OGRA approves K-Electric’s license to construct, operate gas pipeline

KARACHI: Oil and Gas Regulatory Authority (OGRA) has approved K-Electric’s application for a license to construct and operate a gas pipeline to supply Re-gasified Liquefied Natural Gas (RLNG) for the upcoming RLNG-based 900 MW BQPS-III power plant.

According to a notification issued on Jan 6, OGRA granted a License to K-Electric Limited to undertake regulated activity related to construction and operation of 14-inch diameter x 2.4 kilometer Natural Gas Pipeline along with ancillary/connected facilities for purpose of transmission of Natural Gas/RLNG from Tie-in Point, SSGC Custody Transfer Station located at Bin Qasim to KE Bin Qasim Power Complex”

K-Electric had submitted an application for the same on 18 May 2020, so as to ensure the pipeline would be built in time for the commissioning of the first unit of BQPS-III, reads the press release issued by Karachi’s sole power company.

“The power utility has agreed to undertake the construction of the pipeline from the nearest SSGC Custody Transfer Station, on a self-finance basis. The EPC contractor and the Owner Engineer for this pipeline project are already on-board, the detailed design of is already completed and the pipeline material has already been procured. Now, with the issuance of License by OGRA, K-Electric has immediately started construction of a pipeline for its timely availability for the commissioning of 900 MW power plant,” the press release stated.

It further said that in the interest of the citizens of Karachi, and ensuring that they face minimal difficulties in the upcoming summer season, work on the BQPS-III power plant is proceeding on a fast-track basis. Gas turbines and steam generators have arrived and are waiting to be installed so that the first unit of 450 MW can be brought online by the summer of 2021, and the second unit by end of 2021.

The KE said that approval of the 900 MW plant is a vital element towards meeting Karachi’s growing power demands, other commitments also need to be fulfilled in a timely manner for this reality to be realized.

Agreement with Pakistan LNG Limited (PLL) for supply of 150 mmcfd of gas for BQPS-III has already been signed, subsequent to which negotiations on the Gas Sale Agreement (GSA) have reached to the advance stage and any potential hurdles need to be resolved as per past commitments by the Cabinet Committee on Energy (CCoE).