K-Electric Ltd has signed two separate Memorandum of Understandings (MoUs) with Engro.
The aim of the MoUs is to increase power supply using LNG as fuel. The introduction of LNG as a fuel forms part of K-Electric’s strategy to achieve fuel diversity and enhance power availability in its franchise area within shortest possible time.
K-Electric signed the first MoU with Elengy Terminal Pakistan Ltd (ETPL), a wholly owned subsidiary of Engro Corp. Ltd, which is currently developing the first LNG terminal in Pakistan.
According to a press statement, the second MoU is an agreement between K-Electric, Engro Powergen and GE International to develop a 225 MW combined cycle cycle LNG-fired power plant at Port Qasim. Engro Powergen, a subsidiary of Engro Corp. is the lead developer of the project and is expected to engage GE as the technology provider and investor in the project. K-Electric will off-take power from the project under a long-term power purchase agreement (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-fuelled independent power producer (IPP) shall be developed.
Adapted from press release by Callum O'Reilly