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ECC: Likely Approve gas supply for fourth LNG power plant

The Economic Coordination Committee (ECC) of the cabinet, which is scheduled to meet on Tuesday (today), is likely to approve gas supply for the fourth 1,263-megawatt liquefied natural gas (LNG)-based power plant in Punjab in a bid to overcome electricity crisis in the upcoming summer season.

The previous government of Pakistan Muslim League-Nawaz (PML-N) had approved this plan and former prime minister Shahid Khaqan Abbasi had inaugurated the plant.
This is the fourth LNG-based power plant being built in Punjab for which the Power Division is seeking approval for gas provision through Sui Northern Gas Pipelines Limited (SNGPL). Already, three LNG-based power plants of about 3,600MW capacity are running in the province.
Earlier, the Private Power and Infrastructure Board, in its meeting, approved the construction of an LNG-based power plant near Trimmu barrage in Jhang district, Punjab at an estimated cost of $802 million.
The Cabinet Committee on Energy also gave the go-ahead for developing the LNG-power project near Trimmu barrage.
The National Electric Power Regulatory Authority (Nepra) has approved a tariff of Rs5.9084 per unit for the combined-cycle LNG-fired power plant for 30 years. However, the tariff for the combined-cycle plant based on high-speed diesel has been fixed at Rs11.1659 per unit for 30 years.
Tariff on the simple-cycle mode of operation has been set at Rs9.3042 per unit. The simple-cycle tariff, on the basis of unit delivered with LNG as the fuel, will only be applicable at the time of availability of gas turbines for a maximum 349 days before the commercial operation date (COD) of the power complex for combined-cycle operations.
LNG is an alternative fuel for furnace oil and high-speed diesel. At present, LNG-based power plants are generating cheaper electricity compared to power generation through furnace oil and diesel in the past.
In January this year, the cost of electricity based on re-gasified LNG stood at Rs5.07 per unit and its share was 14.66% in the total electricity generation. The cost of electricity generated through domestically produced natural gas was Rs5.07 per unit and its total share in electricity generation was 22.02%.

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