Major Drop in Power Production as Winter Begins – Research Snipers

Major Drop in Power Production as Winter Begins

power production

Owing to the poor water management and a decrease in the import of liquefied natural gas (LNG) there has been a significant drop in the power production as the winter season has begun.

As per the National Electric Power Regulatory Authority (NEPRA), the Hydel and LNG-burnt power production decreased forty-four and twenty-three per cent respectively in the month of October 2018.

According to an official who is linked to the import of LNG, there has been a major reduction in the import of gas in the last two months owing to a fissure between the government and the LNG infrastructure owners.

As per the Pakistan Bureau of Statistics (PBS), the import of LNG decreased fourteen per cent to $280.76 million in the month of September 2018 in comparison with the $326.33 million in August. The bureau has not uploaded the data for October.

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The reduction in imports has probably resulted in decreasing the LNG-based power production.

A source said that due to the poor water management, which increased at the onset of winters owes to the slow glacier melting which has impacted the hydel production.

Arif Habib Limited Research observed that the government had increased its dependency slightly on the oil-fired power production while the electricity production by imported LNG and coal-burnt plants experienced a significant drop.

LNG and coal are imported whereas the furnace oil is made locally, hence the reduction in imports and the utilisation of the domestic refineries, the government might have opted for this.

The research house added that the increased capacity payments and decreased electricity dispatches indicate increased charges for the consumers.

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