CER acquires stake in gas-fired power plant in Pakistan
Creative Energy Resources to aid in Pakistan's shortfalls in energy supply.
Creative Energy Resources (CER), a regional power company owned by Swicorp Joussour Company (a Saudi Arabia joint stock company), announced that it has bought a stake in the 586 MW Uch power plant in Pakistan from an affiliate of GE Energy Financial Services.
CER will build, acquire, own and operate power generation, transmission and distribution facilities in the Middle East, North Africa, and South Asia (MENASA) region. The generation projects will be based on conventional, thermal, as well as renewable energy.
"Power is an important asset class for our investors, and we are pleased with the addition of Uch power to the CER power platform. "We are confident that the Uch investment offers our investors access to high quality, risk-adjusted returns," said Shahid Khan, investment director of Swicorp Joussour Company.
The Uch Power Limited (UPL) plant is a 586MW combined cycle thermal power plant that generates electricity, using low British Thermal Unit (BTU) gas from the indigenous Uch gas field, which is supplied under a long-term agreement by the Oil and Gas Development Corporation, majority owned by the Government of Pakistan.
UPL is well placed to leverage the reserves of the Uch gas field by converting the low BTU gas into electricity at the plant. Generation of power using clean fuel presents an opportunity for CER, in a country where rapidly increasing demand for power has led to severe shortfalls of supply.
"The closing of this transaction is an important milestone for CER. "We are excited about expanding the generation capacity at Uch to help meet the growing power demand in the country," said Shahzad Qasim, founder and CEO of CER.
Financial details of the transaction were not disclosed.