K-Electric, Tri-Star Power setting up 110MW plant

KARACHI: K-Electric Limited, Tri-Star Power have executed a commitment letter for the setting up of a 110-megawatt duel fuel power project on fast track in the southern port city, a notification said on Monday.

“K-Electric has issued a Letter of Intent (LoI) on February 4, 2016 to our Company for establishing a 110-MW Combined Cycle Dual Fuel IPP (Independent Power Plant) based on gas and furnace oil,” Tri-Star Power Limited said in a statement issued to the Pakistan Stock Exchange.

Both the companies have targeted to start commercial operations by early 2018.

The life of the project is estimated at 25 years, and it would be located at SITE, Karachi on land owned by an associated concern of Tri-Star.

"The land…has already been finalised to set up the above mentioned project and initial grid interconnection study and environmental impact assessment study have been carried out by our company," the statement said.

“The company is taking up the project on fast track basis and is expected to achieve commercial operations by February 2018.”

The statement said the negotiations for purchase of equipment are in progress and the selection of equipment is expected to be finalised soon.

KE is developing new generation projects at highest priority.  In September last year, Karachi-based power utility entered into a `binding tripartite joint development agreement with China Datang Overseas Investment Company and China Machinery Company for the development of a 700 MW (2×350 MW) coal fired power project at Port Qasim.  The project, aimed at bringing investment of over $ l billion into Pakistan, would not only help the country in diversifying the fuel mix but also lower the generation cost benefiting the end consumer.