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Cheap Thar Coal to End Load Shedding in Pakistan

Coal is the cheapest and the most common fuel used directly or indirectly to produce electricity and heat in the world today. Global coal consumption was about 6.7 billion tons in 2006 and is expected to increase 48% to 9.98 billion tons by 2030, according to the US Energy Information Administration (EIA). China produced 2.38 billion tons in 2006. India produced about 447.3 million tons and Pakistan mined only about 8 million tons in 2006. 68.7% of China's electricity comes from coal. The United States consumes about 14% of the world total, using 90% of it for generation of electricity. The U.S. coal-fired plants have over 300 GW of capacity.

The Thar desert region in Pakistan is endowed with one of the largest coal reserves in the world. Discovered in early 1990s, the Thar coal has not yet been developed to produce usable energy. With the devastating increases in imported oil bill and the growing shortages of gas and electricity in the country, the coal development is finally beginning to get the attention it deserves. Coal contributes about 20% of the worldwide greenhouse gas emissions but it is the cheapest fuel available, according to Pew Center on Global Climate Change. It can provide usable energy at a cost of between $1 and $2 per MMBtu compared to $6 to $12 per MMBtu for oil and natural gas, and coal prices are relatively stable. Coal is inherently higher-polluting and more carbon-intensive than other energy alternatives. However, coal is so inexpensive that one can spend quite a bit on pollution control and still maintain coal’s competitive position.

At the end of the decade of 1990s when the economy was stagnant, Pakistan had about 1200 MW excess capacity. Between 2000 and 2008, the electricity demand from industries and consumers grew dramatically with the rapid economic expansion that more than doubled the nation's GDP from $60 billion to $170 billion. The Musharraf government added about 3500 MW of capacity during this period which still left a gap of over 1500 MW by 2008. The economy has since slowed to a crawl, the electricity demand has decreased, and yet the nation is suffering the worst ever power outages in the history of Pakistan. As discussed in an earlier post, Pakistan's current installed capacity is around 18,0000 MW, of which around 20% is hydroelectric. Much of the rest is thermal, fueled primarily by gas and oil. Pakistan Electric Power Company PEPCO blames independent power producers (IPPs) for the electricity crisis, as they have only been able to give PEPCO much less than the 5,800 MW of confirmed capacity. Most of the power plants in the country are operating well below installed capacity because the operators are not being paid enough to buy fuel. Circular debt owed to the power producers and oil companies is currently believed to be largely responsible for severe load shedding affecting most of the nation.

The circular debt has assumed alarming portions since 2008, resulting in the current severe power problems. Former finance minister Saukat Tarin recently told the News that “in real terms the circular debt has swelled to Rs108 billion which mainly includes non-payment of Rs42 billion by KESC, Rs21 billion by the government of Sindh and Rs15-16 billion from commercial consumers to the Pakistan Electric Power Company (Pepco)". Just prior to leaving office, Tarin decided to raise Rs. 25 billion as a small step toward settling the swelling unpaid bills owed to power producers.

Per capita energy consumption in Pakistan is estimated at 14.2 million Btu, which is much higher than Bangladesh's 5 million BTUs per capita but slightly less than India's 15.9 million BTU per capita energy consumption. South Asia's per capita energy consumption is only a fraction of other industrializing economies in Asia region such as China (56.2 million BTU), Thailand (58 million BTU) and Malaysia (104 million BTU), according to the US Dept of Energy 2006 report. To put it in perspective, the world average per capita energy use is about 65 million BTUs and the average American consumes 352 million BTUs. With 40% of the Pakistani households that have yet to receive electricity, and only 18% of the households that have access to pipeline gas, the energy sector is expected to play a critical role in economic and social development. With this growth comes higher energy consumption and stronger pressures on the country’s energy resources. At present, natural gas and oil supply the bulk (80 percent) of Pakistan’s energy needs. However, the consumption of those energy sources vastly exceeds the supply. For instance, Pakistan currently produces only 18.3 percent of the oil it consumes, fostering a dependency on imports that places considerable strain on the country’s financial position. On the other hand, hydro and coal are perhaps underutilized today, as Pakistan has ample potential supplies of both.

The country's creaky and outdated electricity infrastructure loses over 30 percent, some of it due to rampant power theft, of generated power in transit, more than seven times the losses of a well-run system, according to the Asian Development Bank and the World Bank; and a lack of spare high-voltage grid capacity limits the transmission of power from hydroelectric plants in the north to make up for shortfalls in the south.

