Pakistan LNG Pens Deal to Supply Power Plant
Pakistan's state-run gas importer Pakistan LNG Ltd (PLL) has signed a heads of agreement with power generation firm Karachi Electric to supply regasified LNG to the 900-MW BQPS-III power station starting in 2021, it said on social media on October 8.
PLL will deliver up to 150mn ft3/day of gas to the plant in Karachi, whose two units are due online in March and November 2021 respectively. It did not say when it expected a binding sales contract with Karachi to be reached.
Pakistan wants to expand the role of gas in its power generation, and is looking to expand LNG imports and boost domestic supply to achieve this. It currently has two regasification terminals in Port Qasim.
Karachi is Pakistan's largest city. Germany's Siemens and its partner Harbin Electric International were selected to build the BQPS-III power plant in October last year. The project is worth $650mn.