Wednesday, May 16, 2012

Thar coal exploration

EDITORIAL:THE FRONTIER POST
First Australians, then Japan last year, followed by the United States in January this year and now Germany has shown keenness in investing to the exploration of huge Thar coal reserves, one of the largest in the world, for the production of electricity and gas. China is also said to be not far behind. Nuclear scientist Dr Samar Mubarkmand, chairperson of the governing body of the project, is working on a project to produce 2,300MW from coal-fired power plants and this is said to be in an advanced stage of execution in four to five years. However, he has, of late, been in the firing range of the lobbies which probably don"t want the exploitation of this enormous gift of nature. One of them is the furnace oil lobby which even influenced a member of the Planning Commission of Pakistan to assert that the project is not feasible and that it was begun without a feasibility report. Another example is that Australian authorities had also been planning to shut down the 30MW power generation project because it was also not said to be feasible. One of the major factors for delay is the release of funds by the federal government which made available only $10 million during the last three years although it was committed to release $115 million during the period. What more evidence can be found in the project being feasible than burning of coal about 250 feet underground at Islamkot area of Thar in December last year in addition to successfully finding of gas in this coalfield. Dr Mubarikmand has said that Pakistan has gigantic potential of power generation over decades. Meanwhile, tender for power plant has been floated to generate 100MW electricity and the project is expected to be executed soon after the funds are made available. Estimates about the project in hand say that these limited coal resources will hopefully generate 10,000MW electricity for 30 years and produce 100 million barrel diesel each year. The project is to cost Rs9 billion with a foreign exchange component of Rs6 billion that was approved by the Executive Committee of the National Economic Council last year. Latest reports suggest that four more coal wells were set on fire last week and, as a result, gas production from these will hopefully begin by the end of May. A flame will be lit from gas as emission begins from these wells towards the end of this month. Dr. Samar has said that through underground gasification technology, electricity can be generated at Rs3 to 4 per unit while diesel can be produced at $40 per barrel. The average rate of power production through furnace oil comes to Rs20 per megawatt. How critically vital Thar coal is for the country, needs no emphasis. But the government will have to demonstrate it really feels its importance and take matching measures to complete the project. This emphasis is unfortunately missing so far.

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