Latest news with #RegasifiedLiquefiedNaturalGas
New Indian Express
2 days ago
- Business
- New Indian Express
TNEB, Indian Oil Corporation discuss gas pipeline connection to five power plants
CHENNAI: The officials of Tamil Nadu Electricity Board (TNEB) and Indian Oil Corporation (IOC) conducted a meeting to discuss direct gas pipeline connectivity to five gas-based power plants in the state. TNEB chairman and managing director J Radhakrishnan, Indian Oil Corporation (IOC) general manager Suman Kumar Mishra and officials took part in the meeting that focused on supplying Regasified Liquefied Natural Gas (RLNG) directly through pipelines to the Valuthur (187 MW), Basin Bridge (120 MW), Thirumakottai (108 MW), Kuttalam (101 MW), and Pillai Perumalnallur (330 MW) gas power stations. Speaking to TNIE, Radhakrishnan said in the first phase, gas will be supplied to Valuthur power plant in Ramanathapuram district through the existing IOC pipeline running from Ennore port to Thoothukudi port. 'We also urged IOC officials to quickly submit a project report for extending the pipeline to Basin Bridge power plant in Chennai as well. The move aims to ensure uninterrupted power supply during peak demand hours in the city,' he said, adding another round of discussion will be held soon. Mishra said IOC already has a 440-km gas pipeline running from Ennore port to Thoothukudi port, and the organisation has submitted a project report for the Valuthur plant. 'Now, as requested by the TNEB, we are planning to prepare a report for the Basin Bridge plant in Chennai too.' He further said the current price of RLNG stands at $12 per Metric Million British Thermal Unit (MMBTU), and it is on a downward trend. 'In the coming days, prices may fall further,' he said. At present, Gas Authority of India Limited (GAIL) is supplying natural gas to the gas power plants at a price of $6.5 per MMBTU. Gas supply through existing IOC pipeline In the first phase, gas will be supplied to Valuthur power plant in Ramanathapuram district through the existing IOC pipeline running from Ennore port to Thoothukudi port, TNEB chairman and managing director told TNIE
Business Recorder
23-07-2025
- Business
- Business Recorder
PD in a quandary over less RLNG off-take by power plants
ISLAMABAD: Petroleum Division is still in a quandary over less off-take of Regasified Liquefied Natural Gas (RLNG) by the power plants, which is resulting in rapid saturation of Sui Northern Gas Company Limited (SNGPL) system, well informed sources told Business Recorder. 'SNGPL is continuously reporting reduced RLNG consumption by the power sector against its committed demand of 600 MMCFD for July 2025,' said Deputy Director (Tech Gas) Salahuddin Khan. M/s SNGPL in a letter of July 15, 2025 has reiterated that consumption remained 327 MMFCD on July 16, 2025, with a monthly average of 501-MMFCD, leading to surplus gas accumulation that has pushed system pack beyond critical levels. Short on commitment with SNGPL: Power sector uses 28pc less RLNG SNGPL further highlighted that power consumption on July 17, 2025 was recorded at 300 MMCFD, leading to continued gas accumulation in the system, which is unsustainable. 'If RLNG off-take is not immediately increased and maintained as per demand, the resulting high pressures may disrupt re-gasification at terminals, risking cargo discharge delays and potential financial losses in the form of demurrages and take-or-pay applicability. Alternatively, SNGPL shall be constrained to further curtail supplies from local gas fields,' said Directorate General (Gas) Petroleum Division. According to sources, Power Division has been requested to advise the concerned quarters to increase RLNG off-take as per demand for the month of July 2025 with re-coupment of previously unconsumed volumes to ensure smooth operation of the SNGPL system and to avoid any untoward situation in the national interest. On July 10, 2025, responding to the comments of Minister for Petroleum and Natural Resources Ali Pervaiz Malik on underutilisation of RLNG by the IPPs, Minister for Power, Sardar Awais Ahmad Khan Leghari staunchly defended the Economic Merit Order (EMO), declaring that any attempt to alter it would be a 'grave sin' (Gunnah Kabeera). He urged the Petroleum Division to review Liquefied Natural Gas (LNG) contracts—if necessary—just as the Power Division had done with Independent Power Producers. 'Ali Pervaiz Malik is a close friend, and his concerns are valid if the contracts are flawed,' Leghari said. 