Secretary Thar Coal and Energy
Transcript of Secretary Thar Coal and Energy
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By
Ajaz Ali Khan
Managing Director
Thar Coal & Energy Board
[email protected]. os. k
har Coal- A new Horizon for
Investment in Pakistan
Review of Pakistan Coal
Industry Now & the Future
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Scheme of Presentation
!ow will coal change the power scene in
"akistan#
$trategy to attract pri%ate in%estents inthe coal to power sector.
'e%iew o( power p)rchase g)arantee
schee.
$trategic alliance *etween the coal &
power sector.
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Coal’s Signicance inGlobal Energy
Scenario Global energy consumption will rise by 50% by2030. In non-O!" region# it will rise by $5%
International nergy Outlook &eport 200$'
!oal use is likely to grow (rom )0% to ))%# as a
source (or power generation# by 2030* due to
energy security and price +olatility.
,esides use in power generation# +arious countries
ha+e initiated proects to produce !oal-to-i/uids#that entail producing diesel and other li/uid
products and !oal gasication proects in !hina# 1#
India and outh (rica.
4orld ro+en !oal &eser+es 6 O+er $70 billion tons.* Source IEA Report 2009
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)
oa se n ec r c y enera on gn eReserves
% age ofElectricity
Generated from
Coal
LigniteReserves
illion
tonnesouth (rica 8) 30.95*
oland 83 9.3:
!hina $9 9$.7
ustralia :7 3:.2
Israel :9 -;a<akhstan :0 92.9
India 7$ ).5
!<ech&epublic
72 0.8$
=orocco 5: -Greece 55 3.02
1 )8 30.97
Germany )8 )0.7
4orld +erage )9 985.3$
akistan 0.9 9$7.2*** ub bituminous > nthracite reser+es only** ?har !oal &esources are 9:5 billion tonnes ro+en &eser+e in 8 e@plored ,locks alone i
ource#200$# I
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4orld ower Generation (uel =i@200$-08
4orld Pa!istan
" Com#arison of Po$erGeneration fel i'
(ydro)*%
Gas +,%-il *%
Coal .)%
Others 2%
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1.4 billion people are denied access to electricity
around the world 2.7 billion people rely on the traditional use ofbiomass for cooking.
Lack of access to modern energy services is aserious hindrance to economic and social
development
Energy Poverty & Pa!istan
Per Ca#ita PrimaryCommercial Energy Use/0-E1ca#ita2
+,,3 +,4,
akistan 0.)2 0.::
4orld a+erage 9.$2 Electrification rate in Pakistan is 62.4% Population without electricity in Pakistan is 6
million !4"% of Population of Pakistan in 2"1"#
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5idening 6emand & S##ly Ga#Pro7ection for Pa!istan
Crrent8nstalled
Ca#acity /52
Pro7ect 6emand
Ga# /52 9ear 5
98#577
2090 2)#):) 7#5::
2095 37#29: 9$#320
2020 5)#358 37#)72
2025 $0#577 72#778
2030 993#785 85#:8$
Future Energy Demand Supply Gapis Alarming!
ourceA akistan lectric ower !ompany!O'
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&ebalance the nergy =i@ nsuring economic Growth through
aBordable energy to reduce nergypo+erty !ost per ;wh &CO +s !oal =eans to end !ircular debt o( &s
)00bn 1D 3.5 ,illion' Increasing industrial competiti+eness !hecking drain on (oreign e@change utting idle human capital to producti+e
use
Coal: a means to long term EnergySecrity for Pa!istan
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Pa!istan’s Coal Reserves
SindhSindh186.560 billion
tonnes
Pn7abPn7ab25 million tonnes
alochistanalochistan21 million tonnes
;5<P;5<P"0 million tonnes
"=ad >ashmir"=ad >ashmir" million tonnes
0har0har
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CRE688L809 -< RESER?ES
Stdies Condcted y@
1nited tates Geological ur+ey
Eohn ?. ,oyd &4 o( Germany =Fs henhua o( !hina Geological ur+ey o( akistan
indh !oal uthority
+ All studies #on$rm presen#e o% &uge#oal reser'es
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Comparison of Thar with Other International Mines
Deposit Stripping Ratio (m³ : t)Heating Value
(M!"g)
Thar #$# : % %%$#
&oso'o % : % $
Rhenish *rea+
,erman-
.$/ : % $/
Ham0a1h+
,erman-
#$2 : % %3$4
Hungar- / : % $%
,ree1e %3:% 4$35
C-P"R8S-; -< S0R8PP8;G R"08-A(E"08;G ?"LUE & GE;ER"08-; -<
L8G;80E 8; -0(ER C-U;0R8ES
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Lignite
Coal
Combustion (Steam)
Gasification
Ash
Tar
Naphta
Phenol
CatecholsCarbon Dioxide
Dephenolied Cres!lic Acid
C"#
C$%
"%
"%S
N"&
C$
"%
'thanol
et uel
Diesel
PetrolParaffin
Chemicals ('th!lene
Pol!mers
Ammonia
ertilier
'xplosi*es
Fisher Tropsch
Synthesis
Crude $il
+,efiner!
