Role of SEC in the manufacturing of power plants.
* Fast depletion of domestic hydro-carbon fuels.
* Worsening of the balance of payments.
A similar pattern is emerging on the international scene. It is being apprehended that with the scarcity of oil its prices will considerably increase. The projections done by the Department of Energy in London suggest that by the end of the century, oil prices could be between 1.75 to 2.5 times their present levels in real terms. As prices rise, there will be a general transition towards the use of fuels other than oil. Every country, particularly those which are presently depending more on oil, will have to manage this transition smoothly so that it takes place with minimum impact on growth, employment, living standards, the balance of payments and individual liberties. This will however, not be an easy task and in its accomplishment lie many challenges.
State Engineering Corporation
The country needs to pay special attention to the Power sector so as to meet the fast growing needs of energy. The allocation made to this sector during sixth and seventh five year plans are the manifestation of our desire to solve this problem at the earliest. During sixth plan the actual achievement was considerably below the target. In power generation, an addition of only 2018 MW was achieved against a target of 3795 MW (shortfall of 47%). During 7th Plan addition of 6396 MW is envisaged which appears to be a difficult target. One of the reasons for shortfall is our heavy dependence on imported plant and machinery. If we want real breakthrough in our Power Sector, we will have to produce our power generation equipment and machinery locally. The units of State Engineering Corporation (SEC) have already made a modest start in this direction and they are planning to expand this activity to achieve maximum self-reliance in this field, provided a national policy on lines similar to what has been done in India is developed and implemented.
HMC during sixth plan, planned its entry into the energy sector because of the priority given by the government to this sector and the resultant business opportunities thus available. It invested about Rs. 20 million in additional plant and machinery for producing components of Powr Boilers. HMC also entered into technical collaboration with the world renowned firm Deutsche Babcock (DBW) of West Germany engaged in the manufactured of Power Boilers. HMC secured orders for the equipment for Power Boilers of Bin Qasim Thermal units 3 & 4, HMC share was about 26 per cent by value but it manufacture about 50 per cent equipment by weight. This included high value added items like convection tube banks, superheater re-heater and economiser coils, headers etc.
It is commendable that HMC has completed the job of Bin Qasim units 3 & 4 to the entire satisfaction of the customers as well as its foreign partner. With this experience, HMC had made a big leap forward in the manufacture of high pressure parts for Power Boiler which operate at a pressure of about 2000 PSI. Previously HMC did not have experience of manufacturing Boiler parts operating at pressures in excess of 350 PSI.
The manufacture of high pressure parts for power boilers involved strict quality control measures and training of workers and technicians particularly in welding. HMC arranged training of about 31 engineers and technicians at DBW works in West Germany for a total of 176 man-months. The steel structures produced by HMC for Bin Qasim 3 & 4 were so accurate and within the specified close tolerances that during site assembly virtually no rectification work was required. This was highly appreciated by the DBW engineers. All the pressure parts were inspected by a foreign third party inspection agency "TUV of West Germany" and they were found to meet the international quality standards.
HMC has not only invested in human resources but it has also added certain equipment for manufacture of Power Boilers, which no other local manufacturer has in the country. Push bending machine necessary for bending of Tube coils with close bending radii. Twin head submerged Arc welding machine for long plate girders, Bevelling and flame cutting machine for cutting plates for plate girders with minimum distortion. Cold circular saw for cutting profile sections for the steel structure with maximum depth of 1000 mm, High pressure testing unit for coils and headers, Portable spectrograph for checking steel composition of alloy steel tubes etc. The equipment and capability acquired at HMC is thus unique and it should be fully utilised
The order for Bin Qasim unit 5 was given to Marubeni-Japan who had earlier built units 1 & 2. The successful completion of Bin Qasim units 3 & 4 gave confidence to Japanese in the capability of HMC and therefore they engaged them as their sub-contractor. This work has also been completed satisfactorily and ahead of schedule. HMC is now fully ready to participate in all forthcoming Power Projects in the country. HMC is now seriously planning to further enhance its local content in Power Boilers. This would, however, need further investment of about Rs. 185 million. It is estimated that with this investment HMC can increase its local share in boilers upto 50-60 per cent.
