Tag: power plants

  • Sindh industries to face two-day gas supply suspension due to shortage

    Sindh industries to face two-day gas supply suspension due to shortage

    Gas supply to industries and power plants in Sindh will be stopped for 48 hours starting Saturday, as informed by the Sui Southern Gas Company (SSGC).

    The reason for this interruption is the low gas pressure in the system. There’s been a drop in pressure in the gas lines, leading to reduced supply.

    According to The News, the SSGC stated that due to insufficient gas supply, the available gas has decreased, causing low pressure in the system.

    As per the Gas Supply Agreement (GSA) guidelines for industrial customers approved by the Oil and Gas Regulatory Authority (OGRA) and authorised by the Economic Coordination Committee (ECC) of the cabinet, all industries, including power generation units, will remain closed during this time:

    Starting from 8 AM on Saturday, August 26, 2023, to 8 AM on Monday, August 28, 2023.

    The gas will be supplied according to the established priority order. The company issued a stern warning that strict action would be taken if anyone was found violating these rules during the gas supply suspension.

    The statement also mentioned that if any violations are noted during this gas holiday period, the company will take significant measures, which might even involve the suspension of gas supplies for a minimum of 7 days.

    The company’s strict stance against any breaches during this gas supply suspension underscores the importance of adherence to these measures, with the possibility of severe consequences, including a minimum seven-day disconnection of gas supplies.

  • Major maintenance work to cause severe gas supply disruption in Karachi from tomorrow

    Major maintenance work to cause severe gas supply disruption in Karachi from tomorrow

    In a concerning development, the residents of Karachi are set to endure an extensive period of gas load shedding from August 12 to 27, as a critical gas supply of 107 million cubic feet per day (mmcfd) faces disruption due to essential annual maintenance work at the Kunnar-Pasakhi Deep (KPD) gas field.

    The Sui Southern Gas Company Limited (SSGC) has released a notification detailing the maintenance schedule for the KPD gas field, which is slated to be carried out in three phases over the course of 16 days. This maintenance work will necessitate a complete shutdown for eight days, coupled with a partial shutdown lasting four days.

    According to ARY News, the upcoming complete shutdown of gas operations is expected to result in a significant reduction of 107 mmcfd, while the partial shutdown will further trim the gas supply by 50 mmcfd. This unfortunate reduction in gas availability will inevitably impact various sectors, including domestic households, commercial establishments, industrial operations, and even the crucial Kapco power plants that rely on natural gas to generate electricity.

    This unfortunate situation follows closely on the heels of a recent setback faced by the Sui Southern Gas Company (SSGC) when a supply line was damaged during excavation work for the Bus Rapid Transport (BRT) project within Karachi. The 8-inch-diameter gas supply line suffered damage in the vicinity of Safoora Chowrangi, leading to an abrupt suspension of gas supply to neighbouring areas.

    The affected localities encompass a wide range, including vital institutions like the Memon Foundation Hospital and the sprawling Karachi University, as well as residential communities such as Sadi Town, Rimjhim, Rizvia Society, and Down University. Moreover, industrial sites and research facilities like Suparco, Sachal Goth, and surrounding villages have also been grappling with the repercussions of this supply disruption.

    While the inconvenience caused by this unexpected gas supply interruption is deeply felt, the SSGC remains committed to ensuring the completion of essential maintenance work at the KPD gas field. Despite the challenges posed by these circumstances, the SSGC aims to minimise the impact on citizens’ lives and livelihoods to the greatest extent possible.

    As Karachi prepares itself for this period of gas load shedding, residents are urged to exercise prudence in their gas consumption, explore energy-efficient alternatives where feasible, and cooperate with the SSGC’s efforts to manage the situation effectively.

  • Pakistan wants China to ease terms on debt repayment, says report

    Pakistan has approached China with an informal request to ease terms on the repayment of debt on about a dozen power plants set up under the China-Pakistan Economic Corridor over the past eight years, Bloomberg reported.

    “The parties have canvassed Beijing’s willingness to stagger debt payments, as opposed to lowering equity returns,” the report said, adding that Pakistan has yet to make a formal offer. The report claimed that “Pakistan will formally make the request…after it concludes deals with those local power producers to reduce electricity tariffs”.

    A spokesperson at China’s Ministry of Foreign Affairs said they aren’t aware of Pakistan’s plan to seek debt relief.

    “Energy projects have provided Pakistan with a large amount of stable and low-priced electricity, effectively reducing the overall price of electricity in Pakistan,” the spokesperson told Bloomberg. “China-Pakistan energy cooperation has progressed smoothly and brought about real economic and social benefits,” it quoted the official as saying.

    Pakistan’s power division didn’t respond to the US-based business media outlet for comments.

    According to Bloomberg, an enormous build-out of Chinese-financed power plants in Pakistan, which was originally intended to solve its electricity shortages, has resulted in a surplus that Islamabad isn’t able to afford.

    While Chinese financing has helped Pakistan diversify fuel supplies, it has also resulted in a surplus of electricity, which is problematic for the government in Islamabad because it is the sole buyer and pays producers even when they don’t generate. To help tackle the issue, the government has negotiated with power plants, which produce roughly half of its electricity, to lower rates.

    After these negotiations, the government will approach the Chinese government for debt relief, it added.

  • Largest gas reserve in 20 years discovered in Balochistan

    Largest gas reserve in 20 years discovered in Balochistan

    Pakistan Petroleum Limited (PPL) has found a huge gas reserve in Margand block of Kalat, Balochistan, 100% of drilling rights of which are owned by the PPL.

    According to the details, PPL had been drilling at Margand X-1 block since June 30, 2019. It carried out Modular Dynamics Testing (MDT) that helps in the detection of gas reserves. PPL further conducted a Drill Stem Test (DST) that revealed that these reserves might potentially exceed 1 trillion cubic feet.

    In comparison, Sui has estimated reserves of 2 trillion cubic feet. This is the first significant discovery of gas reserves in Balochistan since 2000 after which companies such as British Petroleum, Petronas and Niko Resources had been trying to tap unexplored reserves.

    All companies had, however, failed to discover reserves this large and pulled out of the country.

    Furthermore, little to no attention was given during the tenures of previous governments to exploit the domestic wealth of minerals and fulfil the energy needs of the country. Instead, dubious contracts like rental power plants and Liquified Natural Gas (LNG) power plants were signed, which the National Accountability Bureau (NAB) has been investigating.

    Pakistan can save more than $900 million on the import bill if Margand gas reserves replace LNG, which costs domestic consumers 100% more than Sui gas, a former board director of the PPL has said.