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Ogra grants K-Electric license to construct gas pipeline in Karachi

It’s being constructed for an RLNG-based 900MW power plant

SAMAA | - Posted: Jan 7, 2021 | Last Updated: 7 months ago
Posted: Jan 7, 2021 | Last Updated: 7 months ago


The Oil and Gas Regulatory Authority has granted the K-Electric license to construct and operate a gas pipeline that will supply re-gasified liquefied natural gas (RLNG).

The pipeline is being constructed for the RLNG-based 900MW BQPS-III power plant. It’ll also be used to supplement fuel requirement of power plants located at KE’s Bin Qasim Power Complex.

The K-Electric says it will help ensure the BQPS-III power plant receives the required amount of gas at the right pressure. It will help bridge the demand-supply gap in Karachi in the coming years.

In the notification issued Wednesday, Ogra granted the license to undertake regulated activity related to the construction and operation of a 2.4-km, 14-inch pipeline for the purpose of transmission of natural gas and RLNG from the tie-in point at SSGC Custody Transfer Station located at Bin Qasim to KE Bin Qasim Power Complex.

The K-Electric has immediately started construction of the pipeline to ensure the availability of gas for the commissioning of its 900MW power plant.

The addition of the 900MW RLNG Power Plant, along with proposed decommissioning of older and less efficient units, will increase the power utility’s generation capacity and lead to improved service delivery, the KE said in a statement.

Anticipating a power shortfall in summer, work on the BQPS-III power plant is proceeding on a fast-track basis, according to the power utility. Gas turbines and steam generators have arrived and are waiting to be installed so that the first unit of 450MW capacity can be brought online by the summer of 2021 and the second unit by the end of the year.

The K-Electric has already signed an agreement with Pakistan LNG Limited for the supply of 150 mmcfd of gas for BQPS-III.

“Even with the commissioning of this plant, the NTDC needs to expedite work on the upgrade of the interconnection facilities at the KDA Grid so that the power utility can evacuate the promised additional 450MW from the National Grid before Summer 2021,” the K-Electric said.

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