Energy Sectors / Industries / Projects
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ghazi52
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Historic Moment for Pakistan’s Energy Sector - 884MW Suki Kinari Hydropower Project (SKHPP)
Today, August 12, 2024, marks a monumental milestone as the first unit of the Suki Kinari Hydropower Project (SKHPP)—the largest CPEC hydropower project—officially connects to the grid for power generation!
This journey has been one of dedication and perseverance:
• May 25: The first unit successfully completed its dry commissioning test.
• June 16: Wet testing was completed.
• July 1: All electrical tests were finalized, paving the way for grid connection.
Once fully operational, SKHPP is set to generate a staggering 3.212 billion kWh of electricity annually, saving approximately 1.28 million tons of standard coal and reducing CO2 emissions by about 3.2 million tons each year. This project will provide clean, affordable electricity to over 1 million Pakistani households, fueling the nation’s growth and sustainability.
During its peak construction phase, the SKHPP created 6,600 jobs, significantly boosting local social and economic development.
Today, we celebrate not just a technical achievement but a leap forward in Pakistan’s journey toward a sustainable energy future.`
Today, August 12, 2024, marks a monumental milestone as the first unit of the Suki Kinari Hydropower Project (SKHPP)—the largest CPEC hydropower project—officially connects to the grid for power generation!
This journey has been one of dedication and perseverance:
• May 25: The first unit successfully completed its dry commissioning test.
• June 16: Wet testing was completed.
• July 1: All electrical tests were finalized, paving the way for grid connection.
Once fully operational, SKHPP is set to generate a staggering 3.212 billion kWh of electricity annually, saving approximately 1.28 million tons of standard coal and reducing CO2 emissions by about 3.2 million tons each year. This project will provide clean, affordable electricity to over 1 million Pakistani households, fueling the nation’s growth and sustainability.
During its peak construction phase, the SKHPP created 6,600 jobs, significantly boosting local social and economic development.
Today, we celebrate not just a technical achievement but a leap forward in Pakistan’s journey toward a sustainable energy future.`
ghazi52
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Gwadar North Free Zone energized with 10 MW power supply
Gwadar ProAug 15, 2024
GWADAR - In a major development, Gwadar North Free Zone has been energized with 10 MW electricity after connecting the national grid system on August 15. In the second phase 5 MW power supply will be provided to Gwadar North Free Zone and Gwadar Port.
Gwadar Port Authority as the executing agency completed the entire work in one year. Quetta Electric Power Supply Company (QEPSC) and China Overseas Ports Holding Company (COPHC) conducted the feasibility studies. Sigma, a Karachi based company constructed the distribution network in the Gwadar North Free Zone.
Almost 300 meters long underground power cables have been laid down from Deep Sea Port grid station with a sub-station recently constructed at the entrance of North Free Zone. The sub-station has the control panels, HT room and cabinets to manage supply of electricity to the factories in the zone.
From the sub-station a 5 km long 132 KV distribution line carrying two feeders of 5 MW each were laid. On reaching the factories’ premises inside North Free Zone where companies including Han Geng and Agven are operating, step-down transformers have been installed for continual electricity supply as per their demands.
Now Gwadar North Free Zone has been linked to Gwadar Port’s sole grid station with three sources. “One source is national grid station of Quetta. The second source is Gabd-Remdan of Iran border. The third source is Nag-Besima section of another Iran Border.”
The Deep-Sea Port’s sole Grid Station was established in 2019 exclusively for Gwadar Port and Free Zone through three feeders. Since inadequate power was available at the disposal of the QEPSC, the grid station had to rely on diesel generators for production of thermal power using expensive fossil fuel at high cost in the past.
After Gwadar North Free Zone is energized, 8.5 MW Diesel Generator has been switched off, saving millions of rupees. COPHC official said that as matter of fact electricity which was being produced through 8.5 MW diesel generator cost around Rs90 per unit. However, after availability of 10 MW power in Gwadar North Free Zone, electricity cost will be around Rs.55 per unit.
“It means investors and factory owners will enjoy the saving of around Rs35 per unit. This will directly impact financial leverage and production growth not only for current enterprises but also for potential investors,” COPHC official said.
ghazi52
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New coal-fired power plant starts operations today
Business RecorderAug 13, 2024
LAHORE: In a significant milestone for Pakistan’s energy sector, a new 660 MW coal-fired power plant in Jamshoro is set to commence operations on August 14, Pakistan’s Independence Day. This project marks a landmark achievement in the country’s energy infrastructure.
The plant, owned by the Government of Pakistan and funded by the Asian Development Bank, features advanced supercritical technology and is designed to enhance energy efficiency and stabilize the national grid. Its strategic location will benefit the industrial hub of Karachi and the southern region.
