Allegedly Zardari owned RPP may get more gas from SSGCL

[Naveed Yaseen]

Naudero RPP may get more gas from SSGCL: ECC meeting on Tuesday
ZAFAR BHUTTA
ISLAMABAD (October 25 2009): In its meeting scheduled on Tuesday, the Economic Co-ordination Committee (ECC) of the Cabinet is likely to approve allocation of 15 mmcfd additional gas from Sui Southern Gas Company Limited (SSGCL) system for Naudero rental power project (RPP) by diverting it from the cement sector. The ECC will meet under the chairmanship of Finance Minister Shaukat Tarin.

The project sponsor has requested the Water and Power Ministry to enhance gas allocation from 12 to 15.5 mmcfd for compressors of existing plant and 15 mmcfd additional gas for power generation capacity of 49.52 MW. According to sources, the Ministry of Water and Power told the Petroleum Ministry that 12 mmcfd gas had already been allocated to 51 MW rental power project at Naudero.

The ECC, in its meeting held on February 2, 2 approved a summary on "Gas supply to 50 MW Rental Power Project," and decided that 12 mmcfd gas from SSGCL's system might be placed at the disposal of PPIB/Water and Power Ministry for five years to generate power in accordance with Natural Gas Allocation and Management Policy, 2005.

Responding to the request of the project sponsor, Sui Southern Gas Company Limited (SSGCL) informed the Petroleum Ministry that it had revised its pipeline design to ensure supply of gas at 500 psig instead of the earlier committed 150 psig.

Therefore, the installation of compressors by project sponsor and relevant gas allocation was no more warranted, the sources said, adding that for additional capacity of 49.52 MW, the SSGCL would be able to divert gas being supplied to the cement sector (approximately 14 mmcfd) to the Water and Power Development Authority (Wapda) in the initial phase and later to rental power project at Naudero subject to Natural Gas Allocation and Management Policy, 2005.

Following the request of the Water and Power Ministry and SSGCL's commitment, the Petroleum Ministry proposed to the ECC that 15 mmcfd additional gas from the SSGCL system, which includes diversion of 14 mmcfd gas being supplied to the cement sector, may be placed at the disposal of PPIB/Ministry of Water and Power on 'as and when available basis' for five years up to October 2014 to generate power generation subject to the following three conditions:

-- Signing of gas sales purchase agreement (SGPA) between the project sponsor and SSGC within six months of gas allocation or any other time specified by the Ministry, and in case of failure to sign the agreement, the allocation shall become 'null and void.'

-- Total cost of the pipeline system and measuring station will be borne by the project sponsor. The gas allocation/supply would be under Natural Gas Allocation and Management Policy 2005 and, therefore, the project sponsors must make combined cycle and fired arrangements for the project.

http://www.brecorder.com/index.php?id=97...=&supDate=