ECC approves power purchase agreement

Electricity will be produced by the fourth 1,263MW LNG-based plant

ISLAMABAD: The Economic Coordination Committee (ECC) approved a power purchase agreement for the fourth 1,263-megawatt liquefied natural gas (LNG)-based power plant in Punjab to overcome electricity crisis in the upcoming summer season.

In a meeting chaired by Finance Minister Asad Umar on Tuesday, the ECC approved the power purchase agreement and a gas sale-purchase agreement would be signed between Sui Northern Gas Pipelines Limited (SNGPL) and Punjab Thermal Power Limited for gas supply to the LNG-based power plant, an official said.

Three LNG-based power plants of 3,500MW accumulated generation capacity are already operational in Punjab.



During the Pakistan Muslim League-Nawaz (PML-N) government, the Private Power and Infrastructure Board (PPIB) had approved the construction of a 1,250MW LNG-based power plant near Trimmu barrage in Jhang district, Punjab at an estimated cost of $802 million.

The National Electric Power Regulatory Authority (Nepra) has already approved a tariff of Rs5.9084 per unit for the combined-cycle 1,263MW LNG-fired power plant for 30 years. The tariff for the combined-cycle power plant to be run on high-speed diesel has been fixed at Rs11.1659 per unit for 30 years.

However, the tariff for simple-cycle operation has been determined at Rs9.3042 per unit. The simple-cycle tariff on the basis of units delivered with LNG as fuel will only be applicable during the availability of gas turbines for the simple-cycle operation for a maximum of 349 days before the commercial operation date of the power complex on combined-cycle operation.



According to a statement, the economic decision-making body also approved a supplementary grant of Rs46.4 million for the payment to families of deceased employees of the Petroleum Division.

The ECC approved a proposal of the Finance Division on placement of a summary before the federal cabinet for Rs200.075-million supplementary grant to Balochistan. It also approved immediate release by the Finance Division of a supplementary grant of Rs20 million for the Ministry of National Food Security and Research for the establishment and operation of the Plant Breeders’ Rights Registry.

The ECC approved a proposal of the Commerce Division for tobacco seed analysis at Eurofins Lab Germany aimed at production of good-quality tobacco for domestic and export purposes.

It also approved a supplementary grant of Rs11.441 million for the Ministry of Privatisation to meet expenses on the relocation of its offices.

Published in The Express Tribune, February 27^th, 2019.

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