It does seem that Pakistan is finally getting serious about utilizing its vast coal resources to produce electricity and gas. Talking recently with GeoTV's Hamid Mir, Pepco Managing Director Tahir Basharat Cheema shared the following list of coal projects being launched:

1. The Sind Government has awarded a 1200 MW project to extract Thar coal and produce electricity to Engro Power.

2. A similar 1200 MW project is being undertaken by Pepco in Thar. The Pepco project also includes a 700 Km transmission line to connect Thar plants with the national grid.

3. An experimental project for underground coal gasification is being built by Pakistani nuclear scientist Dr. Mubarakmand to tap underground coal to produce 50 MW.

4. Another experimental 50 MW project using pressure coal gasification is planned by Pepco.

The coal and various renewable energy projects are expected to be online in the next 2 to 5 years. If these projects do succeed and more investors are attracted to the power sector, then Pakistan has the potential to produce about 100,000 MW a year for a century or longer. But these efforts will not help in the short or immediate term. What is urgently needed is decisive action to resolve the circular debt problems and restore power generation to full installed capacity immediately.

Here is a video clip of former president General Musharraf talking about the worst ever load shedding being faced by Pakistanis today:

Comment by Riaz Haq on June 24, 2019 at 4:26pm: Why is Pakistan opening up new coal power plants, even as the world says goodbye to coal?

https://www.dawn.com/news/1490134

In April, the 1,320MW coal power plant in Sahiwal in Punjab province, the first energy project under CPEC built by China Huaneng Shandong Rui Group, was on the brink of closure after the government was unable to pay the PKR 20 billion power (USD 127 million) of charges it owed the developer.

In May, the 1,320MW Port Qasim power plant in Karachi, jointly developed by PowerChina and Qatar’s Al Mirqab Capital, also hit financial difficulties just a year after operations began due to rising debt and the soaring cost of imported coal. Its chairman told media that his company was facing the challenge “payment of arrears” to the tune of PKR 21 billion (USD 133 million).

two more plants using imported coal are coming up this year. China Power Hub Generation Company’s 1,320MW coal plant in Hub, Balochistan province, will start commercial production by August this year. Another 1,320MW plant is being set up at Jamshoro, in Sindh, using 80pc imported coal and 20pc local Thar lignite. In addition, two more 330MW coal-fired are being developed in Thar Block II using indigenous coal by Engro Powergen Thar and the China Machinery Engineering Corporation. Coal from the Thar desert – one of the largest untapped coal deposits in the world – may be cheaper than imported coal, but it is a particularly dirty type of coal with low energy content. This means a higher quantity of coal needs to be burnt to produce power, which means more carbon emissions.

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he government has taken some positive steps to increase the role of renewables in its energy mix, recently reversing a three-year-old ban on investing in solar and wind placed by its predecessor. The Alternative Energy Policy 2019 has been finalised and should be approved in a few months, said Qasim. “[The policy] states that as much as 30pc electricity generation capacity will be from solar and wind and in the next five years as we aim to install 18,000MW,” he added.

Comment by Riaz Haq on August 9, 2019 at 8:11am: Huge #Pakistan Thar mine shows #power of #coal. In Cholistan Desert, Pak is building a #solar farm which will expand to 8X the size of New York’s Central Park. Gov't has the ambition to generate 60% of its power from #renewable sources in about a decade https://www.japantimes.co.jp/news/2019/08/09/asia-pacific/science-h...

In the flat scrubland of Pakistan’s scorching Thar Desert, hundreds of workers have been toiling for two years in the vast open pit of the Sindh Engro Coal Mining Co. Taking three-hour breaks during the hottest part of the day and living in a makeshift village of shipping containers, they are digging for fuel to sustain a $3.5 billion power project. So far they have scraped away about 500 feet (150 meters) of Aeolian sand, dirt and coal to create a hole a mile (1.6 km) wide.

Far to the north, in the Cholistan Desert, lie the skeletal beginnings of a solar farm that is supposed to expand to eight times the size of New York’s Central Park. It is the largest solar project in Pakistan, where the government has recently announced an ambitious plan to generate 60 percent of its power from renewable sources in about a decade.

