China Will Help Pakistan Turn Thar’s Coal into Liquid: Report

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Pakistan has one of the largest lignite coal reserves in the world. According to Geological Survey of Pakistan, the total coal reserves of the country stands at approximately 175 billion tons. With Pakistan’s energy crisis increasing with the passage of time, these coal reserves can prove to be a game changer in tackling the country’s energy crisis.

The federal government has reached out to Chinese Shenhua Ningxia Coal Industry Group in this regard. The Shenhua Ningxia Coal Industry Group is globally know for turning coal into liquid. The biggest plant of turning coal into oil has already been installed by the said company in northwestern Chinese region of Ningxia.

According to Adviser to Prime Minister on Petroleum Nadeem Babar, the government held talks with the said company during PM Khan’s recent visit to China. He added that if  Shenhua Ningxia Coal Industry Group agrees to install Coal-to-Liquid (CoT) plant in Thar, it will prove to be no less than a game changer.

“We have held preliminary meeting with the management of the said company and more talks will also be held for reaching a win-win agreement and this very important development took place when Prime Minister Imran Khan visited China on October 8 and being a member in his delegation managed to have meeting with top management of the said Chinese company Shenua-Ningxia, which has the expertise to turn coal into liquid (synthetic diesel). And if the said company comes and installs the Coal-to-Liquid (CoT) plant in Thar and starts turning the coal into diesel, it will prove not less than a game changer as there are huge coal deposits in Thar,” Nadeem Babar while talking to a local media outlet stated.

According to Adviser to Prime Minister on Petroleum, the same Chinese group had quit the Thar power projects during Musharraf regime after the government at that time backed out of the already decided tariff.

Mr. Babar further added that if the talk between the Chinese company and government succeeds, “the country will have sustainable diesel supply in the country at affordable prices.” The project will be beneficial in reducing the import bill of diesel, as per oil and gas sector sources. Moreover, the Thar coalfield has the capacity to generate as much as 100,000 megawatts of electricity for two centuries which is more than enough to fulfill the country’s power requirements.

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