HUBCO starts dismantling 1,292 MW Hub power plant in Balochistan

Hub Power Company (HUBCO) has started dismantling its power plant in Hub, Balochistan.

The company has sought services to take apart steam turbine generators, boilers, and other equipment.

In October, HUBCO signed a settlement agreement with the government to end its 1,292 MW power generation project. HUBCO, listed on the Pakistan Stock Exchange (PSX: HUBC), is the country's first and largest Independent Power Producer (IPP). After discontinuing the Hub plant, its total installed power generation capacity is 2,289 MW.

The Hub Plant, which is being dismantled, is a thermal power plant that uses residual fuel oil (RFO) to supply electricity to the national grid. HUBCO also operates the Narowal Plant, an RFO-fired, engine-based combined cycle power station.

Additionally, it owns a 75% stake in Laraib Energy Limited, a hydropower plant.HUBCO has a joint venture with China Power International Holdings (CPIH) for a 1,320 MW coal-fired power plant, the China Power Hub Generation Company Limited (CPHGC). This plant includes an integrated coal jetty and has started commercial operations.

To support future growth, HUBCO has established two subsidiaries: Hub Power Services Limited (HPSL) and Hub Power Holdings Limited (HPHL).

HPHL focuses on new growth projects, while HPSL manages the operations and maintenance of HUBCO's existing power assets, including coal-based projects. HPSL is also exploring additional business opportunities and oversees the operation of the Hub, Narowal, Laraib, and Thar Energy Limited plants.

HUBCO holds an 8% stake in Sindh Engro Coal Mining Company Limited (SECMC), a joint venture with Engro, Thal Limited, HBL, CMEC, and the Government of Sindh.

SECMC doubled its coal mining capacity on October 1, 2022, to provide fuel for HUBCO’s Thar Energy Limited and ThalNova projects.

HUBCO also established Thar Energy Limited (TEL) to develop a 330 MW lignite-fired power plant in Thar Coal Block II, Sindh. The company has a shareholders’ agreement with Fauji Fertilizer Company Limited (FFCL) and CMEC TEL Power Investments Limited (CMEC Dubai), holding 30% and 10% equity respectively, while HUBCO owns 60%.

Additionally, HUBCO acquired a majority stake in the 330 MW ThalNova Power Thar Pvt. Ltd (TNPTL) lignite-fired power plant.Hub Power Holdings Limited is diversifying by entering the electric vehicle business through a partnership with Chinese EV manufacturer Build Your Dreams (BYD) via its associate company, Mega Motor Company (Private) Limited.