ISLAMABAD: Karachi Port Trust (KPT) has accused Sui Southern Gas Company Limited (SSGCL) of impeding ‘Energy Hub’ process as the gas utility company is not cooperating on the intake pipeline, well-informed sources told Business Recorder.
Sources said the Special Investment Facilitation Council (SIFC) shared an MoU signed between Ministry of Investment of the United Arab Emirates (UAE) and the Ministry of Maritime Affairs on Investment Cooperation in the port operations projects.
The said MoU was signed on November 27, 2023. The Investment opportunities are being explored for initiating different port projects to be taken up with UAE: (i) Karachi Port Trust (KPT) has shared a project known as Environment Friendly Energy Hub at Southern Wharf of KPT; and (ii) on the directives of Special Investment Facilitation Council, a Joint Working Group (JWG) has been established for discussing and devising a strategy to finalize the said project for investment purposes.
PICT announces that Concession Agreement with KPT expired on June 17, 2023
The first meeting of Joint Working Group was held on December 12, 2023 in which different issues related to the Energy Hub came under discussion.
The meeting was informed that Karachi Port Trust (KPT) has been setup as a new Pakistani deepest-water port, South Wharf and its first phase, South Asia Pakistan Terminal Limited (SAPTL), is operational. KPT Management argued that KPT has invested approximately Rs 64 billion in the South Wharf scheme for the infrastructural works of dredging and reclamation, construction of breakwaters, construction of phase-1 quay wall and Aids to Navigation. The works also included the creation of stockpile area, which is approximately spanned over an area of 950,000 sq meters (235 acres).
KPT Management envisions establishing a state-of-the-art Environment Friendly Energy Hub at its South Wharf, to cater for energy, gas (LNG & LPG) and water requirements by LNG fueled power plant along with a desalination plant.
Major components planned in phases will be as follows but not limited to: (i) Marine LNG-LPG import terminal;(ii) storage and regasification unit; (iii) LNG Pipeline to SSGC Injection Point; (iv) LNG ISO Containers handling facilities; (v) LNG barge handling facilities; (vi) LNG export facilities to African region in small parcels;(vii) LPG Import Handling and Storage Tanks Facilities; and (viii) combined cycle power plant with cogeneration capabilities to support seawater desalination production of MGD.
According to sources, main factor which previously impeded progress of Energy Hub at KPT to date is the lack of SSGC conveyance intake pipeline. The easiest doable solution is to lay a high-pressure pipe line of about 34 Km length, pass it through KPT navigable Channel-Western backwaters-bed of Lyari Nullah from starting point of Lyari Expressway-Al-Asif Square flats at Sohrab Goth- Abul Hassan Isphahani Road-SSGC Karachi Terminal (KT) at Abul Hassan Isphahani Road (adjacent NED University).
The most advantageous element of this route is: (i) non-involvement of private land (which requires huge capital cost to acquire the land);(ii) much less requirement of shifting of underground services (probably will require at Abul Hasan Isphahani Road); (iii) much less environmental impact issues; (iv) a shorter distance; (v) distance of about 32 Kms to link it with National Electric Transmission Line at KANUPP 2 &3; and (vi) a distance of about 13 Kms to connect the Power, LNG and Water lines to the SITE – the largest industrial hub of the country.
Copyright Business Recorder, 2023
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