ISLAMABAD: K-Electric (KE) has requested the Petroleum Division’s assistance to secure 100 MMSCFD of surplus indigenous gas from Mari Petroleum Company Limited (MPCL), following the expiry of MPCL’s contract with SNGPL.
KE referenced its November 3, 2023, letter requesting gas allocation for its fleet and initiated discussions with gas exploration companies including Mari, PPL, PEL, Eni, OGDCL, and MoI. KE’s Chief Strategy Officer, Shahab Qader Khan, highlighted that Mari has 100 MMSCFD of available gas.
Allocating this gas to KE could significantly reduce the utility’s generation costs. The price of RLNG is $12.35/MMBTU compared to $3.77/MMBTU for indigenous gas, potentially saving $328 million (Rs91.4 billion) annually and reducing the subsidy requirement.
KE emphasized the urgency of securing low-cost gas to provide affordable power to Karachi’s consumers, alleviate hefty electricity bills, and support economic growth.
Story by Mushtaq Ghumman