All these projects are to be completed during 1990-93 period. HMC may be given orders for atleast three units during this period (e.g. Jamshoro 7 & 8 and Bin Qasim 6) on negotiation basis. HMC with its foreign partner can also look for arranging required foreign credit at soft terms. For all the three units HMC total share for Boilers and Turbine house can be approximately Rs. 600 million. For period beyond 1993 HMC can handle orders for at-least one thermal power plant every year. WAPDA has awarded contract worth US $ 70.5 million to Dongfeng Electric Corporation of Peoples Republic of China to build 3x50 MW coal fired power plants with fluidised bed combustion technology based on Lakhra Coal. Chinese have agreed to subcontract some of the work to HMC Taxila. This would include steel structures, headers and coils, Air & Flue Gas Ducts, Steam Drum, Chimney, Stairs and Ladders, EOT Crane etc. The share of HMC will be about 50 per cent by weight. HMC, in due course plans to acquire complete technology for this type of boilers either from China or from DBW of West Germany. Once HMC develops this capability, it would be desirable that WAPDA places order for all coal based thermal power plants on HMC as prime contractor.
The seventh plan envisages a substantial contribution from the private sector in Power Generation as Government alone cannot muster resources for the ambitious investment plan for this sector. Although the effort in the plan will be to obtain about 2000 MW from the private sector, a conservative estimate of 1330 MW has been taken for the planning purpose. Letters of intent have already been issued to Xenel/Hawker Siddeley and Habibullah Mines/Siemens. Other projects in the private sector under consideration are Nandpur/Punjpir, Fauji Foundation etc. HMC is in touch with these organisations for securing maximum share of local manufacturing.
Oil & Gas Projects
Pakistan is fortunate that during 6th Five Year Plan its efforts for search in oil and gas has met with considerable successes. The extraction of oil by the end of the plan i.e. 43000 barrels per day has exceeded the target of 21000 barrels per day. The success ratio in the drilling was close to 1:2.5 compared to 1:12 during the 5th Plan. Consequently a total of 19 oil and 11 gas fields were discovered which added 117.3 million barrels of oil and 1.7 trillion cubic feet of gas to reserves. In view of the fast expansion of activities in the oil and gas sector HMC. Taxilla has also entered into the manufacturing of oil and gas processing equipment which are mostly installed at the well head. HMC completed its first order for oil and gas equipment in early 80's by supplying a sulphur recovery plant for the Meyal oil fields. It completed another order for 50 MMCFD gas dehydration plant for Pirkoh Gas Company. The major breakthrough however, came in 1985 when HMC signed a turn-key contract with OGDC for the supply of complete installation required for Dakhni oil and gas fields. The cost of this project exceeded Rs. 500 million and it included gas dehydration plant, gas sweetening plant, sulphur recovery plant, LPG/NGL recovery plant, crude stabilising plant and utilities and off-site facilities. All the major mechanical equipment such as pressure vessels, towers, steel structures, piping spools etc. were fabricated by HMC. HMC is now capable of handling similar projects for OGDC. It is presently discussing with OGDC for Dhodak Development Project.
