ISLAMABAD

The Economic Coordination Committee (ECC) of the Cabinet on Monday approved five different proposals relating to the energy sector.

The meeting, chaired by Finance Minister Ishaq Dar, considered the execution of North South Gas Pipeline Project under government to government agreement with Russia and approved it.

The ECC also constituted a Price Negotiation Committee, comprising Secretary, Ministry of Petroleum and Natural Resources (P&NR), Secretary Law, Secretary BoI, Representative of Finance Division, MD SNGPL and MD ISGS, to negotiate the project details and pricing with the Russian side.

Approving the proposal of re-structuring the Gwadar-Nawabshah LNG Terminal and Pipeline Project, it directed the P&NR to complete all the formalities, and to ensure that the revised strategy did not result in any cost escalation.

It was further decided in the meeting that the secretary P&NR would head the Price Negotiation Committee, while Secretary Law, Secretary BoI, representative of Finance Division, MD SNGPL and MD ISGS shall be its members.

The participants had a detailed discussion on the proposal, submitted by the Ministry of Water & Power, and approved issuance of Sovereign Guarantee by the Ministry of Finance with respect to syndicated term finance facility, amounting to Rs 25.00 billion for the power sector.

The proposal given by P& NR regarding LPG Air Mixture Projects also came up for discussion at the meeting.

It was finally decided that in view of CCI approval of LPG Policy 2016, any further approval from ECC was not required in the matter, and now it was up to OGRA to implement the approved policy in letter and spirit. Agreeing with the suggestion of Ministry of Water & Power, the committee also okayed the non-cash settlement of Rs 70.167 billion in respect of power sector payables/receivables among various government entities.

GE, CMEC join hands to meet power generation needs

NNI adds: To assist Pakistan in using its ample coal reserves in the Thar desert to meet its power generation needs, GE, an international company, announced on Monday a deal with China Machinery Engineering Corp (CMEC) for the supply of two boilers, of 330 megawatt (MW) each, to Engro Powergen Thar Limited.

The deal is expected to spur economic development and bring energy security to the country.

Pakistan relies heavily on imported crude oil, diesel and natural gas, with limited energy coming from domestic fuels.

The Thar II project will be the country’s first project to be powered by Thar lignite. It will help reduce the pressure on foreign exchange reserves, support Pakistan’s energy independence and help achieve the goal of increasing the share of indigenous sources of energy in power generation to over 50 percent, as envisaged in Vision 2025.

Two GE Circulating Fluidized Bed boilers will deliver total 660 MW of energy to Pakistan by burning local, high-moisture lignite reserves of coal.

These boilers operate at a low combustion temperature to minimise the amount of nitrogen oxides released, providing coal-rich markets with the opportunity to reduce emissions and operating costs, while at the same time increasing the output.

GE is a technology leader in the CFB boiler field, with proven experience burning reliably high-moisture lignite. The boilers to be used in the project will be manufactured in Wuhan, China, home to GE’s largest boiler manufacturing facility.

It has the capacity to produce large CFB boilers and other high-efficiency boilers in the 600- to 1,000-megawatt range.

CMEC and three local companies are jointly developing the Thar Block II plant. The project represents growing cooperation along the China-Pakistan Economic Corridor (CPEC), a mega project intending to connect Gwadar in south of Pakistan to Xinjiang, in China’s northwestern autonomous region, through transportation and energy networks.

“We are very proud to contribute to this significant project of the CPEC, having a strategic importance for reliable use of local Pakistani lignite for power generation, while showcasing our state-of-the-art and highly competitive boiler technology to customers and lenders.

With our leading technology and global know-how, we are committed to offer optimized and reliable solutions to customers and support the long-term development of the local energy industry and local economy,” said Andreas Lusch, President of GE Power Steam Power System.

Meeting Pakistan’s power needs requires a concentrated effort to unlock resources from across the energy mix – coal, gas, wind, hydro and other sources. Sarim Sheikh, President and CEO of GE Pakistan stated, “GE has been present in Pakistan for over fifty years, as a committed partner in the country’s development. Today, GE-built technologies generate over 25 percent of Pakistan’s electricity, helping to meet energy requirements through multiple sources to power homes, villages, cities, hospitals and industries across the country. Together with our partners, we can build a better, more prosperous tomorrow for Pakistan, one which meets the needs and aspirations of our present and future generations.”