Faisalabad Sitara Chemical power plant
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Faisalabad Sitara Chemical power plant is an operating power station of at least 40-megawatts (MW) in Faisalabad, Punjab province, Pakistan with multiple units, some of which are not currently operating.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Faisalabad Sitara Chemical power plant | Faisalabad, Faisalabad, Punjab province, Pakistan | 31.522924, 73.388223 (exact) |
The map below shows the exact location of the power station.
Unit-level coordinates (WGS 84):
- Unit 1, Unit 2: 31.522924, 73.388223
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | Start year | Retired year |
|---|---|---|---|---|---|---|
| Unit 1 | operating | coal - unknown | 40 | circulating fluidized bed | 2016 | – |
| Unit 2 | construction | coal - unknown | 40 | unknown | 2024 | – |
Table 3: Unit-level ownership and operator details
| Unit name | Owner |
|---|---|
| Unit 1 | Sitara Chemical Industries [100.0%] |
| Unit 2 | Sitara Chemical Industries [100.0%] |
Project-level captive use details
- Captive industry use (heat or power): chemicals
- Captive industry: Power
Background
The 40 MW coal plant at Sitara Chemical Industries was inaugurated by Prime Minister Nawaz Sharif in September 2016. The project supplies their chemical facility, and any excess power is provided to the grid.[1]
Proposed Expansion
In a notice issued to the Pakistan Stock Exchange on October 21, 2020, Sitara expressed interest in expanding its coal fired power plant by 40 MW. The company indicated it was willing to invest Rs5.5 billion (US$35 million) in doing so.[2]
According to Daily Pakistan Today, this represents more than twice the sum of money it invested in expanding its core business in 2019-2020, and raises significant questions not just about the kind of infrastructure that exists in Pakistan for large scale manufacturing, but also for the potentially highly skewed incentives currently on offer by the government of Pakistan to companies that set up coal-fired power generation units.[3]
As of October 2020, the project was expected to be completed by December 2022.[4]
In January 2021, the company signed a contract with M/s Shandong Yangzhuo Energy Development Co., Limited (SYEDCL) for the engineering design of the project. A kick off meeting for the expansion was held on January 15, 2021.[5]
As of November 2022, Sitara reported that with the changing economic scenario and increase in imported coal prices, the company had redesigned the expansion project to use lignite coal (both local and imported) as feed stock. The new Unit would have the flexibility of using both local lignite coal or imported bituminous coal or any mix of these coals. Sitara further reported that work on the expansion was in progress, and negotiations with technology suppliers and with the engineering design company had been completed for major equipment (boiler, turbine and generator). The project was expected to be completed by June 2024.[6]
Planet satellite imagery from 2022 seemed to show work was taking place at the site.
In their 2023 annual report, which was published in September 2023, Sitara stated that "civil work" on the expansion was in progress and some of the boiler, turbine, and generator equipment had arrived at the site.[7]
Financing
In June 2014, a financing agreement for Unit 1 of the project was closed. US$12,478,000 in loans was provided by MCB Bank, United Bank Limited, and Meezan Bank Limited. Meezan Bank Limited acted as financial adviser.[8]
For the proposed expansion, the company stated in October 2020 that the project would be financed through borrowing from Islamic banks.[4]
Articles and Resources
References
- ↑ "PM inaugurates 40 MW coal-fired power plant in Faisalabad," DunyaNews.tv, September 3, 2016
- ↑ "Letter to Pakistan Stock Exchange Limited re: Material Information," Sitara Chemical Industries Limited, October 21, 2020
- ↑ "Sitara Chemicals to invest Rs5.5 billion in expanding coal-fired power generation," Daily Pakistan Today (via Energy Central), November 3, 2020
- ↑ 4.0 4.1 "Corporate Briefing Session for the year ended June 30, 2020," Sitara Chemical Industries Limited, October 31, 2020
- ↑ "New Projects," Sitara Chemical Industries Limited, accessed June 29, 2021
- ↑ "Sitara Corporate Briefing Session 2021/2022" (PDF). sitara.com.pk. November 18, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Annual Report 2023," Sitara Chemical Industries Limited, September 18, 2023
- ↑ "Sitara Chemicals to set up 35MW power plant at Faisalabad," Business Recorder, June 21, 2014
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.