ENAR and HMC, the two units under the Ministry of Production, have formed a joint venture group for undertaking projects in the oil and gas sector. The Dhodak project will consist of a 50 MMCFD of raw gas processing and 25000 BPD condensate plant. The stabilised condensate will be processed in a topping unit within the limits of the facilities to recover gasoline, kerosene, gas and heavy oil. For this project it has been proposed that under the guidance of OGDC and its expatriate consultants, the ENAR-HMC joint venture group would implement the project on single source total responsibility basis. The group will be responsible for all activities upto plant mechanical completion including basic and engineering designs, local fabrication, local and foreign procurement and erection. The expartriate consultants of OGDC would review, monitor and approve the activities to be performed by the joint venture group. The total cost of the project is estimated as Rs. 960 million with foreign exchange components of Rs. 529 million which is to be financed by the Islamic Development Bank. On similar principle HMC has proposed to handle the Jamshoro Refinery Project which is under active consideration of the Government for processing 25000 BPD of crude being produced in lower Sindh.
Mini Hydel Power
HFF Taxila has acquired the technology for local manufacture of mini hydel plants with the technical assistance of Sulzer Escher Wyss of Switzerland who have experience of about 75 years in this field. HFF secured another contract from WAPDA for the supply of 4 hydel turbines and generating sets with capacity of 1 MW each for a total price of Rs. 32.5 million. These are Pelton type turbines and the local scope of manufacturing includes penstock, sliding gates, crane, transformer and HT & LT panels. The share of local supply was 65 per cent. This project is presently under completion.
HFF is planning to gradually increase the share of local manufacturing through technology transfer from the foreign partner and it is expected that within 2-3 years following components of the turbines would be manufactured locally. Spiral Casing, inlet pipe and draft tube. Expansion joints, Head covers, Wicket gates, Runners, Penstock, Pipe etc.
The generator and other allied electrical equipment are already being manufactured by local companies like Siemens and PSL (another unit of SEC). HFF recently secured contract for the supply of plant and machinery for 32 mini hydel projects located in the Northern Areas. The total value of the contract is about Rs. 270 million. HMC/HFF has got this contract in collaboration with a British Firm i.e. Biwater Limited, who have assured complete technology transfer to HMC/HFF in this field.
Large Hydel Projects
As already mentioned Pakistan has large hydel resources for power generation which is estimated to be about 30,000 MW of which only 10 per cent is being exploited presently. The first phase of two giant projects namely Mangla and Tarbela has been completed and their expansion is in progress. It is expected that soon, decision will be taken on the fate of Kalabagh and Basha Dams. In view of the large potential in this area, HMC is planning to expand its production facilities for the manufacture of large components for hydel turbines and generators.
The hydraulic turbine and generator consist of parts such as the turbine runners, shaft, draft tube, spiral casing stay ring, inlet valve, generator stator, field poles, rotor spider, wicket gates, bearings etc. Pakistan has a fairly developed heavy engineering base which can contribute to a certain degree towards indigenisation of the manufacture of large hydel turbines and generators. The local content can be further increased after balancing of facilities at Heavy Mechanical and Heavy Foundry and Forge. The runner is one of the critical component of turbine and very few manufacturers specialise in its casting. For 100 MW unit it may weigh around 35 tons and has a diameter of about 4 meters. For a 400 MW unit, the weight would still be higher which cannot be presently handled by HFF. The main shaft is generally in three parts namely turbine, generator and exciter shafts with a normal diameter of about 1 to 1.5 meters. These shafts may weigh up to 50 tonnes. The heaviest forgings that HFF can presently manufacture is only about 30 tons. There are plans to upgrade facilities of HFF which would enable it to handle heavy parts required for large hydel power plants. Pakistan can benefit from the experience of China in this field.
High Voltage Electrical Equipment
(Power Transformers and Switchgear)
Power generation capacity of Pakistan is planned to be doubled by the end of 7th Five Year Plan. It would approach a figure of 13100 ME. Increase in the growth of power generation is linked with demand of power transformers which are installed in high voltage sub-stations, as part of electrical transmission network. To meet the demand of power transformers, Heavy Electrical Complex (HEC) a project of SEC, is being set up in Hattar Industrial Area with the technical and financial assistance of Peoples Republic of China. The project envisages manufacture of eight types of power transformers with ratings of 5 to 40 MVA and for primary voltage of 66 and 132 KV. 148 power transformers of total capacity of 2885 MVA would be produced annually.
