K-Electric Limited has announced its intention to decommission its S.I.T.E. Gas Turbine Power Station (SGTPS) and Korangi Town Gas Turbine Power Station (KTGTPS), assuring consumers that this move will not impact the city’s power supply.
The utility company said it has already taken steps to meet growing demand through the addition of a new 900 MW BQPS III power plant and enhanced grid interconnection.
In a disclosure form filed with the Pakistan Stock Exchange (PSX), K-Electric detailed the history of the SGTPS and KTGTPS plants, which were integrated into its generation portfolio in 2009. These gas-based power plants initially relied on local gas supply, which became inconsistent due to depleting reserves. Despite a shift to RLNG supply in 2018, optimal gas pressure remained a challenge.
To proactively address the rising power demand in Karachi, K-Electric has invested in a state-of-the-art 900 MW BQPS III power plant. This new facility, coupled with increased interconnection capacity to the National Grid allowing for an off-take of over 2,000 MW, ensures a robust and stable power supply for its consumers. K-Electric has also entered into a long-term Power Purchase Agency Agreement (PPAA) with CPPA-G and an Interconnection Agreement (ICA) with the National Grid Company (NGC).
Rizwan Pesnani, Chief Risk Officer & Company Secretary for K-Electric, emphasized in the disclosure that the proposed early retirement and decommissioning of the older plants will not adversely affect the company’s ability to fulfill its demand-supply obligations.
“The Company has already taken concrete steps for adequate supply for its consumers through the addition of 900 MW BQPS III power plant and enhanced interconnection capacity for increased off-take from the National Grid,” the statement read.
