Karachi Electric Supply Company to hike fuel oil imports 40 percent in 2011-12


Karachi: Karachi Electric Supply Company KESC, is to import around 40% more fuel oil to run its power plants in fiscal year 2011-12 compared with last fiscal 2010-11 because it expects gas availability to fall, a KESC executive said Tuesday, platts.com reported.

KESC is expected to import around 1.3 million-1.4 million MT of fuel oil in fiscal 2011-12, the executive said on condition of anonymity. KESC imported nearly 1.020 million MT of fuel oil in fiscal 2010-11.

Sui Southern Gas Company is main supplier of gas to KESC and should supply around 276,000 Mcf/d but, the executive said, KESC received only 180,000-200,000 Mcf/d, while in the winter SSGC reduced supplies to 160,000 Mcf/day, sometimes cutting them to nearly 90,000 Mcf/day, forcing the company to meet the deficit through imports of costly furnace oil.

Pakistan currently produces around 4.2 Bcf/d of gas compared with demand for 5.2 Bcf/d. This shortfall is expected to widen to 3.18 Bcf/d in 2014, when gas supply is projected to rise by only 2% to 4.28 Bcf/d against a forecast 43.5% jump in demand to 7.46 Bcf/d.

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