If these grand developments in the desert suggest that coal and solar are in a close-run contest, they are not. Before 2016, Pakistan had a single coal-fired plant. It now has nine, supplying 15 percent of the nation’s electricity, with another four under construction. Solar power provides about 1 percent of energy needs and is getting a tiny sliver of investment compared with what is going into coal. Solar and other renewables may someday eliminate Pakistan’s dependence on coal, but that day is probably decades away.

And that is fine as far as Akhtar Mohammad is concerned. “Coal is good. It’s cheap,” he said at his roadside kiosk in Port Qasim on the outskirts of Karachi, where air pollution is “among the most severe in the world,” according to the nongovernmental Pakistan Air Quality Initiative. “There is a lot of smoke and bad air already. We need electricity — any fuel, it doesn’t matter.”

Mohammad’s pragmatism sums up the planet’s quandary. “Coal is the absolute No. 1 cause of carbon emissions globally and the leading driver of climate change,” said Tim Buckley, Sydney-based director of energy finance studies at the Institute for Energy Economics & Financial Analysis.

But though wealthy nations may be able to afford to wean themselves off coal, which is one of the biggest contributors of greenhouse gases, in countries where electricity is scarce, unreliable or unaffordable, local politics often takes precedence over economics: Coal remains the cheap fallback.

Dozens of coal plants in Asia
Especially in Asia, dozens of coal plants have come on line in recent years or are in the planning stages — with a normal lifetime of almost half a century. In South and Southeast Asia, coal burning is expected to increase about 3.5 percent a year for the next two decades, according to the International Energy Agency. Globally, the IEA predicts, coal demand won’t peak until 2040. And that may be optimistic. Forecasts often assume governments will choose the cheapest option based on optimum efficiency while factoring in environmental constraints and the falling cost of solar and wind power.

Coal consumption won’t decline as significantly as people think, says Shirley Zhang, Wood Mackenzie Ltd.’s principal Asia-Pacific coal analyst. On the one hand, annual global sea-borne coal trade probably peaked last year at 980 million tons. On the other hand, from now until 2040, it will decline by only 20 million tons, she says. Despite the rise of renewables, the roll call of governments adding coal-fired plants includes four of the world’s five most populous nations: China, India, Indonesia and Pakistan.

Comment by Riaz Haq on May 28, 2020 at 1:39pm: #Shanghai Electric celebrates 27 years of commitment in #Pakistan in thermal power, nuclear power, and Power Transmission and Distribution under the umbrella of the #China-Pakistan Economic Corridor (#CPEC). #electricity #energy #power #industry #economy https://www.worldcoal.com/power/27052020/shanghai-electric-celebrat...

Shanghai Electric is now celebrating the 27th anniversary of its entering Pakistan markets since 1993. Yesterday was itself a related anniversary, making 69 years since China established diplomatic relations with Pakistan. Shanghai Electric, representing the first batch of Chinese companies entering the market, has generated a string of milestone projects in categories that include thermal power, nuclear power, and Power Transmission and Distribution under the umbrella of the China-Pakistan Economic Corridor (the CPEC).

Thar Integrated Coal Mine-Power Project: Shanghai Electric signed the EPC contract for a block coal-fired power station project in Thar Coalfield, Pakistan, in December 2016. In April 2019 Shanghai Electric signed another EPC contract for Thar Block-1 Integrated Coal Mine-Power Project with an installed capacity of 2 x 660MW and a coal mine with an annual coal production capacity of 7.8 million t. The project is capable of powering 4 million households in Pakistan with 1320 MW of indigenous, affordable and reliable electricity.
Shanghai electric is also applying ultra-supercritical technology, which can run at higher net efficiency than the annual average net efficiency required by Pakistani government. Additionally, the plants will operate with a high Acid Gas removal rate, with low sulfur dioxide emissions to reduce environmental impact when it begins to generate electricity in 2022.
Sahiwal 2 x 660 MW thermal power plant project: Shanghai Electric was commissioned to provide steam turbines, generators and auxiliary equipment for Sahiwal 2 x 660 MW coal fired power station, the contract for which was signed in June 2015. Shanghai electric reduced the production time to 12 months by leveraging the new mode of the steam turbine designed with supercritical cylinder, with the generator stator iron centre, coil and shaft tile optimisation further improving the efficiency of the plant.

