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Shanghai Electric Achieves Financial Close for Coal Mine Project of Thar Block-1 Integrated Coal Mine-Power Project in Pakistan

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Shanghai Electric

28 Feb, 2020, 18:53 GMT

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THAR PARKAR, Pakistan, Feb. 28, 2020 /PRNewswire/ -- Shanghai Electric Group ("Shanghai Electric" or "the Company"), the world's leading manufacturer and supplier of power generation and industrial equipment, one-stop energy solution provider, announced that it had achieved the financial close for the Coal Mine Project out of the Thar Block-1 Integrated Coal Mine-Power Project. The Thar coalfield is the largest in Asia, which holds an estimated lignite resource exceeding175 billion tons, covers an area of over 9,000 square kilometers in the Thar Desert in the southeastern part of Pakistan's Sindh Province.

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Effect map of the Thar Coal Mine-Power Project in Pakistan

For Thar Block-1 Integrated Coal Mine-Power Project, the Coal Mine is planed with an annual production capacity of 7.8 million tons and featuring two 660-megawatt coal-fired power plants, the project is capable of powering 4 million households in Pakistan with 1320 megawatts of indigenous, affordable and reliable electricity.

Thar Block-1 Integrated Coal Mine-Power Project was developed under the umbrella of the China-Pakistan Economic Corridor (the "CPEC"). It is part of an effort by the Government of Pakistan to improve energy security and reduce the average cost of power generation by moving from oil to coal. The project would energize the national grid and further help with savings on foreign exchange based on fuel costs. 

Sindh Chief Minister Syed Murad Ali Shah appreciated Shanghai Electric's support in expediting the process of benefiting from locally sourced fuel and Shanghai Electric's vital role in the development of the Thar Coalfield power station project which will bring the economic benefits to the local community.

The project is employing over 908 local workers at this moment and will employ more staff during its peak construction period. The project will also play an essential role in the social development of the region, with Shanghai Electric pledging to be an active and enthusiastic force in development efforts that help the local Thar community by improving education, health, infrastructure and the overall lifestyle of the region.

"We are proud to help bring the country its first large-scale, local coal-based electricity project. We are also grateful to the local government for their support." said Mr. Qian Xiaolei, PR Manager of Thar Coal Block-1 Power Generation Company (PVT) Ltd (SPV of Shanghai Electric in Pakistan).

Leveraging the project's positive momentum, Shanghai Electric has already begun the construction of power plants in the Thar Coalfield. The Company will bring power plants of ultra-supercritical technology, which can run at higher net efficiency than the annual average net efficiency required by Pakistani government. Additionally, the plants will operate with a high Acid Gas removal rate, with low sulfur dioxide emissions to reduce environmental impact when it begins to generate electricity in 2022.

About Shanghai Electric

Shanghai Electric Group Company Limited (SEHK: 2727, SSE: 601727) is principally engaged in the design, manufacture and sale of power equipment and industrial equipment. It focuses on new energy business, including the manufacture and sale of wind turbine and components as well as nuclear power equipment; clean energy business, including the manufacture and sale of thermal power equipment, power transmission and distribution equipment; industrial equipment, including the production and sale of elevators and electric motors; and modern service industry, including the contracting of construction of power generation plants, power transmission and distribution projects as well as other businesses.

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