Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
just been having a discussion on the twitter group
since may last year, when we signed the mou for thar block 6 with: gos, k-electric, power china
it really has been quiet and nothing reported since (from oracle)
https://www.lse.co.uk/rns/orcp/mou-for-132-gw-coal-power-plant-8211-thar-block-vi-x4zw3vntwjbds3r.html
but going down something of a rabbit hole, i found the following links for the last couple of months
https://www.power-technology.com/data-insights/power-plant-profile-thar-block-vi-power-plant-****stan/
https://www.gem.wiki/thar_block_vi_power_station
“in july 2023, the thar block vi coal plant was listed as an "upcoming ipp" by the private power & infrastructure board (ppib) of the government of ****stan's ministry of energy. the proposal was labeled as an indicative generation capacity expansion plan "candidate project" through 2032.[34]
in november 2023, the ppib's "upcoming ipps" listings indicated that the proposed power station was "under review" and the expected completion date was now december 2028.[35]“
two entirely separate articles, both alluding to further developments, and that the project has an equal equity holding of (33.4%,33.3%,33.3%) - k electric| oracle power| power china respectively.
now it’s either very lazy journalism, or there’s actual meat on the bones to this. alludes to project construction 2027, with completion date 2028, which admittedly seems a very short turn around but that’s that.
then moving onto k electric, rummaging through their latest news events on their website. an enormous company with plenty of work ongoing. they submitted a pap (planned acquisition programme) to nepra (national electric power regulatory authority) in 2023. this plan outlined their intentions to invest 484 billion ****stani rupees (£1.36b) into these different projects, with a big aim to invest in renewables.
nepra officially approved k electrics plans only 2 days ago which could be significant
https://www.ke.com.pk/nepra-approves-k-electrics-power-acquisition-program-for-fy-2024-2028/
also adding
“additionally, the pap includes capacity addition on local coal which will diversify the energy mix and reduce reliance on imported fuels.”
which could potentially tie into block 6. still nothing official from oracle but cards being played by powers far above oracles station currently. could there actually be developments finally for block 6, is it a saga destined to continue into nothingness. following k electric very closely for further announcements
(https://www.lse.co.uk/rns/ORCP/mou-for-132-gw-coal-power-plant-8211-thar-block-vi-x4zw3vntwjbds3r.html)
I remember how well that RNS read and got the juices flowing, it has been disappointing to not hear any more about the project since.. Especially as the Mou has or is due to expire any minute.. Hopefully the NEPRA approval for K-electric acquisition program brings Thar funding a step closer. Do we think the ownership %'s are accurate? Last i heard i thought we were going to have 12% of it, 33% sounds incredibly good, if accurate.
Definitely LTH. The NEPRA approval for KE, would tie in with other pretty significant projects for them, but if a deal for Block 6 could be inclusive within that (PAP), it would be pretty ground breaking for Oracle Power, and it’s shareholders.
If so, you’d imagine to see some kind of MoU extension in the near future, otherwise it would amount to nothing. Interestingly, Power China (also involved with the MoU), were executed in an MoU extension at GCM resources recently, prior to them committing $1Billion for a coal mine
Good work AG, interesting. 33% wow, that would be massive.
it's just been extremely vague from the companies perspective, i understand they're governed by regulations, so whilst there are external issues (ie nepra approval), there's limited to what can be reported to the market. but there does look like some movement in the background. how remotely vague or progressive this is, we're yet to see?
in the initial mou, it talks about the power plant being relocated to k electrics land at port qasim, karachi. the thar coal fields to port qasim, karachi is around a 5 hour drive for my initial thoughts were is it too far? would k electric just get a seperate supply, closer to the port?
but this article seems to insinuate the coal would still be coming from thar and our block, with the relocation 5 hours away
https://www.brecorder.com/news/40245581
"according to the letter, this is the last cpec coal to power project, and considering the increased restrictions imposed by the global financial institutions to develop coal power plants, this cooperation arrangement to develop the project presents the best opportunity for ****stan, to further develop and utilize thar coal to generate inexpensive power.
both companies are of the view that the inexpensive base load power generated from the indigenous coal power plants is a pivotal requirement to curtail the burgeoning electricity price and stem the outward flow of foreign currency from the country. ke stands to be the largest power buyer in province of sindh, as well as the most favourable off-taker for chinese financiers, for supporting new power projects.
ke is currently in the process of finalizing its long-term business plan to cater for the ever-increasing demand in its system. in order to meet this rising power need of the city of karachi, ke plans to optimize its fuel mix through inducting a combination of renewables and base load plants, based on indigenous resources including local coal. it is projected that the requirement for new base load power will arise from the financial year of 2028-29."
and when you consider the level they currently import from other countries, transporting it from thar i don't see as an issue.
https://x.com/plancom****stan/status/1793921619166900593
"🇵🇰🇨🇳#13thjcc: ****stan looks forward to transforming huge coal deposits into green energy through coal gasification
planning minister prof ahsan iqbal highlights that mining in #thar has significantly contributed to ****stan's #energy_security and economic growth. he said ****stan now looks forward to transforming huge coal deposits into #green_energy through coal gasification.
the development highlights the commitment of both nations to sustainable and mutually beneficial development.
#cpecphase2 #pakchinafriendship"
the 13th jcc today