Imported coal supply to Sahiwal power plant: CPPA-G asks PR to increase number of freight trains

ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) has asked Pakistan Railways (PR) to increase freight trains to ensure supply of imported coal to 1320 MW Sahiwal coal power plant, official sources told Business Recorder.

The CPPA-G referred to its previous correspondence, where Huaneng Shandong Ruyi (HSR) notified a critical shortage of coal at their 2x660 MW power plant, stemming from transportation delays by Pakistan Railways.

The CPPA-G argued that the shortage threatens the plant’s operations and may lead to serious disruptions. As per Section 5.14 of the Power Purchase Agreement (PPA) signed between CPPA-G and Huaneng Shandong Ruyi (Pakistan) Energy Private Limited on July 11, 2015, the company is required to maintain a coal inventory sufficient for full load operation for 90 days, with at least 45 days’ supply maintained on-site (onsite inventory).

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The CPPA-G, the Market Operator further apprised that due to low hydrology in coming weeks, despatch from thermal power plants including HSR will likely increase, adding that it anticipated that HSR Power Plant at Sahiwal may be despatched at full load for which enough onsite inventory is not available at plant site.

According to chief technical officer, CPPA-G, failure to maintain the required level of inventory could result in forced or partial forced outages, as per the PPA, and could lead to the issuance of Liquidated Damages (LDs) invoices by the Power Purchaser resulting in huge financial implications for the company.

In view of existing situation and given the shortage of coal at site, the CPPA-G has requested Pakistan Railways to arrange the necessary wagons and locomotives to transport the coal currently available at Port Qasim Authority and help to maintain the required inventory on-site as per the PPA, adding that timely action is crucial to prevent further fuel shortages and ensure uninterrupted plant operations.

Copyright Business Recorder, 2024