Asia Petroleum’s Asia Energy seeks license for 30MW solar plant in Punjab

KARACHI: Asia Energy Private Limited, a subsidiary of Asia Petroleum Limited, has sought a license to setup a 30MW solar power generation facility in Punjab with an estimated cost of $22.8 million.

Asia Petroleum Limited (APL) is an energy infrastructure company, it owns and operates an oil terminal and a pipeline system to transport Residual Fuel Oil (RFO) from Pipri, Karachi to Hub Power Company Limited (HUBCO). [the_ad id=”31605″] APL was formed with support of the World Bank and the Government of Pakistan as a joint venture between Pakistan State Oil (PSO) with 49 percent stake, Infraavest Limited Hong Kong having 26 percent, Independent Petroleum Group (IPG) Kuwait having 25 percent and VECO International Incorporation of USA with 12.5 percent stake.

PSO is a leading oil marketing company of Pakistan, having largest market share. It owns and operates 74 percent of fuel storage infrastructure in the country.

Infraavest Limited Hong Kong is an investment company with stakes in oil and gas infrastructure in the Middle East, and offshore marine interest. Besides their investment in APL, their other investments in Pakistan include Fauji Oil Terminal and Distribution Company Ltd (FOTCO) and Fauji Infraavest Foods Ltd.

Independent Petroleum Group (IPG), Kuwait is a group of companies headquartered in Kuwait with worldwide operations in the trading and marketing of crude oil, petroleum products, LPG, petrochemicals and fertilizers.

VECO International is a management and investment company with operations in the energy sector. VECO International is incorporated in Texas and operates its domestic and international business out of Alaska, USA.

Asia Energy plans to sell the electricity to Central Power Purchasing Agency (CPPA). Currently there is no high voltage grid access directly on site, but the site is proposed to be connected to the Noorsar grid station. The project is planned to be connected with the existing 132kV Noorsar grid station in accordance with the requirements of the grid code. Based on the available performance and data, the annual energy production of the project will be 58.372 GWh.

The consortium of CSUN Solar International Limited and China Construction Installation Engineering Company Limited has been given the engineering, procurement and construction (EPC) contract for the project.

The total project cost is $22.8 million out of which $19.7 million will be the EPC cost. The project is to be financed with a combination of debt and equity. The debt amount is expected to be funded through SBP Financing Scheme for Renewable Energy with quarterly installments. The term of the loan is expected to be 10 years plus grace period for construction.

The project is expected to commence commercial operations by December 2019.

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