Degree

Master of Business Administration Executive

Faculty / School

School of Business Studies (SBS)

Year of Award

2025

Advisor/Supervisor

Dr. Mohammad Kamran Mumtaz, Assistant Professor, Department of Management, Institute of Business Administration

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Power, Steam, Renewable, Coal, Grid

Executive Summary

Engro Polymers and Chemicals Limited (EPCL) is a leading manufacturer and marketer of Polyvinyl Chloride (PVC), Vinyl Chloride Monomer (VCM), caustic soda, and other related chemicals in Pakistan. The company meets ~90% of the country's PVC demand and has a market capitalization of approximately 34 billion PKR. EPCL plays a crucial role in import substitution, significantly reducing Pakistan’s reliance on imported materials by locally producing PVC, caustic soda, hydrogen, and hydrogen peroxide. This local production not only supports the economy but also saves millions of dollars annually in foreign exchange. Additionally, EPCL operates a captive power plant at its Port Qasim complex, which meets its power and steam requirements using in-house gas turbines and boilers connected to the Sui Southern Gas Company network. This integrated approach ensures a reliable and costeffective energy supply for its operations. Since Q4 2022, there has been a threefold increase in natural gas prices and the enforced imposition of Re-gasified Liquefied Natural Gas (RLNG) blended tariffs, escalating from approximately 1,000 PKR / MMBtu to 3,250 PKR / MMBtu. This sharp rise in energy costs has significantly increased the cost of power and steam production, posing a serious challenge to the long- term viability of EPCL's operations. Working out a reliable & cheaper alternate energy solution will ensure financial viability of EPCL’s products protects Pakistan from millions of dollars of annual dollar outflow by providing import substitution as well as protects thousands of direct & indirect local jobs. The above will be achieved as follows:

Part 1: Techno-Commercial Evaluation of the following major options

  • Solar & Wind Power: Evaluate feasibility based on space and sunlight, costs for installation and maintenance, and long-term savings with potential government incentives. Consider weather variability and initial capital investment.
  • Natural Gas (NG) and RLNG: Analyze infrastructure needs, market prices, and future regulatory impacts. Consider price volatility and geopolitical risks.
  • Coal: Evaluate cost-effectiveness, infrastructure suitability and environmental compliance. Factor in high emissions and regulatory risks.

Part 2: Local and Global Outlook

  • Fuel Availability: Assess local and global supply dynamics, focusing on production capacities, import dependencies, and geopolitical influences.

Deliverable: Present an alternate energy solution which ensures tariff of less than 10 cents/kWh while achieving reliability requirements and tackling environmental sustainability risks for the company.

Pages

xii, 45

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