K-Electric Limited in its press statement is pleased to announce the signing of two separate MoUs with Engro with the objective of increasing power supply to the city and it’s adjoining areas using LNG as fuel for new generation. Introduction of LNG in the fuel mix is part of KE’s strategy to achieve fuel diversity and enhance power availability in its franchise area within shortest possible time.
According to details, K-Electric signed the first MoU with Elengy Terminal Pakistan Limited (ETPL), a wholly owned subsidiary of Engro Corporation Limited, which is currently developing the first LNG terminal in Pakistan. Keeping in view the long term forecast of receding gas supply from indigenous sources, KE has shown keen interest in the development of LNG terminal by ETPL.
Press statement added that the second MOU is a tri-partite MoU signed between KE, Engro Powergen, and GE international for the development of a high efficiency 225 MW combined cycle LNG fired power plant at Port Qasim. Engro Powergen, a subsidiary of Engro Corporation is the lead developer of the project and is expected to engage GE as the technology provider and investor in the project. KE will off-take power from the project under a long term PPA and has also shown interest to invest in the power company. The project is expected to be fast tracked and will be the first instance in Pakistan where an LNG fueled IPP shall be developed.
SOURCE: PRESS RELEASE