Port Qasim Datang power station

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{{#badges:CoalSwarm|Navbar-Pakistancoal}}Port Qasim Datang power station is a proposed 700-megawatt (MW) coal plant in Port Mohammed Bin Qasim near Karachi, Pakistan.

Location

The map below shows the location of Port Qasim, the approximate location of the proposed project

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Background

In August 2016 K-Electric, Pakistan’s largest power utility, applied with the National Electric Power Regulatory Authority (NEPRA) of Pakistan to develop a 2 x 350 MW coal-fired power project in Port Qasim, Karachi. The project is developed by K-Electric (51%) in partnership with Chinese groups China Datang (25%) and China Machinery Engineering Corporation (CMEC, 24%). The plant would burn imported coal. K-Electric aims to commission the project by December 2020. Total investment is estimated at US$967 million.[1][2]

According to the project’s generation license application document (2016), the proposal plans to run on imported thermal coal directly off-loaded from ships at a jetty next to the power station “as there is no firm commitment for the availability of the indigenous fossil fuels including natural gas and local coal.” The EIS states the plant will run on coal imported from Indonesia, South Africa or Australia. It also states that China Datang Overseas Investment Company Limited will supply the coal.[3]

The project was granted a generation license on May 23, 2017.[4]

In October 2017 a tender notice for the project was issued: "Datang Pakistan Karachi Power Generation (Pvt) Ltd (DPKPG) is building a new 700 MW coal-fired power plant at Port Qasim, Karachi. This facility will comprise 2 x 350 MW power plant units built on reclaimed land with a dedicated coal unloading jetty for handling 50,000 DWT bulk carriers including all the coal handling equipment and facilities." China Datang appears to be handling the financing for the EPC tender process.[5]

In April 2019, Datang signed a contract with CMEC, under which CMEC would serve as construction contractor for the project. A start date for construction was not given.[6] However, the project was not listed in the Pakistan Ministry of Energy's list of upcoming independent power projects (IPPs) of April 2019.[7]

Ownership

In October 2016 Abraaj Group agreed to sell its stake in K-Electric for US$1.77 billion to Shanghai Electric Power (SEP) of China. SEP will acquire a 66.4 per cent stake in K-Electric.[8][9]

Financing

According to the project’s generation license application document (2016), China Development Bank had issued a term sheet of “around US$750m” to the sponsors in 2016. Sinosure (China Export and Credit Insurance Corporation) has also issued a preliminary letter of intent but the proponents were concerned that their timelines could be too tight to wait for Sinosure’s final approval. In parallel a consortium of local Pakistani banks were also being approached.[3]

Opposition

In October 2016, "environmentalists, engineers, lawmakers and concerned citizens" expressed opposition to the project at a public hearing in Karachi.[10]

Project Details

  • Sponsor: Datang Pakistan Karachi Power Generation Limited
  • Parent company: China Datang (51%), China Machinery Engineering Corporation (CMEC, 25%), K-Electric (majority-owned by Shanghai Electric Group) (24%)
  • Location: Port Qasim, Karachi, Sindh province, Pakistan
  • Coordinates: 24.766667, 67.333333 (approximate)
  • Status: Permitted
  • Gross Capacity: 700 MW (2 x 350 MW)
  • Type: Supercritical[10]
  • Projected in service: 2022
  • Coal Type:
  • Coal Source: Imported (Indonesia, South Africa or Australia)
  • Source of financing: China Development Bank

Articles and resources

References

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External resources