En­gro to set up 450MW RLNG power project

Enterprise - - National News -

En­gro Pow­er­gen Lim­ited, an en­ergy arm of the coun­try’s multi­na­tional com­pany, ear­marked $405 mil­lion in in­vest­ment to set up 450-megawatt of com­bined cy­cle power plant, pri­mar­ily based on re-gasi­fied liq­ue­fied nat­u­ral gas (RLNG), a doc­u­ment said.

Ko­lachi Port­gen (Pri­vate) Lim­ited, a sub­sidiary of En­gro Pow­er­gen Lim­ited, is de­vel­op­ing the project at the Port Qasim. The elec­tric­ity will be ex­ported to K-Elec­tric at 220kV via a power evac­u­a­tion point, lo­cated within the project site, said the doc­u­ment.

The coun­try is yet to see the op­er­a­tion of any RLNG-based power plant. En­gro’s plant will be the third ma­jor project af­ter 3,600-megawatt power plants be­ing set up in the Pun­jab.

The doc­u­ment said the plant and its equip­ment will be de­signed, man­u­fac­tured, as­sem­bled and tested in ac­cor­dance with the in­ter­na­tion­ally-recog­nised stan­dards and statu­tory reg­u­la­tions. “Plant op­er­a­tions shall be com­pli­ant to the Pak­istan Na­tional En­vi­ron­men­tal Qual­ity Stan­dards and the In­ter­na­tional Fi­nance Cor­po­ra­tion’s guide­lines, which­ever are more strin­gent,” it said.

EPL is a lim­ited li­a­bil­ity com­pany and a wholly-owned sub­sidiary of En­gro Cor­po­ra­tion. The plant is ex­pected to be com­mis­sioned in the sum­mer of 2019. The com­pany will en­ter into a power pur­chase agree­ment with K-Elec­tric for the sale of en­ergy gen­er­ated for a term of 30 years. K-Elec­tric has pro­vided its con­sent on the grid in­ter­con­nec­tion study for the project.

The pre­lim­i­nary es­ti­mates said the in­vest­ment size of $405 mil­lion is likely to be funded 75 per­cent from debt and 25 per­cent from eq­uity. Both for­eign and lo­cal lenders will fi­nance the debts on half ba­sis. The project has al­ready ac­com­plished en­vi­ron­ment and so­cial im­pact as­sess­ments, grid in­ter-con­nec­tion study and fea­si­bil­ity report. The com­pany also re­ceived en­gi­neer­ing, pro­cure­ment, con­struc­tion bids, which are un­der eval­u­a­tion.

The doc­u­ment said the project will con­sume RLNG as the pri­mary fuel, which is likely to be sup­plied by the Pak­istan LNG Lim­ited. Pak­istan is suf­fer­ing from an acute en­ergy cri­sis. The un­re­li­able power sup­ply is af­fect­ing the pro­duc­tive end-uses of power due to which the di­rect and mul­ti­plier ben­e­fits of pro­duc­tive ac­tiv­i­ties are fore­gone and the econ­omy is in­cur­ring a loss. The govern­ment signed an agree­ment with the Qatari govern­ment for the im­port of liq­ue­fied nat­u­ral gas, which is a cheaper and en­vi­ron­men­tally-friendly fuel for power gen­er­a­tion as com­pared to diesel and fur­nace oil.

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