ETA Star signs Dh500m deal to set up power plant in Pakistan

Dubai: Dubai-based ETA Star Group, part of the Abdullah Al Ghurair Group, has signed an agreement worth Dh500 million with Pakistan's Ministry of Water and Power to set up a power project there.

TransAsia Gas International LLC, a subsidiary of Al Ghurair Investment LLC, is a co-investor in the project.

ETA's subsidiary Star Power Generation Limited will spearhead this gas-fired combined cycle 134 megawatt Independent Power Project.

The project will be based at Dharki in the Ghotki district of Sindh province.

The plant will be allocated low BTU gas by the Pakistani government from its Mari Deep reserves for 25 years.

The power project is expected to begin operating by 2010 at which time it will supply 134 megawatts of electricity to the national grid.

Commitment

"This power generation project and other infrastructure projects initiated by us in Pakistan are a testament to our commitment to the country's development," said Hameed Salahuddin, director of ETA Star Group

The ETA Star Group, with a consolidated turn-over of more than $4 billion for the year ended 2006, has plans to become an integrated power generation company in the long run.

The group is developing an Dh825 million hydel power station in northern Pakistan.

TransAsia is one of the pre-qualified bidders for the privatisation of the Pakistan State Oil Company Ltd and is also developing a 100,000 barrel per day petroleum refinery at Port Qasim.