Hub Power Company
Corporate brand
UnclaimedA Pakistani power-generation company and independent power producer with interests in thermal, hydroelectric, coal, mining, and oil and gas projects.
Last updated October 30, 2026
AI crawler reads
No AI crawler has read this profile yet.
Overview
The Hub Power Company Limited, commonly known as HUBCO or Hubco, is a Pakistani power-generation company headquartered in Karachi, Sindh. Established in 1991, it was Pakistan's first independent power producer and became one of the country's largest privately sponsored electricity businesses. Its original flagship asset was the Hub Power Plant near Hub in Balochistan, a large oil-fired station developed to sell electricity to Pakistan's public power system under a long-term power-purchase arrangement. HUBCO emerged during Pakistan's effort to attract private capital into electricity generation. Its initial project was financed through a combination of international loans, concessional development finance, local-currency borrowing, and equity from overseas investors. The company also accessed international capital markets through global depositary receipts and was listed locally on the Karachi Stock Exchange, now the Pakistan Stock Exchange. By the late 1990s, it had become one of Pakistan's largest listed companies by market capitalization. The company's early growth was followed by a major contractual and political dispute. In 1998, the government challenged aspects of the Hub project and its energy-purchase arrangements amid allegations concerning corruption and high electricity tariffs. The dispute led to litigation and renegotiation. In 2000, HUBCO and its investors agreed to forgive a substantial portion of receivables owed by the Water and Power Development Authority. In 2002, the company reduced tariffs and revised operation-and-maintenance arrangements, lowering the project's expected return. These settlements helped preserve the project while reducing the outstanding amount associated with the dispute. HUBCO subsequently diversified beyond its original oil-fired station. It acquired a majority interest in Laraib Energy, developer of the 84-megawatt New Bong hydropower project, which began commercial operations in 2013 and became Pakistan and Azad Jammu and Kashmir's first private hydropower project of its type. HUBCO also developed or invested in the Narowal oil-fired plant, the China Power Hub Generation Company coal project, the Thar Energy lignite-fired plant, and the ThalNova Power Thar project. These investments expanded the company's generation portfolio from conventional oil-fired capacity into hydroelectricity, imported coal, and domestic lignite. The company has also pursued broader energy-sector investments. Through Prime International Oil & Gas Company, a joint venture involving former Eni Pakistan employees, it acquired Eni's Pakistani exploration and production assets in 2022. Its holding-company structure has additionally been used for investments connected with coal mining and new-energy or transportation-related ventures, including a stake in Mega Motor Company, which obtained arrangements to manufacture, market, distribute, and sell BYD passenger vehicles in Pakistan. HUBCO's portfolio includes wholly owned subsidiaries, joint ventures, and associates. Reported assets and interests have included the Hub and Narowal plants, New Bong hydropower, the China Power Hub Generation Company station, Thar Energy, ThalNova Power Thar, interests in the Sindh Engro Coal Mining Company, and oil-and-gas assets acquired from Eni Pakistan. Ownership percentages vary by project and have changed over time. In October 2024, HUBCO and the Pakistani government ended the energy-purchase agreement for the original Hub station ahead of its scheduled expiry. The termination occurred amid wider government efforts to renegotiate or end power-sector contracts and concerns raised by independent power producers about pressure, accountability threats, and access to international arbitration. HUBCO remains an operating Pakistani energy company, although the termination marked a significant change in the contractual history of its founding asset. In October 2024, HUBCO and the Pakistani government prematurely terminated the power-purchase agreement for the original Hub station. The termination occurred amid a broader government effort to renegotiate or terminate power-sector contracts, with independent power producers expressing concerns about pressure, accountability threats, and international arbitration channels. HUBCO remains an operating Pakistani energy company, although the termination marked a major change in the contract history of its founding asset.