Heavy Electrical Complex provides important linkage with the production programme of other major industries of the country. Particular care has been taken to develop local sources for the supply of raw material and components. It is expected that about 50 per cent of raw material and components would be procured locally. HEC will be requiring annually 3200 tons of special grade transformer oil, 2300 tons of mild steel for manufacture of transformer tanks and other components which are available locally. Transformer tanks and radiators will be fabricated at Heavy Mechanical Complex, while paper wrapped copper conductors and medium voltage bushings would be procured from other Pakistani manufacturers. It is expected that within a few years of the commencement of production, local sources will be developed for the supply of most of the remaining raw materials.
Presently, Pakistan is spending huge amount of foreign exchange on the import of power transformers. It is estimated that at optimum capacity HEC would save the country foreign exchange to the tune of Rs. 220 million. In addition, facilities will be available in the country for the repair of these expensive, bulky and high technology products. Apart from power transformers, another company of SEC namely Pakistan Switchgear (PSL) is planning to manufacture high voltage switchgears of SF-6 type under joint venture with Energo-Invest of Yugoslavia. The project has been approved by the Government and its implementation is expected to start soon.
Nuclear Power Plants
HMC & HFF have potential to make significant contribution in the proposed programme of PAEC for the local manufacturing of nuclear power plants. They would however, need certain technological support and balancing of their facilities. It is estimated that for a nuclear power plant about 330 pressure vessels, heat exchangers and storage tanks are required. About 74 per cent of such equipment belongs to non-nuclear category which can be manufactured by HMC and other similar local industries without much of problem. These are designed and manufactured to quality standards e.g. ASME code Vol. VIII, Division I and API 620.
HMC can attempt to manufacture in the next phase some of the heat-exchangers and pressure vessels which belong to seismic class 2 & 3 in accordance with ASME code Vol. III. The most critical parts of a nuclear power plant are the following:
- Pressure Tubes
- End fittings
- Booster & Absorber rods.
2. Fuelling machine
3. Steam generator
5. Primary pump and piping.
The reactor and steam generator vessels are very heavy weighing 200 & 85 tons respectively. These are manufcatured to fine tolerances and they need special care in handling during manufacturing. HMC is also planning to balance its facilities to expand the core business to thermal power plants, oil/gas equipment, fertilizer and petro-chemical plants ets. This scheme estimated to cost Rs. 434 million has been recently approved by the Concept Clearance Committee, Planning Division, Government of Pakistan.
HMC would reconsider its requirement of balancing equipment in some areas to cater for the requirement of nuclear vessels, provided PAEC assures, HMC of repetitive orders. HMC may not necessarily have to go for the type of heavy fabrication and machining facilities which European manufacturers have, since their module of plants is still higher. PAEC plans to adopt 600 MW module and as such HMC facilities will have to be planned accordingly for which close coordination is required with PAEC.
Apart from pressure vessels, Heat Exchangers and supporting steel structures HMC can undertake high pressure piping for nuclear power plants. It is already planning to set up a tube/pipe shop for thermal power plants. This shop with improved cleanliness and moisture control etc. can undertake fabrication of nuclear piping.
PSL with its existing facilities can manufacture and supply Electrical Equipment for nuclear power plants e.g. Station Service Switchgears (low tension), Motor Control Centres, Switchboards, Relay panels, cable trays etc. Some of these equipments will have to be designed for Seismic conditions. PSL will have to gear itself to meet the quality requirements for nuclear environment
The industries in the Public Sector e.g. HMC, HFF, PSL etc. have developed the capability in the manufacture of a variety of Power Generation equipment which is being planned to be further augmented. These industries need continued support from organisations like WAPDA, KESC & OGDC so that their potential is fully exploited.
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|Title Annotation:||State Engineering Corp.|
|Date:||Mar 1, 1990|
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