Salt Range power station
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Salt Range power station is a cancelled power station in Pind Dadan Khan, Jhelum, Punjab province, Pakistan.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Salt Range power station | Pind Dadan Khan, Jhelum, Punjab province, Pakistan | 32.583333, 73.05 (approximate) |
The map below shows the approximate location of the power station.
Project Details
Table 2: Unit-level details
| Status | Fuel(s) | Capacity (MW) | Technology |
|---|---|---|---|
| cancelled | coal: unknown | 330 | unknown |
Table 3: Unit-level ownership and operator details
| Owner | Parent |
|---|---|
| China Machinery Engineering Corp [100%] | China National Machinery Industry Corp [100.0%] |
Project-level captive use details
- Captive industry use (heat or power): power
- Captive industry: Other Metals & Mining
Project-level coal details
- Coal source(s): Salt Range area
Financing
- Source of financing: Chinese banks under Sinosure insurance coverage, with equity raised by China Machinery Engineering Corporation with its own funds or via equity loan[1]
Background
In September 2014, the Punjab government and China Machinery Engineering Corporation (CMEC) signed a memorandum of understanding (MoU) for mining coal in the Salt Range.[2] In March 2015, it was reported that CMEC had asked the Punjab government to set a coal price mechanism for reserves to be extracted the the Salt Range and used to fuel a 300 MW coal plant. Once such a mechanism was established, CMEC would file a tariff petition to the National Electric Power Regulatory Authority (NEPRA). CMEC planned to establish a 330 MW mine-mouth coal plant at Pind Dadan Khan, Jhelum, where the company planned to build a 1.87-million-ton mine. According to the press report, the company had not been able to secure confirmation of its request for a coal price mechanism despite having begun seeking the mechanism in November 2014. According to CMEC, Salt Range coal would be more expensive than the average benchmark of world coal. Because of the additional expense, the company would need a favorable coal price in order to proceed.[3]
Project included in China-Pakistan Economic Corridor
In April 2015, it was announced that the Salt Range power station was among the projects included in the China-Pakistan Economic Corridor. According to the announcement, a "facilitation agreement" for the project was signed between CMEC and the Punjab government.[4]
In May 2015, The Nation reported that the National Electric Power Regulatory Authority (Nepra) had accepted "one of the most lucrative tariff" agreements in the world for the project. The article noted, "According to sources it is the ambitiousness of the government to set up new electricity generation projects that foreign companies for asking for out of the way incentives and high tariffs, which are not offered anywhere in the world. There has been pressure from government to facilitate new projects, sources said."[1]
Cancellation
In May 2016, it was reported that China Machinery Engineering Corporation (CMEC) was bowing out of the project. CMEC reportedly lost interest in the plant because of issues relating to feasibility of producing enough energy for running a 330 MW project and a tariff allowed by the National Electric Power Regulatory Authority that was lower than its expectations.[5]
In May 2017, Pakistan and China announced that this project was being dropped from the CPEC Energy Cooperation Project.[6]
Articles and Resources
References
- ↑ 1.0 1.1 "Nepra accepts tariff petition of Chinese firm for power plant," The Nation, May 1, 2015
- ↑ "MOU signed for coal mining in Salt Range," Dawn, September 22, 2014
- ↑ "CMEC to Ask Punjab Government to Set Coal Price Mechanism," Industry-focus.com, March 5, 2015 (cached)
- ↑ "Details of agreements signed during Xi's visit to Pakistan," Dawn, April 20, 2015
- ↑ "Chinese firm bows out of coal-based power project," Dawn, May 18, 2016
- ↑ "Pakistan, China drop 5 CPEC energy projects," The Nation, May 19, 2017
Additional data
To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.