The plant’s commissioning is a technological advancement and a strategic asset for Pakistan’s energy sector, expected to improve power stability and reliability. K-Electric has expressed plans to acquire the plant in the future, reflecting its anticipated value and impact.
Copyright Business Recorder, 2024
ghazi52
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New coal-fired power plant starts operations today
Business RecorderAug 13, 2024
LAHORE: In a significant milestone for Pakistan’s energy sector, a new 660 MW coal-fired power plant in Jamshoro is set to commence operations on August 14, Pakistan’s Independence Day. This project marks a landmark achievement in the country’s energy infrastructure.
The plant, owned by the Government of Pakistan and funded by the Asian Development Bank, features advanced supercritical technology and is designed to enhance energy efficiency and stabilize the national grid. Its strategic location will benefit the industrial hub of Karachi and the southern region.
The plant’s commissioning is a technological advancement and a strategic asset for Pakistan’s energy sector, expected to improve power stability and reliability. K-Electric has expressed plans to acquire the plant in the future, reflecting its anticipated value and impact.
Copyright Business Recorder, 2024
ghazi52
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Kohala plant back on track after 3-year delay
Khaleeq KianiAugust 21, 2024
ISLAMABAD: Pakistan has agreed in principle to revive the 1,124MW Kohala Hydropower Project (KHPP) and extend the completion deadline by three years, sources in the Planning Commission told Dawn.
The project had been stalled for three years as China Export and Credit Insurance Corporation (Sinosure) was reluctant to provide insurance cover to the project as Pakistani power companies had not paid the dues of over Rs550bn owed to Chinese independent power producers (IPPs).
Moreover, there were also concerns over the changes in land acquisition law and environmental regulations by the Azad Kashmir government. Earlier this year, China Three Gorges Dam Corporation (CTG) — the Chinese sponsor of the project — had demanded the revival of the $2.5 billion hydropower station.
According to the sources, at present, legal and procedural formalities are being worked out by the Private Power and Infrastructure Board (PPIB) — a one-window investment facilitation arm of the Power Division — and CTG to extend the letter of support (LoS) and deadline for financial closing by September 30 2027, instead of October 1 2024.
Pakistan has also agreed to waive potential penalties that normally accrue on LoS extensions on the understanding that the delays were beyond the control of the sponsor, CTG.
The project remained under discussion for quite some time, particularly since Prime Minister Shehbaz Sharif’s visit to Beijing in June. Ministerial delegations, including the one led by the finance minister, have also visited China since then.
On the eve of the PM’s June visit, CTG had raised a series of demands to revive the 1,124MW project.
Pakistan has been seeking its revival, along with the 700mw Azad Pattan Hydropower project because the renewable projects are a key part of the multi-billion dollar China-Pakistan Economic Corridor (CPEC) and Islamabad’s long-term Indicative Generation Capacity Expansion Plan (IGCEP).
Following the hectic engagements by Planning Minister Ahsan Iqbal and the PM Office during and on the sidelines of the Joint Coordination Committee (JCC) of the CPEC in May, Pakistan got a positive response from the Chinese leadership on resuming the project.
Following the engagements, Sinosure is reported to have asked the sponsors of these two projects to file fresh letters of intent (LOIs) for investment and related insurance cover.
On the sidelines of the PM’s visit, CTG had demanded that the previous bank guarantee be kept unchanged instead of doubling it as required under the power policy and waiving the extension fee.
CTG had reported that the KHPP Company was “fully geared” to achieve financial closing in December 2018 when the work was “unexpectedly halted” by the AJK government over environmental concerns.
The company reported that it had already executed an EPC Contract and an Employer Engineer’s Contract and mobilised heavy equipment to start the construction when the concerns were raised.
Subsequently, it took more than three years to address the issues, leading to significant delays in the project.
Published in Dawn, August 21st, 2024
Fatman17
Moderator
KARACHI:
In a surprising turnaround, Pakistan has reversed the historical trend of depleting oil and gas reserves as it reported a 26% boost in crude oil deposits and a 2% increase in gas reserves in the six-month period ended June 30, 2024.
New discoveries and an upward revision in recoverable reserves have bolstered by one year the lifespan of oil and gas deposits to 10 years and 17 years, respectively.
In a surprising turnaround, Pakistan has reversed the historical trend of depleting oil and gas reserves as it reported a 26% boost in crude oil deposits and a 2% increase in gas reserves in the six-month period ended June 30, 2024.
