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Increased hydro power causes trouble for Pakistan’s gas companies

2019/08/30 16:45

 

By Kamlesh Trivedi

A sustained rise in hydroelectric power generation has caused an oversupply situation for natural gas and RLNG in Pakistan. With widespread and extensive rainfall in most parts of Pakistan, total hydroelectric power generation had touched around 7,000 to 8,000MW in Pakistan from a total of 9,389MW hydroelectric power generating capacity. Last year Pakistan managed to commission two long over-delayed hydro power projects, with a total capacity of 2,487MW. In 2018, Pakistan had achieved only 4,200MW hydro power generation during the monsoon months, due to limited installed capacity and scattered rainfall. However, this year situation has changed. Both India and Pakistan have received widespread rainfall in most parts of the countries and in some states in India, the situation was almost flood like.

For Pakistan, increased hydroelectric power generation forced some of the power companies to cut their natural gas requirements and forced the government to shutdown gas fields partially. The power projects were allocated around 900mil cubic feet per day of natural gas as against a cumulative demand of 690mil cubic feet per day by the four major gas based power projects. Three recently commissioned power projects, Haveli Bahadur Shah, Balloki and Bhikki, each with 1,200MW capacity, along with an old gas fired power project Kot Addu Power Company (KAPCO) were drawing almost 40% less RLNG and natural gas combined, from their allocated quota.

The situation had reached a level that in the middle of August, Pakistan had to stop gas production from its oldest gas producing fields, Sui fields in Balochistan and Nshpa fields in Khyber Pakhtunkhwa whereas gas production from the Qadirpur field in Sindh had to be reduced by half, just to ensure that the glut like situation does not last for long. However, Pakistan’s Power Division had clarified that hydroelectric power generation will remain high until the end of the monsoon season and demand for natural gas and RLNG will remain low from the power projects.

 

 

 

 

 

 

 

 

 

 

India : Energy Desk  Kamlesh Trivedi  +91-98795-50717
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