The gasification of Thar coal offers a transformative opportunity to slash gas costs significantly, lowering the current price of $20 per MMBTU for imported gas to just $8 per MMBTU. This shift would not only make gas more affordable but also provide Pakistan with a stable and reliable energy source.
Laboratory tests conducted at Nelson Mandela University in South Africa confirm that Thar coal is highly suitable for gasification. Its potential spans various industrial applications, including fertilizers, steel, and liquid fuels.
While over $5 trillion has been invested globally in research to transition to carbon-free energy, a growing recognition exists that affordable, indigenous fuels are essential for meeting a country’s baseload energy needs. Seasonal variations in renewable energy sources make them insufficient to guarantee a steady electricity supply. Consequently, nations like India and China are advancing coal gasification technologies, demonstrating the shift toward a balanced energy transition.
With a mining capacity of 15.4 million tonnes per annum (MTPA), Thar coal already generates approximately 2,640 megawatts (MW) of electricity from its Block I and Block II coalfields. This accounts for about 10% of Pakistan’s total power needs, delivering electricity at a much lower cost—PKR 4.4 per kilowatt-hour (kWh) compared to PKR 14.8 per kWh for power generated from imported coal. This project has saved Pakistan an estimated $1.7 billion in foreign exchange since its inception.
The government is also working to convert all imported coal-fired power plants to run on domestic coal, a move that could save $800 million annually and potentially reduce electricity rates by Rs3 per unit for consumers.
By prioritising the gasification of Thar coal, Pakistan can enhance energy security, reduce dependence on costly imports, and offer its citizens a more affordable energy solution.
USAMA GHULAM RASOOL,
Karachi.