Oracle Energy, a subsidiary of Oracle Power, has partnered with PetroChina International Middle East (PCME) to explore commercial opportunities for its proposed Green Hydrogen Project in Sindh, Pakistan. The two companies have signed a memorandum of understanding (MoU) wherein Oracle Energy will be responsible for supplying and delivering green hydrogen to PCME.
As part of the agreement, PCME will evaluate the feasibility reports of the project to assess its viability and potential gas output. Upon approval from PCME's board and subject to price and quality considerations, PCME will have the opportunity to arrange the offtake for the gas output and carbon credits from the site. Additionally, PCME will be granted the right of first refusal to enter into a long-term or spot cargo contract for purchasing the green hydrogen and carbon credits from the plant, either in part or in full.
Prior to the financial closure of the project, Oracle Energy will request PCME to present the most favorable offer for a long-term purchase of the green hydrogen, with or without the carbon credits.
The MoU, effective from June 2, 2023, will remain valid for five years after the commencement of green hydrogen production from the project, with the possibility of mutually extending the agreement.
Naheed Memon, Chief Executive of Oracle Power, expressed enthusiasm about the collaboration, stating, “The signing of this MoU with PCME represents a significant milestone as we secure another potential major offtaker. PetroChina, being a prominent player in the oil and gas trading industry, can potentially offer our project a commercially viable market route.”
Memon further emphasized the rapid progress of their Green Hydrogen Project's development and acknowledged the trust placed in Oracle Power by leading global companies. The project aims to meet the growing regional demand for green hydrogen and ammonia.
The collaboration between Oracle Energy and PCME highlights the increasing interest in green hydrogen as a sustainable energy source and signifies a step towards a greener future in Pakistan.
