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Thar Coal Power Project

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Thar coal power project begins generating 2640MW electricity​

May 17, 2023



ISLAMABAD – A total of 2640MW Cheap electricity from Thar coal is now being provided to Pakistan’s National Grid with the help of coal mining and power plant projects initiated in the Thar desert under China- Pakistan Economic Corridor (CPEC), Gwadar Pro reported on Tuesday.

The work on the 220-Km long Transmission line from Thar Coal Mine to Mityari converter station has been completed. The transmission line will help in evacuating electricity from Thar coal mine Block 1.

According to Federal Minister for Energy (Power Division) Engr Khurram Dastgir Khan the National Transmission and Dispatch Company (NTDC) has completed the construction at a cost of approximately Rs15 billion in a record time and allout efforts were being made to complete it.

The minister termed the project most important for Pakistan’s future energy needs through which coal-fired power generation in Thar will be integrated to the National Grid.

The Thar coal plants can operate at 100 percent capacity. With the completion of this transmission line, an additional 800-1000MW low-cost electricity will be available during summer. This will help reduce the import burden and load shedding.

The project has an annual production capacity of 9 billion units, which can meet the demand of 4 million local households. The project will bring economic benefits by reducing fuel imports; saving foreign exchange reserves and enhancing the energy security of Pakistan.
 
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Matiari-Thar transmission line inaugurated​

220km quad bundle transmission line completed in record time of four months for Rs20 billion

APP
May 26, 2023


Federal Minister for Energy (Power Division), Khurram Dastagir Khan, marked a momentous occasion on Thursday as he inaugurated the 220-kilometer Matiari-Thar 500 KV Quad Bundle transmission line. The project, completed in a record time of four months at a cost of Rs20 billion.

Minister Khurram Dastagir hailed the transmission line as a revolutionary achievement. The line, entirely indigenous, will carry the cheapest electricity generated from local Thar coal across the country.

Dastagir emphasised that the federal government had successfully produced 1980 megawatts of new and affordable electricity from Thar coal. The power generated will be transmitted to the national grid through the Matiari-Lahore transmission line, a crucial part of the China Pakistan Economic Corridor (CPEC) project.
 
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1,320MW Shanghai Thar Coal Block-1: Financial closure in peril as ICBC decides to withdraw $300m financing

Mushtaq Ghumman
July 7, 2023

ISLAMABAD: The financial closure of 1,320 MW Shanghai Thar Coal Block-1 is reportedly in trouble as Industrial and Commercial Bank of China (ICBC) has decided to withdraw $ 300 million financing, well-informed sources in Ministry of Planning, Development and Special Initiatives (PD&SI) told Business Recorder.

The newly-established plant was on forced outages in May 2023 due to technical faults in its coal mines which has alerted officials sitting in Islamabad.

In March this year, Prime Minister Shehbaz Sharif inaugurated 1,320 megawatt Shanghai Electric power plant.

The power regulator has also shared its concerns on issues being faced by the newly established generation plant operating on local coal. NEPRA is to hold its own inquiry on the reasons for the forced outage of the power plant.

According to CPPA-G, substantial amount of mud in coal has created faults in coal mines and the company is trying to rectify the fault.

The sources said Meng Donghai, Chief Executive Officer (CEO) of Thar Coal Block-1 Power Generation Company (subsidiary of Shanghai Electric Group Company) called on ambassador of Pakistan in Beijing and raised different issues facing the Company

According to Donghai, Thar Block-l was first mega project of Shanghai Electric in Pakistan. The use of local coal by the project was significantly contributing in lowering energy prices through not requiring foreign exchange for coal purchase from abroad.

Although the project had started, the financial closure was pending as SINOSURE was seeking due approval from Chinese government; and Industrial and Commercial Bank of China (ICBC) has decided to withdraw $ 300 million financing of project as one of the financers.

The sources said, Shanghai Electric has serious concerns that in case of non-availability of any other financier, its application of financial close might not be approved.

Since the start of project, Power Division (CPPA-G) was paying only 50-75 per cent monthly invoice of the company, as compared to claim of Power Division of paying 85% to all CPEC IPPs which has resulted in Rs 13billion outstanding tariff payment.

An application is pending with Thar Coal Energy Board (TCEB) since September 2022, for fixation of coal tariff for special purpose vehicle company, established by their Power Generation Company to supply coal to the project.

The Power Generation Company recently submitted a petition to NEPRA for Thar Coal Block 1 for one-time adjustment of tariff from Rs 8.3 to Rs 21 per kilowatt hour for the first 10 years from the date of commercial operation.

The petition was submitted in view of Nepra’s decision taken on the submission of the company for unconditional approval of upfront tariff for Thar Coal projects. The power plant will be operating in loss until the petition is approved by Nepra as without the approval of the submitted petition paying salaries, purchasing coal and repaying loans will not be possible.
 
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New Rail Links to streamline bulk transportation from Thar Coal mines​

By Tahir Ali
Sep 8, 2023

ISLAMABAD - To ensure the establishment of a dependable and efficient railway infrastructure aimed at overcoming geographical constraints associated with Thar Coal transportation across the country, the Central Development Working Party (CDWP) on Thursday endorsed a Rs 55.97 billion rail connectivity project for submission to the Executive Committee of the National Economic Council (ECNEC).

This project is intended to provide an eco-friendly means of transporting coal while maintaining environmental considerations. The project envisages the construction of a 105-kilometer-long new single line Railway Track infrastructure from Thar Coal Mines to New Chhor Station and the construction of an 18-kilometre Double Line Track which includes 4.20-kilometre-long loop lines from Bin Qasim to Port Qasim.
 
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When digging for coal in the Thar desert, is it mostly dirt or is there a layer of rock or rock/stone like hardened earth that could bear weight?
 
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CCCL to utilize Thar Coal in cement manufacturing​

By Tahir Ali
Sep 13, 2023

KARACHI - In a groundbreaking development, Cherat Cement Company Limited (CCCL) has signed a Memorandum of Understanding (MoU) with Sindh Engro Coal Mining Company (SECMC) on Monday to utilize the indigenous Thar Coal for its Cement manufacturing.

This strategic decision marks a significant shift from the reliance on imported coal, which conserves precious foreign resources at a time when Pakistan grapples with the challenge of maintaining a favorable balance between its imports and exports.

“Both companies are aligned on the same goal to reduce Pakistan’s reliance on imported coal,” reads a statement from Thar Coal.

CCCL is set to conduct trial runs of Thar Coal at its 4.5 million tonnes per annum (MTPA) cement plant located in Nowshera, Khyber Pakhtunkhwa. This initiative marks a crucial step toward evaluating the feasibility and effectiveness of incorporating Thar Coal into their cement manufacturing processes.

SECMC is Pakistan’s leading coal producer, operating Pakistan’s first open-pit lignite mine in Block II of the Tharparkar area in Sindh. With a current annual mining capacity of 7.6 million tons, it provides lignite-quality coal to power producers in Pakistan. SECMC is a JV between the Government of Sindh, Engro Energy Limited, and its partners including Thal Limited, HBL, Hub Power Company (HUBCO), and China Machinery Engineering Corporation (CMEC).

CCCL, a Ghulam Farooq Group Company incorporated in 1981, is amongst the pioneers of the cement industry in Pakistan with an annual installed capacity exceeding 4.5 million tons.

The cement plant is located at Village Lakrai in Nowshera, which provides cement to KP, Punjab, Azad Kashmir, and exports to Afghanistan as well.
 
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