Power production: NAB probe delays launch of Guddu’s new plant
It leads to diversion of some gas supplies to Engro’s fertiliser unit
Engro offered to install two gas booster compressors at the power plant with operational maintenance services in response to continuous gas supply to its plant for one year. STOCK IMAGE
ISLAMABAD:
An investigation initiated by the National Accountability Bureau (NAB) into the purchase of compressors has held back the start of power generation at the new Guddu plant that has the capacity to generate 747 megawatts.
Initially, the Thermal Power Complex Guddu (Genco-2) was allocated 304 million cubic feet of gas per day (mmcfd) from Kandhkot, Mari Shallow and Mari Deep fields for electricity production.
Later on July 21, 2013, following a long delay in the start of the new power plant, the Ministry of Petroleum and Natural Resources diverted 60 mmcfd of gas from the Mari Shallow field to a plant of Engro Fertilizers, sources say.
This left 244 mmcfd for the Guddu power complex, which has a total installed generation capacity of 2,402 megawatts including 1,655MW of the old plant and 747MW of the new plant.
The power complex was receiving 200 mmcfd from Kandhkot-1 and 2 fields with a pressure of 23 bars at the receiving end, which was suitable for the old plant.
However, new gas turbines of the 747MW plant needed a minimum pressure of 35 bars. To cope with the low pressure, the new plant was required to set up a gas booster compressor station to increase the pressure.
Members of the Economic Coordination Committee (ECC), in a meeting held on December 24, said in that scenario a maximum of 750MW could be generated from both the new and old plants.
In an attempt to maximise electricity generation, the power complex initiated a process to boost the gas pressure in December 2010 and issued a work order on January 13, 2014 to the selected bidder.
“The process got slowed down as a preventive inquiry by NAB was going on, which could take some time. The installation of gas booster compressors may take 10 to 12 months subject to the clearance by NAB,” the Ministry of Water and Power told the ECC.
The main beneficiary of the probe was Engro Fertilizers as the 60-mmcfd gas supply was extended to December 2015.
On its part, Engro offered to install two gas booster compressors at the power plant with operational maintenance services in response to continuous gas supply to its plant for one year until December 2015.
The company suggested that it could complete installation work within six months with the possibility of reducing the time period to March 31, 2015.
The water and power ministry told the ECC that the board of directors of Guddu power complex had considered and approved Engro’s proposal keeping in view the anticipated benefits and the condition that 60 mmcfd of gas would be diverted back to the power complex with no further extension.
All costs for the installation and operation of gas booster compressors would be borne by Engro with no financial implications for the Guddu plant, it said.
Published in The Express Tribune, January 2nd, 2015.
An investigation initiated by the National Accountability Bureau (NAB) into the purchase of compressors has held back the start of power generation at the new Guddu plant that has the capacity to generate 747 megawatts.
Initially, the Thermal Power Complex Guddu (Genco-2) was allocated 304 million cubic feet of gas per day (mmcfd) from Kandhkot, Mari Shallow and Mari Deep fields for electricity production.
Later on July 21, 2013, following a long delay in the start of the new power plant, the Ministry of Petroleum and Natural Resources diverted 60 mmcfd of gas from the Mari Shallow field to a plant of Engro Fertilizers, sources say.
This left 244 mmcfd for the Guddu power complex, which has a total installed generation capacity of 2,402 megawatts including 1,655MW of the old plant and 747MW of the new plant.
The power complex was receiving 200 mmcfd from Kandhkot-1 and 2 fields with a pressure of 23 bars at the receiving end, which was suitable for the old plant.
However, new gas turbines of the 747MW plant needed a minimum pressure of 35 bars. To cope with the low pressure, the new plant was required to set up a gas booster compressor station to increase the pressure.
Members of the Economic Coordination Committee (ECC), in a meeting held on December 24, said in that scenario a maximum of 750MW could be generated from both the new and old plants.
In an attempt to maximise electricity generation, the power complex initiated a process to boost the gas pressure in December 2010 and issued a work order on January 13, 2014 to the selected bidder.
“The process got slowed down as a preventive inquiry by NAB was going on, which could take some time. The installation of gas booster compressors may take 10 to 12 months subject to the clearance by NAB,” the Ministry of Water and Power told the ECC.
The main beneficiary of the probe was Engro Fertilizers as the 60-mmcfd gas supply was extended to December 2015.
On its part, Engro offered to install two gas booster compressors at the power plant with operational maintenance services in response to continuous gas supply to its plant for one year until December 2015.
The company suggested that it could complete installation work within six months with the possibility of reducing the time period to March 31, 2015.
The water and power ministry told the ECC that the board of directors of Guddu power complex had considered and approved Engro’s proposal keeping in view the anticipated benefits and the condition that 60 mmcfd of gas would be diverted back to the power complex with no further extension.
All costs for the installation and operation of gas booster compressors would be borne by Engro with no financial implications for the Guddu plant, it said.
Published in The Express Tribune, January 2nd, 2015.