The gas companies fear more than 400 billion losses due to the closure of captive power plants

 

KARACHI: Pakistan's power sector is facing problems in the form of Captive Power Plants (CPPs) after IPPs.

At a time when the consumption of RLNG in the country has reduced manifold and the decision to shift the industrial sector from gas-based Captive Power Plants (CPPs) to the national grid following IMF directives. Sui gas companies will get nothing but a loss of 420 billion rupees.

According to senior government sources in the Ministry of Energy, we get revenue of Rs 420 billion annually from Captive Power Plants (CPPs) installed for sustainable industrial activities and thus the industry is currently giving Rs 100 billion cross subsidy to Being extended to secure gas consumers.

According to the sources, the total number of captive power plants is 1180, of which 797 are in the Sui Southern system and 383 are under the Sui Northern jurisdiction. Sources say that the captive power plants are bulk gas consumers and if they go out of the system With a loss of Rs 420 billion, the authorities will have to find new gas consumers who consume 300 mmcfd of gas.

According to Wazat Energy sources, it is now difficult to sell the product in place of CPPs as the gas consumption has come down, which is evident from the line pack pressure, which many times exceeds 5 BCF in the main pipeline. The entire national gas distribution system is at risk.

Sources say that the important thing is that in case of disconnection of gas supply from CPPs, it will not be possible to continue the subsidy of 100 billion rupees for safe gas consumers.

It should be noted that the IMF had demanded from the government that the gas tariff of the captive power plants should be equal to that of RLNG.