Wärtsilä, a technological powerhouse, solidifies its prowess with a 12-year extension of the Operation & Maintenance agreement with Pakistan's Sindh Nooriabad Power Company. The extension, a testament to Wärtsilä's exceptional service capabilities, encompasses two power plants with a combined output of 100 MW. SNPC, Pakistan's pioneering independent power producer, values Wärtsilä's trouble-free performance and cost-effectiveness. This strategic move highlights Wärtsilä's commitment to enhancing customer operations, marking a significant milestone in their long-standing partnership.
In a resounding affirmation of efficiency and excellence, Wärtsilä extends its Operation & Maintenance (O&M) agreement with Sindh Nooriabad Power Company (SNPC), a prominent independent power producer (IPP) based in Pakistan. The 12-year extension, inked in Q4 2023, underscores the seamless collaboration that began in 2017 and reflects SNPC's unwavering confidence in Wärtsilä's O&M capabilities.
The extended agreement encompasses the SNPC 1 and 2 power plants situated in Sindh Province, Pakistan. These plants feature five Wärtsilä 34SG gas engines each and one steam turbine generator, ensuring optimal electricity output. With a combined capacity of 100 MW, these plants play a crucial role in Pakistan's energy landscape. The rapid start-up capability of the Wärtsilä 34SG engines provides a swift response to any grid fluctuations, enhancing overall grid stability.
SNPC holds a distinct position as the first IPP established under a public-private partnership in Pakistan. The Power Purchasing Agreement spans 25 years, with 19 years remaining, emphasizing the long-term commitment to sustainable energy production. Notably, these plants operate on local gas, a strategic move that significantly reduces fuel costs, aligning with Wärtsilä's commitment to sustainability.
SNPC expresses satisfaction with Wärtsilä's performance, citing trouble-free operations and cost-effectiveness as key contributors to the success of the collaboration. "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," acknowledges SNPC.
Alexandre Eykerman, Energy Business Director, Middle East & Managing Director, Wärtsilä UAE, underscores the importance of O&M agreements in Wärtsilä's Lifecycle Solutions approach. The objective is to enhance customer operations, maximize asset lifetimes, and deliver efficient and cost-effective solutions tailored to specific needs. Eykerman highlights the tangible benefits demonstrated through the agreement renewal with SNPC.
Wärtsilä's footprint in Pakistan is substantial, with an installed base of 2.3 GW in power plants, 910 MW of which are covered by service agreements. This enduring partnership between Wärtsilä and SNPC not only symbolizes a 12-year commitment but also represents a shared vision for sustainable and reliable power generation in Pakistan.
Wärtsilä's 12-year extension of the O&M agreement with SNPC stands as a beacon of sustained excellence. The seamless collaboration, marked by trouble-free operations and cost-effectiveness, reinforces Wärtsilä's commitment to advancing customer operations. This extension, rooted in mutual trust, not only signifies a strategic move in the energy landscape of Pakistan but also exemplifies the long-term vision shared by Wärtsilä and SNPC in fostering sustainable power generation.