GE signs deal for boilers to Engro’s Thar plant

KARACHI: GE has announced a deal with the China Machinery Engineering Corp (CMEC) to supply two 330MW boilers to Engro Powergen Thar (Private) Limited, CMEC’s joint venture for the Thar Block II Power Plant. 

The deal will support Pakistan’s move to use its ample coal reserves in the Thar Desert to meet power generation needs, spur economic development and bring energy security to the country, a statement said on Tuesday.

Pakistan relies heavily on imported crude oil, diesel and natural gas with very limited energy coming from coal-fired power plants. The Thar II project supports the government of Pakistan’s energy independence as it moves to increase domestic coal use. 

Through GE’s recent acquisition of Alstom Power, two GE circulating fluidized bed (CFB) boilers will help deliver a total of 660 MW to Pakistan while burning the local high-moisture lignite reserves of the Thar field. The CFB boilers operate at a low combustion temperature to minimize the amount of nitrogen oxides released, providing coal-rich markets with the opportunity to reduce emissions and operating costs while increasing output.

CMEC and three local companies are jointly developing the Thar Block II plant, which represents growing cooperation along the China-Pakistan Economic Corridor (CPEC).

A syndicate led by China Development Bank under the coverage from Sinosure, China’s official export credit agency, participates in financing the project, with the support from local governments. The Thar Block II Power Plant will be powered by coal from Thar Coalfield, the country’s first project fired with Pakistani Thar lignite. 

The China-Pakistan Economic Corridor is a major development megaproject intending to connect Port Gwadar to Xinjiang, China’s northwestern autonomous region, through transportation and energy networks. This economic corridor is a major priority for both the governments of China and Pakistan and is an extension of China’s proposed 21st century Silk Road initiative.