ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) has requested Pakistan Railways to increase the number of freight trains to secure a steady supply of imported coal for the 1,320 MW Sahiwal coal-fired power plant, sources reported.
CPPA-G referenced previous communications highlighting a critical coal shortage reported by Huaneng Shandong Ruyi (HSR), the plant’s operator. Transportation delays by Pakistan Railways have affected the coal supply chain, risking potential operational disruptions.
Under Section 5.14 of the Power Purchase Agreement (PPA) with HSR, signed on July 11, 2015, the company must maintain a 90-day coal inventory, with a minimum of 45 days’ supply on-site. However, with limited hydrological power output expected in the coming weeks, CPPA-G anticipates an increased dispatch from thermal plants like Sahiwal’s HSR facility, which may be required to run at full capacity.
CPPA-G’s Chief Technical Officer warned that insufficient coal reserves could lead to partial or full outages, invoking Liquidated Damages (LDs) per the PPA, which could entail substantial financial liabilities. CPPA-G has therefore urged Pakistan Railways to promptly allocate additional wagons and locomotives for transporting coal from Port Qasim Authority to avert shortages and ensure continuous operation at the Sahiwal power plant.
Story by Mushtaq Ghumman
