Lower tariff expected after LNG use: K-Electric

Karachi: The K-Electric is trying to get approval for the consumption of imported and liquefied natural gas (LNG) for its electricity generation power plants, according to a news report. The K-Electric Director Finance and Regulations Muhammad Aamir Ghaziani said in an application to the National Electric Power Regulatory Authority (Nepra) that this would result in lower tariffs for the consumers.
K-Electric has installed power production capacity of 913 megawatts from natural gas and requires 180 million cubic feet per day. However, due to unavailability, the Sui Northern Gas Company has to use alternative fuels for this power generation. Understanding the under-utilisation of its power generation, a five-member committee was formulated which noted that the present infrastructure could be used for high-speed diesel operation.
The Cabinet Committee on Energy, K-Electric have applied to Nepra to allow the use of re-gasified LNG as an alternative to natural gas. The average cost of power production from natural gas stands at PKR 3.916 per unit compared to PKR 11.207 per unit through re-gasified LNG. The official application from the K-Electric has said that in the presence of no other alternatives, this re-gasified LNG is the only fuel that can be used and that Nepra should allow its use.

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