Hubco power station
|This article is part of the CoalSwarm coverage of Pakistan and coal.|
Hub power station is a 1,320-megawatt (MW), also known as the CPHGC (China Power Hub Generation Company) power station, is a 1,320-megawatt (MW) coal-fired power plant in Balochistan province, Pakistan.
The map below shows the location of the Hubco plant, in Hub tehsil, Lasbela district, Balochistan province. The old oil-fired plant is located to the southeast.
In January 2015, Hub Power Company Limited (Hubco) announced that it planned to build a 1,320 MW (2 x 660 MW) coal plant next to its current 1,208 MW (4 x 302 MW) oil-fired power station, about 25 km southwest of the town of Hub in Balochistan. The plant would gradually be expanded to 3,960 MW (6 x 660 MW). The project would run on imported coal, for which a coal jetty would be developed. According to CEO Khalid Mansoor, Hubco had enough land near its existing power plant to house six coal plants of 660 MW each.
Later that year, Hubco signed a joint venture agreement with China Power International Holding, a wholly-owned core enterprise of the China Power Investment Corporation, to set up the plant as China Power Hub Generation Company (CPHGC).
In June 2015, the Private Power and Infrastructure Board (PPIB) approved the 1,320 MW power station.
In February 2016, the National Electric Power Regulatory Authority (Nepra) granted the upfront tariff of Rs4.7153/kilowatt hour to China Power Hub Generation Company for the proposed 1320 MW plant. The Nepra estimated the project cost for 660 MW at US$956.1 million. Hubco was targeting financial close of the new CPHGC plant before June 2016, with the project likely to come online by 2020. Hubco officials visited Ministry of Water & Power officials in Islamabad for a cheerleading session for the project in March 2016. In April 2016, the PPIB issued a letter of support to China Power Hub Generation Company for construction of the station (it was unclear how this differed from the June 2015 approval). The statement issued along with the letter of support stated that the project was now scheduled to come online by 2019.
In October 2016, Hub Power Company said it may reduce the plant to 1 x 660 MW to expedite construction. According to Dawn, the reduction was actually because the PPIB — a one-window arrangement for private investments in the power sector — decided in June 2016 "to stop processing of power generation based on imported fuels because of substantial capacity already contracted that was enough to meet power demand until 2022 and to remain watchful of considerable foreign exchange erosion." However, companies that had met financial close before that date and/or were part of the China-Pakistan Economic Corridor (CPEC) projects were exempted from the restriction, allowing Hubco to build both 660 MW units. Hubco expected to arrange financing for the US$1.8 billion power project by June 2017. The two units were planned for operation in 2018-2019.
The Integrated Coal Jetty became operational in December 2018 with arrival of the first shipment of coal.
In April 2020, it was reported that Hubco was debating converting two of the four oil units at the neighboring Hub plant to coal. The electricity would be sold to K-Electric.
In June 2021, it was reported the new plant was high on the merit list and was dispatched at the load factor of 65% in the latest quarter. However, its ability to pay dividends to sponsors was limited because of growing overdues so it was facing liquidity constraints.
Chinese banks led by the China Development Bank loaned US$1.5 billion for the project.
In January 2018, a financing agreement for the project was closed. US$1.5 billion in loans was provided by China Development Bank, China Exim Bank, ICBC, China Construction Bank, and Bank of Communications. US$500 million in equity was provided by Hub Power and State Power Investment Corporation (SPIC).
In January 2016, hundreds of people, including councillors and representatives of Hub and Gadani union councils, gathered in front of Hubco Power Company. They said the project, if executed, would pollute the environment and endanger the ecology of Hub and Lasbela district, and destroy the marine life near Gadani, Sonmiani, and Daam bundar.
In March 2016, Dawn reported that 2,000 local people sent in letters opposing the coal plant for the Environmental and Social Impact Assessment study. Those who wrote the letters wanted to attend the public hearing, but were told there would be no room for them. Disappointed, they put up slogans rejecting the project on black banners around the Lasbela Industrial State Development Authority auditorium. The morning of the hearing, most of the banners had been taken down, reportedly by the police, who were deployed to stop the protestors from entering.
- CPHGC 1,320MW Coal-Fired Power Plant, Hub,Balochistan, CPEC-Energy Priority Projects
- Sponsor: China Power Hub Generation Company
- Parent company: China Power Investment Corporation (74%), Hub Power Company (24%), Balochistan (2%)
- Location: Hub tehsil, Lasbela district, Balochistan province, Pakistan
- Coordinates: 24.914675, 66.688760 (exact)
- Status: Operating
- Capacity: 2 x 660 MW
- Type: Supercritical
- Start year: 2019
- Coal Type:
- Coal Source: Indonesia, South Korea
- Source of financing: US$1,500 million in debt from China Development Bank, China Exim Bank, ICBC, China Construction Bank, and Bank of Communications; US$500 million in equity from Hub Power and State Power Investment Corporation (SPIC)
Articles and resources
- Khaleeq Kiani, "Hubco to set up 1,320MW coal-based power plants," Dawn, January 20, 2015
- "Nepra grants tariff for 1,320MW coal power plants," The International News, February 14, 2016
- "Chinese company to set up 1,400MW coal power project," Daily Times, June 17, 2015
- "Hubco's $2.4 billion coal-fired power plant nears completion," Business Recorder, March 19, 2016
- "Chinese firm gets LoS for 1,320MW project at Hub," The News, April 23, 2016
- "Hubco mulls power project's capacity cut," thenews.com.pk, October 18, 2016
- "Govt gives up over 1,000MW of imported coal-fired power projects," Dawn, November 5, 2016
- "Hubco allowed to build two imported coal-based plants," The Express, December 16, 2016
- "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated June 5, 2018
- "Work kicks off on $2b Hubco coal-power plant," Express Tribune, March 22, 2017
- "Hub coal plant construction kicks off today," Dawn, March 21, 2017
- "China firm operationalises 1,320MW coal power plant," The Nation, August 19, 2019
- "660MW CPHGC power plant connected to national grid," Dawn, January 1, 2019
- "GE, CPGHC & HUBCO Achieve Key Milestones to Power Pakistan," GE press release, March 27, 2019
- "中电胡布（2×660MW）2号机组首次并网成功," 北极星电力网新闻中心, May 29, 2019
- "2nd Unit of China Power Hub company synchronized with national grid," Engineering Post, June 3, 2019
- "HUBCO plans to convert two units of Hub plant to coal," The International News, April 30, 2020
- "CPHGC faces liquidity constraints," Dawn, June 10, 2021
- "Pakistan coal power plant signs loan contract with Chinese banks," Xinhua Net, October 24, 2017
- "Preview of Hub Coal Power Plant (1.32GW)," IJGlobal, accessed November 18, 2020
- "Proposal to install coal-based power plants in Hub rejected," Dawn, January 15, 2016
- Shazia Hasan, "Footprints: The glow of Embers," Dawn, March 28, 2016