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Thursday, July 18, 2024

Mari petroleum diversifies goes into wind power

Mari Petroleum Limited's Board of Directors approved an EOI last month, to acquire a majority of shares in Fauji's wind power plants

Mari Petroleum Company Limited (MPCL) is vying to acquire majority shares in Fauji Foundation and Fauji Fertilizer Bin Qasim Limited, in Foundation Wind Energy-I Limited and Foundation Wind Energy-II Limited. In a meeting held last month, the Board of Directors approved an EOI (expression of interest) for the acquisition.

Mari Petroleum Company Limited (MPCL) is a Pakistani petroleum exploration and production company based in Islamabad, Pakistan. The company is controlled by the Fauji Foundation, with 40 percent shares.

Read more: MPCL invests Rs. 4 million in the rehabilitation of water plants in Islamabad.

It is operating the country’s second-largest gas reservoir at Mari Field, District Ghotki, Sindh. MPCL is primarily engaged in the exploration, development, and production of hydrocarbon products (natural gas, crude oil, condensate, and liquified petroleum gas). It is listed and traded on the Pakistan Stock Exchange.

Renewable energy in Pakistan

Pakistan has been lucky in terms of energy production in its history. Having no lackluster of renewable resources. Initially, a majority of its energy was produced through renewable sources, primarily hydropower plants. Over time, however, that number has dropped.

In Pakistan, oil and gas are two key components of the energy mix, contributing almost 65 percent (oil 15% and gas 50%) share to the 64.7 million TOE1 of energy supplies during 2012, while the share of coal and nuclear is almost 7 percent and 2 percent, respectively. Pakistan is one of the largest gas consumers globally, while Pakistan’s proven coal reserves are the world’s sixth-largest. Primary energy in Pakistan comes from oil, natural gas (CNG, LPG, LNG), coal, nuclear energy. Primary energy is the energy in raw fuels and other forms of energy received as input to a system. Primary energy can be non-renewable or renewable.

Secondary energy refers to the converted form of energy in its useable form, such as electricity. Pakistan’s renewable energy sources include hydropower, solar and wind energy, and biomass energy.

Pakistan’s Energy Sector outages hampered the economic growth of Pakistan for the last few years. Further, since the early 2000s, the energy sector (especially its sub-sector electricity) received greater attention because of the faster growth rate in its demand.

There is no doubt that there exists a high correlation between the growth rate of GDP and that of energy consumption. A lot of Pakistan’s financial pains can be traced back to a lack of proficient energy supply. As the population has grown over time, energy has not been able to keep up. Despite being a country rick in renewable energy resources, Pakistan skewed over time to fossil fuel-based energy and so has had to suffer by importing the fuel needed to make electricity.

Great potential for ‘Wind-powered energy.’

The Pakistan Meteorological Department conducted a study in 2013 entitled “Wind Power Potential Survey of Coastal Areas of Pakistan,” which the Ministry of Science & Technology provided funding for. This study enabled PMD to identify potential “wind corridors” where economically feasible wind farms could be established. The Gharo-Jhimpir wind corridor in Sindh was identified as the most lucrative site for wind power plants. The wind power potential covered an area of 9700 km2 with a gross wind power potential of 43000 MW.

Wind energy is no longer a novelty in Pakistan, as the country has been trying albeit cautiously but consistently since 2013 to increase the percentage of wind-powered energy creation.

Pakistan had begun reaping the benefits of Chinese investment in renewable energy infrastructure. The opening of the first wind power project was constructed as part of the huge China-Pakistan Economic Corridor. It aimed to overhaul the country’s transport and energy systems, Reuters had reported back in 2017.

Major Wind Energy plants in Pakistan

The Jhimpir Wind Power Plant was developed in Jhimpir, Sindh, by Zorlu Energy Pakistan. The total cost of the project is $136 million. Completed in 2002, it has a total capacity of 50 MW. This wind Corridor has a 50000 megawatt potential with average wind speeds over 7 meters per second. The government has announced an upfront tariff and ROI of 17 percent, which is the highest globally. There are 14 projects in the pipeline, out of which the 50 MW FFCEL projects will achieve COD by mid-December 2012.

