Power projects to be switched to alternate fuels
Staff Report

ISLAMABAD—The government may decide not to entertain any proposal of private power project that would use gas as fuel to generate electricity, officials said.
All such proposals have been shelved and only that projects that would use other fuels would be approved, presently there are 15 private sector projects generation power while there are 68 requests in the pipeline while 36 are under process, they informed.
“We have been told about a shortfall in the production of gas that is why we may decided not to allow any further electricity project that would be utilizing gas for generation of power,” a top official said.
Another official said that the power plants that are using gas have been told that they can face shortage of gas supply by 2010/11.
“Almost all the cement manufacturers have been shifted to coal and if the power projects also follow their suit - it would be a wise decision,” he added. Last month the government has dumped the proposals for establishment of 25 thermal power projects due to restricted gas supplies.
Gas companies have already informed Ministry of Petroleum and Natural resources about the looming crisis and in such a situation, the projects using dual fuel would be preferred.
If any other gas sources are discovered in Pakistan or if any of the mega pipeline projects - Iran-Pakistan-India, Trans Afghan - are materialized, then the situation will change and we will change our policy, he said adding that presently both options are not very likely in near future.
Both mega pipeline projects involving billions of dollars are facing difficulties due to different political pressures.