Transmission of natural gas/RLNG - Ogra approves k-electric license for construction and operation of pipeline.

In welcome news for the citizens of Karachi, the Oil and Gas Regulatory Authority (OGRA) has approved K-Electric's application for a license to construct and operate a gas pipeline, that will supply Re-gasified Liquefied Natural Gas (RLNG) for the upcoming RLNG-based 900 MW BQPS-III power plant and supplementing fuel requirement of the power plants located at its Bin Qasim Power Complex.

This is a very positive development for KE as the grant of the license by OGRA is a first ever license obtained by KE in the oil & gas sector and is a key step in ensuring that the upcoming BQPS III power plant receives the right amount of gas, at the right pressure. This milestone will go a long way in helping bridge the supply-demand gap in Karachi in the years to come.

In the notification issued on January 6, 2021, OGRA grants a License to K-Electric Limited to undertake regulated activity related to construction and operation of 14 inch diameter x 2.4 kilometer Natural Gas Pipeline along with ancillary/connected facilities for purpose of transmission of Natural Gas/RLNG from Tie-in Point, SSGC Custody Transfer Station located at Bin Qasim to KE Bin Qasim Power Complex.

K-Electric had submitted an application for the same on May 18, 2020, so as to ensure the pipeline would be built in time for the commissioning of the first unit of BQPS-III. It is pertinent to note that in the interest of expediting the process, the power utility has agreed to undertake the construction of the pipeline from the nearest SSGC Custody Transfer Station, on a self-finance basis. The EPC contractor and the Owner Engineer for this pipeline project are already on-board, the detail design of is already completed and the pipeline material has already been procured. Now, with the issuance of License by OGRA, K-Electric has immediately started construction of pipeline for its timely availability for commissioning of 900 MW power plant.

The addition of the 900...