BAFL 46.54 Decreased By ▼ -0.21 (-0.45%)
BIPL 21.04 Increased By ▲ 0.68 (3.34%)
BOP 5.54 Increased By ▲ 0.23 (4.33%)
CNERGY 4.85 No Change ▼ 0.00 (0%)
DFML 18.82 Increased By ▲ 1.67 (9.74%)
DGKC 80.50 Increased By ▲ 1.65 (2.09%)
FABL 30.95 Increased By ▲ 1.71 (5.85%)
FCCL 20.49 Increased By ▲ 0.14 (0.69%)
FFL 9.59 Decreased By ▼ -0.07 (-0.72%)
GGL 13.94 Increased By ▲ 1.19 (9.33%)
HBL 116.96 Increased By ▲ 2.68 (2.35%)
HUBC 123.62 Decreased By ▼ -0.18 (-0.15%)
HUMNL 7.98 Increased By ▲ 0.40 (5.28%)
KEL 3.52 Increased By ▲ 0.19 (5.71%)
LOTCHEM 28.59 Increased By ▲ 0.34 (1.2%)
MLCF 42.10 Increased By ▲ 0.10 (0.24%)
OGDC 123.10 Increased By ▲ 8.99 (7.88%)
PAEL 18.82 Decreased By ▼ -0.03 (-0.16%)
PIBTL 5.71 Increased By ▲ 0.11 (1.96%)
PIOC 114.50 Increased By ▲ 0.60 (0.53%)
PPL 110.98 Increased By ▲ 11.52 (11.58%)
PRL 27.52 Increased By ▲ 0.76 (2.84%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
SNGP 70.09 Increased By ▲ 2.69 (3.99%)
SSGC 13.18 Increased By ▲ 0.58 (4.6%)
TELE 8.81 Increased By ▲ 0.26 (3.04%)
TPLP 13.65 Increased By ▲ 0.35 (2.63%)
TRG 91.94 Increased By ▲ 6.25 (7.29%)
UNITY 26.81 Increased By ▲ 0.34 (1.28%)
WTL 1.57 Decreased By ▼ -0.01 (-0.63%)
BR100 6,544 Increased By 101.5 (1.58%)
BR30 23,210 Increased By 429.3 (1.88%)
KSE100 63,918 Increased By 961.7 (1.53%)
KSE30 21,352 Increased By 348.1 (1.66%)

ISLAMABAD: Directorate General of Gas (Petroleum Division) has urged Power Division to revise Firm Gas Orders (FGOs) of Government Power Plants (GPPs) down from November 2023 to February 2024 to avoid any financial implications on any party.

Directorate General of Gas, sources said, floated this proposal in response to letters from Power Division and National Transmission and Despatch Company (NTDC), adding that Sui Northern Gas Pipeline Limited (SNGPL) has highlighted that three GPPs had placed FGOs from November 2023 to February 2024.

Settlement of dues of IPPs/GPPs: FD seeks expenditure details of Rs601bn extended to PD

The sources said, for November, 2023, GPPs’ FGOs are 437-MMCFD of gas, power demand is 200-MMCFD whereas RLNG spot cargoes are 200-MMCFD. For December 2023, GPPs FGOs are 424-MMCFD, whereas power demand is 274-MMCFD against available RLNG of 274-MMCFD. In January 2024, GPPs’ FGOs are 387-MMCFD, power demand is 360-MMCFD, whereas RLNG availability on spot cargoes is 290-MMCFD and 220-MMCFD without spot cargoes. For February, GPPs’ FGOs are 268-MMCFD, power demand is 150-MMCFD whereas RLNG availability with and without spot cargoes is 150-MMCFD each.

Deputy Director (Tech) Salah Uddin Khan, in his letter noted that M/s SNGPL has stated that RLNG demand provided by power sector is less than cumulative FGOs of three GPPS and it can lead to financial repercussions for SNGPL, as well as, the GPPs. Further, winter’s gas demand of domestic sector rises exponentially and SNGPL has to divert RLNG to domestic sector to meet shortfalls of highest prioritised domestic sector in light of federal government directions.

“This exposes SNGPL to non-supply on account of lesser supply of RLNG volumes against FGOs as it may not be possible for SNGPL to meet FGOs of three GPPS even if SNGPL meets the overall demand of power sector,” said Deputy Director (Tech) Directorate General of Gas.

He further contended that in case LNG is not procured as per SNGPL’s requirements, the exposure on account of non-supply against FGOs shall increase further during December 2023 and January 2024. Therefore, downward revision of FGOs of three CPPs for months of November 2023, December 2023, January 2024 and February 2024 is required.

The GPPs; however, may increase the FGOs in other months of 2024 to meet their annual dispatches required under their respective Power Purchase Agreements (PPAs). In view of the position, forecast by M/s SNCPL, Power Division has been requested to advise the concerned for downward revision of FGOs of GPPS so that financial implications, if any, to either party may be avoided.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Avoiding financial implications: Power Div asked to revise FGOs of GPPs

Three projects: ADB approves $659m in financing

New FAB ED: govt initiates appointment process

FWBL sell-off: Minister briefed about status of accounts

Digitising budget process: Shamshad chairs IMF mission meeting

‘Illegal’ LCs, forex market speculation: MoF set to share list of banks with SIFC today

Loss-making Discos: FD opposes PD’s proposal

Power sector: Nepra backs transition from Libor to ‘SOFR’

‘Delayed’ CASA-1000 project: World Bank reluctant to arrange funds

CPEC 10th anniversary: there exists strong commitment to accelerate pace of ongoing projects

Customs values of various goods changed