Comment by Riaz Haq on October 20, 2020 at 6:53pm: #Pakistan will produce #gas and #diesel from Thar #coal. Engro, Fauji and Fatima #Fertilizer to initiate the feasibility study collectively on turning the Thar coal into synthetic gas and then equal to natural gas to produce fertilizer. #energy #food https://www.thenews.com.pk/print/732026-pakistan-will-produce-gas-a...

"We want to initiate two projects; one on Coal to Gas (CTG) and the other one on Coal to Liquid (CTL) and to this effect we have asked Engro Fertilizer, Fauji Fertilizer and Fatima Fertilizer to initiate the feasibility study collectively on turning the Thar coal into synthetic gas and then equal to natural gas. The three players want to use the synthetic gas as fuel for production of fertilizer."

He said that the local gas reserves were fast depleting and the cost of RLNG, the imported product, was too high that hovers around $9-10 per MMBTU on an average. If the said projects are materialized, then it will be no less than a game changer.

“Earlier, the three said companies had separately conducted feasibility studies on turning Thar coal into synthetic gas, but they found that it would cost them at a higher side. Now we have again asked them to collectively initiate the feasibility study on the proposed project and we are hopeful this time the result will be positive.” The government will also initiate the project to turn the Thar coal into diesel (liquid).

Qasim said that 75 percent fertilizer was produced in China through synthetic gas as fuel produced from the coal reserves. He also mentioned that according to the standard conversion rates, the Thar Lignite Coal resources are equivalent to around 50 billion tons of oil, which is more than the combined oil resources of Saudi Arabia and Iran. In terms of gas reserves, these are around 68 times the present resources of natural gas in Pakistan.

It is pertinent to mention that Shenhua Ningxia Coal Industry Group, a subsidiary of China’s biggest coal producer, the Shenhua Group, has already successfully installed the project to convert coal into oil in the northwestern Chinese region of Ningxia, the biggest plant of its kind in the world.

The coal-to-liquid (CTL) project, which has an annual production capacity of 4 million tons of oil, was built by the Shenhua Ningxia Coal Industry Group, a subsidiary of China’s biggest coal producer, the Shenhua Group.

Pakistan’s monthly diesel requirement stands at an average 600,000 tonnes according to which annual need stands at 7.2 million tons and the project to make Thar coal liquid (diesel) will also help reduce the import bill of diesel.

The SAPM on mineral development said that the government has planned not to increase the power generation of more than 10,000 MW through Thar coal because of the global warming phenomena, but will increase its focus on power generation through renewable resources as well as hydro generation. He disclosed the Lucky Power Plant of 660MW is being installed at Port Qasim, which will utilize the Thar coal and to this effect a railway line will be laid down from Thar coalfield to New Chhore from where it will be connected to the railway station line that will take Thar coal to Port Qasim. He also disclosed that the railway line of 105 kilometers will be laid down by the private sector on BOT (build, operate and transfer) basis. Similarly the second power plant of 660MW based on Thar coal is being installed at Jamshoro.

Comment by Riaz Haq on October 11, 2021 at 9:42pm: Thar Energy’s 330MW Thar Coal-based project nears completion under CPEC
The plant will supply electricity to the national grid

https://www.samaa.tv/news/pakistan/2021/10/thar-energys-330mw-thar-...

In Sindh, the 330-megawatt Thar Energy Limited Power Project Block-II is being completed under China-Pakistan Economic Corridor or CPEC.

According to an official, the power plant would supply electricity to the national grid under a 30-year power purchase agreement.

According to APP news agency, the power plant is a 330MW mine-mouth lignite-fired power project being built by Thar Energy, which is owned by the Hub Power Company or Hubco, China Machinery Engineering Corporation or CMEC and Fauji Fertilizer Company or FFC.

Similarly, two more coal-fired power plants, Engro Thar Block II power plant and Thal Nova, are also being developed in Thar Block II.

Engro’s Thar Block II power plant is a coal-fired power station in Sindh’s Tharparkar district. It was Pakistan’s first power plant to use the indigenous coal reserves of Thar.

The 660MW power plant, which was part of CPEC, was developed by Engro Powergen Thar or EPTL, a joint venture of Engro Powergen or EPL, CMEC, Habib Bank, and Liberty Mills. Construction on the Engro Thar Block II power plant commenced in April 2016. Trial operations at the plant began in July 2018 while commercial operations began in July 2019.

