Sahiwal Coal Power Project

The Sahiwal Coal Power Project is a coal power plant project located in the province of Punjab in Pakistan by the name of Huaneng Shandong Ruyi (Pakistan) Energy (Limited). It has an installed capacity of 1320 MW. It commenced full operations on 3 July 2017.[1]

Sahiwal Coal Power Project
Location of the Sahiwal Coal Power Project
Official nameSahiwal Coal Power Project
CountryPakistan
LocationSahiwal, Punjab
Coordinates30°42′55″N 73°14′20″E
StatusOperational
Construction beganJuly 31, 2015
Commission date12 May, 2017
Construction cost$1.80 billion USD
Owner(s)Huaneng Shandong and Shandong Ruyi
Thermal power station
Primary fuelBituminous coal
Power generation
Nameplate capacity1,320 MW
External links
Websitewww.chng.com.cn/eng/

Project details

The power plant is located about (12 mi) from Sahiwal and (9.3 mi) from Okara cantonment, just north of the road which connects the two towns, in Pakistan's Punjab Province.

The power plant is Pakistan's first supercritical coal power plant, and consists of two 660-megawatt (890,000 hp) plants for a combined capacity of 1,320 MW.[2] This is the first phase, and may be followed by a possible second phase which will include two 1,000-megawatt (1,300,000 hp) plants.[3]

Though the plant is now considered to be part of the China Pakistan Economic Corridor (CPEC) which was announced in April 2015, the symbolic ground breaking for the project actually preceded the announcement of CPEC and took place in May 2014,[4] as the government of Punjab in March 2014 invited bids for the construction of two 660MW power plants in order to help alleviate Pakistan's energy shortfalls.[5]

The plant was built by a joint consortium of China's state-owned China Huaneng Group which will own 51% of shares, and the Shandong Ruyi, which will hold 49% of shares.[6] The Government of Pakistan will purchase electricity from the consortium at a tariff of 8.3601 US Cents/kWh.[7] The project was built on a build, operate, transfer basis in which the plant's ownership will be transferred to the Government of Punjab after 30 years of operation.[8]

The project site spans a total of 690 hectares (1,700 acres),[9] given by the Government of Punjab free of charge.[10] The project includes the construction of a railway siding from the village of Yusuf Wala to the site for exclusive use of the plant.[11]

The plants each consist of one boiler, steam turbine and generator, and are fueled by sub-bituminous coal which will be offloaded at the project's purpose-built rail terminus.[12] The plants generate a total of 1,320 megawatts of electricity, with a gross efficiency of 42.11% [13] by the use of a supercritical steam generator operating at temperatures of up to 580 degrees Celsius.[14]

The plant includes an air quality monitoring system(Flue Gas Desulfurization), and an electrostatic precipitator in order to reduce ash and sulfur emissions from the plant.[15] It requires 60,000 cubic meters of water daily for operation, with water being drawn from the Lower Bari Doab Canal.[16] Raw materials for the plant, including cement, sand, wood, and other buildings materials are being sourced from Pakistan, while furniture from the plants is being procured specifically from markets in nearby Sahiwal.[17]

Construction

While symbolic ground breaking for the project took place in May 2014,[18] commencement of actual civil works began on July 31, 2015.[19] The first of the two 660MW plants was put into operation on May 12, 2017, while the second 660MW plant was put into operation in May 24 2017.[1] An estimated 350 personnel are required to operate the plant,[20] including 200 Pakistani engineers who are to undergo training in China.[21] Approximately 3000 laborers are required for construction of the plant.[22]

Boiler foundations, and the plant's turbine steel structure have been completed, while the 9-storey tall boiler structure, chimneys, and cooling towers are under construction as of May 2016.[23] In order to transport coal, a purpose built railway line will be built from the Pakistan Railway at Yusuf Wala to the power plant itself.[24] From there, the coal is to be transported via the purpose built railway line. In order to assist in coal transportation, Pakistan Railways has signed a $214 million contract for the purchase of 55 diesel electric locomotives from General Electric.[25] Pakistan Railways will also procure a further 20 diesel electric locomotives specifically for coal transport.[26] In January 2016, the Pakistan Railways signed a $37 million contract with Jinan Railway Vehicles Equipment Company for the supply of 800 hopper wagons which will be used to transport coal to the Sahiwal Coal Power Plant;[27] 580 of these wagons are to be constructed at the Mughalpura railway workshop.[28]

In order to connect the plant to the national electrical grid, a 9.5 kilometer 500 kilovolt single circuit transmission line will be constructed from the site to the Sahiwal Substation.[29]

Coal Source

As with the Pakistan Port Qasim Power Project, most of the coal used for the power plant is imported from Indonesia and South Africa, and is transported by rail from the Port of Karachi and Port Qasim in Pakistan's Sindh Province to the nearby village of Yusuf Wala on Pakistan's existing railway infrastructure.[30]

An estimated 4.48 million tons of coal will be required annually for the plant, based on a calculation of 22 hours of power generation per day.[31] Indonesia is identified as a primary source for its high quality coal, reliable production, and short transit times to Pakistan.[32] Coal from Pakistan's own Thar coalfield was found to contain excessive amounts of sulfur and lime, and was not deemed to be of high enough quality for the project.[33] The supply of reliable coal from the fields was also considered to be inadequate.[33] A mixture of Pakistani indigenous coal with imported coal was also deemed to be unsuitable as it would decrease heat production from coal, and would compromise safety of the boilers which are to be used in the project.[33]

