China, Pakistan ink $820m Thar coal agreement!

[Bilal.]

Sir, please keep in mind that the energy content of Thar lignite (about 6,000 BTU/lb) is only about just over half of that of German Lignite (about 11,000 BTU/lb), and with a higher sulfur content.

And after proper study they are going ahead with the project. A study which is more comprehensive and scientific then our back of the envelop calculations.

 

[VCheng]

And after proper study they are going ahead with the project. A study which is more comprehensive and scientific then our back of the envelop calculations.

As long as the price per KW-Hr produced eventually remains competitive with other sources. Which is a big if, considering that burning dried corn husks yields about 7000 BTU/lb, as a back of the envelope calculation, of course.

 

[Bilal.]

As long as the price per KW-Hr produced eventually remains competitive with other sources. Which is a big if, considering that burning dried corn husks yields about 7000 BTU/lb, as a back of the envelope calculation, of course.

The price per unit will be 9.5 cents. You might want to check the heating value of block 2 lignite (dry) and also the heating value of Hungarian lignite and india's nayveli.

 

[VCheng]

The price per unit will be 9.5 cents. You might want to check the heating value of block 2 lignite (dry) and also the heating value of Hungarian lignite and india's nayveli.

I hope that 9.5 cents per unit is enough to cover the actual costs per unit. It takes energy to dry out lignite, and that changes the economics significantly. But you are correct, the quality of the mined lignite might be better than what the surveys indicate thus far. That will help.

 

[Bilal.]

I hope that 9.5 cents per unit is enough to cover the actual costs per unit. It takes energy to dry out lignite, and that changes the economics significantly. But you are correct, the quality of the mined lignite might be better than what the surveys indicate thus far. That will help.

An effluent disposal line for the purpose is part of the project and hence part of the calculation.The tariff is not a random number thrown in in disconnection to the cost of production.

 

[ArsalanKhan21]

Thar coal is of bad quality and would cause environmental pollution. People living in Islamabad are playing with the lives of poor people in the Tharparkar district. Very bad decision and it should be cancelled. Pakistan has huge potential for Solar energy and Pakistan should spend in this clear and environmentally green energy.

 

[Bilal.]

Thar coal is of bad quality and would cause environmental pollution. People living in Islamabad are playing with the lives of poor people in the Tharparkar district. Very bad decision and it should be cancelled. Pakistan has huge potential for Solar energy and Pakistan should spend in this clear and environmentally green energy.

We need base load power plants which solar/wind is not.

 

[VCheng]

An effluent disposal line for the purpose is part of the project and hence part of the calculation.The tariff is not a random number thrown in in disconnection to the cost of production.

Have those calculations and the assumptions therein been made public?

 

[ArsalanKhan21]

We need base load power plants which solar/wind is not.

What about build coal plant along the Margalla Hills so that our leaders can also enjoy coal polluted air and water !! The future of Islamabad with a coal plant .

 

[Bilal.]

Have those calculations and the assumptions therein been made public?

The whole project proposal and feasibility study and tariff calculation? No, can you share with me one for say... india's nayveli?

What about build coal plant along the Margalla Hills so that our leaders can also enjoy coal polluted air and water !! The future of Islamabad with a coal plant .

This coal is not suitable for transport (tends to catch fire due to volatile contents, plus, not cost effective due to being lignite). Its only suitable for mine mouth power plant. Otherwise imported coal plants are being built in Punjab too.

 

[VCheng]

The whole project proposal and feasibility study and tariff calculation? No, can you share with me one for say... india's nayveli?

So the point is that the feasibility of the entire Thar coal project is not verifiable at present.

 

[Bilal.]

So the point is that the feasibility of the entire Thar coal project is not verifiable at present.

It's verified when it fetched the required finances. As one might say the proof of pudding is in the eating. Likewise, the verification of a bankable feasibility is it procuring finances. Otherwise, we don't have the same for a successfully running plant in india's nayvely either, among others.

I am sure non of the world's projects require PDF seal of approval to be termed verified.

 

[VCheng]

It's verified when it fetched the required finances. As one might say the proof of pudding is in the eating. Likewise, the verification of a bankable feasibility is it procuring finances. Otherwise, we don't have the same of a successfully running plant in india's naively either, among others.

Yes, that is a good point. The terms of the financing agreement can show just how feasible this project is expected to be, of course.

 

[Bilal.]

Yes, that is a good point. The terms of the financing agreement can show just how feasible this project is expected to be, of course.

If you have connections in habib bank and the Chinese banks maybe you can do a PDF exclusive on it

 

[VCheng]

If you have connections in habib bank and the Chinese banks maybe you can do a PDF exclusive on it

Nobody needs connections to see what sovereign guarantees and LIBOR+3.3% variable rate on $800 million will mean in the long run.