Thar Energy Limited (TEL), a joint venture between Hub Power Company Limited (HUBCO), Fauji Fertilizer Company Limited (FFC) and China Machinery Engineering Corporation (CMEC), has successfully achieved commissioning, with Commercial Operations Date (COD) to take effect from October 1, 2022.
The development was shared by majority stakeholder HUBCO (60% stake) and FFC (30%) in separate notices to the Pakistan Stock Exchange (PSX) on Friday.
“TEL is a joint venture between HUBCO, Fauji Fertilizer Company Limited (FFC) and China Machinery Engineering Corporation (CMEC), formed for the purposes of establishing a 330 MW Mine-Mouth Coal-Fired Power Generation Complex at Thar Block II, District Tharparkar, Sindh, Pakistan under the China Pakistan Economic Corridor (CPEC)," said HUBCO in its notice.
“The project has successfully achieved commissioning, with the COD to take effect from October 1, 2022, in terms of the Power Purchase Agreement dated July 27, 2017 entered into between TEL and the Central Power Purchasing Agency (Guarantee) Limited,” read the notice.
The company said that the latest development would enhance the collective power generation capacity of HUBCO and its group companies to 3,251 MW through the plants spread over Balochistan, Punjab, Azad Jammu and Kashmir and Sindh.
“The TEL project will be generating low cost energy from indigenous Thar coal thus reducing burden on national foreign exchange resource,” it added.
The development comes as the incumbent government looks to enhance its electricity generation capacity by utilising indigenous sources to meet the country's energy needs.
Earlier this month, Federal Minister for Energy Khurram Dastgir said as per his government’s energy policy, every new electricity generation plant in Pakistan will be set up using domestic sources i.e. hydel, solar, wind and Thar coal.
The development is critical as the country seeks to lower the import of energy commodities that is burning a hole in the national kitty, especially in the wake of Russia-Ukraine conflict, which has sent prices of gas and coal soaring, leaving little space for net energy importing countries like Pakistan.
Meanwhile, HUBCO appreciated the support extended by the Government of Pakistan, Government of Sindh, the Government of China and other private stakeholders over the completion of the project, it added in the notice.