MoU inked: Leading groups tie up to set up Thar coal power plant
Project expected to start power production in about four years.
The proposed 2x300MW power plant may achieve financial close in 2014 and is expected to start power generation in three years from the date of financial close. ILLUSTRATION: JAMAL KHURSHID
ISLAMABAD:
Sindh Engro Coal Mining Company (SECMC) – a joint venture between Engro Powergen Limited and Government of Sindh – signed a Memorandum of Understanding (MoU) on Thursday with leading business groups including Atlas, Liberty and Sapphire for setting up the country’s first Thar coal-based power plant with an investment of $800 million.
According to a statement released after the MoU signing, the companies believed the agreement would pave the way for the much-needed shift of the energy mix to the abundant domestic alternative energy resource in Pakistan.
They vowed to attract new investments from national and international entrepreneurs in the energy sector.
Sindh Engro Coal Mining Company CEO Shamsuddin Shaikh, while talking to The Express Tribune, said the MoU would dispel the impression that Thar coal was not a feasible source of energy.
“The inclusion of financially strong local partner companies will attract more players to Thar coal,” he said, adding the partnership of local independent power producers was important as the power companies highlighted the importance Thar coal held for future energy needs of Pakistan.
The MoU and project development are in line with the government’s vision of promoting domestic fuel-based projects to create a sustainable energy future for the country, according to the statement.
The proposed 2x300MW power plant may achieve financial close in 2014 and is expected to start power generation in three years from the date of financial close.
The alliance will also encourage various international lenders to invest and provide financing for this mega project.
Thar coal can also be utilised for coal gasification for fertiliser and petrochemical industry opening a new avenue for industries, the statement said.
SECMC is a lease-holder of Thar block II and plans to construct 3.5 million tons per annum coal mine to feed the mine mouth power plants.
Thar coal being one of the biggest unexploited energy reserves with over 175 billion tons of coal is adequate to cater to the country’s energy needs for next 100 years.
Published in The Express Tribune, December 20th, 2013.
Sindh Engro Coal Mining Company (SECMC) – a joint venture between Engro Powergen Limited and Government of Sindh – signed a Memorandum of Understanding (MoU) on Thursday with leading business groups including Atlas, Liberty and Sapphire for setting up the country’s first Thar coal-based power plant with an investment of $800 million.
According to a statement released after the MoU signing, the companies believed the agreement would pave the way for the much-needed shift of the energy mix to the abundant domestic alternative energy resource in Pakistan.
They vowed to attract new investments from national and international entrepreneurs in the energy sector.
Sindh Engro Coal Mining Company CEO Shamsuddin Shaikh, while talking to The Express Tribune, said the MoU would dispel the impression that Thar coal was not a feasible source of energy.
“The inclusion of financially strong local partner companies will attract more players to Thar coal,” he said, adding the partnership of local independent power producers was important as the power companies highlighted the importance Thar coal held for future energy needs of Pakistan.
The MoU and project development are in line with the government’s vision of promoting domestic fuel-based projects to create a sustainable energy future for the country, according to the statement.
The proposed 2x300MW power plant may achieve financial close in 2014 and is expected to start power generation in three years from the date of financial close.
The alliance will also encourage various international lenders to invest and provide financing for this mega project.
Thar coal can also be utilised for coal gasification for fertiliser and petrochemical industry opening a new avenue for industries, the statement said.
SECMC is a lease-holder of Thar block II and plans to construct 3.5 million tons per annum coal mine to feed the mine mouth power plants.
Thar coal being one of the biggest unexploited energy reserves with over 175 billion tons of coal is adequate to cater to the country’s energy needs for next 100 years.
Published in The Express Tribune, December 20th, 2013.