The coal-fired power plant is located five kilometres away from Thar Block II near Thar coalfields. It consists of two 330MW units, which integrated circulating fluidised bed or CFB boilers, tandem compound steam turbine units, and generators. CFB is an ideal option for the low-calorific-value Thar lignite coal.

It helped to regulate the plant’s environmental footprint by reducing nitrogen oxide emissions and capturing sulphur oxides. The 20kV, 50Hz, three-phase intercooled generators featured a hydrogen-cooled rotor and stator core, as well as water-cooled rotor windings.

The power plant is also equipped with associated equipment and systems such as cyclones, air pre-heaters, and water walls. Sindh Engro Coal Mining Company or SECMC supplied nearly 3.8 million tons per annum of coal for the coal-fired power plant from a new opencast mine.

The SECMC is a joint venture by the government of Sindh and Engro Powergen. The joint venture was formed for extracting coal available at the seventh biggest coal mine site in the Thar Desert.

The new coal-fired power plant fed electricity to a 500kV double-circuit transmission line of the grid network between Thar and the Hesco grid station in Jamshoro. The estimated cost of the Engro Thar power plant was $995.4 million – funded by a syndicate led by China Development Bank with the support from China Export and Credit Insurance Corporation.

The syndicate included Habib Bank, United Bank, Bank Alfalah, National Bank Pakistan, Faysal Bank, Construction Bank of China, and Industrial and Commercial Bank of China.

ThalNova is a similar 330MW power plant being developed in the same block. The financial closing for the power plant was achieved in September 2020 and the commercial operations are scheduled to begin in 2022.

Comment by Riaz Haq on January 4, 2022 at 10:20pm: First HVDC transmission line tested with full load of 4,000MW

https://www.thenews.com.pk/print/878333-first-hvdc-transmission-lin...

Dubbed as flagship China Pakistan Economic Corridor (CPEC) project, 660kV Matiari-Lahore HVDC Line is the largest ever transmission sector project of the country in terms of its capacity as well as one of the longest in distance, connecting power generation units in the south with load centers upcountry.
“The HVDC line transcends a geographical length of about 900 km, marking the start of an era of long-distance power transmission in the country,” said an official of National Transmission and Despatch Company (NTDC).

“It is a unique project in the sense that it introduces HVDC technology for the first time in the national grid, enriching the technology mix of the grid.”

The official added that the trial operation was being carried out through NTDC transmission system.

“The Project has a design capacity of 4,000MW and will help evacuate power from cheaper Southern coal power plants and deliver it to load centers in the North of the country.”

Above all, the official said, the ongoing trial operation of the transmission line helped in contributing the record highest power transmitted on August 11, 2021 at 24,467 MW through the national grid.

“In 2020, peak load sustained by the national grid was 23,370MW for one day and in 2018 it was just 20,811 MW. With the launching of HVDC Matiari-Lahore Transmission Project, power dispersal capacity of the national grid has seen a massive jump of 4000mw in one go,” said an official.

He added that the ongoing trial operation marked one of the last steps in the completion of the project.

“In this last stage it will be trial-operated for a few days continuously at various power levels and under various configurations to test it in full running condition,” said the official.

Furthermore, the Capability Demonstration Test of the Project will also be performed during this period.

It is informed that the equipment debugging, station commissioning, and system commissioning up to the level of high power bipole testing of the project has already been completed, certified by both the Independent Engineer from Italy and Owner Engineer from Canada.

Despite Covid-19 pandemic, the overall work was completed by end of 2020. Earlier, the project was expected to be commissioned by March 2021 after going through trial run. However, after reaching an amicable solution, the contractor and NTDC agreed in writing to conduct trial run during peak load of summer months with COD in September 2021.

Comment by Riaz Haq on January 24, 2022 at 8:15am: Pakistan to burn more domestic coal despite climate pledge
Islamabad expands use of lignite to ease burden of expensive imported fuel

https://asia.nikkei.com/Spotlight/Environment/Climate-Change/Pakist...

Work on the third phase of the Thar Coal Block II mine expansion is set to begin this year at an estimated cost of $93 million, according to the Sindh Engro Coal Mining Company (SECMC), a public-private enterprise operating the mine since 2019 in the southeastern district of Tharparkar. The second phase of expansion is underway with the help of China Machinery Engineering Corp. and Chinese bank loans, in addition to local financing. The series of expansions will scale up the annual production of lignite from 3.8 million tons to 12.2 million tons by 2023.