New discoveries and an upward revision in recoverable reserves have bolstered by one year the lifespan of oil and gas deposits to 10 years and 17 years, respectively.
ghazi52
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Curbs on workers, experts’ movement: Slowdown hits Dasu hydropower project work: World Bank
- Says slowdown due to restrictions on the ground-transportation of international workers and experts from Islamabad to Dasu and shortage of armored vehicles for their movement within the project areas
Mushtaq Ghumman
October 17, 2024
ISLAMABAD: The World Bank has observed that work on 4,320 MW Dasu Hydropower Project has considerably slowed down, due to restrictions on the ground-transportation of international workers and experts from Islamabad to Dasu and shortage of armored vehicles for their movement within the project areas.
A World Bank Mission was in Pakistan from September 2-13, 2024 for attestations of the facts of multi-billion-dollar project.
The Mission also held meetings with authorities of Water and Power Development Authority (WAPDA), and the National Transmission and Despatch Company (NTDC) for the support extended to the World Bank’s implementation support for Dasu Hydropower Stage I Project (DHP-I). DHP-I includes Dasu Hydropower Project (DHP) and Dasu Transmission Line (DTL).
ghazi52
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The World Bank’s Board of Executive Directors approved $1 billion as the second additional financing for DHP-I on June 10, 2024, with IDA credits 7563-PK, 7564-PK, and IBRD Loan 9680-PK. The Bank has requested EAD to complete the signing of the IDA credit and IBRD loan agreements at the earliest so that the Project’s financing costs are optimized by using the concessional Shorter Maturity Loan in IDA 7563-PK.
The construction of DHP and DTL are ongoing despite the security and logistics challenges. The Bank requested the government to take security measures to ensure the safety and security of the project personnel and to facilitate necessary movement of international workers and experts to improve the construction progress. The completion of DHP-I will reduce the average cost of generation in the country and relieve the financial pressure of Pakistanis due to the high electricity tariff.
“The terrorist attack of March 2024 was a major set-back resulting in temporary suspension of works by all the Chinese contractors and implementation of strict security measures by the government,” said Country Director Najy Binhassine.
The construction of DHP and DTL are ongoing despite the security and logistics challenges. The Bank requested the government to take security measures to ensure the safety and security of the project personnel and to facilitate necessary movement of international workers and experts to improve the construction progress. The completion of DHP-I will reduce the average cost of generation in the country and relieve the financial pressure of Pakistanis due to the high electricity tariff.
“The terrorist attack of March 2024 was a major set-back resulting in temporary suspension of works by all the Chinese contractors and implementation of strict security measures by the government,” said Country Director Najy Binhassine.
ghazi52
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The mission observed that works in DHP have considerably slowed down, due to restrictions on the ground-transportation of international workers and experts from Islamabad to Dasu and requirement of armored vehicles for their movement within the project areas.
The Mission maintained that in DHP the concreting of the integrated coffer dam is the next major milestone. It is likely to start in the low-flow season of 2025 (ie, August/September 2025) given the slower progress of works since March 2024 and delay in availability of power from the 132 kilovolt (kV) transmission line, which is still under construction. To achieve this milestone and complete the preparatory works in DHP, well-coordinated support from the federal, provincial, and local governments to the Project and WAPDA is necessary.
The Mission maintained that in DHP the concreting of the integrated coffer dam is the next major milestone. It is likely to start in the low-flow season of 2025 (ie, August/September 2025) given the slower progress of works since March 2024 and delay in availability of power from the 132 kilovolt (kV) transmission line, which is still under construction. To achieve this milestone and complete the preparatory works in DHP, well-coordinated support from the federal, provincial, and local governments to the Project and WAPDA is necessary.
ghazi52
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The key actions agreed for DHP are:
(i) several houses, where the affected people have been provided rightful SMR, are still not demolished. These houses must be demolished immediately, prioritizing cases in the footprint of relocated Karakoram Highway (KKH) and Right Bank Access Road-2.
The priority houses must be demolished by mid-October 2024. In parallel, SMR payments must be completed and concluded for the cases that are being reviewed by WAPDA and Deputy Commissioner’s (DC) office; and as soon as SMR are paid in these cases, the associated houses must be demolished;
(ii) local disputes and frequent interruptions of works are still impeding DHP’s construction progress, particularly in relocated KKH and 132 kV transmission line but also in the main works for the dam and powerhouse.
The mission appreciated the support from Commissioner Hazara in monitoring these disruptions in the project areas. The DC Dasu, District Police Office and WAPDA, need to ensure that contractors’ works are uninterrupted; and (iii) coordinated support from the federal government, Khyber Pakhtunkhwa provincial government, and the district administrations of Lower Kohistan, Kolai Pallas, and Upper Kohistan is necessary to stop further delays of the installation of this transmission line, which will supply power to the crushing and batching plants for concreting the integrated coffer dam and the main dam.
