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Review of Engro energy companies

Engro Powergen Qadirpur

Incorporated in 2008 as a subsidiary to develop power projects in Pakistan, Engro Powergen Qadirpur Limited is Engro Corporation’s first initiative into the country’s power sector. Its aim is to ease the burden on the nation’s energy sector by developing projects exploring cleaner, more efficient and economically viable sources of power generation including wind, hydro and solar energy. Engro Energy owns and operates Engro Qadirpur, a 217 megawatt power plant and the group’s first initiative in the power sector of Pakistan. Engro Qadirpur was listed at Karachi Stock Exchange (mow Pakistan Stock Exchange) in October 2014, offerings its 25% shares though an IPO. As of now Engro Qadirpur is 69% owned by Engro Corporation via Engro Energy, whereas the reshpic1mainder is owned by the International Finance Corporation (IFC) and employees.

Its first Independent Power Project (IPP) and unique concept in energy conservation is 217 MW power plant at Qadirpur, presently the only green facility of its kind in Pakistan to utilize permeate gas for reduced carbon emissions. Engro Powergen Qadirpur plant has opened new doors of opportunity for investors hailing from Pakistan’s private and public sectors. This project is very unique in a way that it utilizes high sulfur gas which was being flared through Qadirpur gasfield for almost a decade. It converts this sulfur into electric power. This energy conservation idea showed the waste gas a right path to burn. This is a 1+1+1 configuration dual fuel fired combined cycle power plant with a 123 MW Gas T Turbine, 400 tons/hour Heat Recovery Steam Generator and 110 MW Steam Turbine. The plant uses permeate gas as its primary fuel source and HSD as backup fuel. The unique fuel usage, which was previously being flared, makes Engro Powergen Qadirpur one of the lowest opportunity cost thermal power plants in the country. It paves the way for brighter living with investments aimed at boosting the nation’s energy sector, preserving the environment, inspiring innovations and forming lasting changes within the communities that we engage with.

Sindh Engro Coal Mining Company

Sindh Engro Coal Mining Company (SECMC) is a joint venture between Government of Sindh (GoS), Engro Energy (formerly Engro Powergen Limited) and its partners: Thal Limited (House of Habib), Habib Bank Limited (HBL), Hub Power Company (HUBCO) and China Machinery Engineering Corporation (CMEC).

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SECMC was created with the vision “to develop a technically and commercially viable Coal Mining Project in Thar Block-II to bring energy security to Pakistan”. The total reserves of block II are sufficient to support 5000MW of energy for 50 years; enough to pull the country out of the energy crisis.

The Bankable Feasibility Study (BFS) of the mining project was developed by Sino Coal International Engineering Research & Design Institute of China, RWE of Germany, SRK (UK) and Hagler Bailly in 2010, for a mine capacity of 6.5 Mt/annum. The study concluded that the project is technically, commercially, environmentally and socially feasible. In 2012-13 RWE amended the original feasibility study for the Mine size of 3.8 Mt/annum, which was done to reduce the capital cost of the overall project. In 2012, RWE also developed a Competent Person Statement (CPS) for the Lignite Resources in Thar Block-II, confirming that the total resources in Thar Block-II are 2.039 billion tons of which 1.57 billion tons are mineable.

SECMC’s mining project is categorized amongst the ‘early harvest’ projects under CPEC to generate electricity utilizing Thar’s untapped coal reserves. The total planned mining capacity of the project will be 20.6 MT/annum with a capacity to scale it to 30.4 MT/annum while the power generation capacity is projected to be 3,960 MW at full capacity.

 

The mining project is planned to be executed in 5 phases with phase I to be completed by December 2018 and Phase II commenced thereon. In the first phase, the Mine is being developed for a capacity of 3.8 MT/annum whereas two 330 MW sub critical plants are under construction; out of which first unit will be commissioned in December 2018 and the second unit by March-April 2019 utilizing the complete capacity of 3.8 MT/annum. In the second phase the mine will be further expanded to 7.6 MTPA and additional 2 x 330 MW of power will be added whereas in the third phase mine will be expanded to a capacity of 15.2 MT/annum with an additional power generation capacity of 1,320 MW.

Similarly, in the fourth phase the mine will be expanded to a capacity of 22.8 MT/annum with additional 1,320 MW added to the system while in the fifth and final phase Mine is expanded to its full potential of 30.4 MT/annum with additional 1,320 MW added into the system bringing the combined total to over 5,000 MW of power generation through Thar coal from Block-II.

Engro Powergen Tharshpic3

Engro Powergen Thar (Private) Limited was formed in 2014 to set up a 2x330MW power project in Thar Block-II, Sindh, Pakistan. The company is a joint venture between Engro Powergen (EPL) (with 50.1% ownership), China Machinery Engineering Corporation (CMEC), Habib Bank Ltd (HBL), and Liberty Mills Limited. EPTL’s power project will be the pioneering project in generating electricity using indigenous lignite coal from the Tharparkar district. An opencast mine in Thar is being developed by Sindh Engro Coal Mining Company (SECMC), which will supply 3.8 Mt/a coal to EPTL. The mining project is currently in the overburden removal stage and is expected to achieve commercial operations by June 2019. The power complex is expected to begin supplying electricity to the national grid, that is, commence commercial operations, by June 2019. It is designed to deliver gross capacity of 2×330 MW to the grid’s 500kV double circuit transmission line from Thar to Matiari on to Jamshoro/Moro.

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