’LNG supply chain disruption can hit new power plants’


Karachi: Frequent disruption in LNG supply chain may inflict irreparable damage eight newly planned LNG-based power plants and many others existing power plants selected for conversion from gas and furnace oil to the imported gas, a business leader said Monday.

Government must ensure dependable supply of LNG, rationalise prices, reduce increasing transmission and distribution losses and settle circular debt if energy crisis is to be reduced through liquefied gas, said President Pakistan Businessmen and Intellectuals Forum and former provincial minister Mian Zahid Hussain.

In a statement, he said that government must form a commission to probe failures and fix responsibility on elements working against the government’s revolutionary LNG policy.

He said that Government has initiated spadework to establish three big LNG-based power plants at Kasur, Sheikhupura and Jhang with combined capacity of over 3000 mw costing almost 2.5 billion rupees.

Similarly work has begun on five LNG-based power plants from 125mw to 250mw capacity in different areas but a lobby has been working against the initiative so that history of 6600 mw Gadani Power Park which was closed one year after inauguration can be repeated.

Mian Zahid Hussain said that country was trying to import LNG since a decade but gas companies didn’t improved transportation capacity intentionally which needs a probe.

Existing LNG terminal can handle 660 million cubic meters gas daily but the pipelines cannot transport over 325 mmcfd which has put a question mark on the fate and future of LNG-based power projects.

How come the existing gas infrastructure that is unable tackle CNG stations in Punjab will be able to fulfil appetite of the gigantic power plants, he questioned.

He said that government should launch operation clean up in gas utilities, show door to the corrupt officials, stop giving illegal extension to the dishonest, appoint professional and reputable administration with directions to reduce theft and losses otherwise LNG policy may fail, he warned.