Karachi ( The COW News Digital )K-Electric has announced the permanent closure of its two gas-fired power plants, citing ongoing gas shortages as the primary reason. The decision affects the Korangi Town Gas Turbine Power Station and the SITE Gas Turbine Power Station.
According to a letter sent to the Pakistan Stock Exchange, the company’s Board of Directors has approved the shutdown of both facilities. K-Electric also stated that it will approach the National Electric Power Regulatory Authority (NEPRA) to formalize the permanent closure.
The letter explained that the company’s reliance on imported liquefied natural gas (LNG) to supplement inadequate local gas supply has proven unsuccessful. Despite these challenges, K-Electric assured stakeholders that the closures will not disrupt electricity supply in Karachi.
To offset the capacity loss, the utility has activated the 900-megawatt Bin Qasim Power Plant. Additionally, K-Electric has secured an agreement to draw an extra 2,000 megawatts of electricity from the National Grid, ensuring uninterrupted power for the city’s consumers.
The move comes at a time when Pakistan continues to face energy sector challenges, including frequent gas shortages and rising LNG import costs. Analysts say the closure of older gas power plants reflects the difficulties in maintaining cost-effective operations amid fuel supply constraints.
K-Electric reported strong financial performance for fiscal year 2024 despite operational challenges, with profits reaching into the billions of rupees. The company emphasized that the restructuring and reliance on alternative power sources will help maintain efficiency and reliability in Karachi’s electricity supply.
NEPRA’s approval will be critical for the final closure, as the regulatory body oversees licensing and operational compliance for all power generation facilities in Pakistan. Meanwhile, city residents are unlikely to experience power shortages due to the additional grid support and activation of alternative plants.
The closure highlights the broader issue of Pakistan’s energy dependence on gas and imported LNG. Experts suggest that investment in diversified energy sources, including renewable energy and coal-fired plants, could mitigate similar disruptions in the future.
K-Electric’s announcement reflects a strategic move to manage operational costs while ensuring the city’s electricity demands continue to be met without interruption