The output from the second phase of expansion will feed two 330 MW coal-fired power plants being built under the $50 billion China Pakistan Economic Corridor projects, part of Chinese President Xi Jinping's flagship Belt and Road Initiative. The power plants are expected to come on line this year.

Lignite is brown coal with low calorific value due to high moisture and low carbon content.

The expansion of the Thar coalfields is aimed at curbing coal imports to ease a staggering current-account deficit made worse by soaring international commodity prices and shipping costs. Pakistan's current-account deficit ballooned to an unprecedented $9.09 billion between July and December last year, as imports continued to outstrip exports during the post-COVID economic recovery. Pakistan had to seek a $3 billion loan and a deferred payment facility on the import of petroleum products from Saudi Arabia last year to stabilize forex reserves.

In recent years, high volatility in international oil prices, soaring LNG prices and dwindling local gas reserves have spurred public-private spending, particularly Chinese investment, in Pakistan's coal power sector. Until now, four coal-fired power plants with 4.62 GW of total installed capacity have joined the grid, while another three plants with an aggregate capacity of 1.98 GW are expected to come online over the next two years -- all under CPEC. In addition, growing demand from cement factories banking on a global construction boom has tripled coal consumption over the last five years to 21.5 million tons per annum.

Consequently, the share of coal in Pakistan's import bill for the year ended June 2021 shot to 24% from over 2% in previous years, according to data from the Pakistan Bureau of Statistics. Currently, only the power plant at Thar Coal Block II is running on indigenous coal.

A spike in coal power generation is in line with global trends, where countries including China, the U.S. and India have turned to coal to meet heightened demand following the lifting of COVID-19 restrictions.

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Authorities contend that the expansion of Thar Coal Block II will reduce the price of indigenous coal from $60 to $27 per ton -- making it the country's cheapest power source and leading to annual savings of $420 million. Pakistan is currently importing coal at around $200 per ton.

"We are compelled to use this cheap source of energy because we cannot keep using dollars to run power plants running on expensive furnace oil and RLNG (re-gasified liquefied natural gas)," Sindh Provincial Energy Minister Imtiaz Shaikh told Nikkei Asia. "We would like to mix 20% Thar coal [in power plants running] with imported coal. Then we will move towards converting coal to liquid and coal to gas."

The cost of operating thermal plants has become punishing due to expensive fuel and the cost of diverting scarce freshwater, which leads to underutilization of the plants, said Omar Cheema, director of London-based renewable energy consultancy Vivantive.

Comment by Riaz Haq on January 31, 2022 at 8:12pm: #Pakistan begins extracting #coal from a 2nd major #mine in #Thar, #Sindh. Block 1 mine has lignite coal deposits of over 3 billion tons (5 billions barrels of crude oil) with an annual output of 7.8 million tons to generate 1320 MW #electricity. #energy https://www.dawn.com/news/1672580

Sino-Sindh Resources Ltd (SSRL) said on Monday it successfully extracted the first shovel of lignite coal at Block 1 of the Thar coalfields near Islamkot Town of Tharparkar, Sindh.

Block 1 boasts lignite coal deposits of over three billion tonnes (equivalent to over 5bn barrels of crude oil) with an annual output of 7.8 million tonnes.

SSRL, whose majority shareholder is Shanghai Electric Group, was granted a mining lease on May 24, 2012, and the project was included in the Joint Energy Working Group by the governments of Pakistan and China.

As soon as the two governments officially announced the China-Pakistan Economic Corridor, the Thar coal project was included in it as an early-harvest project.

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After back-to-back meetings between SSRL and the Energy Department of the government of Sindh, the first excavation took place on Jan 23, 2019, for the development of the largest open-pit coal mine in Block 1.

According to the Thar Coal Energy Board, SSRL and Shanghai Electric Group have already signed a coal supply agreement for power generation through two mine-mouth power plants of 660 megawatt each.

Financial close of the project was achieved on Dec 31, 2019. Soon after the first excavation, the SSRL management started importing mining equipment from China and by July 2020 all the required equipment was at the project site.

