Islamabad June 10 2022: Private Power & Infrastructure Board (PPIB) allowed Engro Powergen Qadirpur Limited (EPQL) to utilize RLNG with available Qadirpur permeate gas or HSD, according to company’s filling to the exchange.
However, All CAPEX and other associated costs to be incurred in relation to implementation of using comingled fuel will be exclusively incurred by EPQL.
The Board of Directors of the Company on the recommendations made by the Projects’ Committee of PPIB (“Committee”) in relation to the Gas Depletion Mitigation Plan/Option (GDMP/GDMO) (“Proposal”) through its letter dated 30 May 2022 (as referred to in the Disclosure Notice), a decision has been taken by the Board of Directors of the Company to accept the Proposal in principle on the basis of the terms and conditions set out therein. The Proposal is further subject to the approval of the PPIB Board and consents required under the Implementation Agreement.
The salient terms of the Proposal include inter alia the following: (i) EPQL will utilize RLNG as the comingling fuel with available Qadirpur permeate gas or HSD, as the case may be. (ii) The term of the GDMP/GDMO shall be for a period up to December 31, 2025. (iii) There will be no provision of minimum dispatch or guaranteed off-take on any fuel in the PPA. (iv) All CAPEX and other associated costs to be incurred in relation to implementation of GDMO will be exclusively incurred by EPQL, with no liability or obligation of GOP, Power Purchaser or any other GOP entity under the respective project agreements. (v) EPQL will obtain approval of supplemental tariff with respect to fuel cost component from NEPRA for operating the plant on comingled RLNG. (vi) The project agreements (IA, PPA, GSA) will be amended to the extent necessary to give effect to GDMP/GDMO. (vii) RLNG will be supplied by SNGPL on “as and when available” basis.
The Committee also recommended that the project be re-evaluated in 2025. Moreover, the option of using Kandhkot gas by the Company for power generation will simultaneously be explored further.
Engro Powergen Qadirpur Limited is a public listed company, incorporated in Pakistan, under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The Company is a subsidiary of Engro Energy Limited, which is a wholly owned subsidiary of Engro Corporation Limited. Engro Corporation Limited is a subsidiary of Dawood Hercules Corporation Limited (the Ultimate Parent Company). The Company was established with the primary objective to undertake the business of power generation and sale.
