Pakistan

Sindh objects to LNG-based power plants in Punjab

Sindh govt asks regulator not to give approval without Council of Common Interests' consent

Our Correspondent February 09, 2016

Anybody could come to the regulator for seeking a power generation licence. The regulator takes into account views of all stakeholders before giving the licence, said the Nepra chairman. PHOTO: REUTERS

ISLAMABAD:

The government of Sindh has opposed the setting up of power plants based on liquefied natural gas (LNG) in Punjab and asked the regulator not to give green signal for installing such plants without consent of the Council of Common Interests (CCI), which has representation from all provinces.

The opposition came at a public hearing conducted by the National Electric Power Regulatory Authority (Nepra) to consider a request for the grant of electricity production licence to the Quaid-e-Azam Thermal Power Private Limited, which has planned to set up a 1,180-megawatt LNG-based plant in Punjab.

Cheaper LNG only solution to energy woes

The hearing was chaired by Nepra Chairman Tariq Sadozai and the regulator reserved the judgment.

During the hearing of arguments, Sindh representative Tariq Ali Shah said LNG-fired power plants should not be installed in Punjab in the face of decisions taken by the Economic Coordination Committee and the energy committee of cabinet.

The Quaid-e-Azam power project should be presented before the CCI for consideration and work should not be initiated without the council’s approval, he said.

Shah asked the regulator to listen to the point of view of Sindh and refrain from granting the licence to Punjab to run the project.

Already, the federal government has planned to set up 3,600-megawatt LNG-based power projects in Punjab to bridge the wide shortfall, particularly in peak summer, in electricity supply and demand.

Quaid-e-Azam Thermal Power Private Limited Chief Executive Officer Ahmed Cheema revealed that they would sign a gas sale and purchase agreement with Sui Northern Gas Pipelines Limited later on Tuesday.

‘Pakistan to reduce energy woes by 2018’

In his remarks, the Nepra chairman clarified that anybody could come to the regulator for seeking a power generation licence. “The regulator takes into account views of all stakeholders before giving the licence,” he said.

Meanwhile, the regulator held a hearing on the request for setting a new tariff for the Quetta Electric Supply Company for financial year 2015-16.

Chief of the power company told the hearing that the company was supplying electricity to far flung areas of Balochistan and it was a challenge to control losses due to its big distribution network. He pleaded the regulator to approve a new tariff for 2015-16.

The Nepra chairman stressed that the Quetta power company should control its losses and utilise the budget allocated by the federal government in an effective manner.

He suggested that the company should improve its affairs before making payments to the Central Power Purchasing Agency (CPPA).

Published in The Express Tribune, February 10^th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS (9)

Pakistani Sindhi | 8 years ago | Reply @Matro: It is correct that they have displayed massive incompetency and have done nothing for province's development. But these incompetents are the favorite of the Establishment and Punjab-lobby, because they help them in exploitation of Sindh's natural resources.

Pakistani Sindhi | 8 years ago | Reply @Sceptic: It is good if Punjab is progressing. However, their efficiency is because it gulps down the revenues generated by the rest of provinces, especially Sindh.

VIEW MORE COMMENTS

Pakistani Sindhi | 8 years ago | Reply @Malik Saab: CI cannot interfere in the internal affairs of any other province like that. Sindh should shut up. LNG power plants in Punjab have nothing to do with SIndh. Stop bashing Punjab all the time. Punjab should go ahead with the construction of all LNG plants and everything possible to be energy independent. If Sindh has a huge problem with LNG plants and energy independence of Punjab, then Punjab government bust start building Kalabagh dam to shut up Sindh. Your province Punjab interferes in internal affairs of other provinces but it cannot allow others to interfere in its own. Sindh should shut up... the same Sindh on whose tax revenues budget and natural resources Punjab survive on for decades. That dream of constructing Kalabagh dam will bring down the whole country. Kalabagh dam is condemned project not by Sindh but also by Balochistan and KPK. Those who talk about it are in no way friendly to seeing Pakistan united. People like you never learn from the past mistakes, people with racial hatred like yours did the same with East Pakistanis and continue to do so.

Pakistani Sindhi | 8 years ago | Reply @Xnain: Gas reserves of Sindh are not property of Punjab that you are saying it should allow supply of gas to Punjab (as a matter of fact, Punjab has been robbing gas resources of Sui and other towns from north Sindh for more than six decades). Balochistan produces its own gas, Sindh produces its own gas and KPK produces its own gas. It is just Punjab that has not only been sucking on others' gas reserves since Pakistan was made, but also gulps down the budget the rest of provinces generate. When will greedy politicians of Punjab stop sucking on natural resources of other provinces and buy from other sources.

Xnain | 8 years ago | Reply "Already, the federal government has planned to set up 3,600-megawatt LNG-based power projects in Punjab to bridge the wide shortfall, particularly in peak summer, in electricity supply and demand." Oh so Sindh Government wakes up on alternative gas. Isn't this ironic that Sindh Government has been supplying the gas to CNG sector in Sindh rather than allowing it to be supplied to Gas starved power plants in Gas deficient Punjab? As soon as punjab government overcomes the headwind, sindh government wakes up and asks for utilization of domestic gas first. Hilarious, ironic and above all disgusting!

Malik Saab | 8 years ago | Reply CCI cannot interfere in the internal affairs of any other province like that. Sindh should shut up. LNG power plants in Punjab have nothing to do with SIndh. Stop bashing Punjab all the time. Punjab should go ahead with the construction of all LNG plants and everything possible to be energy independent. If Sindh has a huge problem with LNG plants and energy independence of Punjab, then Punjab government bust start building Kalabagh dam to shut up Sindh.

Sceptic | 8 years ago | Reply Another example of the tall poppy syndrome. Punjab continues to be punching bag for its efficiency and hardwork.

Anoni | 8 years ago | Reply What kind of reporting is this .... with no reason listed for objection ...

Matro | 8 years ago | Reply They are incompetent enough to do anything good for the people of their own province and when they see others doing good, they come forward in jealousy to hinder their work. Shame on you PPP lead Sindh Government. You deserve to be beaten in the streets. I pray to ALLAH that give some wisdom to people of this province so that they may teach these incompetent and corrupt bureaucrats and politicians of PPP lessons.

Replying to X