KARACHI: The National Electric Power Regulatory Authority (NEPRA) on Tuesday approved generation tariff for re-gasified liquefied natural gas (RLNG)/ high speed diesel (HSD) based 1,263.2MW Punjab Thermal Power (Pvt) Limited (PTP) project in Jhang. The NEPRA determined and approved the generation tariff for PTP for its 1,242.70 MW (net) power project on RLNG and 1,081.80 MW (net) on HSD at Jhang for combined cycle operations and simple cycle operation on RLNG for delivery of electricity to the power purchaser. In a determination, NEPRA sanctioned 30-year levelised tariff on combined cycle operation at Rs 5.90 per unit. It also approved the HSD as alternate fuel for the same plant and set its tariff at Rs11.16 per unit. The regulator approved Rs 9.30 per unit tariff on simple cycle operation. PTPL is wholly owned company of the Government of Punjab (GoP) incorporated to act as an IPP to set up a combined cycle power project of 1,263.20 MW (net 1,242.70 MW) on RLNG as the primary fuel and HSD as back-up fuel located near Haveli Bahadur Shah /Trimmu Barrage, District Jhang, Punjab. The project was approved by the Cabinet Committee on Energy (CCE) of the federal government on June 6. CCE also relaxed, to the extent of this project, the ban it had placed on new imported fuel based power projects. PTPL had filed application for grant of generation license in July 2017 which is under process. PTPL filed a tariff petition for approval of the reference generation tariff for single cycle and combined cycle operation for the proposed project in September 2017. Project financing is to be obtained from various local financial institutions. The mandated lead arrangers and the GoP are currently negotiating the terms and conditions for the finance facilities, and in the meantime, the costs of the project on a debt to equity ratio of 75 :25 have been assumed. According to the PTP, National Transmission and Dispatch Company Limited (NTDC) after due consideration of load flow, availability of grid station, transmission lines and in view of the requirements and electricity demand of the area, has allocated to PTP the site. The Site will be developed by PTP to serve the project’s land, logistical, water, and drainage requirements. As per the current power evacuation plan the project will feed net generation to the nearest Toba Tek Singh (TTS) 220 KV grid station and the proposed dispersal is 220KV in the existing lines. The power will be evacuated from the project through 220 KV transmission lines that will connect it to national grid through Grid Station. Further, for the provision of gas supply to the site, a spur pipeline and allied facilities will be constructed at the GoP’s cost. The PTP had requested the NEPRA to consider and allow the fees, subscription and charges of $2.457 million in the project cost. PTP had proposed to NEPRA a levelised tariff of Rs 7.0947 per unit on RLNG for 30 years and Rs12.78 per unit if the plant is run on HSD in the absence of LNG. Published in Daily Times, December 27th 2017.