'Power plants operate under the EMO, which prioritises electricity generation from the cheapest sources. If RLNG plants don't qualify under EMO, they simply can't be operated,' he further explained. National Electric Power Regulatory Authority (Nepra) has been sharing violations of EMO by the System Operator during the public hearings on FCAs, on the basis of which billions of rupees of NGC (former NTDC) were withheld. However, this exercise has now almost been stopped without any reason. Nepra has directed that the System Operator and NGC must present a comprehensive update that includes covering outages of economic power plants, the resulting financial impact, and reliance on out-of-merit generation. The update should also include the status of identified system constraint, progress made, revised completion timelines and associated financial implications. At a recent meeting on gas issues, the representative of Power Division commented that challenges need to be met and disruptions need to be looked into. The Chair responded that the tactical issues would be discussed later and, presently, the focus needs to be on sustainability of the gas sector and how LNG over supply/ less off-take is affecting it. Secretary Petroleum framed the key issues to be addressed by the Committee, namely rationalisation of gas tariffs (for both indigenous and imported gas), synchronisation of LNG demand with the power sector along with resolution of circular debt within the gas sector. Copyright Business Recorder, 2025
The Hindu
18-06-2025
- Business
- The Hindu
MRPL bags Greentech Environment and Sustainability Summit Award 2025
Mangalore Refinery and Petrochemicals Ltd. has bagged the '24th Global Greentech Environment & Sustainability Summit Awards 2025'in the 'Environment protection' category. The recognition by Greentech Foundation is given for its commitment to environmental protection and sustained efforts to minimise ecological footprint, said a release. General Managers Prasanna Kumar T. and Nirankar Singh received the award on behalf of the MRPL team during a ceremony in New Delhi recently. MRPL's key projects, including the utilisation of RLNG (Regasified Liquefied Natural Gas) as cleaner fuel, installation of in-house developed de-odour unit at effluent treatment plant (ETP), installation of wet gas scrubber for reducing particulate matter beyond compliance, utilisation of treated city sewage water in refinery operations, utilisation of ETP oily sludge at delayed coker unit (DCU) to create useful product etc., , have helped it to adapt a balanced approach towards Business Excellence and Environmental Performance, the release said.
Business Recorder
18-06-2025
- Business
- Business Recorder
Short on commitment with SNGPL: Power sector uses 28pc less RLNG
ISLAMABAD: Pakistan's power sector consumed 28 percent less Regasified Liquefied Natural Gas (RLNG) in June 2025 compared to its committed volumes with Sui Northern Gas Pipelines Limited (SNGPL), creating operational and financial challenges for the gas supplier, sources told Business Recorder. According to sources, SNGPL has been persistently flagging the issue to both the Directorate General of Gas (Petroleum Division) and the Power Division. In a recent communication, SNGPL reiterated that the power sector is not consuming RLNG as per the committed demand of 550 million cubic feet per day (MMCFD) for June 2025. Actual average consumption has been around 396 MMCFD, leading to excess gas accumulation in the system. Power sector owes Rs165.256bn to SNGPL SNGPL warned that if RLNG offtake is not increased immediately to meet the agreed demand, high system pressures could disrupt re-gasification operations at both LNG terminals. This could delay cargo discharge and result in financial losses due to demurrage charges and take-or-pay obligations. As an alternative, the company may be forced to curtail supplies from local gas fields. SNGPL requested the Directorate General (Gas), Petroleum Division, to intervene urgently and engage the Power Division for immediate RLNG offtake as per commitments, along with recoupment of unutilized volumes. This is necessary to ensure smooth system operations. The National Power Control Centre (NPCC), now operating as the Independent System and Market Operator (ISMO), is responsible for dispatching power plants based on the Economic Merit Order (EMO). However, in several cases, ISMO has deviated from the EMO due to unforeseen or scheduled outages of various plants. ISMO maintains that partial loading of plants is in line with provisions of their respective Power Purchase Agreements (PPAs), and that operational decisions are made accordingly. Nevertheless, the NPCC's General Manager often faces criticism during NEPRA public hearings for bypassing cheaper, locally fueled power plants in favor of more expensive RLNG-fired units, especially to meet peak demand in Central Punjab. During these hearings, stakeholders proposed that ISMO publish real-time data on generation mix and associated fuel costs to enhance transparency and support informed decision-making. As per the Economic Coordination Committee (ECC) decision of March 19, 2025, the minimum take-or-pay obligation was revised to 50 percent starting January 1, 2025. This adjustment will be applied from May 2025 onwards, as agreed during a meeting of the Power Task Force. In his additional note on Distribution Companies' (Discos) Fuel Cost Adjustment (FCA) determination for April 2025, Member (Technical) Rafique Ahmad Shaikh highlighted that forced outages at cost-effective plants—such as Uch-I and EngroPowerGenQadirpur—during