ISLAMABAD: Petroleum Division has directed gas companies to start disconnection of gas to Captive Power Plants (CPPs) with immediate effect after completing codal formality of serving notices.
In letters to Managing Director, Sui Northern Gas Pipeline Company Limited (SNGPL) and Sui Southern Gas Pipeline Company (SSGCL) and Chief Executive Officer (CEO) Power Planning & Monitoring Company (PPMC), Deputy Director (Technical), Directorate General of Gas, Salahuddin Khan has informed that in pursuance to the discussions held in the meetings co-chaired by Minister for Power, Awais Leghari and Minister for Petroleum , Musadik Masood Malik on September 12.2024 to deliberate upon transition of gas based CPPs to power grid , a follow up meeting was chaired by Additional Secretary (Policy), Petroleum Division on September 19, 2024 with the representatives of SSCCL, SNCPL, Power DISCOs and PPMC wherein different issues related to this issue came under discussion.
According to Deputy Director ( Technical) based on the understanding reached in the latter meeting, Power DISCOs including KE / PPMC shall collate the data of CPPs and share with respective gas utility companies divided in following phases: (i) CPPs which can be immediately switched to power grid without involving any further infrastructure requirements;(ii) CPPs which require minimum additional infrastructure in short-term for switching to Power grid ;(iii) CPPs which require additional infrastructure in medium-term for switching to power grid;(iv) CPPs which require additional infrastructure in long-term for switching to power grid ; and (v) CPPs which are not connected to grid and/or operating under wheeling i.e., industrial estates / zones .
Directorate of Gas (Petroleum Division) had asked DISCOs including KE / PPMC are requested to proceed and do the needful immediately.
KE and Discos have been asked that upon receipt of CPPs data from power Distribution Companies both the gas companies will prepare a plan with timelines serving disconnection notices followed by physical disconnections by Tuesday i.e. September 24, 2024.
Finance Ministry has reportedly sought a mechanism from the Petroleum Division which guarantees that the gas allocated to industry (process) will be used only for the prescribed purposes and not for power generation, well informed sources told Business Recorder.
This guarantee will be part of final approval of a summary of Petroleum Division to treat processing industry at par with domestic consumers and commercial sector and placing Captive Power Plants (CPPs) at par with the CNG sector. Ends
