Pakistan's Massive Coal Reserves going to Waste - What to Do?

[as1mz]

Pakistan's massive coal reserves are going to an absolute waste. Various reports suggest the country's coal reserves stand at seventh, if not the sixth of fifth, in the world. But realistically, based on extraction and practicality, we may stand over a 100 really. Lignite is one possible solution (Read Below). What are the others?

Lignite in Pakistan – What to do with the Huge Reserves? | Today in Pakistan

 

[VCheng]

Pakistan's massive coal reserves are going to an absolute waste. Various reports suggest the country's coal reserves stand at seventh, if not the sixth of fifth, in the world. But realistically, based on extraction and practicality, we may stand over a 100 really. Lignite is one possible solution (Read Below). What are the others?

Lignite in Pakistan – What to do with the Huge Reserves? | Today in Pakistan

Wasn't there a pilot project for underground coal gasification by the renowned scientist Dr. Samar Mubarikmand that was supposed to be online by now to produce about 150MW from Thar coal? Whatever happened to that?

 

[niaz]

Lignite is not normal coal. It cannot be used as the coal mined in Duki, Musakhel, Makarwal and at Choa Siadan Shah in Chakwal. Lignite requires lot of investment & treatment before it can be used. In most countries main use of Lignite or Brown Coal is only for power generation.

Pakistan could not find investors to exploit the Lakhra deposits when oil prices were $100 per bbl. Now that oil prices run below $50-per bbl, it will be quite a while before we see a genuine benefit to Pakistan from this source.

Most of my countrymen are inherently gullible. They are easily seduced by the wily politicians & the media propaganda slogans such as how great our Muslim forefathers (even though these may be Berber such as Tariq bib Ziad or Arab such as Mohammed bin Qasim) were and also lured by the supposed potential riches of Pakistan.

Remember the fanfare at the huge ‘POTENTAIL wealth in Rekodeq gold and Lakhra coal. Decades have passed but nothing has come out of it. Chiniot Iron ore could go the same way.

We are also full of sectarian& ethnic rivalries. Kalabagh Dam will not be built, because main beneficiary will be Punjab; Rekodeq will remain unexploited because income from it will mostly likely be spent on Punjab. To hell with the power shortage and paucity of foreign exchnage.

Potential remains a POTENTIAL unless someone has the temerity to exploit the same. It is about time that we woke up to the ground reality that it is Now and the richness of Human Resource that matters. Regrettably, it is in the Human Resource that has the commitment & the will to pursue development of the underground resources that Pakistan is severely lacking.

 

[Bouncer]

Lignite is not normal coal. It cannot be used as the coal mined in Duki, Musakhel, Makarwal and at Choa Siadan Shah in Chakwal. Lignite requires lot of investment & treatment before it can be used. In most countries main use of Lignite or Brown Coal is only for power generation.

Pakistan could not find investors to exploit the Lakhra deposits when oil prices were $100 per bbl. Now that oil prices run below $50-per bbl, it will be quite a while before we see a genuine benefit to Pakistan from this source.

Most of my countrymen are inherently gullible. They are easily seduced by the wily politicians & the media propaganda slogans such as how great our Muslim forefathers (even though these may be Berber such as Tariq bib Ziad or Arab such as Mohammed bin Qasim) were and also lured by the supposed potential riches of Pakistan.

Remember the fanfare at the huge ‘POTENTAIL wealth in Rekodeq gold and Lakhra coal. Decades have passed but nothing has come out of it. Chiniot Iron ore could go the same way.

We are also full of sectarian& ethnic rivalries. Kalabagh Dam will not be built, because main beneficiary will be Punjab; Rekodeq will remain unexploited because income from it will mostly likely be spent on Punjab. To hell with the power shortage and paucity of foreign exchnage.

Potential remains a POTENTIAL unless someone has the temerity to exploit the same. It is about time that we woke up to the ground reality that it is Now and the richness of Human Resource that matters. Regrettably, it is in the Human Resource that has the commitment & the will to pursue development of the underground resources that Pakistan is severely lacking.

Insightful post sir, as always. However I choose to believe that capitalism thwarts sectarianism, provincialisms and all such other -isms. I believe that if Thar actually had real world $$ value, outside of newspaper reports and political speeches, it would have been put to use by now. It lies in a relatively peaceful and accessible province with a not too bad history of big projects. Same can't be said about Rekodeq though because of the additional security problems and legal blunders committed by the past governments.

