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The Kandra Power Company (KPC) is a Private Limited Company,
established with its headquarters at Islamabad, to set up a 120
MW IPP (Independent Power Producer) on BOO (Build-Own and Operate)
basis for sale of electricity to the national grid. KPC shall
actively participate in the national interest, in bridging power-deficits
in Pakistan, and shall continuously demonstrate its firm commitment towards
the economic development and prosperity of Pakistan. This IPP provides a
unique and ideal investment opportunity, where sovereign guarantee from
Government of Pakistan is in place.
The Kandra Power Company (KPC) registered with the Security Exchange
Commission of Pakistan (SECP), is a partnership of Petroleum Exploration
(Pvt) Limited (PEL) with Frontier Holdings Limited (FHL - a subsidiary of
Jura Energy Corporation) to set up the 120 MW Kandra Power Project
(on low Btu Kandra Processed gas), estimated to cost approximately
US$ 120 million (US Dollars One hundred and twenty million).
PEL is an established exploration & production company (E&P) which has
a dedicated team of qualified and experienced professionals,
petroleum engineers, explorationists, and financial experts.
The Company has so far drilled numerous exploration and development
wells in joint ventures with a number of Private, Public and International
companies It is presently operating 6 Oil & Gas Development & Production /
Mining Leases, one Appraisal License Area, 10 Onshore Exploration Licenses
and 3 Offshore Exploration Licenses / Production Sharing Agreements. Besides,
PEL has also a 10% working interest in the Zamaurdan Block operated by OGDCL
and 41.1765% working interest in Sukkur Block operated by Mari Gas Company
Limited. PEL is currently producing 35 MMCFD natural gas from two of its
concession areas, which is about 1% of the total natural gas production of
Pakistan.
PEL has the unique distinction to have become the Pakistani E&P company
that is exploring for oil and gas overseas in North Africa in three
Blocks called Haha-1, Haha-2 and Haha-3 in the Kingdom of Morocco.
PEL holds 75% working interests and is the operator while its joint venture
partner ONHYM, the Moroccan State Oil & Gas Company, retains 25% stakes. The
Blocks with an area of 4,919 sq.km, are located 20 km North of the coastal
town of Agadir. The Western boundary of the Blocks follows the Atlantic Ocean.
Frontier Holdings Limited (FHL) is a wholly owned subsidiary of Jura Energy
Corporation which is a publicly listed Canadian Company and is quoted on
the Toronto Stock Exchange with its Head Office in Calgary and Branch Offices
in Islamabad and Dubai, UAE. FHL has acquired 50 % share in the Kandra Power Plant
Project and a 37.5% share in the low Btu Kandra gas field which will provide processed
Kandra gas to the Kandra Power Plant.
The proposed 120 MW Combined Cycle Kandra Power Plant will be fueled
by 40 MMSCFD (million standard cubic feet per day) of processed gas from
the Kandra Gas field operated by PEL, in Sindh. The processed Kandra Gas
with a calorific value of 300 Btu/scf will be blended with 10 MMSCFD pipeline
quality gas from Sui Southern Gas Company Limited (SSGCL) to attain a heating value of 430±5 Btu/scf.
The Government of Pakistan has allocated 10 MMSCFD pipeline quality
gas for blending with processed Kandra gas to generate 120 MW of electricity,
with each gas stream in the blend providing 50% in heating values for power generation.
The known reserves of Kandra gas are adequate for a 120 MW power plant
operating life of 25-30 years. During the course of production of the gas
field, the reserves may increase which could be considered for an additional
power plant in about 10 years from the time of production.
A Letter of interest (LOI) has been issued to KPC with PEL as the
"Main Sponsor"
of the Kandra Power Project, by the Private Power and
Infrastructure Board (PPIB), Ministry of Water and
Power, Government of Pakistan, in July 2009.
A Feasibility Study for the Kandra Power Project is being submitted to the Private Power and
Infrastructure Board (PPIB) by August, 2010. EPC (Engineering, Procurement & Construction)
activities to energize the Power Plant in about twenty four (24) months, will be initiated
after obtaining a Letter of Support (LOS) on approval of the Feasibility Study by PPIB and
acceptance of the Security Packages and after achieving financial close.
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