peak demand periods led to underutilization of economical, indigenous resources. He noted that this has increased reliance on expensive power generation and driven up overall fuel costs. While legally permissible, repeated forced outages negatively affect FCA calculations. To improve accountability, he recommended that the System Operator present a detailed financial impact assessment of these outages during FCA meetings, including a three-year history of forced and scheduled outages for each affected plant to evaluate operational performance. Shaikh also pointed out that Partial Load Adjustment Charges (PLAC) amounted to Rs. 2.92 billion ($10.39 million) in April 2025 alone, bringing the cumulative total for FY 2024–25 to Rs. 32.8 billion ($116.73 million). This rising cost is concerning and requires a detailed review. He urged the development of a mechanism to reduce PLAC through better demand-side management and system optimization. In related developments, Pakistan LNG Limited (PLL) has diverted six additional LNG cargoes—originally scheduled for delivery from Italian supplier ENI in July through December—to the international spot market. These diversions come under a 15-year agreement stipulating one cargo per month. Pakistan has also deferred the delivery of five LNG cargoes from Qatar — originally scheduled for 2025 —to 2026, citing reduced domestic demand. Copyright Business Recorder, 2025
Business Recorder
05-06-2025
- Business
- Business Recorder
KCCI urges govt to re-evaluate its energy procurement & pricing strategies
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani, has called upon the government to urgently re-evaluate its energy procurement and pricing strategies to safeguard Pakistan's industrial sector and support economic growth. Bilwani emphasized the need to continue purchasing Regasified Liquefied Natural Gas (RLNG) under existing agreement with Qatar but suggested that it be sold to industries at a reduced rate. The pricing gap, he proposed, can be bridged by supplying indigenous gas to captive power plants at lower rates. This, in turn, would ensure sufficient gas supply to industries at affordable rates, enhance productivity, create employment opportunities and prove favourable for the economy. Bilwani highlighted that the import of RLNG, via six vessels per month, costs the country approximately Rs50.5 billion monthly. He proposed that this gas be provided to industries at Rs40 billion, while the remaining Rs10.5 billion be offset through the supply of locally available lower-cost gas. 'The current energy pricing structure is unsustainable for our industries,' he said. 'With soaring energy tariffs, elevated taxes, and high interest rates, our industries cannot compete effectively on the international stage.' He warned that suspending the supply of 400 million cubic feet per day (mmcfd) of indigenous gas to regions under the Sui Northern Gas Pipelines Limited (SNGPL), including Punjab and Khyber Pakhtunkhwa while relying more on expensive RLNG, poses a serious threat to the industrial sector and the national economy. Bilwani stressed the urgent need to foster an enabling environment to promote industrial growth and enhance exports. He noted that due to the sharp rise in gas tariffs, many industrialists have been forced to revert to biomass sources like rice husk, mustard, sunflower, maize waste, and even cow dung to generate steam, finding it more economical than using industrial gas connections. 'Pakistan currently has among the highest industrial gas rates globally,' Bilwani said. 'It's unfortunate that, to deal with load-shedding and erratic electricity supply, the government itself advised industrialists to invest in captive power plants. Following this advice, businesses spent billions on gas generators, boilers for waste heat recovery, and chillers that utilized jacket water to produce free steam and cooling. All of these installations are now rendered ineffective and financially wasteful.' Bilwani also criticized the government's over reliance on International Monetary Fund (IMF) conditions, stating that such policies are being used to justify decisions that severely harm the industrial base. He urged for meaningful consultation with stakeholders to devise balanced, sustainable energy strategies that consider both fiscal constraints and industrial needs. 'We need a clear roadmap that prioritizes the viability of our industrial sector,' he asserted. 'It's time to move beyond temporary fixes and focus on long-term, strategic planning that ensures economic stability and global competitiveness.' Bilwani concluded by stressing that expecting industries to compete internationally while being burdened with the most expensive energy, excessive taxes, and high interest rates is simply unrealistic. 'If the government or the Prime Minister wants us to compete globally, they must first provide a conducive environment,' he said. 'In the current scenario, I cannot understand how industries are expected to survive let alone thrive.' Copyright Business Recorder, 2025
