Pakistan’s K-Electric has announced plans to develop 900MW RLNG based Combined Cycle Power Plant at Bin Qasim Power Station Complex (BQPS-III).
In a notification sent to the Pakistan Stock Exchange (PSX), K-Electric said that it has received approval from the company’s board to go ahead with the development of the plant.
The development of BQPS-III also includes simultaneous upgrades to associated transmission infrastructure with an estimated cost of$1bn.
The BQPS-III power station will consists of two power units of 450MW each.
While the first unit is expected to become operational by summer 2018, the second unit will start generating power by end of 2019.
The overall project is anticipated to improve the reliability of power supply across K-Electric’s network.
KE spokesperson said: “This is indeed a milestone which also reflects KE’s commitment to significantly increase the generation capacity and is poised to play a critical role in further supporting the energy needs of Karachi.
“While completion of the project is subject to all statutory and regulatory requirements and corporate as well as commercial actions, we aim to commission the project in the fastest possible time and are confident that with the right facilitation from all quarters, partial power from the plant may be added to our supply as soon as summer of 2018.”
Upon completion, BQPS-III is expected to become one of the largest private sector investments of its kind in Pakistan’s power sector.
The power utility expects the policy makers and the regulatory authorities will work towards ensuring a conducive multi-year tariff that will enable K-Electric to complete this project.
In October last year, China's state-owned Shanghai Electric Power (SEP) reached an agreement to acquire 66.4% stake in K-Electric from Abraaj Group for $1.77bn.
In 2009, Abraaj purchased a majority stake in the vertically integrated power utility K-Electric, which was privatized in 2005.
Image: The BQPS-III power station will consists of two power units of 450MW each. Photo: courtesy of Witthaya Phonsawat/FreeDigitalPhotos.net.