 

[denel]

Contact SASOL, they are leaders in GTL which uses Fisher Throppe process. Majority of fuel is South africa is synthetic via this process. Qatar is using SASOL and a massive plant is going up in South Carolina for similar.

 

[RoadRunner401]

Wasn't there a pilot project for underground coal gasification by the renowned scientist Dr. Samar Mubarikmand that was supposed to be online by now to produce about 150MW from Thar coal? Whatever happened to that?

And what makes you think its not online by now on papers.

 

[niaz]

Qatar has about 900 TCF of natural gas and is the world largest LNG exporter. Sasol-Qatar venture resulted in ORYX GTL plant which began in 2006. The plant is using natural gas from Ras Laffan field for conversion into liquid petroleum.

I am fully conversant with the Sasol expertise. Sasol convert bituminous coal into syngas and subsequently convert the gas into petroleum like liquids. The technology is based on Fischer –Tropsch synthesis invented by the Germans in 1925.

SASOL are not involved in underground coal gasification; gas to liquid conversion (GTL) is the next stage. Pakistan’s Lakhra Lignite has yet to be mined. One has to have coal before it can be converted into syngas and finally into liquid petroleum.

Dr Mubarakmand's project for underground gasification is still incomplete due to lack of money. Last news I heard was that it was producing about 4 MW expected to increase to 10 MW by the end of 2016. There are many in Pakistan, including eminent scientists who think that spending on underground gasification is a waste of time thus project has been starved of funds.

 

[ArsalanKhan21]

We have had so much discussion about it. Pakistani coal is of very very low quality and it will cause environment pollution. If you want a dirty coal plant then build it in Raiwind so that Nawaz Sharif can drink the polluted water and breath the polluted air. Don't let the poor people suffer for the electricity for the rich.

 

[Clutch]

Have a giant BBQ

 

[VCheng]

And what makes you think its not online by now on papers.

Has any power produced from That coal made its way to the national power grid or not?

 

[jamal18]

Lignite is not normal coal. It cannot be used as the coal mined in Duki, Musakhel, Makarwal and at Choa Siadan Shah in Chakwal. Lignite requires lot of investment & treatment before it can be used. In most countries main use of Lignite or Brown Coal is only for power generation.

Pakistan could not find investors to exploit the Lakhra deposits when oil prices were $100 per bbl. Now that oil prices run below $50-per bbl, it will be quite a while before we see a genuine benefit to Pakistan from this source.

Most of my countrymen are inherently gullible. They are easily seduced by the wily politicians & the media propaganda slogans such as how great our Muslim forefathers (even though these may be Berber such as Tariq bib Ziad or Arab such as Mohammed bin Qasim) were and also lured by the supposed potential riches of Pakistan.

Remember the fanfare at the huge ‘POTENTAIL wealth in Rekodeq gold and Lakhra coal. Decades have passed but nothing has come out of it. Chiniot Iron ore could go the same way.

We are also full of sectarian& ethnic rivalries. Kalabagh Dam will not be built, because main beneficiary will be Punjab; Rekodeq will remain unexploited because income from it will mostly likely be spent on Punjab. To hell with the power shortage and paucity of foreign exchnage.

Potential remains a POTENTIAL unless someone has the temerity to exploit the same. It is about time that we woke up to the ground reality that it is Now and the richness of Human Resource that matters. Regrettably, it is in the Human Resource that has the commitment & the will to pursue development of the underground resources that Pakistan is severely lacking.

I remember reading the massive hype when it was first discovered. Relatively renowned figures were saying how we had more potential than Saudi Arabia. I had a deep foreboding then about such claims.There are all sorts of minerals everywhere, their extraction is more a factor of economics than technology or quantity.

 

[Ankit Kumar]

If I do not consider my nationality here, then Pakistan should go for full utilization of coal. Why should you all pay by giving up economic development so as to save earth from pollution which has been caused by the west?

 

[Viper0011.]

Pakistan's massive coal reserves are going to an absolute waste. Various reports suggest the country's coal reserves stand at seventh, if not the sixth of fifth, in the world. But realistically, based on extraction and practicality, we may stand over a 100 really. Lignite is one possible solution (Read Below). What are the others?

Lignite in Pakistan – What to do with the Huge Reserves? | Today in Pakistan

The article is written in an informative way. However, it doesn't cover all the issues here.

1) The HIGHEST challenge to over come ASAP (due to increased economic activity) is to bring the electricity all the way. Meaning have surplus so the businesses can run in three shifts. Right now, they can't run even one shift.

