In a bid to diversify its business line, the Pakistan State Oil (PSO) Tuesday signed a Memorandum of Understanding (MoU) with Engro Powergen Limited (EPL) to review the technical and economical feasibility of the Thar Coal project.
The MoU was signed by CEO and MD PSO Naeem Yahya Mir and President and CEO Engro Corporation Muhammad Ali Ansari.
Those witnessed the ceremony were Zubair Motiwalla, Chairman Sindh Board of Investment and Chairman Sindh Engro Coal Mining Company (SECMC), Shamsuddin Ahmed Shaikh, CEO SECMC along with Mohammad Arif Khan, Additional Provincial Chief Secretary (P&D), Ejaz Ahmed Khan, Secretary of Coal and Energy Development Department, Sohail Butt, DMD (F&IT), Naved Alam Zubairi, SGM (Projects) of PSO and other directors of the company. The MoU was signed keeping in view the fact that as coal was comparatively cheaper and easily available in comparison to other fuel sources, it has become the fuel of choice for developed nations across the world.
Therefore, with an aim of responsibly providing for the rising energy needs of the country, PSO is exploring multiple investment opportunities in the energy sector with special emphasis on Thar Coal and intends to acquire 50% of Engro Powergen Limited’s shares in SECMC as part of this plan. Both PSO and Engro are in agreement that coal is the best possible indigenous fossil fuel resource for Pakistan and has the potential to address the country’s severe power shortage and bring energy security to the country. Through this project, not only will the energy chain be strengthened it will also generate extensive economic activity nationwide while developing Pakistan’s human capital through the execution and operation of state-of-the-art coal mining and coal-based power generation projects.
Additionally by playing a lead role in developing this national resource, both companies will be able to strengthen their financial bottom line and expand further through downstream commercial projects based on Thar coal. Both companies are of the opinion that this MoU will serve as the foundation for a mutually beneficial partnership which will result in extensive benefits for future progress and prosperity of Pakistan. Naeem Y. Mir said: “Through the MoU two companies have combined their synergies to develop a self-reliant energy supply chain for the country. Indigenous fuel is our future and with the support and backing of the Sindh Government we are taking steps to meet Pakistan’s energy needs in the years to come.” Ali Ansari of Engro Corporation said: “This is a momentous occasion as both companies have joined hands for a project of national interest and one which would provide for the energy security of the next generation.” Zubair Motiwalla said the Sindh Government had been working tirelessly to meet the rising energy needs of the population and the decision to purchase 51% shareholding in SECMC was a clear indication of the government’s commitment and support of the Thar Coal project.
