Hubco power station

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{{#badges:CoalSwarm|Navbar-Pakistancoal}}Hub power station is a 1,320-megawatt (MW) coal plant in Balochistan province, Pakistan.

Location

The map below shows the location of the Hubco plant, in Hub tehsil, Lasbela district, Balochistan province. The old oil-fired plant is located to the southeast.

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Background

In January 2015, the Hub Power Company announced that it plans to build a 1,320 MW (2 x 660 MW) coal plant next to its current oil-fired power station, about 25 km southwest of the town of Hub in Balochistan. The plant would gradually be expanded to 3,960 MW (6 x 660 MW). The project would run on imported coal, for which a coal jetty would be developed. According to CEO Khalid Mansoor, Hubco had enough land near its 1,292 MW power plant to house six coal plants of 660 MW each.[1] Later that year Hubco signed a joint venture agreement with China Power International Holding, a wholly-owned core enterprise of the China Power Investment Corporation, to set up the plant as China Power Hub Generation Company.[2]

In June 2015 the Private Power and Infrastructure Board approved the 1320 MW power station.[3]

In February 2016 the National Electric Power Regulatory Authority (Nepra) granted the upfront tariff of Rs4.7153/kilowatt hour to China Power Hub Generation Company for the proposed 1320 MW plant. The Nepra estimated the project cost for 660MW at US$956.1 million. Hubco is targeting financial close of the new plant before June 2016, with the project likely to come online by 2020.[2] Hubco officials visited Ministry of Water & Power officials in Islamabad for a cheerleading session for the project in March 2016.[4] In April 2016, the Private Power and Infrastructure Board issued a letter of support to China Power Hub Generation Company for construction of the station (it is unclear how this differs from the June 2015 approval). The statement issued along with the letter of support stated that the project is now scheduled to come online by 2019.[5]

In October 2016 Hub Power Company said it may reduce the plant to 1 x 660 MW to expedite construction.[6] According to Dawn, the reduction is actually because the Private Power and Infrastructure Board (PPIB) — a one-window arrangement for private investments in the power sector — decided in June 2016 "to stop processing of power generation based on imported fuels because of substantial capacity already contracted that was enough to meet power demand until 2022 and to remain watchful of considerable foreign exchange erosion."[7] However, companies that had met financial close before that date and/or were part of the China-Pakistan Economic Corridor (CPEC) projects were exempted from the restriction, allowing for Hubco to build both 660 MW units. Hubco expects to arrange financing for the US$1.8 billion power project by June 2017. The two units are planned for operation in 2018-2019.[8][9]

Ground was broken on both 660-MW units in March 2017. The plant is slated to cost US$2 billion.[10][11]

The Integrated Coal Jetty became operational in December 2018 with arrival of the first shipment of coal.[12]

Unit 1 was synchronized on January 1, 2019, and went into service in March 2019.[13][14]

Unit 2 was connected to the grid on May 28, 2019,[15] and synchronized in June 2019.[16] Commercial operation was reported on August 17, 2019.[12]

Financing

Chinese banks led by the China Development Bank have loaned US$1.5 billion for the project.[17]

Opposition

In January 2016 hundreds of people, including councillors and representatives of Hub and Gadani union councils, gathered in front of Hubco Power Company. They said the project, if executed, would pollute the environment and endanger the ecology of Hub and Lasbela district, and destroy the marine life near Gadani, Sonmiani and Daam bundar.[18]

In March 2016, Dawn reported that 2,000 locals sent in letters opposing the coal plant for the Environmental and Social Impact Assessment study. Those who wrote the letters wanted to attend the public hearing, but were told there would be no room for them. Disappointed, they put up slogans rejecting the project on black banners around the Lasbela Industrial State Development Authority auditorium. The morning of the hearing most of the banners had been taken down, reportedly by the police, who were deployed to stop the protestors from entering.[19]

Website

Project Details

  • Sponsor: China Power Hub Generation Company
  • Parent company: China Power Investment Corporation (74%), Hub Power Company (24%), Balochistan (2%)[10]
  • Location: Hub tehsil, Lasbela district, Balochistan province, Pakistan
  • Coordinates: 24.914675, 66.688760 (exact)
  • Status: Operating
  • Capacity: 2 x 660 MW
  • Type: Supercritical[11]
  • Start year: 2019
  • Coal Type:
  • Coal Source: Indonesia, South Korea[10]
  • Source of financing: Chinese banks led by the China Development Bank (US$1.5 billion)[17]

Articles and resources

References

  1. Khaleeq Kiani, "Hubco to set up 1,320MW coal-based power plants," Dawn, 20 January 2015
  2. 2.0 2.1 "Nepra grants tariff for 1,320MW coal power plants," The International News, February 14, 2016
  3. "Chinese company to set up 1,400MW coal power project," Daily Times, June 17, 2015
  4. Hubco's $2.4 billion coal-fired power plant nears completion, Business Recorder, 19 Mar. 2016.
  5. Chinese firm gets LoS for 1,320MW project at Hub, The News, 23 Apr. 2016.
  6. "Hubco mulls power project's capacity cut," thenews.com.pk, Oct 18, 2016
  7. "Govt gives up over 1,000MW of imported coal-fired power projects," Dawn, Nov 05, 2016
  8. "Hubco allowed to build two imported coal-based plants," The Express, Dec 16, 2016
  9. "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated June 5, 2018
  10. 10.0 10.1 10.2 Work kicks off on $2b Hubco coal-power plant, Express Tribune, 22 Mar. 2017.
  11. 11.0 11.1 Hub coal plant construction kicks off today, Dawn, 21 Mar. 2017.
  12. 12.0 12.1 "China firm operationalises 1,320MW coal power plant," The Nation, August 19, 2019
  13. "660MW CPHGC power plant connected to national grid," Dawn, January 01, 2019
  14. GE, CPGHC & HUBCO Achieve Key Milestones to Power Pakistan, GE press release, 27 Mar. 2019.
  15. "中电胡布(2×660MW)2号机组首次并网成功," 北极星电力网新闻中心, 2019/5/29
  16. 2nd Unit of China Power Hub company synchronized with national grid, Engineering Post, 3 June 2019.
  17. 17.0 17.1 "Pakistan coal power plant signs loan contract with Chinese banks," Xinhua Net, Oct 24, 2017
  18. "Proposal to install coal-based power plants in Hub rejected," Dawn, Jan 15, 2016
  19. Shazia Hasan, "Footprints: The glow of Embers," Dawn, Mar 28, 2016

Related SourceWatch articles

External resources