2) With regards to number 1, the Coal (lignite) doesn't fit in the picture right now. The electric producing plants of the world are designed to run on better quality of Coal. Using this Coal, it will shorten a power plant's machinery's life, and will provide many ongoing issues (both technical and environment related). And some, very expensive to fix (like the Nandipur example to see how seriously expensive it is to mess with power plant machinery, and its impact if it doesn't work).

3) The proposed solution to create certain lubricants and agriculture based items from it, will waste this very serious capability to produce electricity and power cheaper (where Pakistan needs serious help). Its almost like you are driving a Nice Mercedes Benz on a route without a proper road, designed for heavy trucks. You are damaging your Mercedes's machinery and its value.

The government of Pakistan already knows that this is a serous gift from the nature to the country. But, Pakistan doesn't have internal tech and financing (and time in the current situation), to clean this coal and add higher grade materials at this level (refining), or create internal power plant related machinery so that the tech belongs to Pakistan. If the lower quality of this coal causes issues, the Pakistanis can fix the power-plants themselves as they designed the machinery.

What will happen is, that after the current government finishes up their highest priorities, and the electricity, the economy and the growth are in place, they'll then return to this project. There are five Coal based power plants that recently started the build process. By the time these will be completed, the Coal extraction, refinement and supply chain would be in place. So these five projects will be the first ones to use this national treasure. And later, other oil based power plants will be converted onto coal. This is a very long term process and isn't feasible in he short term, 2-3 years.

This massive treasure of Black-Gold isn't going anywhere. It will have its share in growing Pakistan and making her independent of many hundreds of billions worth of imported Oil and Gas

 

[RoadRunner401]

1) Kalabagh Dam will have the capacity of generating 3,600MW of electricity which will save $4 billion annually for the country

2) Diamer-Bhasha Dam would provide 4500 MW of electricity for the national grid.

Both these dams together will pump 8,100 MW of cheap electricity into national grid saving billions/yr on imported fuel, so i f Pakistani sold out politicians were serious these would have been built by now.

 

[niaz]

Finally some good news about Thar Coal:

Towards Thar coal
EDITORIAL — UPDATED ABOUT 11 HOURS AGO


FOR more than two decades now, the massive deposits of coal in the Thar desert have been like a shimmering mirage in our imagination.

Since their discovery in the 1980s, and one failed attempt to get an investor to help tap them for power generation in the mid-1990s, followed by their detailed mapping by the US Geological Survey, they have always been cited by energy-sector professionals as the country’s best hope for breaking its growing dependence on imported furnace oil for power generation.


Also read: CPEC project: China approves $1.2bn for coal mining, power plant in Thar

But attempts to actually tap these reserves floundered on the same questions every time: there wasn’t enough fresh water in the area, the government did not have the resources to lay the transmission line for power evacuation, the financing requirements were too large for domestic markets and foreign financiers were not willing to invest in dirty technology in a risky environment like Pakistan, and so on. Company after company tried, and walked away from the venture — Shenhua in the early 2000s, AES a few years later.

Now a credible effort is finally afoot as the long-awaited approval from Chinese state-owned banks has been obtained and in a few days, documents to conclude the loan agreement and insurance will be signed in Beijing.

The government is making credible advancement towards laying the power transmission line, and arrangements for fresh water are also in place. What looked like a mirage yesterday is looking more like an oasis today. But there are still good reasons to keep a sober lid on expectations.

It will be many years before the first power will be generated from the plant, if all other obstacles are successfully overcome. The cost of the project has risen as it was negotiated, with water-pumping charges, Sinosure fees, higher Returns on Equity than normal, and many other charges that have been added to the tariff.

Nevertheless, the end result is that the tariff at which power will be sold now stands at 9.6 cents per unit, much higher than what was imagined years ago, but lower than what we are paying for furnace oil-based power today. The benefits have been reduced with time, with further whittling down possible in the years to come.

It is a great step for the country that Thar coal is getting closer to being tapped, but whether it will live up to the promise expected of it over the decades remains an open question.


Published in Dawn, December 18th, 2015

Towards Thar coal - Newspaper - DAWN.COM


However bad news is that coal burning power plant is twice as expensive to build as a gas/fuel oil power plant. With fuel oil (Furnace oil) price having fallen from $650 per metric to below $200 per metric ton, power generated from Thar coal is going to be more expensive. Nevertheless one has to take the plunge some time and better late than never.