Wartsila Secures 12-Year Agreement Extension With Efficient Power Plant O&M

Technology group Wärtsilä’s Operation & Maintenance (O&M) agreement with Sindh Nooriabad Power Company (SNPC), a Pakistan based independent power producer (IPP), has been extended for a further 12 years. The agreement has been in place since 2017, and the extension reflects SNPC’s satisfaction with Wärtsilä’s capabilities in providing O&M services. The order was booked by Wärtsilä in Q4 2023.

The agreement covers the SNPC 1 and 2 power plants located in Sindh Province, Pakistan. Both plants are equipped with five Wärtsilä 34SG gas engines and one steam turbine generator for engine heat recovery, which ensures maximum electricity output. The combined output for the two plants is 100 MW. The rapid start-up time of the Wärtsilä 34SG engine allows quick response to any fluctuations in the grid.

SNPC is the first IPP built under a public-private partnership in Pakistan. SNPC has a Power Purchasing Agreement of 25 years out of which 19 years are remaining. These plants’ significance is that they operate on local gas which reduces fuel costs.

“Our experience with Wärtsilä operating and maintaining these plants has been extremely positive. The plants’ performance has been both trouble-free and cost-effective, and this adds considerable value to our operations,” said SNPC.

"O&M agreements are a central pillar in Wärtsilä's Lifecycle Solutions approach. The aim is always to enhance our customers' operations and maximise the lifetime of the installed assets in an efficient and cost-effective manner. All our agreements are designed to meet the specific needs of our customers, and this agreement renewal with SNPC clearly indicated the benefits we are able to deliver," commented Alexandre Eykerman, Energy Business Director, Middle East & Managing Director, Wärtsilä UAE.

Wärtsilä has a strong presence in Pakistan with an installed base of 2.3 GW in power plants, of which 910 MW are covered by service agreements.