History
HUBCO was founded in 1991 during Pakistan's attempt to bring private and international capital into electricity generation. Its first major undertaking was the Hub Power Plant, located near Hub in Balochistan and designed to supply the national power system. The project was financed with approximately $770 million of loan commitments and $325 million of equity. Early international shareholders included National Power, Xenel, and Entergy. Development finance involved Citibank-led lending, Commonwealth Development Corporation support, World Bank-linked energy-development financing, and local-currency loans arranged through Pakistani financial institutions. The company raised additional capital through global depositary receipts issued on the Luxembourg Stock Exchange. It also completed a local public offering and became a listed company in Pakistan. By 1998, HUBCO had become the second-largest company on the Karachi Stock Exchange by market capitalization. Its early commercial model was unusual in Pakistan because revenue was initially denominated in United States dollars and depended on a long-term power-purchase agreement with the public electricity system. The original project became embroiled in a serious dispute in 1998. The administration of Prime Minister Nawaz Sharif cancelled or challenged parts of the energy agreement amid allegations of corruption and concerns about the level of electricity tariffs. Entergy pursued arbitration-related litigation against the Water and Power Development Authority, seeking damages connected with the withdrawal from the power-purchase agreement. The dispute was eventually resolved without the full claim proceeding to judgment. In 2000, HUBCO and its investors agreed to forgive $200 million of the $274 million debt owed by WAPDA. In 2002, the company reduced tariffs and modified operation-and-maintenance contracts, reducing the project's internal rate of return from 17 percent to 12 percent. These concessions helped address the remaining obligations and allowed the project to continue operating. During the following years, the company diversified its generation base. In 2008, it acquired a 75 percent interest in Laraib Energy and began developing the 84-megawatt New Bong run-of-river hydropower project downstream from Mangla Dam. The plant commenced commercial operations in March 2013 and was described as Pakistan's and Azad Jammu and Kashmir's first hydropower independent power project. HUBCO also incorporated Narowal Energy Limited in 2013 as a wholly owned subsidiary to manage the 225-megawatt oil-fired Narowal Power Plant. Ownership changed during this period. Xenel left Pakistan in 2011 and sold its stake, while National Power UK divested its holding in 2012 to Dawood Hercules and Allied Bank. Dawood Hercules later sold a substantial shareholding to Mega Conglomerate in 2018. HUBCO also withdrew its Luxembourg-listed depositary receipts in 2017 because of limited trading activity. From the late 2010s, HUBCO participated in projects aligned with Pakistan's efforts to expand generation capacity under the China-Pakistan Economic Corridor and to use domestic coal resources. China Power Hub Generation Company developed a 1.32-gigawatt imported-coal station at Hub, comprising two 660-megawatt units. The plant entered operation in 2019 and was established as a joint venture with China Power International. HUBCO also invested in Thar Energy Limited, a 330-megawatt mine-mouth lignite project, and in ThalNova Power Thar, another 330-megawatt domestic-lignite plant. Thar Energy reached commercial operations in October 2022, while ThalNova began operating in February 2023. Related investments included an interest in Sindh Engro Coal Mining Company, which developed the Thar coal mine supplying domestic-coal projects. HUBCO expanded beyond power generation in 2022 through Prime International Oil & Gas Company. The joint venture acquired Eni Pakistan's upstream assets, including interests in development and production leases and exploration licences. The company also established holding-company and service subsidiaries intended to support future investments and project operations. These activities broadened HUBCO from a single-project independent power producer into a diversified energy group. In October 2024, the company ended the energy-purchase agreement for the original Hub station before its scheduled expiry. The termination occurred during a government campaign to reduce the cost and contractual burden of Pakistan's power sector. Independent power producers expressed concerns about pressure to accept revised arrangements and about possible legal or corruption-related action if they pursued international arbitration. The end of the agreement marked a major transition for HUBCO: the contract that defined its founding project was terminated, while the wider group continued to hold interests in newer thermal, hydroelectric, mining-linked, and upstream energy assets.
