K-Electric announces development of 225MW LNG power plant

[ghazi52]

K-Electric announces development of 225MW LNG power plant
Dawn.com
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This picture shows site of a combined-cycle power plant. — AFP/File

KARACHI: K-Electric has announced on Friday development of a high efficiency 225MW combined-cycle LNG fired power plant at Port Qasim in Karachi.

A press statement released by the company said that two memorandum of understandings (MoUs) have been signed with Engro Powergen to increase power supply to the port city.

By introducing LNG in the fuel mix, it would achieve fuel diversity and enhance power availability in a relatively shorter period of time, the statement said.

The LNG terminal would be developed by Elengy Terminal Pakistan Limited (ETPL).

The Engro Powergen is the lead developer of the project and would likely engage General Electric (GE) for investment and to provide assistance in technology.

 

[Bouncer]

KESC acting like a proper competitive private company, excellent news. This should make critics and skeptics of privatization rethink.

Other distribution companies should also be privatized ASAP, along with other entities like PSM, PIA, Railways etc.

 

[black-hawk_101]

K-Electric announces development of 225MW LNG power plant
Dawn.com
......

This picture shows site of a combined-cycle power plant. — AFP/File

KARACHI: K-Electric has announced on Friday development of a high efficiency 225MW combined-cycle LNG fired power plant at Port Qasim in Karachi.

A press statement released by the company said that two memorandum of understandings (MoUs) have been signed with Engro Powergen to increase power supply to the port city.

By introducing LNG in the fuel mix, it would achieve fuel diversity and enhance power availability in a relatively shorter period of time, the statement said.

The LNG terminal would be developed by Elengy Terminal Pakistan Limited (ETPL).

The Engro Powergen is the lead developer of the project and would likely engage General Electric (GE) for investment and to provide assistance in technology.

I think for investment they should call upon M.E I am sure they will invest more to make a it a 1500MW LNG power Plant.....

 

[dil_dil]

KESC acting like a proper competitive private company, excellent news. This should make critics and skeptics of privatization rethink.

Other distribution companies should also be privatized ASAP, along with other entities like PSM, PIA, Railways etc.

K electric is also not cutting tariff by Rs 2.97/unit unlike GOP.

 

[My-Analogous]

KESC acting like a proper competitive private company, excellent news. This should make critics and skeptics of privatization rethink.

Other distribution companies should also be privatized ASAP, along with other entities like PSM, PIA, Railways etc.

In ten years and in the city like Karachi it is really a big achievement to install 225MW and that is 22.5 MW per year

 

[Bilal.]

In ten years and in the city like Karachi it is really a big achievement to install 225MW and that is 22.5 MW per year

They have already added 1000MW and it's not been 10 years since the current management took over... More like 5-6 years. On the other hand NEPRA is dragging it's feet in permitting them to convert 1200 MW oil based power plant to coal. It's been almost 2 years they have been begging NEPRA to no avail.

 

[waleed3601]

KESC acting like a proper competitive private company, excellent news. This should make critics and skeptics of privatization rethink.

Other distribution companies should also be privatized ASAP, along with other entities like PSM, PIA, Railways etc.

while I agree that this move to privatize KESC (btw it's now called K-Electric not KESC) was a good move I don't fully agree with the others except PSM.
Railways is getting back on its feet already and profits and services have increased manifold since the new administration came in. As far as PIA is concerned it's our national carrier and we can not let it be privatized for the sake of national pride (it sounds naive I know). All that needs to be done is remove at least 6000-7000 employees that were hired during PPP era as political "parchee" appointments (regardless of whether they are efficient or not, as merit should be followed strictly).
Follow this by hiring a competent chairman for the airline and merit based appointments. Honestly it's not that hard. If these steps are followed 100% then within 3 years I'd say PIA would begin making profits and we will not need to keep sucking money from National Exchequer to fund it.

