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Creating Capacity Essay

1511 words - 7 pages

Creating Capacity out of Shortfall

“I am the source of moving the economies. I have the power to make or mar the International diplomacy. I am the driving force that makes countries wage war and forge peace with each other. I have been the bone of contention ever since I was discovered. I have my contemporaries but none are as powerful yet, as I am. I have been hiding underneath the soil for millions of years. I am black gold.”

Fossil fuels are non-renewable energy sources since they need millions of years to form and its reserves are depleting much faster than the formation of new ones. The domination of Fossil Fuels will end one day. With its depletion, the supply will ...view middle of the document...

About 10,000 Tons of LSFO is provided by ARL every month, rest is imported by PSO which meets the fuel demand each month through 2 to 3 ships, each with a carrying capacity of 50,000 Tons. As it is obvious that these ships cannot supply this fuel directly to KAPCO so that fuel is sent through PSO’s own channels to PSO Lal Pir Depot.

The fuel is primary supplied through the Mehmood Kot pipeline but due to certain reasons, that will we discussed in the challenges section of this article, the full demand cannot be met through the pipeline supply. Only about 4000 Tons per day can be supplied through the pipeline to meet the demand of 5500 Tons of Furnace oil per day. This fuel takes about 8 hours to travel from PSO Lal Pir depot to KAPCO. Diesel is served through the same pipe line. A device called Pig is used to keep the line clean and keep the various kinds of fuels separate.

The remaining 1500 Tons of fuel is supplied through the Oil Tank Lorries. An Oil Tank Lorry carries approximately 40 Tons of Furnace oil, which means that it takes about 38 Oil Tank Lorries daily to supply 1500 Tons of fuel. These Oil Tank Lorries are decanted at 20 decanting bays. Each batch takes about 4 to 4.5 hours to decant and on average 40-50 Oil Tank Lorries are decanted every day.

Once the fuel is received through the pipeline and is decanted from the oil tankers, it is stored in the oil storage tanks. 5 storage tanks store HSD. 11 storage tanks store untreated LSFO. Each tank has a storage capacity equivalent to 200 Oil Tank Lorries i.e. 8000 tons.

The fuel is then treated. 5 Furnace Oil Treatment Plants (FOTPs) perform this function. 4 of them are Electrostatic FOTPs having a processing capacity of 50 Tons per hour. 1 of them is Centifuge FOTP having a processing capacity of 80 Tons per hour. The sum of their processing capacities is 280 Tons per hour. After treatment, FO is sent back to 11 storage tanks dedicated for treated LSFO. From here it is destined to burn in the turbines to run your appliances and factories.

The Challenges:

Now lets look at the challenges faced by KAPCO regarding fuel.

Increase in electricity demand and decrease in Gas supply:

First take a look at the Net Output of KAPCO for the last 14 years. One can observe a clear jump in the Net Output in the fiscal year 2004-05; this trend continued for the next 4 years. Then it saw a decrease in the year 2008-09 and now is on an increasing trend.


Now look at the fuel mix of previous 13 years that KAPCO has been using for its production.


The fuel mix graph clearly shows that there was plenty of Gas available to KAPCO in fiscal year 2004-05, to meet the sudden jump in the demand of electricity. In that year, 86.2% of power was generated through Gas, 13.4% through FO and only 0.4% through HSD. In the following years you can see that the Ratio of Gas to other fuel has been decreasing each year which trend continues to this date. The fuel mix for fiscal year...

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