K-Electric to shut down major portion of power generation capacity

K‑Electric (KE) has moved to retire two of its legacy gas‑engine power plants—Korangi Town Gas Turbine Power Station (KGTPS) and S.I.T.E. Gas Turbine Power Station (SGTPS)—citing years of constrained gas supply and the completion of new capacity and grid links that render the older units surplus. In a disclosure to the Pakistan Stock Exchange, KE said its board, at its 1,259th meeting on 23 September, approved the decommissioning/early retirement of KGTPS and SGTPS and authorised a filing with the National Electric Power Regulatory Authority (NEPRA) to modify the company’s generation licence accordingly (Generation Licence GL/04/2002). The company stressed that the step would not impair its ability to meet demand in Karachi.

The utility’s reasoning traces back to how these plants were added and fuelled. Under a 2009 implementation agreement with the federal government, the two sites—engine‑based gas plants—were inducted with an explicit commitment for local gas allocations from Sui Southern Gas Company (SSGC). In 2016, KE bolted on small steam turbines at each site to squeeze out extra efficiency. But as domestic gas reserves thinned, pressurised supply became erratic, prompting the Cabinet Committee on Energy in 2018 to direct a shift to RLNG for KE’s fleet, including KGTPS and SGTPS. Even after that pivot, the company says optimal gas at the required pressure remained a persistent challenge—undermining reliable dispatch and the economics of keeping the plants online.