Karachi Electric Supply Company (KESC) signed a multi-faceted Memorandum of Understanding with Engro Corporation Ltd (Engro Corp) to cooperate on projects of mutual interest. The Memorandum of Understanding would cover four key initiatives; fertiliser off-take agreement from KESC's Bio-gas waste-to-energy power project for generation of 22MWs electricity; a 300-600MW coal project at Thar; import of LNG as alternate fuel for KESC's generation plants and supply of up to 65MWs electricity to Engro's Polymer and Chemicals unit at Bin Qasim.
The Memorandum was signed by Tabish Gauhar, CEO of KESC, and Ali Ansari, President of Engro Corp, to mark the co-operation between the two private sector companies on four key initiatives. On this occasion, Tabish Gauhar, CEO KESC, said: "This multi-dimensional MoU is strategic in nature as both the private-sector companies are keen to work closely to address various issues confronting the energy sector. We are confident that together we would realise these key projects that are of significant importance for the national economy."
Ali Ansari President of Engro Corp said: "This Memorandum will help deploy greater synergies across the two businesses and aid the growth process by leveraging competencies of both Engro and KESC in their respective domains. Together we hope to alleviate the grave issues in the energy sector that continue to affect the performance of companies and help create stronger value propositions for the industry and the economy."
KESC is in the process of setting up a waste-to-energy power project that will produce approximately 22MWs of electricity. This bio-gas power plant will also have the potential to produce 100,000 tons of organic fertiliser every year. Under the terms of the MoU, Engro Fertiliser Ltd will explore the option of setting up an integrated fertiliser plant or entering into an off-take agreement for the organic fertiliser from this bio-gas plant.
Another key initiative pursuant to this MoU will be the possibility of jointly working on a 300-600MW mine-mouth coal project at Thar, which will utilise the indigenous coal to be mined by Sindh Engro Coal Mining Company Limited holding the mining lease rights in Block-II of Thar.
KESC in pursuing its strategy for fuel security will be working with Engro Vopak Terminal Ltd (EVTL) on the fast track innovative LNG project aimed at using the existing infrastructure at its terminal at Port Qasim to bring in intermittent supply of RLNG using a FSRU of Excelerate, USA as a trading vessel. In addition, it plans to work with Engro's subsidiary, Elengy Terminal Pakistan Ltd (ETPL), to obtain long-term terminal capacity in the 3 5mtpa floating LNG terminal at Khiprianwala, Port Qasim being developed by ETPL for delivery of first gas in 15 months after achieving financial close.
Engro Polymer and Chemicals Limited (EPCL) will also be entering into negotiations with KESC for a supply of 65MWs, using high voltage (220 KV) transmission line from KESC to EPCL to fulfil its electricity requirement.-PR