During the era of decreasing domestic gas production and high-priced fuel imports, a new policy to convert Coal-to-Gas (LTG) and Coal-to-Liquid (CTL) with money-spinning tax holidays and duty exemptions is being concluded to be a part of the forthcoming federal budget 2022-23.
According to the sources said Oracle Power and China National Coal Development Co (CNCDC) has prepared the draft Policy on Coal-to-Liquid and Coal-to-Gas.
In this regard, Special Assistant to Prime Minister on CPEC Khalid Mansoor said the policy is targeted initially at scaling up Thar coal production for CTG and CTL (diesel) conversion and establishing a petrochemical complex for a huge number of industrial products and ultimately move on to other areas for fuel, fertilizer, and agriculture security.
“We have already constituted a consortium of mining and power companies – already working at Thar Coal including Shanghai Electric, Oracle Power, CNCDC — and fertilizer producers like Fauji, Fatima, and Engro,” SAPM told the media.
Moreover, Mr. Mansoor agreed that change of regime could disturb momentum but expected the process would continue as it was in the long-term welfare of the country to have food and energy security.
“Only 1,000-2,000 tonnes of urea shortage created a crisis-like situation this year, so this is an issue of food security as well,” he said.
“Due to gas shortages, all existing fertilizer plants — currently producing about six million tonnes of the farming input —would have to shift to coal and ensure sustainable production. They would only need to change their front end,” SAPM added.
The main aim of the policy is to provide alternate uses of coal reserves in Pakistan, mainly Thar coalfields, on a commercially feasible and environmentally sustainable basis but its applicability will not be limited to the Thar coalfield only.
Meanwhile, the draft policy says, “However, if Pakistan does not exploit its indigenous coal reserves, it will remain heavily dependent on imported thermal fuels. Thar coalfields being one of the largest lignite reserves in the world needs to be commercially exploited, albeit in the new reality of clean fuels.”