Sahiwal Coal Power Plant

Project Detail

The Sahiwal Coal power plant is situated around (12 mi) from Sahiwal and (14 mi) from Okra cantonment, only north of the street which associates the two towns, in Pakistan’s Punjab province. The power plant is Pakistan’s most memorable supercritical coal power plant, and comprises of two 660-megawatt (890,000 hp) plants for a consolidated limit of 1,320 MW. This is the main stage, and might be trailed by a potential second stage which will incorporate two 1,000-megawatt (1,300,000 hp) plants. However, the plant is presently viewed as a feature of the China Pakistan Monetary Passageway (CPEC) which was declared in April 2015, the representative noteworthy for the task really went before the declaration of CPEC and occurred in May 2014, as the public authority of Punjab in Walk 2014 welcomed offers for the development of two 660MW power plants to assist with mitigating Pakistan’s energy deficits.

The plant was worked by a joint consortium of China’s state-possessed China Huanan Gathering which will own 51% of offers, and the Shandong Riya, which will hold 49% of offers. The Public authority of Pakistan will buy power from the consortium at a tax of 8.3601 US Pennies/kWh. The task was based on a form, work, move premise in which the plant’s possession will be moved to the Public authority of Punjab following 30 years of activity. The project site spans a sum of 690 hectares (1,700 sections of land), given by the Public authority of Punjab for nothing. The venture incorporates the development of a rail route siding from the town of Yusuf Waal to the site for elite utilization of the plant.

While symbolic weighty for the project occurred in May 2014commencement of real affable works started on July 31, 2015. The first of the two 660MW plants was placed into procedure on May 12, 2017, while the second 660MW plant was placed into procedure on May 24, 2017. An expected 350 work force are expected to work the plant including 200 Pakistani architects who are to go through preparing in China. Roughly 3000 workers are expected for development of the plant. Evaporator establishments, and the plant’s turbine steel structure have been finished, while the 9-story tall kettle design, chimney stacks, and cooling towers are under development as of May 2016 to ship coal, a reason fabricated railroad line will be worked from the Pakistan Rail route at Yusuf Waal to the power plant itself. Constriction of Sahiwal Power Plant. From that point, the coal is to be moved by means of the reason fabricated railroad line. To aid coal transportation, Pakistan Rail routes has marked a $214 million agreement for the acquisition of 55 diesel electric trains from General Electric. Pakistan Rail routes will likewise secure a further 20 diesel electric trains explicitly for coal transport. in January 2016, the Pakistan Rail routes marked a $37 million agreement with Jinan Rail Route Vehicles Gear Organization for the stock of 800 container carts which will be utilized to move coal to the Sahiwal Coal Power Plant; 580 of these carts are to be developed at the Mughalpura rail route studio.

Is Sahiwal a suitable site for this project?

Sahiwal is situated in the central Punjab, Pakistan with an exceptionally useful agrarian place that is known for outrageous fertility. This raises in the personalities of individuals concerned, a basic inquiry connected with the site of the task and the potential dangers connected with contamination and soil ripeness decline. The solutions to such inquiries may be logical yet effectively reasonable. However warm pow plants which include coal as the super consuming substance increment the gamble variables of contamination yet certain safeguards can limit the hurtful impacts coming about because of the warm methodology. For this reason, present day electrostatic precipitator and desulphurization innovation has been fitted in this task which will deal with the nature of air by wiping out dust particles, debris and Sulfur contents from the active streaming gas. An anti-seepage debris yard has been underlying the framework to forestall debris water from entering the ground. Besides, the most progressive air quality checking framework has been fitted in the site to screen and keep up with the air nature of the environmental factors. The inquiry connected with the aggravation yet to be determined of water supply for agriculture is replied by the rationale that main 60,000 cubic meters of water each day from Lower Bari Doab is required for complete activity of the plant which no affects the water being utilized for agrarian reasons for the encompassing rural land. In this way, Sahiwal ends up being an entirely reasonable site for Coal Power Plant regardless of the worries of certain individuals

Price of Sahiwal Power Project

Sahiwal power project had been purchasing coal at about Rs74,000 per tone between June 2022 and December 2022. At the same time, the public listed companies in cement and textile industries, among others, were procuring coal for less than Rs45,000 per tone as per their published financials. The Sahiwal project’s monthly requirement is around 300,000 tones, with consumption based on demand. On average, over $100 per tones translate to well above $360 million for a 100pc utilization per year. If other plants, like Port Qasim and China-Hub Power, had followed suit, the additional annual burden on consumers could have been over $1. 4bn.These inflated purchases went unchecked until early part of January 2023 when Nepal finally notified “Guidelines for Procurement of Coal on Spot Basis”. With these guidelines in place and the resultant multiple suppliers, the Sahiwal power project, which used to produce electricity at Rs28-30 per KWh (as per fuel price determinations for the June to December 2022 period), reduced it to Rs19 per unit. This resulted in a 34pc decrease in the cost of power generation from the same plant.

Source of Energy

Similarly, as with the Pakistan Port Qasim Power project, the most majority of the coal utilized for the power plant is imported from Indonesia and South Africa, and is shipped by rail from the Port of Karachi and Port Qasim in Pakistan’s Sindh Area to the close by town of Yusuf Waal on Pakistan’s current rail line framework.

An expected 4.48 million tons of coal will be required every year for the plant, in light of a computation of 22 hours of force age each day, Indonesia is distinguished as an essential hotspot for its excellent coal, dependable creation, and short travel times to Pakistan. Coal from Pakistan’s own Thar coalfield was found to contain unnecessary measures of sulfur and lime, and was not considered to be of sufficiently high quality for the undertaking. The stockpile of dependable coal from the fields was likewise viewed as deficient. A combination of Pakistani native coal with imported coal was likewise considered to be unacceptable as it would diminish heat creation from coal, and would think twice about of the boilers which are to be utilized in the venture.

Financing

The project is supposed to cost a sum of $1.8 billion. Of this, the Chinese consortium bore 20% of the expense ($356.4 million) while the leftover 80% ($1.4256 billion) was funded by a credit from the commercial Bank of China.