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Engro plans study on energy crisis: CEO

The Engro Corporation is planning to conduct a study on the current energy crisis with a view to find ways and means to overcome it by judiciously utilising the rich energy resources, including hydel and coal assets.

This was stated by Engro Corporation CEO and President Aliuddin Ansari while talking to media persons at an Iftar here at a local hotel on Saturday.

Engro Fertilizer CEO Ruhail Mohammad, Human Resources and Public Affairs Senior Vice President Tahir Jawaid, senior management of the Engro Corporation and journalists attended the Iftar.

Ansari highlighting the importance of rich energy resources in the country said that besides potentials of hydel power generation to overcome the current energy crisis, Pakistan has no other alternative except development of indigenous energy resources.

He said that Thar coal fields have estimated lignite reserves of about 200 billion tonnes, which is equivalent to total oil reserves of Iran and Saudi Arabia.

“These can be utilised to produce 100,000 megawatts electricity and power for 200 years,” he remarked.

He claimed that from one block of Thar coal 1,200 MW can be generated and there 100 blocks can also be produced to generate sufficient electricity in the country.

“Primary objective of the Thar coal development was to provide affordable, reliable and sustainable electricity to consumers using indigenous resources,” he remarked.

Ansari further said that reliance on indigenous fuel would help save billions of dollars in foreign exchange, which were currently being spent on import of expansive Refined Furnace Oil (RFO).

He added that Thar coal-based power tariff would be much lower than RFO-based power tariff, which means general consumers can get electricity at much cheaper rate than what they are paying right now.

“That coal is also competitive verses imported coal and liquefied natural gas,” he remarked.

He said that to expedite development of this valuable energy resource through public private partnership, in 2008, the government of Sindh initiated the international competitive bidding process to select a preferred private sector.

He added that in June 2009, Engro was selected as the preferred joint venture partner and Sindh Engro Coal Mining Company (SECMC) was established as a joint venture company between the government of Sindh and Engro Powergen Limited, which reflected the government’s new strategic focus in developing the Thar coal reserves.

“SECMC has completed the bankable feasibility study for Thar block-II coal mining project by engaging internationally renowned consultants such as RWE, Germany, Sinocoal, China, SRK, UK and HBP, Pakistan, meeting all national and international standards,” he remarked.

In the first phase, he said SECMC plans to develop an integrated coal mining and power project with a capacity of 6.5 million tonnes per annum and 1,200 MW, respectively.

The target for financial close of the project is first quarter of 2013 and target of commencement of project is April 2013.

He said that in the second and third phases mining operations would be scaled up to 13 million tonnes per annum and 28 million tonnes per annum, which would ultimately be sufficient to fuel approximately 4,000 MW of electricity generation.

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