- 2024
Original Hub energy agreement terminated
[1]HUBCO and the Pakistani government terminate the energy-purchase agreement for the original Hub station.
- 2023
ThalNova begins commercial operations
[1]The 330-megawatt ThalNova Power Thar mine-mouth lignite project enters commercial operation.
- 2022
Thar Energy reaches commercial operation
[1]The 330-megawatt Thar Energy lignite-fired project begins commercial operations.
- 2022
Eni Pakistan assets acquired
[1]Prime International Oil & Gas Company acquires Eni's Pakistani upstream business and related interests.
- 2019
China Power Hub plant commissioned
[1]The 1.32-gigawatt China Power Hub Generation Company coal-fired plant is commissioned at Hub.
- 2017
Luxembourg GDRs delisted
[1]HUBCO delists its global depositary receipts from Luxembourg because of low trading volumes.
- 2013
New Bong begins commercial operations
[1]The 84-megawatt New Bong Escape Hydropower Project starts commercial generation.
- 2011
Xenel exits Pakistan
[1]Xenel sells its stake in HUBCO and exits the Pakistani market.
- 2008
Laraib Energy investment
[1]HUBCO acquires a majority stake in Laraib Energy and begins developing the New Bong hydropower project.
- 2002
Tariff and contract restructuring
[1]The company reduces tariffs and revises operation-and-maintenance arrangements as part of the settlement of the earlier dispute.
Products and positioning
A major Pakistani independent power producer diversified across thermal generation, hydroelectricity, domestic coal, mining-linked power projects, and upstream oil and gas.
Oil-fired thermal power
Hub Power Plant
HUBCO's founding facility is located near Hub, approximately 60 kilometres from Karachi. Its reported design comprises four oil-fired generating units, each rated at 323 megawatts gross, with boilers, steam turbines, and hydrogen-cooled generators. Fuel was supplied through a dedicated pipeline connected to Pakistan State Oil. The plant historically sold its output under a long-term arrangement with Pakistan's public power system; that energy-purchase agreement was terminated in October 2024.
Oil-fired thermal power · 2013
Narowal Power Plant
The Narowal facility in Punjab has reported capacity of 225 megawatts and is operated through Narowal Energy Limited, a wholly owned HUBCO subsidiary. The plant uses multiple generating sets, heat-recovery steam generators, and an air-cooled condensing steam turbine. It forms part of the company's conventional thermal-generation portfolio.
Hydroelectric power · 2013
New Bong Escape Power Project
The 84-megawatt New Bong Escape project in Mirpur, Azad Jammu and Kashmir, is a run-of-river hydropower facility developed by Laraib Energy. It uses water discharged from an existing upstream Mangla Dam hydropower station. Commercial operations began in March 2013, and the project has been described as the first private hydropower independent power project in Pakistan and Azad Jammu and Kashmir.
Imported-coal thermal power · 2019
China Power Hub Generation Company Power Plant
The China Power Hub Generation Company facility is a 1.32-gigawatt coal-fired station at Hub, comprising two 660-megawatt generating units. The units use supercritical boiler, steam-turbine, and generator technology. The project is owned through a joint venture between HUBCO and China Power International and was commissioned in 2019.
Domestic-lignite thermal power · 2022
Thar Energy Limited Project
Thar Energy Limited is a 330-megawatt mine-mouth power project using lignite from Pakistan's Thar coalfield. The project is associated with the China-Pakistan Economic Corridor and is designed to use locally produced fuel rather than imported coal. It achieved commercial operations in October 2022.
Domestic-lignite thermal power · 2023
ThalNova Power Thar
ThalNova Power Thar is a 330-megawatt mine-mouth lignite-fired power project associated with HUBCO's domestic-coal strategy. The plant uses Thar coal and began commercial operations in February 2023.
Oil and gas exploration and production · 2022
Prime International Oil & Gas Company
Prime International Oil & Gas Company is a joint venture established to acquire and operate Eni Pakistan's upstream assets. The acquired portfolio included interests in development and production leases and exploration licences, extending HUBCO's activities beyond electricity generation.