Financing

The project is expected to cost a total of $1.8 billion.[34] Of this, the Chinese consortium bore 20% of the cost ($356.4 million) while the remaining 80% ($1.4256 billion) was be financed by a loan from the Industrial and Commercial Bank of China.[35]

Tariff

The Government of Pakistan will purchase electricity from the plant at a tariff of 8.3601 US Cents/kWh.[7]

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See also

References
  1. "Second unit of Sahiwal power plant being inaugurated today". The Nation. 3 July 2017. Retrieved 6 July 2017.
  2. "Sahiwal coal power project will be functional by 2017: CM". Daily Times. 30 September 2015. Retrieved 17 December 2015.
  3. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 109. Retrieved 17 December 2015.
  4. "PM performs ground breaking of Punjab's first coal power plant". Dawn. 30 May 2014. Retrieved 17 December 2015.
  5. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 90. Retrieved 17 December 2015.
  6. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 235. Retrieved 17 December 2015.
  7. Huaneng Shandong Ruyi (Pakistan) Energy (Pvt.) Limited. "LAG-292 Huaneng Shandong Generation License" (PDF). NEPRA. p. 18. Archived from the original (PDF) on 10 June 2015. Retrieved 17 December 2015.
  8. "Sahiwal coal power project: power to people". The News. 19 March 2016. Retrieved 1 April 2017.
  9. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 236. Retrieved 17 December 2015.
  10. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 236. Retrieved 17 December 2015.
  11. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 117. Retrieved 17 December 2015.
  12. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 117. Retrieved 17 December 2015.
  13. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 111. Retrieved 17 December 2015.
  14. Abrar, Mian (7 May 2016). "Sahiwal Coal Power Project set to become first CPEC project to be completed". Pakistan Today. Retrieved 8 May 2016.
  15. Abrar, Mian (7 May 2016). "Sahiwal Coal Power Project set to become first CPEC project to be completed". Pakistan Today. Retrieved 8 May 2016.
  16. Abrar, Mian (7 May 2016). "Sahiwal Coal Power Project set to become first CPEC project to be completed". Pakistan Today. Retrieved 8 May 2016.
  17. Abrar, Mian (7 May 2016). "Sahiwal Coal Power Project set to become first CPEC project to be completed". Pakistan Today. Retrieved 8 May 2016.
  18. "PM performs ground breaking of Punjab's first coal power plant". Dawn. 30 May 2014. Retrieved 17 December 2015.
  19. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 91. Retrieved 17 December 2015.
  20. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 342. Retrieved 17 December 2015.
  21. Abrar, Mian (7 May 2016). "Sahiwal Coal Power Project set to become first CPEC project to be completed". Pakistan Today. Retrieved 8 May 2016.
  22. Abrar, Mian (7 May 2016). "Sahiwal Coal Power Project set to become first CPEC project to be completed". Pakistan Today. Retrieved 8 May 2016.
  23. Abrar, Mian (7 May 2016). "Sahiwal Coal Power Project set to become first CPEC project to be completed". Pakistan Today. Retrieved 8 May 2016.
  24. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 117. Retrieved 17 December 2015.
  25. Ahmed, Amin (14 January 2016). "Deal signed with China for 800 hopper wagons". Dawn. Retrieved 14 January 2016.
  26. "SAHIWAL, JAMSHORO POWER PLANTS: RAILWAYS TO PROCURE 20 DE LOCOMOTIVES FOR COAL FREIGHT". Business Recorder. 4 August 2015. Retrieved 18 December 2015.
  27. Ahmed, Amin (14 January 2016). "Deal signed with China for 800 hopper wagons". Dawn. Retrieved 14 January 2016.
  28. Ahmed, Amin (14 January 2016). "Deal signed with China for 800 hopper wagons". Dawn. Retrieved 14 January 2016.
  29. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 138. Retrieved 17 December 2015.
  30. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 92. Retrieved 17 December 2015.
  31. Liu, Youliang (9 March 2015). "APPLICATION FOR A GENERATION LICENSE OF HUANENG SHANDONG RUYI (PAKISTAN) ENERGY (PRIVATE) LIMITED FOR ITS 2 X 660 MW IMPORTED COAL FIRED POWER PROJECT AT SAHIWAL, PAKISTAN" (PDF). NEPRA. p. 235. Retrieved 17 December 2015.
  32. Zhong, Haixang (13 August 2014). "General Licence Application of Port Qasim" (PDF). NEPRA. NEPRA. p. 152. Retrieved 17 December 2015.
  33. Zhong (Aug 2014). p. 156-157.
  34. Liu, Youliang (9 March 2015). "Application for a generation license of Huaneng Shandong Ruyi ( Pakistan) Energy (private) limited for its 2 x 660 mw imported coal fired power project at Sahiwal, Pakistan " (PDF). NEPRA. p. 94. Retrieved 17 December 2015.
  35. Liu, Youliang (March 2015). p. 175.
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