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Karachi, January 23, 2024: Committed to enabling access to affordable power and bolstering the energy security for its customers, CEO K-Electric (KE) Mr. Moonis Abdullah Alvi and CEO The Hub Power Company Limited (HUBCO) Mr. Kamran Kamal, signed a Memorandum of Understanding (MoU) to explore the opportunity for off-take of electricity following the conversion of HUBCO’s Hub Plant to local Thar coal. This is in line with KE’s long-term strategy to induct power generation from indigenous sources into its energy mix. In this regard, the company is exploring the viability of Thar coal-based power generation projects. HUBCO’s Hub Power-station is a 1292 MW (4 X 323 MW), residual fuel oil-based plant, which has maintained high standards of operations since 1997. Both companies have shown their commitment to work collaboratively towards conducting the requisite efforts needed for the timely conversion and integration of the project with KE’s network.
Sharing his thoughts on the occasion, CEO KE stated, “Today’s signing is another reflection of our intent to tackle the energy trilemma head-on, enabling access to affordable and reliable power to our growing customer base. I feel great honor to mention that KE has proven itself to be a preferred off-taker for the independent power producers in Pakistan. This is only due to our superior creditworthiness and our history of fulfilling the commitments made with our stakeholders. We are looking at a future where we substitute our reliance on imported fossil fuels with indigenous sources, creating a more resilient power value chain. This is also the driving force behind the Power Acquisition Program that we have submitted with our Regulator, which is balancing baseload requirements with renewable energy.”
CEO of HUBCO Mr. Kamran Kamal stated that “The proposed conversion of Hub power plant to Thar coal will play a crucial role in decreasing reliance on imported fuels. While offering a sustainable energy solution for the people of Karachi, this project will also serve the continued use of the country’s legacy power generation assets. This initiative is in line with our commitment to securing indigenous, reliable, and affordable energy supply and contributing towards achieving energy security for the country. The envisaged project will be executed after conducting required feasibility studies and obtaining all necessary corporate and regulatory approvals.”
On the occasion, KE’s Chief Financial Officer Mr. Aamir Ghaziani, Chief Strategy Officer Mr. Shahab Qader, and Head of Business Development Mr. Mudassir Zuberi were present, accompanied by Chief Financial Officer Mr. Muhammad Saqib and Vice President Operations Mr. Amjad Raja from HUBCO. Other senior members from both organizations were also present.
*ABOUT K-ELECTRIC:*
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square kilometers territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.
*ABOUT THE HUB POWER COMPANY LIMITED (HUBCO):*
HUBCO is the first and largest Independent Power Producer (IPP) in Pakistan, incorporated on August 1, 1991 as a public limited company, with a nationwide footprint and a combined installed power generation capacity of 3,581 MW utilizing Thar coal, imported coal, hydel and furnace oil. Shares of the company are listed on the Pakistan Stock Exchange (PSX).
HUBCO also owns Hub Power Holdings Limited (HPHL) for investing in future growth projects and Hub Power Services Limited (HPSL) for O&M of HUBCO’s existing power generation assets and to provide engineering services outside the group. HUBCO holds 8% shareholding in Sindh Engro Coal Mining Company Limited (SECMC), the seventh largest reserves of coal in the world and is also a JV partner in Prime International Oil and Gas Company Limited, which owns several gas fields in Sindh.
