Latest news with #Genco-II
Express Tribune
19-05-2025
- Business
- Express Tribune
Auction of power plants draws only one bid
Power generation through imported gas RLNG grew due to the addition of two new RLNG power plants to the system ie Quaid-e-Azam Thermal Power (Private) Limited and Haveli Bahadur Shah. PHOTO: AFP Pakistan's second phase of auctioning the outdated state-owned thermal power plants produced a disappointing outcome on Monday as only one bidder came forward by making an offer for a single plant while others did not show any interest. The 880-megawatt Jamshoro Thermal Power Station (Genco-I) was the only plant that received a technical bid, which was submitted by Siddiqsons. The government had set a reserve sale price of Rs9.97 billion for the power plant. On the contrary, no bids were received for two major projects running under Genco-III – the Muzaffargarh Thermal Power Station (1,350 MW) and the Faisalabad Steam Power Station (132 MW). Together, the three plants had a reserve sale price of Rs26.62 billion with electricity generation capacity of 2,362 MW. Officials confirmed the lack of interest on the part of investors despite marketing efforts and expectations of broader participation. Meanwhile, the bidding process for other plants functioning under Genco-II, including the Guddu Thermal Power Plant and the Thermal Power Station Quetta, has been postponed. These assets will now be offered for auction on May 30 in a separate round. The delay comes in the wake of need for more investor outreach and clarity in terms of sale. Genco Chief Executive Officer Sabeehuz Zaman Faruqui acknowledged the limited outcome and said that the auction of outdated power assets was always expected to be held in phases due to the age and condition of those plants. The process is technically complex while investor appetite varies depending on a plant's location, efficiency and future viability, he said. In the first phase of auction held earlier, the government successfully sold seven thermal plants for Rs9.05 billion, which surpassed the reserve price of Rs8.07 billion. These included the power units situated in Kotri, Lakhra and Sukkur, and four units in Multan and Faisalabad. National Engineering Services Pakistan (Nespak), a state-owned engineering consultancy firm, is assisting in the technical evaluation and bidding process.
Business Recorder
30-04-2025
- Business
- Business Recorder
Kandhkot to third-party buyers: PPL seeks PD's approval to redirect unutilised gas
ISLAMABAD: Pakistan Petroleum Limited (PPL) has requested the Petroleum Division's approval to redirect unutilised gas from the Kandhkot Gas Field to third-party buyers out of 200 million cubic feet per day (mmcfd) assigned to Central Power Generation Company Ltd (GENCO-II) in Guddu. The matter was discussed in the National Assembly's Public Accounts Committee (PAC) while Junaid Akbar was in chair on Tuesday. Petroleum Division Secretary Momin Agha informed the committee members that a proposal to sell access gas to third party is the solution to address Genco-II dues against the company, province and federal government. It is also important as Genco-II privatisation is included in the active list of privatisation, he added. The PD secretary said the low offtake and lower price of gas dedicated to Genco-II had negative impact on production of the gas field which would be completely shut down by year 2036 in case no fresh investment bring in it. Low gas offtake by Genco-II: PPL seeks PD probe into reasons He explained that the Genco-II was supplying gas at Rs550 per mmbtu tariff; still a significant variation has been seen in its off-take by the power company. Imran Abbasy, managing director/chief executive officer PPL informed the committee that then investors from private sectors showed their interest in investment in the depleting well which would enable to enhance its production and life for year 2025. He said that Genco-II off-take from the field was 100 to 110 mmcfd from the allocated 200 mmcfd. He said around 50 mmcfd gas was access or underutilised. Chief Operating Officer Genco-II said that the power company was taking gas of 72.5 percent of total production of the field as per agreed Gas Sales Agreement (GSA) and reflected in fiscal year 2022-23 accounts. He said the company requested the PD to allow them to sell unutilised gas. Access gas to third party would help Genco-II to clear its Rs70 billion dues under Gas Development Surcharge (GDS) to Sindh Province. A substantial amount of PPL gas billing to Genco-II comprises government levies, mainly the GDS and Gas Infrastructure Development Cess, which are also payable to the government on collection from customers. It has been reportedly said that PPL reported that gas off-takes by Genco-II are consistently lower than submitted Annual Contract Quantity (ACQs) of 145 mmcfd and daily average off-takes from KGF remained -98.7 mmcfd (July 1-Sept 2024). Furthermore, since August 25, 2024, Genco-II reduced the off-takes below 75 mmcfd and there had been instances during said period where complete gas off-takes were ceased by Genco-II. Copyright Business Recorder, 2025
