Effective gas-based electricity generation plants should not sit idle

Business community supports govt decision to fuel efficient power plants

Effective gas-based electricity generation plants should not sit idle

Step to boost supply, reduce loadshedding, relieve masses

Islamabad: April 21

Business community supports the decision of the government to provide natural gas to efficient power plants to boost output and reduce loadshedding, a businessman said Sunday.

The move of the caretaker government to revisit priority list for provision of natural gas to different sectors will go a long way in providing relief to masses, said Mian Shahid, CEO of Saudi Pak Insurance Company.

He said that many efficient state-run power plants and IPPs are sitting idle since long while inefficient private power plants consuming natural gas in bulk quantity continued to enjoy supply which has taken toll on economy.

Mian Shahid said that some privately owned power plants produced just three megawatts of electricity while eating up a million cubic feet of gas per day while power plants that can produce five to six megawatts of electricity with the same volume of gas were ignored.

Efficient use of gas in the power sector could reduce load shedding by four hours a day and save gas worth Rs 70 billion annually.

Mian Shahid said that SNGPL is providing 300 million cubic feet of gas per day to private power plants while SSGC has been supplying around 200 million cubic feet of gas per day private companies which can be used efficiently.

The total gas production stands at 4.3 billion cubic feet per day against demand of 6 billion cubic feet per day and ensuring merit in distribution will produce more power at cheaper rates.

Additional availability of gas to efficient power utilities or IPPs means higher power generation at cheaper rates to reduce load shedding and trigger new investments.

He said that gas availability for power sector has been rising by two per cent per annum and annual demand is growing by five per cent.