Govt plans to stop using furnace oil, diesel in power production
Will run electricity plants on cheaper sources like coal and RLNG
PHOTO: EXPRESS
ISLAMABAD:
The government is designing a plan aimed at slapping ban on the consumption of furnace oil and high-speed diesel in electricity production and permitting only coal and imported gas as fuel in a bid to produce cheap electricity, says a senior government official.
Under the proposed plan, existing power plants running on furnace oil and high-speed diesel will switch to re-gasified liquefied natural gas (RLNG) and coal.
Thar project: First unit to start power production by end of 2018
The plan is being framed in the backdrop of consistently high oil import bill of the country and expensive electricity generation.
The Ministry of Petroleum and Natural Resources argues that RLNG is the only cheaper source of electricity generation and is seeking a ban on the consumption of furnace oil, coal and diesel in power plants in order to improve plant efficiency and save billions of dollars.
Talking to The Express Tribune, the senior government official said the Ministry of Water and Power and the Ministry of Petroleum were working on a balanced fuel conversion programme, which would be submitted to Prime Minister Nawaz Sharif for approval.
According to the fuel efficiency comparison made by the petroleum ministry, the cost of consuming RLNG in Bhikki power plant stood 97% lower than the cost of furnace oil used in Muzaffargarh thermal power station.
Similarly, the cost of RLNG is 83% less than the cost of high-speed diesel being consumed in Saif power plant.
The ministry suggested that Pakistan could save $6-8 billion in four years by running Bhikki-type plants on RLNG in comparison to the current furnace oil-based power generation.
Apart from this, according to an international study, coal had been the cheapest fuel over the past 50 years and hopefully it would remain so in the next 50 years as well. This is why coal consumption in power plants has not been abandoned in many countries. In line with the same trend, Pakistan is also considering using coal in power generation.
“The prime minister has directed the Ministry of Water and Power and the Ministry of Petroleum to frame a balanced fuel conversion plan for power generation, switching from furnace oil and high-speed diesel to RLNG and coal,” the official said.
At present, hydroelectric power has a share of 34% in power generation mix, furnace oil 29%, locally produced natural gas 19%, LNG 8% and renewable and nuclear energy 5% each.
In 2018, when power production is expected to go up to 33,124 megawatts, the share of hydroelectric power will be 30%, furnace oil 18%, LNG 16%, local natural gas 12%, imported coal 10%, renewable energy 8%, nuclear power 4% and local coal 2%.
Power cost rises 25% with heavy reliance on oil-based plants
In 2022, hydroelectric power will likely have a share of 36%, followed by 12% for furnace oil, 10% for LNG, 9% for nuclear energy, 9% for renewable energy, 8% for local natural gas, 8% for local coal and 8% for imported coal.
Published in The Express Tribune, May 17th, 2017.
The government is designing a plan aimed at slapping ban on the consumption of furnace oil and high-speed diesel in electricity production and permitting only coal and imported gas as fuel in a bid to produce cheap electricity, says a senior government official.
Under the proposed plan, existing power plants running on furnace oil and high-speed diesel will switch to re-gasified liquefied natural gas (RLNG) and coal.
Thar project: First unit to start power production by end of 2018
The plan is being framed in the backdrop of consistently high oil import bill of the country and expensive electricity generation.
The Ministry of Petroleum and Natural Resources argues that RLNG is the only cheaper source of electricity generation and is seeking a ban on the consumption of furnace oil, coal and diesel in power plants in order to improve plant efficiency and save billions of dollars.
Talking to The Express Tribune, the senior government official said the Ministry of Water and Power and the Ministry of Petroleum were working on a balanced fuel conversion programme, which would be submitted to Prime Minister Nawaz Sharif for approval.
According to the fuel efficiency comparison made by the petroleum ministry, the cost of consuming RLNG in Bhikki power plant stood 97% lower than the cost of furnace oil used in Muzaffargarh thermal power station.
Similarly, the cost of RLNG is 83% less than the cost of high-speed diesel being consumed in Saif power plant.
The ministry suggested that Pakistan could save $6-8 billion in four years by running Bhikki-type plants on RLNG in comparison to the current furnace oil-based power generation.
Apart from this, according to an international study, coal had been the cheapest fuel over the past 50 years and hopefully it would remain so in the next 50 years as well. This is why coal consumption in power plants has not been abandoned in many countries. In line with the same trend, Pakistan is also considering using coal in power generation.
“The prime minister has directed the Ministry of Water and Power and the Ministry of Petroleum to frame a balanced fuel conversion plan for power generation, switching from furnace oil and high-speed diesel to RLNG and coal,” the official said.
At present, hydroelectric power has a share of 34% in power generation mix, furnace oil 29%, locally produced natural gas 19%, LNG 8% and renewable and nuclear energy 5% each.
In 2018, when power production is expected to go up to 33,124 megawatts, the share of hydroelectric power will be 30%, furnace oil 18%, LNG 16%, local natural gas 12%, imported coal 10%, renewable energy 8%, nuclear power 4% and local coal 2%.
Power cost rises 25% with heavy reliance on oil-based plants
In 2022, hydroelectric power will likely have a share of 36%, followed by 12% for furnace oil, 10% for LNG, 9% for nuclear energy, 9% for renewable energy, 8% for local natural gas, 8% for local coal and 8% for imported coal.
Published in The Express Tribune, May 17th, 2017.