Atlas group to invest $220 million in RLNG plant

Signs agreements for setting up 220MW power plant near Sheikhupura

LAHORE: Atlas Powergen will invest $220 million for setting up a 220-megawatt re-gasified liquefied natural gas (RLNG)-based power plant, near Sheikhupura district, Punjab, the company announced in a statement on Monday.

Atlas Powergen, a sister concern of the Atlas group, is already operating a 225-megawatt diesel-powered plant as a joint venture with MAN Diesel Germany.

The company for its RLNG-based power plant has signed two agreements with SepcoIII Electric Power Construction Corporation, a renowned Chinese engineering firm.

Apart from SepcoIII, Siemens, the global engineering powerhouse, will supply and install a state-of-the-art gas and steam turbine as a core component of the project.



Atlas Powergen has been selected in a recently concluded international competitive bidding held by the government for the RLNG-based power project, as part of fast-track efforts to bring more electricity into the system based on clean resources.

The National Electric Power Regulatory Authority has officially declared Atlas Powergen the winner of the competitive bidding while the Ministry of Petroleum has provided the company with a firm gas supply commitment to proceed with the project.

“The Atlas project is prestigious for us as it marks the first new private sector LNG-based IPP (independent power producer), which will not only add power to the national grid but will also strengthen the growing Pak-China friendship,” said SepcoIII Chairman Wang Lujun.

“Our commitment to Pakistan can be gauged by the work under way at both the 1,230MW Haveli Bahadur LNG-based and 1,320MW Port Bin Qasim coal-fired power projects.”

The Ministry of Water and Power expects the LNG-based projects to serve as a good complement to the indigenously produced hydel and coal-powered projects.



Atlas Powergen is expected to deliver 150MW from open-cycle operations by April 2017 and 220MW by early 2018.

Speaking on the occasion, Siemens Pakistan CEO Von Struve said: “We are optimistic that this joint Pak-German-China partnership would set new benchmarks in terms of cross-border cooperation, optimum efficiency and project completion within the proven fast-track mode to meet the government’s tight deadlines.”

The initial financing arrangements have been put in place, while work at the site has also started. The company is expected to apply for the Letter of Support from the Private Power and Infrastructure Board in coming days.

Published in The Express Tribune, June 7^th, 2016.

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