THE gasification of Thar coal presents an opportunity to significantly cut gas costs, reducing the current price of imported gas from $20 per mmBtu to just $8. This transition would not only make gas more affordable, but also provide a stable and reliable energy source for Pakistan.

Laboratory tests conducted at the Nelson Mandela University in South Africa have demonstrated that Thar coal is highly suitable for gasification. It can be effec-tively utilised across various industrial sectors, including fertilisers, steel and liquified fuels.

While over $5 trillion have been invested globally in research for transitioning to carbon-free energy, there is a growing realisation that affordable, indigenous fuels are necessary to meet the baseload requirements of any country. Given the seasonal variations in renewable energy sources, they alone cannot guarantee a continuous and steady supply of electricity for Pakistan.

Thar coal, with a current mining capacity of 15.4 million tonnes per annum (MTPA), is already generating about 2,640MW of electricity from the coalfields.

Besides, this coal provides around 10 per cent of Pakistan’s overall power needs at a much lower cost — Rs4.4/kWh compared to Rs14.8/kWh for electricity that is generated from the imported coal.

The project in Thar has already saved the country around $1.7 billion in foreign exchange since its inception.

The government is also taking steps to convert all imported coal-fired power plants to run on domestic coal. This conversion could save about $800 million annually in coal costs, potentially reducing electricity rates for consumers by Rs3 per unit.

By prioritising the gasification of Thar coal, Pakistan can enhance its energy security, reduce dependence on costly imports, and offer a more affordable energy solution to people across the country.

Usama Ghulam Rasool
Karachi

Published in Dawn, December 14th, 2024