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Gas allocation to Naudero RPPs faces opposition
21 November 2009: The Ministry of Industries and Production has reportedly opposed allocation of gas for rental power projects (RPPs) at Naudero, Sindh, by US based Walters Power International (WPI), and requested the Economic Co-ordination Committee (ECC) of the Cabinet to provide gas to the already established industry.
The Ministry of Water and Power has proposed allocation of gas for RPPs on firm basis, instead of as and when available basis. WPI has already been allocated 12 mmcfd for existing rental power project-1 at Naudero, and has requested an increase in the gas quota to 15.5 mmcfd. The US company has also requested for 15 mmcfd additional gas allocation for 49.52 mw rental power plant-II at Naudero.
Keeping in view RPP contracts with provision of higher availability, it has suggested that the gas allocation should be on firm basis, instead of "as and when available basis". It is of the view that the rental services contract of rental power projects does not provide dual firing arrangement and conversion in combined cycle plant and the increase in efficiency of aero derivative gas turbine in combined cycle mode is limited.
Source: Business Recorder