy Hammad Azhar lauded both the organisations on achieving this milestone, calling it "a step in the right direction for the future of Karachi and a positive move for both KE and PLL which ensures the interests of both parties as well as Karachi."
BQPS-III is KE's flagship project valued at over $ 600 million will add 900 MW to KE's generation supply and meet Karachi's growing power demands.
Speaking on the occasion, CEO KE Moonis Alvi said, "this is a great occasion and I'd like to thank the Honorable Minister and the Ministry of Energy for their support and commitment to Karachi. Work on BQPS-III is progressing swiftly and this is the fastest commissioning of a project in recent times. The addition of this plant will go a long way in supporting Karachi's continued socio-economic growth."
CEO PLL, Masood Nabi, said "this will remain as a key moment in the public-private collaborative efforts towards the country's sustained growth."
Well-informed sources told Business Recorder that there is still a deadlock between SSGC and KE on GSA, as both the entities are not showing leniency in their stance.
The sources said, differences between the public sector companies and KE cannot be resolved until consensus is evolved on Arbitration Agreement.
However, progress is witnessed on Power Purchase Agreement (PPA) between Central Power Purchasing Agency Guaranteed (CPPA-G) and National Transmission and Despatch Company (NTDC) for supply of electricity to KE from the national grid.
The sources said NTDC is willing to continue supply of 1100 MW to KE from national grid at basket price but showing reluctance to give additional power from Jamshoro power plant, which is expensive.
According to sources, most of the points have been agreed between KE and government entities with the "blessings" of Power Division and now a summary will be submitted to the Economic Coordination Committee (ECC) of the Cabinet in a week's time.
Copyright Business Recorder, 2021