Under the previous government, Pakistan LNG Ltd had signed a deal with Qatargas to offtake LNG long-term on oil-indexed price. Today, these import volumes are now uneconomical compared with cheaper spot cargoes. LNG-based power plants in Punjab are standing idle as operators have ramped up cheaper coal-fired power plants instead.
Qatar now seems to accommodate and has reportedly offered to reduce shipments to three cargoes per month, down from the contracted five cargoes. At the same time, K-Electric has offered Pakistan LNG to buy the regasified Qatari gas for its Bin Qasium power project.
Test runs for Bin Qasim Unit-1 start in early 2021
Bin Qasim Power Station-3 (BSPS-III), a 900MW combined-cycle power plant, is under development in Karachi adjacent to two ageing coal-fired units. Built at a cost of $650 million, the CCGT is designed for a 30-year lifetime and will be dual-fired with regasified liquid natural gas (RLNG) as the primary fuel.
The first 450 MW unit of the plant is scheduled to start operation in April 2021, followed by a second equally-sized unit in September that year. Testing and commissioning of the two Siemens SGT5-4000F gas turbines and the balance of the plant will start in January 2021, by when the operator needs some 150 mmcf/d to fuel the plant.
K-Electric proposed to build a pipeline for regasified LNG from Pakistan LNG’s import terminal to the Bin Qasim Power Complex. Both parties agreed that RLNG will be provided from January 2021 through to December 2025, at prices determined by the Pakistani Oil and Gas Regulatory Authority.