Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

MPS Preview: High for Longer

TEL, ThalNova signs Coal Agreement with SECMC

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KARACHI: With an aim to increase share of indigenous resource into the energy mix, the Sindh Engro Coal Mining Company (SECMC) on Saturday signed two separate Coal Supply Agreements (CSA) with TEL and Thal Nova for supply of 1.9 million Tonnes of coal per annum each.

ThalNova is a joint venture between Thal Power (Private) Limited and Nova Powergen Limited subsidiaries of Thal Limited and Novatex Limited respectively.

Thar Energy Limited (TEL) is the subsidiary of Hub Power Company Limited (Hubco), which is one of the largest IPPs in Pakistan Thar Energy Limited and ThalNova are setting up mine-mouth power plants of 330MWs each at Thar Coal Block II, fully capable of running 100 percent on Thar coal. Both the power plants are scheduled to be commissioned by early 2020.

After commissioning of these two projects, SECMC would be mining 7.6 million tonnes per annum of coal from Thar Block-II which will reduce the coal tariff to approx. USD 41.35 per tonne, which will be equivalent to imported coal on USD/MMBtu basis.

Earlier in April 2016, SECMC and Engro Powergen Thar Limited (EPTL) achieved combined Financial Close to supply 3.8 million tonnes per annum of coal to EPTL. Currently, a project to mine 3.8 MTPA and 660MWs power plant is progressing ahead of schedule and is expected to come online by June 2019.

On behalf of SECMC, the CSA was signed by its CEO, Mr. Shamsuddin Shaikh, while Mr. Khalid Mansoor, CEO, HUBCO & Thar Energy Limited and Mr. Khalid Siraj Subhani, CEO and Mr. Rana Zulfiqar, COO of ThalNova signed the agreements at the ceremony held at SECMC’s Office in Karachi.

Speaking on the occasion, SECMC, CEO, Shamsuddin Shaikh said that SECMC aggressively pursuing expansion of its mining project with an aim to address electricity shortage in the country and to provide affordable electricity to the public.

He further stated that in order to ensure the energy security of Pakistan in the long run, development of indigenous coal is essential.

“It will not only become cheaper than the imported coal as the mine expands, it will also contribute in other benefits like increase in employment in particular to the locals, infrastructure development and significant savings in foreign exchange against imported coal,” he added

Posted on: 2017-05-22T16:53:00+05:00