 

[Cheetah786]

K electric is also not cutting tariff by Rs 2.97/unit unlike GOP.

K-E is a private company they don't have to follow GOP.

 

[Bouncer]

while I agree that this move to privatize KESC (btw it's now called K-Electric not KESC) was a good move I don't fully agree with the others except PSM.
Railways is getting back on its feet already and profits and services have increased manifold since the new administration came in. As far as PIA is concerned it's our national carrier and we can not let it be privatized for the sake of national pride (it sounds naive I know). All that needs to be done is remove at least 6000-7000 employees that were hired during PPP era as political "parchee" appointments (regardless of whether they are efficient or not, as merit should be followed strictly).
Follow this by hiring a competent chairman for the airline and merit based appointments. Honestly it's not that hard. If these steps are followed 100% then within 3 years I'd say PIA would begin making profits and we will not need to keep sucking money from National Exchequer to fund it.

You are talking about temporary fixes. Get a good railways minister and PR's performance raises to (at best) mediocre levels. Put them against any private company and then judge their performance.

Same for PIA, I understand that you have respect for the national carrier. But public sector organizations have this built-in defects. They are not geared for competition.

We can have an amazing person as MD today. And when the government changes, what's stopping the next minister from hiring 10 matric failed people from his pind or goth in the board of directors?

I like to give the example of PTCL. Only transfer the management and 26% shares to private investors. I am not sure if you are old enough to remember the 90s and early 2000s; you had to have a relative or friend in PTCL to get a phone line. And God help if you had probelms with your line in those days. These days PTCL is one of the most profitable companies in Pakistan with a million times better customer service (still not the best though).

 

[waleed3601]

You are talking about temporary fixes. Get a good railways minister and PR's performance raises to (at best) mediocre levels. Put them against any private company and then judge their performance.

Same for PIA, I understand that you have respect for the national carrier. But public sector organizations have this built-in defects. They are not geared for competition.

We can have an amazing person as MD today. And when the government changes, what's stopping the next minister from hiring 10 matric failed people from his pind or goth in the board of directors?

I like to give the example of PTCL. Only transfer the management and 26% shares to private investors. I am not sure if you are old enough to remember the 90s and early 2000s; you had to have a relative or friend in PTCL to get a phone line. And God help if you had probelms with your line in those days. These days PTCL is one of the most profitable companies in Pakistan with a million times better customer service (still not the best though).

the problem you are talking about persists in Pakistan because of instability in govt (90s in out scenario and constant military coups) and bad governance. good governance which can be achieved by voting in a development oriented party can tackle this problem because then not only state enterprises will improve but political pressure would mount on poor performers who only take votes in the name of particular figures from history, consequently forcing them to do something.
but i guess 26% shares and private management isn't a bad option either.

 

[Bouncer]

the problem you are talking about persists in Pakistan because of instability in govt (90s in out scenario and constant military coups) and bad governance. good governance which can be achieved by voting in a development oriented party can tackle this problem because then not only state enterprises will improve but political pressure would mount on poor performers who only take votes in the name of particular figures from history, consequently forcing them to do something.

I am illiterate (and lazy right now too google it myself), but do you have any examples of successful state run power, railways, airlines corporations in democratic governments? IIRC, most EU countries privatized their railways, power sector etc long time ago after world war 2.

China, with its strict governance, has huge state run corporations. But I don't think it can be done in Pakistan.

 

[Chak Bamu]

What would be the unit cost? That is the key question.

 

[Bilal.]

What would be the unit cost? That is the key question.

Depends on the final agreed price of LNG with Qatar but should be much cheaper than RFO based electricity.

 

[Chak Bamu]

Depends on the final agreed price of LNG with Qatar but should be much cheaper than RFO based electricity.

Yeah you are right - that goes without saying. But still.... this is a key question regardless, because of great disparity between the price of electricity charged to most consumers and the actual cost of producing it using Furnace oil.