RLNG to bring down cost: K-Electric

A dedicated supply of RLNG under a business-to-business deal through a competitive bidding process will bring down the cost of RLNG compared to the current arrangement of RLNG supply from Sui Southern Gas Company (SSGC), which is provided at a higher distribution tariff, according to a K-Electric statement. Most importantly, the increased supply of RLNG will also give better control to K-Electric to shift from expensive furnace oil-based generation for its dual-fuel power station (BQPS-I) to RLNG or indigenous gas, which is a comparatively more cost-effective and environment-friendly option compared to furnace oil. Due to non-availability of additional indigenous gas and high cost along with environmentally adverse impact of furnace oil, RLNG has emerged as the preferred fuel for new power plants in the country. In line with newly constructed power plants at Bhikki, Balloki and Haveli Bahadur Shah, K-Electric is also seeking RLNG for its upcoming 900MW BQPS-III, which is the most viable option to bring a high-efficiency power plant online with a lower construction period. 


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