Cherat Cement to receive gas for its captive power plant

Cherat Cement Co Ltd (CHCC) has started receiving gas supply from Sui Northern Gas Pipelines Ltd, for its plant located at Nowshera in KPK province, Pakistan. This will help in reducing the production costs of the company, said the company’s Executive Director Abid Wazir.

According to the company’s half-yearly report ending December 2019, to reduce its production costs, CHCC is also installing 12.3MW solar panels at the factory. Furthermore, it has signed a Wheeling Regime Energy Purchase Agreement with the Pakhtunkhwa Energy Development Organization (PEDO) for the supply of cheap electricity. The company’s management expects that these measures will help in curtailing production costs.

Earlier, CHCC added 10MWs of WHR with Kiln Line 3, coupled with 29MW dual-fired power plants. CHCC has been reliant on Pakistan’s national grid and fuel oil for power generation. However, the new supply of gas would sustainably reduce the power cost of the company, a research house said.

In January 2019 the company successfully installed and commissioned the 6700tpd Kiln Line 3, along with a WHR plant. With this expansion, the production capacity of the company has increased to more than 4.5Mta. The project was completed well before the scheduled time.