As a result of delays in K-Electric takeover by the Shanghai Electric Limited (SEL) of China, the government has decided in principle to facilitate the Karachi-based power utility to increase its own generation capacity by 1,600MW and enhance supply from the national grid to 1,400MW .
To fulfill this , the government would immediately allow the KE to start construction of a 700MW coal-based project, provide about 150 million cubic feet of imported liquefied natural gas (LNG) for another 900MW project and enhance power off-take from the national grid to 1,400MW through diversion of upcoming nuclear power projects in Karachi.
The overview advocated that the project would enable the KE to offer affordable power to the consumers along with sizable fuel cost savings to the national exchequer. The power division has reported that imported coal was approximately 70 per cent cheaper than furnace oil and 33pc cheaper than RLNG on a fuel cost comparison basis.
After meetings with all stakeholders, the power division has recently given an undertaking that the NTDC would supply additional power of 500MW to the KE from K2/K3 projects.
Further, it was agreed that the 700MW Datang coal project was critical for the KE in managing the demand supply gap despite availability of 1,400MW from the national grid. The KE has confirmed that this plant will operate on local coal once local coal is made commercially available. The KE will also develop transmission line and related infrastructure to its Bin Qasim RLNG plants.
The first unit (450MW) of Bin Qasim Power Station (BQPS)-III RLNG plant is expected to come online in April-May 2021, followed by second unit by September-October 2021.
