KARACHI: The first test burn at the underground coal gasification project in Tharparkar is expected to be conducted in September while two foreign companies, one each from China and Australia, have expressed interest in Thar coal deposits to produce 2,000 megawatts of electricity.
Project chairman Dr Samar Mubarakmand informed the 13th meeting of the Thar Coal and Energy Board on Saturday that 100MW would be generated through block-V of the underground coal gasification process.
Dr Mubarakmand told the meeting, presided over by Sindh Chief Minister Qaim Ali Shah, that the first gasifier and civil works had been completed with the availability of $9.22 million for the project. The supply of compressors by Hitachi has been delayed because of earthquake and tsunami in Japan. The completion of the gasifier involved over 36,000 feet of drilling and 18,000 feet of steel-casing.
The gas to be produced through the first burn will be connected to power turbines and generation of the planned 100MW electricity will start by Dec 2013.
Zubair Motiwala, chairman of the Sindh Board of Investment, briefed the meeting about the international competitive bidding process. He said that block-I had been allocated to the Chinese company, Global Mining (CMG), which planned to develop five million tons of coalfield annually to produce 900MW and the generation would be gradually increased to 2,100MW.
The company is also willing to invest $1.5 billion in key infrastructure projects and the CMG chairman is expected to sign a memorandum of understanding with the provincial government on Aug 26.
The meeting was informed that Australian Continental Energy had submitted a proposal for mining six million tons of coal annually and increasing it to 18 million tons. The company intends to generate 1,100MW in five years, 2,000MW in 10 years and 3,000MW in 15 years.
The evaluation committee suggested that the Australian company might be offered block-IV on the condition that it would provide within two months a credible financing plan to the Sindh government. Khalid Mansoor, the CEO of Sindh Engro Coal Mining Company, told the meeting that substantial progress had been made for obtaining Chinese financing.
Asad Umar of Engro called for early finalisation of infrastructure projects to enable the company to reach financial close on its part of the project.
Irshad Arain of the NTDC informed the meeting that his organisation was working for dispersal of 1,200MW from Thar to upcountry by constructing 500kv transmission lines from the power plant to Matiari, along with the extension of Matiari gird station, by June 2014. The Rs20 billion project is being financed by the China Development Bank.
The chief minister said the provincial government was giving top priority to the issues about provision of infrastructure like water, roads, transmission network and effluent channel for Thar coalfields.
Federal Minister for Water and Power Syed Naveed Qamar assured the meeting that the government would provide support to all Thar-related projects.
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