Thar coal gasification project faces hurdles due to federal policy gaps

KARACHI: The lack of policy from the federal government is a significant stumbling block for the Thar coal gasification project.“The absence of a clear policy was even highlighted by Chinese companies in the coal sector during the recent visit of Petroleum Minister Dr Mussadiq Malik and his delegation,” sources revealed.

According to the sources, Chinese companies raised concerns about the lack of policy during workshops and seminars on coal in front of Pakistani officials, describing it as a major obstacle to advancing the project.

They said that the federal government is responsible for formulating policy, especially regarding tax regulations, exemptions and monetary issues. However, no policy draft has been produced so far, despite the project’s potential to meet the country’s energy needs.

They also added that coal projects are already facing financial constraints, as commercial banks are hesitant to extend financing due to concerns about carbon emissions, despite discussions on the issue with the central bank a few months ago.

Several months ago, Prime Minister Shehbaz Sharif directed the preparation of a strategy for the Thar coal gasification project. “The prime minister’s orders remained on paper, and nothing has been done regarding this project,” sources confided.

Thar coal, a lignite coal found in Pakistan’s Thar desert, can be converted into gas, liquid and urea through surface gasification, according to a study by the Sindh Coal Authority (SCA).The study involved collecting coal samples from the Thar coalfield and shipping them to a South African laboratory for testing and evaluation.

The report revealed positive and encouraging results, indicating that Thar coal has high tar yields of 20 per cent (on an air-dried basis) and high CO2 reactivity, both typical of lignite coal and suitable for gasification.

Coal gasification is a process that converts solid coal into a combustible gas primarily composed of carbon monoxide and hydrogen by adding an oxidizing agent (such as air, oxygen or water vapour).

Environmentalists, however, have termed the project a disaster for the area, which is already enduring the negative impacts of coal mining in the Thar coalfields. “It’s difficult to see how this plan will have no environmental impacts,” said Zeenia Shaukat from the Knowledge Forum.

“As far as we know, the government’s controversial underground coal gasification plans have failed. The recent tests conducted by a South African lab are based on surface coal gasification, which means coal will need to be mined first. Considering the Thar community’s vehement protests and discontent with the ongoing mining activities, the plans for coal gasification put us in a double-edged situation, leading to increased mining with all its negative environmental impacts and heightened reliance on gas, which also has emission impacts, including methane and unaccounted flaring during the pipeline transport process.” Haneea Isaad, an energy expert, said that the initial impact of this project would be environmental, as more mining would be conducted for coal extraction.