KESC, Engro team up to build 600MW power plant at Thar
Karachi Electric Supply Company and Sindh Engro Coal Mining Company (SECMC) have signed a memorandum of understanding to construct a power generation project capable of producing 600 megawatts (MW) at Thar coal field. The memorandum was signed by KESC CEO Nayyer Hussain and SECMC CEO Shamsuddin A Sheikh.
According to the MoU, SECMC – a joint-venture between Engro Powergen and the Government of Sindh – will develop a 600MW Mine Mouth Power
Plant in Thar field’s block 2, whereas KESC will purchase power from the plant to meet the rising power demand in Karachi and adjoining areas of Sindh and Balochistan.
Both the parties believe that the agreement will serve as the base for a mutually beneficial partnership for future progress and development of one of the largest coal reserves in Pakistan.
The two companies acknowledged that coal from Thar had the potential to address the country’s severe power shortages and bring energy security which is indispensable for economic growth.
The Thar Coal Power Project aims to provide affordable and sustainable electricity to consumers using domestic resources. Reliance on indigenous fuel is likely to save billions of dollars in foreign exchange currently spent on import of the expensive alternative furnace oil, cutting the overall cost of power generation.
Power generation from coalbased plants at Thar will start a new era that will not only enhance availability of electricity but also make it easier for industrial, agricultural and commercial sectors to boost production. Additionally, availability of Thar coal for coalfired power generation will help create new jobs and achieve energy security.