All thermal plants to run on Thar coal: PM Ashraf

[Safriz]

ISLAMABAD: The Pakistani government has decided that only Thar coal would be used for coal-based power generation in the future and all conversions of existing and construction of new power projects would be designed on Thar coal specifications.

The landmark policy decision was taken by Prime Minister Raja Pervez Ashraf, while chairing a meeting of the Thar Coal and Energy Board at the Prime Minister’s Secretariat here on Wednesday.

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 with an estimated cost of 1.3 billion dollars at Block 2 of Thar coal project for mining of 6.5 million tons of coal per annum and a power plant of 1200 MW.

The prime minister also decided in principle to provide a sovereign guarantee to SECMC, a joint venture of the Sindh government and Engro Power, and directed the finance ministry to arrange the same.

Prime Minister Ashraf said that in the present financial situation, there was little space for providing sovereign guarantees. However, this is a strategic decision which has to be taken for meeting the growing energy requirements of the country, he stressed.

The Sindh government had requested the federal government that the conversion of the existing 800 MW and new 600 MW power plants at Jamshoro be designed on Thar Coal specifications.

The prime minister directed the ministry of water and power to sign within a week a Coal Off-Take agreement between the GENCO and the SECMC for the Asian Development Bank financed conversion of the existing 800 MW and new 600 MW thermal power projects at Jamshoro.

“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,” said the prime minister.

The policy decision will ensure energy security that has been eluding us for such a long time, added the prime minister.

The Thar coal field is estimated to have reserves of 175 billion tons, 68 times higher than Pakistan’s total gas reserves.

Those who attended the meeting included Sindh Chief Minister Syed Qaim Ali Shah, Finance Minister Dr Abdul Hafeez Shaikh, Water and Power Minister Chaudhry Ahmed Mukhtar, PM’s Advisor on Petroleum Dr Asim Hussain, and others.

All thermal plants to run on Thar coal: PM | DAWN.COM

 

[VCheng]

Does this plan take into account the logistics needed and the quality of the coal?

 

[Safriz]

The landmark policy decision was taken by Prime Minister Raja Pervez Ashraf, while chairing a meeting of the Thar Coal and Energy Board at the Prime Minister’s Secretariat here on Wednesday.

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 with an estimated cost of 1.3 billion dollars at Block 2 of Thar coal project for mining of 6.5 million tons of coal per annum and a power plant of 1200 MW.

The prime minister also decided in principle to provide a sovereign guarantee to SECMC, a joint venture of the Sindh government and Engro Power, and directed the finance ministry to arrange the same.

Source: http://www.defence.pk/forums/econom...ts-run-thar-coal-pm-ashraf.html#ixzz28F8DMZMC

looks like rental raja has secured his rent and the project will go ahead..
will the project produce cheaper electricity? that is yet to be seen.

 

[zip]

Good development ..what is current source ?

 

[hunter_hunted]

Oh nai. This is said by our PM

 

[VCheng]

looks like rental raja has secured his rent and the project will go ahead..
will the project produce cheaper electricity? that is yet to be seen.

This was the relevant thread on the same project over 2 years ago:

Thar Coal: Engro to install 200MW coal plant in Sindh​

KARACHI: Engro Company has initiated work and intends to install another power plant of 200 megawatt with collaboration of a Chinese team.

Sindh Chief Minister Qaim Ali Shah disclosed this at the 27th meeting of the Sindh Coal Authority Board was held on Saturday. He said, after a period of about 40 years, the federal government under the authority of president and prime minister decided and transferred control and development of Thar coal to the Sindh government and Thar Coal and Energy Board was established. He said work of mining coal deposits is in progress in eight blocks.

Engro has initiated to install 1,000 megawatts power plant, besides, M/s Al Abbas Group is also working in Badin district, while an agreement will be undertaken with them for the purpose of power generation within a period of 24 months, he added. Sindh CM maintained, “We are going ahead and by mining coal, power plants will be installed, while Sindh possesses resources of 100 years where about 50,000 to 60,000 people will work in a single power plant of a block.” He added there is an investment of about $1.5 billion at present while 3 to 4 more companies are working there. Sindh CM added the coal reserves of Lakhra, Thatta and Badin would also be utilised for power generation. Sindh Secretary for Coal and Energy Department Aijaz Ali Khan informed the scheme of ICB for hydrological study of 22,000 square kilometres of Thar area was approved at a cost of Rs 176.722 million, which has now been tagged with TCAP of World Bank. He said procurement and installation of 25 reverse osmosis (water desalination) plants in districts of Badin, Jamshoro and Dadu at a cost of Rs 39.150 million, was in progress and installation and commissioning will complete by June 2010. The meeting approved the memorandum of understandings signed with various investors for development of coal in Sindh that include, South East of Naukot (District Tharparkar); block-V of Thar coal fields, Thar Block-VI and Golarchi (District Badin), and study for the development of Additional Blocks-VII and VIII at Thar coal field which have been completed.

The meeting reviewed progress of construction of Thar airport near Islamkot, installation of Reverse Osmosis (Desalination) Plant, construction of Thar lodge at Islamkot, construction of road from Islamkot to Thar Airport site, development of Coal blocks VII, VIII, IX and X; establishment of central Rescue Station at Tharparkar, exploration of coal and hydro-geological studies near Khorwah, exploration of coal resources and development of additional block at Sonda-Jherruck coalfield (in Thatta District). app

 

[Jango]

Where does coal come from now??? Within Pakistan I am sure so significance of using thar coal for every plant is.....??

 

[VCheng]

Where does coal come from now??? Within Pakistan I am sure so significance of using thar coal for every plant is.....??

Presently, most of the thermal power generation in Pakistan uses fuel oil or gas, not coal:


Thermal by vcheng552000, on Flickr

Further, it is not easy to use lower quality coal for power generation. Anthracite coal has about 15,000 BTUs per pound, whereas Pakistani lignite and sub-bituminous deposits have a much lower value:


coal by vcheng552000, on Flickr

 

[Backbencher]

Coal will prove to be a cheaper and efficient way to go about the business .

 

[mosu]

oil mafia never allow to use coal and government is with oil mafia because they give them ransom

 

[Safriz]

This was the relevant thread on the same project over 2 years ago:

It does sound like a pre electiom drama by PPP....never to materialize in their regime..

 

[Jango]

The thing that caught my eye was that all the coal based power plants will be powered by Thar coal.

Meaning that the coal based plants will be on Thar coal, not that the oil and gas plants will be on Thar coal. That is what I get.

 

[VCheng]

The thing that caught my eye was that all the coal based power plants will be powered by Thar coal.

Meaning that the coal based plants will be on Thar coal, not that the oil and gas plants will be on Thar coal. That is what I get.

You may be correct, but Safriz has a better likelihood of being correct:

It does sound like a pre electiom drama by PPP....never to materialize in their regime..

 

[BATMAN]

Does this plan take into account the logistics needed and the quality of the coal?

Logistics to where?

 

[BATMAN]

Coal will prove to be a cheaper and efficient way to go about the business .

Local coal will save us loads of forex.

What Pakistan currently need is tax rebates for all energy sector investment.

Such statements will not attract any investment.