Speaking to Dawn, Ministry of Energy spokesperson Muzzammil Aslam said both majority (Shanghai Electric Group) and minority (SSRL) investors in Block 1 are Chinese. Unlike Block 2 where the Sindh government owns a stake of 54.7 per cent, Block I has no direct shareholding by the provincial government, he said.

“Shanghai Electric’s power plant will achieve financial close within this year. It’s a big development because the 1,320MW plant will run on indigenous fuel and produce affordable electricity,” Mr Aslam added.

SSRL officials said the development of the indigenous resource base at Thar will help Pakistan achieve its long-cherished goal of energy security and economic sovereignty.

Comment by Riaz Haq on April 27, 2022 at 6:50am: Pakistan: Experts stress shifting to coal for energy needs

https://tribune.com.pk/story/2353970/experts-stress-shifting-to-coa...

Power sector experts have emphasised upon Pakistan to push harder for utilisation of lignite - an economical alternative to imported furnace oil and RLNG (re-gasified liquefied natural gas) - as it is crucial for the country’s ambition to achieve higher economic growth through industrialisation.

Besides industrialisation, provision of electricity to domestic consumers by using local coal reserves could serve the purpose of generating cheap electricity and curbing the ever increasing circular debt in the power sector, they added. They were of the view that the incumbent coalition government, led by Prime Minister Shehbaz Sharif, inherited fiscally unsustainable circular debt of nearly Rs2.5 trillion and lofty subsidies on energy prices, as well as re-surging blackouts despite surplus generation capacity. Electricity at current price is not affordable for businesses and residential consumers.

According to the government, the electricity generation cost rose by over 66% in March compared to a year ago because of the surging global energy prices.

The generation cost has surged 66.2% to Rs9.22 kWh in March this year from Rs5.55 kWh a year ago owing to spike in imported fossil fuel prices.

“Pakistan should now focus on local coal reserves for power generation as an alternate to imported fuel and coal given that its cost is much cheaper than the imported coal,” emphasised Sino-Sindh Resources Deputy CEO Chaudhary Abdul Qayyum.

Talking to The Express Tribune, Qayyum said that the local coal prices were not sensitive to international price fluctuations.

“Local coal at Thar is available for as low as $40 per ton and with rise in mine scaling, its prices will fall further to $30 a ton,” he pointed out.

“The best thing is that the government has to pay the price in local currency.”

Currently, around 16 million tons of coal is being imported by Pakistan to operate four power plants, Qayyum said adding that if these plants had been running on local coal, massive amounts of foreign exchange could have been saved by the country besides generation of cheap electricity.

He underlined that the recent commodity cycle had witnessed imported coal prices going up to $420-470 a ton from $100-120 a ton, making imported coal even more expensive than residual fuel oil (RFO) for power production.

Comment by Riaz Haq on August 6, 2022 at 6:42pm: SECMC has already commissioned a study for converting the China-Pakistan Economic Corridor coal plants in Hub, Jamshoro and Sahiwal to indigenous lignite. A 105km long Thar Rail project is being planned to connect Thar coal fields with Main Line at the New Chhor Halt Station to transport lignite to the power plants in the rest of the country.

The transportation of lignite by trucks to Karachi and Kallar Kahar shows its movement by road and rail is feasible and safe despite higher moisture. “Transportation is manageable; no combustion encountered during mining or transportation,” he adds.

https://www.dawn.com/news/1702647

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“The (Lucky)power plant has been designed to operate on Thar Lignite Coal, subject to its availability; however, during the interim period, it will mainly operate on imported Lignite Coal till the completion of Phase III of Sindh Engro Coal Mining Company (SECMC), which is expected in the second quarter of CY 2023,” read the notice.

https://www.brecorder.com/news/40162068/lucky-electric-commissions-...

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The government has decided to convert 3,960 MW of electricity generated from imported coal onto local coal of Thar to stop consuming the costly foreign exchange reserves for the import of coal, which is no longer available at low prices. The coal price has shot up to $400 per metric ton, a senior official at the Energy Ministry told The News.

https://www.thenews.com.pk/print/967637-govt-mulls-plan-to-use-thar...

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The (2nd CPEC coal power) project is likely to start its full commercial operations by the end of the current month. With the launch of the new power plant, 990 MWs of Thar coal-based electricity is being produced to overcome the power shortfall in the country.

https://gulfnews.com/world/asia/pakistan/pakistan-second-thar-coal-...

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