ISLAMABAD : The K-Electric has sought Petroleum Division’s support for stakeholders meeting for access to Zin Block gas field for prospective supply of natural gas to the power utility’s power plants.
Well informed sources told NewzShewz that KE had written a letter on August 6, 2024, following which a meeting held on Oct 23, 2024 between KE and OGDCL for prospective gas supply from Zin Block Gas Field, whereby the following was communicated by OGDCL: (i) Zin Block gas field is identified as an available source of gas of c. 46,000 mmbtu/ day, but transportation infrastructure for the gas is not available ;(ii) to access the field partially a new pipeline for gas transportation would be required to be laid from Zin Block Gas Field to Uch Gas Field ;(iii) from the Uch Gas Field, the existing Uch pipeline infrastructure is essential to transport gas to K- Electric’s power facility, expected to be relocated to Dera Murad Jamali area near the UCH-I and UCH-II power plants ; and (iv) Uch I and Uch IIconsent would be required for access to the existing pipeline infrastructure leading to Uch power plants.
According to Shahab Qader Khan, Chief Strategy Officer, KE, the power utility company believes this collaboration with OGDCL holds mutual benefits by way of economical generation for KE and utilization of Zin gas for OGDCL and it will make a significant contribution to the energy sector, adding that leveraging the existing pipeline infrastructure would be cost effective and it would create operational synergies for the parties involved.
He is of the view that to facilitate a coordinated approach, we require your esteemed office to organize a stakeholder meeting for access to Zin Block Gas Field, involving representatives from your esteemed office, Oil and Gas Development Company Limited, Uch Power Plants I and II, and K-Electric.
The supply of gas at indigenous prices is expected to result in c. PKR 38 billion in annual TDS savings (assuming gas is available @Rs. 1,050/MMBTU for 46,000 mmbtus/day).
” This support will be instrumental in advancing our shared objectives of energy efficiency and national self- sufficiency. Kindly let us know of a convenient time and date for the proposed meeting, and any additional formalities that may be required from K Electric, ” Mr. Khan said, in his letter to Secretary Petroleum.
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