Controversies
1998
Allegations surrounding the Hub power agreement
The Pakistani government challenged parts of HUBCO's energy-purchase agreement amid allegations of corruption involving former business executives and concerns over high electricity tariffs. The dispute led to arbitration-related litigation, debt concessions, and later tariff and contractual renegotiation. The allegations and dispute are reported here as historical claims and government actions, not as a finding that the company or named individuals were criminally liable.
Brand decisions
2024
Termination of original Hub energy agreementStrategyBackground
Pakistan began revisiting independent power-producer contracts amid concerns about electricity costs and the financial burden of the power sector. IPP owners also raised concerns about pressure and possible consequences of pursuing international arbitration.
Action taken
HUBCO and the government of Pakistan prematurely terminated the energy-purchase agreement covering the original Hub power station in October 2024.
Aftermath
The termination ended the contractual arrangement that had governed HUBCO's founding project and represented a major change in the company's relationship with the Pakistani power system.
2022
Acquisition of Eni Pakistan businessM&ABackground
HUBCO sought to broaden its energy-sector activities beyond power generation.
Action taken
Prime International Oil & Gas Company, a joint venture involving HUBCO and former Eni Pakistan employees, acquired Eni's Pakistani upstream assets.
Aftermath
The transaction added oil and gas exploration and production interests, including development, production, and exploration licences.
2019
Commissioning of China Power Hub Generation Company plantProduct launchBackground
HUBCO pursued additional large-scale generation capacity and participation in Pakistan's CPEC-linked energy build-out.
Action taken
The China Power Hub Generation Company commissioned its two-unit, 1.32-gigawatt imported-coal plant at Hub.
Aftermath
The project expanded HUBCO's generation portfolio and its partnership with China Power International.
2017
Withdrawal from Luxembourg GDR listingStrategyBackground
Trading activity in the company's Luxembourg-listed global depositary receipts was limited.
Action taken
HUBCO delisted its global depositary receipts from the Luxembourg Stock Exchange.
Aftermath
The company retained its domestic Pakistan listing while discontinuing the low-volume international receipt listing.
2008
Acquisition of Laraib Energy stakeM&ABackground
HUBCO sought to diversify into hydroelectric generation and develop the New Bong project.
Action taken
The company acquired a 75 percent interest in Laraib Energy.
Aftermath
The investment led to the development and subsequent operation of the 84-megawatt New Bong hydropower project.
2002
Tariff and operating-contract reductionPrice changeBackground
The company needed to address the remaining financial obligations connected with the Hub project and the settlement of its dispute with WAPDA.
Action taken
HUBCO reduced tariffs and revised operation-and-maintenance contracts.
Aftermath
The changes reduced the project's internal rate of return from 17 percent to 12 percent and helped accommodate the remaining repayment requirements.
Internal rate of return. 17% → 12% (2002)
2000
Forgiveness of WAPDA receivablesOtherBackground
The company and its investors faced a dispute with the Water and Power Development Authority over the Hub project's power-purchase obligations and unpaid amounts.
Action taken
HUBCO and its investors agreed to forgive approximately $200 million of the $274 million debt owed by WAPDA.
Aftermath
The concession formed part of the settlement process and reduced the value of claims associated with the original project.
Debt forgiven. $274 million debt owed → $200 million forgiven (2000)
Recent events
Reported
Hub Power Holdings and ENI employees agree to acquire ENI's Pakistan assets[3]
Hub Power Holdings, a wholly owned subsidiary of Hub Power Company, and ENI's local employees, in a 50:50 joint venture, executed definitive agreements to acquire ENI's upstream operations and renewable energy assets in Pakistan.
Sources3 sources
Cite this profile: Cite the canonical profile. /brand-wiki/hub-power-company · Editorial policy · How profiles are compiled