KARACHI: National Electric Power Regulatory Authority (NEPRA) released an interim order allowing K-Electric to utilize re-gasified liquefied natural gas (RLNG) as an alternative fuel for power production given that the power generation company will first consume a minimum 180 million cubic feet per day (mmcfd) of locally produced gas.
After Sui Southern Gas Company (SSGC) cut natural gas supply to the K-Electric, the power utility sought National Electric Power Regulatory Authority’s (NEPRA) permission to use the imported gas – RLNG – as a substitute.
Surprisingly, the application of K-Electric seeking the regulator’s consent to use 130 mmcfd of locally produced gas and 60 mmcfd of RLNG, to meet its daily requirement of 190 mmcfd, didn’t stipulate the condition of utilising a minimum 180 mmcfd.
The Nepra official said, “We want (K-Electric) consumers to receive cheaper electricity rather than expensive one. K-Electric may even use RLNG in place of expensive furnace oil and diesel, but after consuming a minimum 180 mmcfd of local gas.”
In its interim order, the regulatory authority also directed K-Electric to execute the gas supply agreement with SSGC at the earliest. The agreement would bind SSGC to supply the cited volume of gas to K-Electric. However, the two utilities are yet to develop consensus on terms and conditions of the agreement.
The officials of NEPRA further said that after the interim order, they would soon conduct a meeting with the stakeholders like K-Electric, SSGC, industrialists and commercial users where everyone can voice their arguments on the matter.
“The hearing will be followed by a final order, which may be different from the interim one,” NEPRA’s officials stated.
The row between SSGC and K-Electric resulted in massive load-shedding in Karachi during extremely hot weather in the month of April.
SSGC maintained that about a year ago, it had notified privatized power company of the forthcoming local gas shortage during the summer.
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