According to sources, the ministry of water and power has submitted a request to the National Electric Power Regulatory Authority (Nepra) seeking approval of an upfront tariff of Rs8.85 per kilowatt hour (unit) for LNG-based projects with a total capacity of 3,600MW in Lahore, Multan and Faisalabad.
The places has been selected due to the fact that the power shortfall is serious and transmission line capacity is adequate.
LNG-based power plants are expected to be operational in two to three years. The projects could be set up in 18 months and the government had already ordered the laying of a 1,100km north-south pipeline to transport gas.
Last November we reported that the four state gas companies of Turkmenistan, Afghanistan, Pakistan, and India had established a company that will build, own and operate the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline.
The TAPI pipeline will export up to 33 billion cubic meters of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India over 30 years.