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KESC, Engro sign deal

Karachi Electric Supply Company (KESC) signed a multifaceted memorandum of understanding (MoU) with Engro Corporation to cooperate on projects of mutual interest, according to a statement on Friday.

The memorandum of understanding would cover four key initiatives; fertiliser off-take agreement from KESC’s bio-gas waste-to-energy power project for generation of 22MW; a 300-600MW coal project at Thar; import of liquefied natural gas (LNG) as alternative fuel for KESC’s generation plants, and supply of up to 65MW to Engro’s Polymer and Chemicals unit at Bin Qasim, it said.

The memorandum was signed by Tabish Gauhar, chief executive officer of KESC and Ali Ansari, president of Engro Corp, to mark the cooperation between the two private sector companies, according to the statement.

Gauhar said, “This multidimensional MoU is strategic in nature as both the private sector companies are keen to work closely to address various issues being confronted by the energy sector.”

“We are confident that together we would realise these key projects that are of significant importance for the national economy.” Ansari said, “This memorandum will help deploy greater synergies across the two businesses and aid the growth process by leveraging competencies of both Engro and KESC in their respective domains.”

“Together we hope to alleviate the grave issues in the energy sector that continue to affect the performance of companies and help create stronger value propositions for the industry and the economy.”

KESC is in the process of setting up a waste-to-energy power project that will produce approximately 22MW. This bio-gas power plant will also have the potential to produce 100,000 tons of organic fertiliser every year.

Under the terms of the MoU, Engro Fertilizer Ltd will explore the option of setting up an integrated fertiliser plant or entering into an off-take agreement for the organic fertiliser from this bio-gas plant, said the statement.

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