Oracle Energy will work with PetroChina International Middle East (PCME) to develop commercial avenues for its planned Green Hydrogen Project in Sindh, Pakistan.
Under a memorandum of understanding signed between the two companies, Oracle Energy, a subsidiary of Oracle Power, will supply and deliver green hydrogen to PCME.
In addition, PCME will arrange the potential offtake for the gas output and carbon credits from the site, after establishing viability through analysis of feasibility reports of the project and subject to price, quality and its board’s approval.
PCME will have the right of first refusal to enter into a mutually agreed long-term or spot cargo(es) contract to purchase all or part of the green hydrogen and carbon credits from the plant.
Oracle Energy will, prior to financial close, ask PCME to meet the best offer for a long-term purchase of all or part of the green hydrogen, with or without the carbon credits.
The MoU is effective from 2 June, 2023 and is valid forfive years from the date when the green hydrogen is first produced from the project, with the option of mutually extending the deal.
Chief executive of Oracle Power Naheed Memon commented: “The signing of this MoU with PCME is another huge step forward as we line up another significant potential offtaker. PetroChina is a large oil and gas trader and can potentially provide our project a commercially viable route to market.
“Our Green Hydrogen Project development is advancing swiftly and this understanding is a testament to the trust some of the largest companies in the world are putting in our ability to develop this important project which could meet regional demand for green hydrogen and ammonia.”
304