Fauji Foundation set up two wind projects (50 MW each) at Gharo, Thatta District. The EPC contractors were Nordex and Descon, with Nordex as the lead contractor. Foundation Wind Energy II (Private) Limited was commissioned in July 2014. Foundation Wind Energy I (Private) Limited was commissioned in Feb 2015.

Artistic Energy (Pvt) Ltd. set up a 49.3 MW wind power project in Jhimpir Sindh. The EPC contractor was Hydro-china. Artistic Energy (Pvt) Ltd was commissioned in March 2018. It consists of 29 Wind turbines GE 1.7 MW each and having a hub height of 92m, the highest hub height in the region. It supplies power to 220 kV Jhimpir New Grid Station through two 132KV lines, one is the Tapal line, and the other is the New Jhimpir line.

Three Gorges First Wind Farm Pakistan has started the operation of a 50 MW wind power project on 24 November 2014 at Jhimpir, Sindh. The contract of supply and installation of wind turbines was given to GOLDWING, and the EPC contractor in the project was CWE (China International Water & Electric Corporation). TGF is the sister concern of China Three Gorges Corporation (CTG), which has built the world’s largest dam with 22500 MW in Yiling District, Yichang, Hubei, China. Three Gorges have also planned to build two more wind power projects of 50 MW each in Jhimphir, Sindh, in 2015.

Three Gorges Second Wind Farm Pakistan has started the operation of a 50 MW wind power project in 2018 at Jhimpir, Sindh. The contract of supply and installation of wind turbines was given to GOLDWING.

Three Gorges Third Wind Farm Pakistan has started the operation of a 50 MW wind power project in 2018 at Jhimpir, Sindh. The contract of supply and installation of wind turbines was given to GOLDWING.

A 52.8 MW wind power plant, attained commercial operation date (COD) in a record time of only 14 months on 22 November 2015. Its availability in RRT (Run Reliability Test) was also a record in Pakistan. Hydro China, a Chinese EPC contractor using 33×1.68 MW GE wind turbines, constructed the power plant. SWPCL is the first wind project of General Electric in Pakistan, and it was also the first project of Hydrochina. Some $95 million debt financing was secured for the project from Overseas Private Investment Corporation (OPIC), USA. The project is joint ownership of Sapphire Textile and Bank Alfalah.

Tricon Boston Consulting corporation set up a 50 MW * 3 = 150MW wind power project in Jhimpir Sindh. The EPC contractor was Hydro-china International. Tricon Boston was commissioned in 2018. It consists of 87 Wind turbines GE 1.7 MW. It supplies power to 220 kV Jhimpir New Grid Station through two 132KV lines.

The ACT wind farm is located in the province of Sindh. HydroChina, a subsidiary of China Power Construction Corporation, is constructing the project. It will be run by three local Pakistani Groups, Namely Akhtar, Candyland, and Tapal Groups. The deal is for 20 GW82 1.5MW turbines. The machines will be customized to suit the local wind and climate conditions. Shipments will be made at the end of 2015. Installation work is scheduled for completion in the third quarter of 2016. The plant went live on 7 Oct 2016.

Metro Power Project, a 50 MW wind power project of Metro Power Company Limited located in Jhimpir, district Thatta, Sindh, achieved financial close on 19 February 2015. The project is expected to achieve commercial operation by August 2016. The initiative is sponsored by Iqbal Ali Mohamed and Family, Infraco Asia Development Pvt Ltd, out of Singapore, and International Finance Corporation is scheduled to commence operation in the third quarter of 2016. It is financed by ETDB, National Bank, UBL, Bank Alfalah, and Askari Bank.

GVS News Desk