Thar coal to power all coal fired power plants in the future: PM Ashraf
"Today we have laid the foundation of an energy policy, which is based on our indigenous resources and will lead to savings of huge foreign exchange presently being spent on the import of fossil fuels to run our thermal power plants," Prime Minister Raja Pervez Ashraf said.
The landmark policy decision was taken during a meeting of the Thar Coal and Energy Board at the Prime Minister's Secretariat here.
The meeting was informed that the Sindh Engro Coal Mining Company (SECMC) and the Engro Corporation were working on an integrated coal mine and a power project at an estimated cost of $1.3 billion at Block 2 of the Thar Coal Project. The project aims at mining 6.5 million tonnes coal per annum to generate 1200 MW power at the attached power plant.
The Prime Minister also decided in principle to provide a sovereign guarantee to the SECMC, a joint venture of the Government of Sindh and the Engro Power and directed the Ministry of Finance to arrange the same. The decision for the sovereign guarantee was strange as Ashraf admitted himself that that the current financial situation allowed little space for providing sovereign guarantees, but justified it by pointed towards the growing energy requirements of the country.
The Government of Sindh had requested the Federal Government that the conversion of existing 800 MW and new 600 MW power plants at Jamshoro be designed on Thar Coal specifications.
The Prime Minister further directed the Ministry of Water and Power to sign within a week, a Coal Off-Take agreement between the GENCO andthe SECMC for the Asian Development Bank financed conversion of the existing 800 MW and new 600 MW thermal power projects at Jamshoro.
"History will not excuse us if we do not take correct decision in time," the Prime Minister said.
Thar Coal Field are estimated to have reserves of 175 billion tonnes, 68 times higher than Pakistan's total gas reserves.
Those, who attended the meeting, included Chief Minister Sindh Syed Qaim Ali Shah, Finance Minister Dr Abdul Hafeez Shaikh, Minister for Religious Affairs Syed Khursheed Shah, Minister for Water and Power Chaudhry Ahmed Mukhtar, Advisor on Petroleum and Natural Resources Dr Asim Hussain, Deputy Chairman Planning Commission Dr Nadeemul Haq, MNA Rubina Saadat Qaim Khani, Provincial Minister for Revenue Jam Mehtab Dahar, Provincial Minister for Irrigation Jam Saifullah Dharejo, Federal secretaries Finance, Planning Division, and Water and Power, Chief Secretary Sindh, Member Science and Technology Planning Commission Dr Samar Mubarakmand, MDTCB, CEO Genco Holding, President Engro Corporation, CEO SECMC andother senior officials.
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Problem is not quality of coal and what other options
The real issue is what are the forces stoping development work and investment in our country China planned for 12 billion dollar investment refinery in 2009 cancelled Ipl no progress in last 30 years Balouchistan resources Un touched
We need to realise who is damaging Pakistan.
This is the right time to review your foreign affairs policy Russia china or still ....... Potentially only gawdar port can develop billion of dollars revenue All caspian oil can flow through gawdar port which is another prospect which is a threat for artificially developed Dubai - let's see who leads Turk -afg-pak pipeline - I am surprised why engro invest 5 billion dollars on urea plant, based on gas for which whole country is struggling why not first coal and power generation ...........but Asian bank never approved sustainable projects for Pakistan.
Govt. is planning to build Coal power Plants near Jamshoro. It is not advisable to build coal fired power plants close to river Indus. Coal fired power plants are by far the largest source of fly ash and mercury pollution falls into close by rivers where it builds up in fish. People who routinely eat mercury-polluted fish can suffer brain damage and nervous system disorders, particularly young children. Fly ash causes severe problems, like lowered crop yield, respiratory disorders in humans and livestock, and contamination of groundwater with toxic salts and metallic contents.
Better late than never, this decision should have been taken long time ago but there are influential people with vested interest and using Thar coal to generate electricity is going to harm them.
@Cautious: Thar Coal is less than 150 Meter of depth. Not hundreds of meter. Thar coal is brown coal means there is enough BTU and it is suitable for most of the application but blast furnace. Gasification is not an experimental technology. There are many plants operating in QLD Australia. Open cut mining is possible even when the coal is under water. In fact Open cut method was invented because of issues with ground water. otherwise underground BCM cost is much lower compare to Open cut.
“More than 100 million people will die and global economic growth will be cut by 3.2 per cent of GDP by 2030 if the world fails to tackle climate change” a report conducted by humanitarian organization DARA said. “It calculated that five million deaths occur each year from air pollution, hunger and disease as a result of climate change and carbon-intensive economies, and that toll would likely rise to six million a year by 2030 if current patterns of fossil fuel use continue. More than 90 per cent of those deaths will occur in developing countries, effects of climate change had lowered global output by 1.6 per cent of world GDP, or by about $1.2 trillion a year and losses could double to 3.2 per cent of global GDP if global temperatures are allowed to rise”.
Now we have to build dams not for our agriculture or power generation but for a systematic flow of water, so that we can store water in rainy season and avoid big disasters.
See they not that We gradually reduce the land from its outlying borders? Allah commands, there is none to put back His command: and He is swift in calling to account. (Ch.13 v.41)
@Cautious: valid observations. but geological, environmental, social and economic studies have shown that the coal can be retrieved and utilized for power generation viably in spite of the concerns that you have raised. underground gasification is a pipe dream.
Talk, talk and talk nothing else and our media project it as a great achievement. They have done nothing last 5 years, now due to the elections these press briefings about "PAPER POLICIES" which never materialise.
Talk, talk and talk nothing else and our media project it as a great achievement. They have done nothing last 5 years, now due to the elections these press briefings about "PAPER POLICIES" which never materialise. Bloody crap
Yeah right -- about once a month you read another Thar Coal article. Three thing are consistent with these articles 1) they never mention that most of Thar Coal is under hundreds of meters of water making it unsuitable for typical open pit mining 2) they rarely mention that the BTU content of Thar Coal is so low that transporting it uses more energy than it can produce and 3) while most of the upside of Thar Coal is associated with coal gasification they never mention that this is experimental technology and that there is no large scale operating plant on the planet currently utilizing this technology. You will never resolve your energy crisis until you honestly access what options are truly viable.
Great News and great development for country's future energy security. Seems to be the first great decision by the current government.
There was a need for a policy to generate country's power by utilizing Thar coal and minimize dependance on imported coal and furnace oil and start depending on the gifted enormous indigenous resources in form of Thar coal. This seems to be a major breakthrough in this regard.
I believe Engro is the only company who can start mining at Thar at present, once it starts things will start moving all the way and other companies will find it easier and safe to invest in Thar.
Congratz Engro, Congratz Pakistan !!
PTI Policy on power generation.