(i) several houses, where the affected people have been provided rightful SMR, are still not demolished. These houses must be demolished immediately, prioritizing cases in the footprint of relocated Karakoram Highway (KKH) and Right Bank Access Road-2.
The priority houses must be demolished by mid-October 2024. In parallel, SMR payments must be completed and concluded for the cases that are being reviewed by WAPDA and Deputy Commissioner’s (DC) office; and as soon as SMR are paid in these cases, the associated houses must be demolished;
(ii) local disputes and frequent interruptions of works are still impeding DHP’s construction progress, particularly in relocated KKH and 132 kV transmission line but also in the main works for the dam and powerhouse.
The mission appreciated the support from Commissioner Hazara in monitoring these disruptions in the project areas. The DC Dasu, District Police Office and WAPDA, need to ensure that contractors’ works are uninterrupted; and (iii) coordinated support from the federal government, Khyber Pakhtunkhwa provincial government, and the district administrations of Lower Kohistan, Kolai Pallas, and Upper Kohistan is necessary to stop further delays of the installation of this transmission line, which will supply power to the crushing and batching plants for concreting the integrated coffer dam and the main dam.
ghazi52
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On 765kV Transmission Line (DTL), the mission stated that progress of DTL, Lot 1 - Transmission line from Dasu Switchyard to Mansehra Substation, Lot 2 - Transmission line from Mansehra Substation to Islamabad West Substation, and Lot 3 - Mansehra Substation, has improved.
The contractors have placed purchase orders for the key equipment for all three lots. The alignment of Lot 2 has been finalized.
The contract for Lot 4 - Islamabad West Substation has been effective since July 21, 2024, with 30-month duration. Lot - 4 contractor is at a start-up stage, and geotechnical investigations and system studies must be completed with priority. Timely decisions by the NTDC management are of upmost importance to improve the progress of DTL.
The key actions agreed for DTL are: (i) NTDC Board’s approval of the Memorandum of Understanding (MoU) between NTDC and district administrations is required to ensure that construction of towers in Lot 1 and Lot 2 proceeded without major land and social issues.
The contractors have placed purchase orders for the key equipment for all three lots. The alignment of Lot 2 has been finalized.
The contract for Lot 4 - Islamabad West Substation has been effective since July 21, 2024, with 30-month duration. Lot - 4 contractor is at a start-up stage, and geotechnical investigations and system studies must be completed with priority. Timely decisions by the NTDC management are of upmost importance to improve the progress of DTL.
The key actions agreed for DTL are: (i) NTDC Board’s approval of the Memorandum of Understanding (MoU) between NTDC and district administrations is required to ensure that construction of towers in Lot 1 and Lot 2 proceeded without major land and social issues.
ghazi52
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In coordination with the Commissioner Hazara, NTDC had agreed to sign the MoU by January 2024 to receive support from DCs’ offices and revenue officers for identifying landowners affected by the transmission lines and determining compensations for them.
Lot 1 Section 1 will pass through Upper Kohistan, Lower Kohistan, Kolai Pallas, and Shangla where land and revenue records are unclear; (ii) NTDC management and Board must approve a simple amendment to include occupational health and safety experts in the team of the supervision consultant without further delays.
The Bank provided no objection to this amendment on August 6, 2023; and (iii) NTDC and the contractors should form dispute resolution boards for all three contracts.
The progress of DTL and Islamabad West Substation must be monitored closely. Based on experience from the 132 kV transmission line, Lot 1 - Section 1 will be the most challenging from construction and social perspectives. The Power Division and NTDC management must ensure that sufficient resources and attention are given to DTL and that progress is keeping up with the ambitious timeline.
Copyright Business Recorder, 2024
Lot 1 Section 1 will pass through Upper Kohistan, Lower Kohistan, Kolai Pallas, and Shangla where land and revenue records are unclear; (ii) NTDC management and Board must approve a simple amendment to include occupational health and safety experts in the team of the supervision consultant without further delays.
The Bank provided no objection to this amendment on August 6, 2023; and (iii) NTDC and the contractors should form dispute resolution boards for all three contracts.
The progress of DTL and Islamabad West Substation must be monitored closely. Based on experience from the 132 kV transmission line, Lot 1 - Section 1 will be the most challenging from construction and social perspectives. The Power Division and NTDC management must ensure that sufficient resources and attention are given to DTL and that progress is keeping up with the ambitious timeline.
Copyright Business Recorder, 2024
