Karachi, April 8, 2021: K-Electric’s flagship 900 MW power plant, BQPS-III is progressing on fast track basis. Entire power train of first Unit consist of Gas Turbine, Steam Turbine , Generator and Heat Recovery Boiler have arrived and installed at the power utility’s Bin Qasim Power Complex. All relevant civil structural works is completed and associated auxiliaries and piping are progressing swiftly with the target of ensuring that the first unit is ready to be commissioned by peak summer of 2021. The second unit of 450 MW is expected to be completed by the end of the year.
The RLNG-based power plant will go a long way in meeting Karachi’s power demand and ensuring the city and its industries stay energized to play their due role in the national economy.
The addition of the 900 MW RLNG Power Plant will increase the power utility’s generation capacity, efficiency, and reliability. The National Electric Power Regulatory Authority (NEPRA) has approved the modification in the generation license of K-Electric, with the addition of the 900 MW RLNG powered BQPS-III to the power utility’s generation capacity. The power plant is being built as per the power utility’s investment plan, approved under the Multi Year Tariff for the control period FY 2017-2023.
Moonis Alvi, CEO K-Electric said the project is a major private sector investment in the country’s power sector. “K-Electric is working actively to bridge the supply-demand gap affecting Karachi in the past years, and BQPS-III is a significant milestone in this regard. The inclusion of high-efficiency generation plants will reduce KE’s carbon footprint and help ensure a more affordable power supply for consumers. We are pleased with the progress on the plant and are confident that we will be able to meet our expected deadlines. We appreciate the support and coordination extended to us by the government and other stakeholders, and we look forward to working with them for the benefit of Karachi.”
In addition to bridging the demand for electricity, this plant will also enable us to gradually phase out some units of the aging and less efficient BQPS I plant, which have been in service for more than 30 years. The BQPS-III would result in lower import costs for the government, affordable power for consumers and a much smaller carbon footprint as compared to furnace oil power plants. I am confident that we will continue to have the support of the government and other stakeholders since there is no doubt that the upcoming 900MW RLNG power plant is very crucial for Karachi.”
While KE is committed to bring the first unit (450 MW) of 900 MW plant online by peak summer of 2021, other commitments also need to be fulfilled in a timely manner for this reality to be realized. Heads of Agreement with Pakistan LNG Limited (PLL) for supply of 150 mmcfd of RLNG supply to Bin Qasim Complex has already been signed, subsequently negotiations on the Gas Sale Agreement (GSA) have reached to the advance stage and any potential hurdles need to be resolved as per past commitments by the Cabinet Committee on Energy (CCoE).
Development of the spur pipeline which will be supplying Re-gasified Liquefied Natural Gas (RLNG) is also underway and is 70% complete. Not only will this pipeline supply RLNG to the 900 MW BQPS-III power plant, it will also supplement the fuel requirement of power plants located at the Bin Qasim Power Complex. The Oil and Gas Regulatory Authority (OGRA) approved K-Electric’s application earlier this year, which was a key step in ensuring a consistent and smooth supply of gas at the right pressure to BQPS-III.
KE greatly appreciate the efforts of the Power Division and NTDC on the completion of required rehabilitation and upgradation works on the 220 kV double-circuit Transmission line from Jamshoro to KDA-33 to enable off-take of supply to KE from National Grid to at least 1100 MW for summer 2021, in line with directives of the Cabinet Committee on Energy (CCoE) meeting dated August 27, 2020. In this regard, following the completion of required works, KE has started off-take of additional supply from the National Grid, enabling KE to provide relief to the residents of Karachi and adjoining areas where temperature has already exceeded 40C.
This increased supply is part of additional supply of 1,400 MW approved for Karachi. In follow-up phases for years 2022 and 2023, two new interconnection facilities are to be constructed. NTDC’s support for timely completion of their Interconnection Facilities will be of immense importance. Subsequent to completion of extensive discussions on the draft PP&AA with CPPA and ICA with NTDC, Power Division is to move to the Competent forum for necessary approvals to enable execution of contracts.
While, K-Electric is fully committed to its future planned investments, the backlog of receivables from government entities continues to hamper KE’s cashflow position and the ability to enhance the pace of investment, and the company remains in continuous engagement with relevant stakeholders seeking a fair and equitable solution. Further, timely approvals by NEPRA for tariff adjustments and MYT mid-term requests remain critical for KE’s sustainability and for execution of planned investments.
K-Electric is confident that all concerned stakeholders will continue to lend support so that KE achieves its vision of bringing Karachi to a power surplus situation by the year 2022.