Imported RFO may not be used for power generation in summer

ISLAMABAD: The high-powered meeting on power load management in the summer season, which was held here on Tuesday with Prime Minister Shehbaz Sharif, has decided not to generate electricity on imported RFO (residual furnace oil).

“It was decided that RLNG flow to the power sector would increase up to 600 mmcfd and the reliance on coal-based generation and nuclear electricity along with hydrogenation would be emphasised more,” one of the senior officials who was part of the meeting told The News.

The meeting has not decided on the duration of loadshedding in the summer season. The prime minister wants zero loadshedding, but the official said that its duration may be for two hours during the peak months, starting from March to September. However, during Ramazan, there will be no loadshedding.

“The system would have 5,500MW of hydroelectric generation, 3,900MW of coal-based generation, and gas-based generation up to 5,000MW.”

And sizeable electricity generation from nuclear and renewable means would also be available.

However, the power division was asked to come up with the financial impact of the diversion of RLNG in the range of 500 to 600 mmcfd to the power sector and Afghan coal use for power generation in the summer season. This means that the power sector would consume 5–6 LNG cargoes, and the cost of each cargo under the term contract stands at $41 million. In the peak summer months of June and July, the cost of six cargoes would rise to $246 million.

The prime minister has asked the power division to hold meetings with the petroleum and finance divisions on cash cover requirements for fuels such as LNG and coal to be used for electricity generation during the summer.

“If needed, the government may run the RFO-based power plants to cope with the maximum demand not based on imported furnace oil but on local furnace oil.”