'lectricit! (Steam Turbines)
Coal to Li-uid
ourceA yngas and !oal ?echnology# & > "# O 6 =r Eohannes an Heerdeen
Uses of Lignite
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()o de'elop )&ar *oal as a ma+or
sour#e o% po,er generation %orEnergy - E#onomi# Se#urity o% t&e
#ountry and as a ub o% /etro*&emi#al ndustry
Goal)o generate at least 10000 34 by2020
oBeruge pro'en reser'es ,it& attra#ti'e
in#enti'es
?ision for 0har Coal
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Strategy to attract Private8nvestment
Attracti%e incenti%es Concessions
& protections (or ,n%estors
"ower ")rchase g)arantee
$chee
"ro%ision o( 'o*)st ,n(rastr)ct)re
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Thar Coal(ield is declared as Special Economic
Zone- and the projects o( de%elopent o( Thar also
incl)ding coal ining and power generation/
declared as 0"rojects o( 1ational $ec)rity2
Rate of Return20% ($ Based) IRR to (irs which achie%e
3inancial Close *e(ore 45st Dece*er 6758 (or
Mine & "ower "lants *ased on indigeno)s coal and
additional hal( a percentage ,'' i.e. 67.89 ,'' (or(irs which 3inancial Close *y or *e(ore 45st
Dece*er 675:.
ar oa : #ec a conom cone
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E'em#tions1Concessions ;ero percent customs duties on iport o( coal
ining e<)ipent and achinery incl)ding %ehicles(or site )se.
Exemption on withholding ta= to shareholders ondi%idend (or initial 47 years.
E=eption on withholding ta= on proc)reent o(goods and ser%ices d)ring project constr)ction andoperations.
E=eption (or 47 years on other le%ies incl)dingspecial e=cise d)ty- (ederal e=cise d)ty- >""3 and>>3.
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Protections
Currency Exchange Rate Protection
Mining & "ower "rod)cers are protected (ro theipact o( e=change rate %ariation )p toCoercial ?peration Date C?D/.
EPC Cost Escalation
Cost escalation *etween the date o( applicationand the 3inancial Close perissi*le as per "ower"olicy 6776
Return on Equity
$ Dollar *ased 'et)rn on E<)ity
P P h G t
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Po$er Prchase GaranteeScheme
o" g)arantees o*ligations o( power p)rchaser
?" pro%ides protection against political (orce
aje)re- change in law and change in d)ties &
ta=es
"ayent o( copensation in case o( terinationd)e to ?" de(a)lt
Tari(( adj)stents (or %ariation in c)rrency
e=change rates- ()el prices and in(lation
o%ernent ens)res con%ersion o( "ak ')pee &
reittance o( (oreign e=change (or project
related payents
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0("RRO! NE"#OR$
7 tonnes load carrying capacity etalled road is a%aila*le )p to
Coal (ield area.
E%EC"RICI"
55 K (eeder eanating (ro ,slakot to Thar Coal "roject
areas with 677 watts trans(orer is a%aila*le.
CO''(NIC"ION
Telephone & ,nternet co)nication thro)gh ?ptic (i*er ca*le is
a%aila*le )p to Thar Coal(ield area.
!RIN$IN) #"ER6 'e%erse ?sosis "lants in Thar are a%aila*le (or pro%ision o(
porta*le water to residents as well as project sta(( (ree o( cost.
RE*C(E *""ION
'esc)e $tation in coal ining area at Thar coal(ield co%ering an
area o( F-677 s<. (t. is copleted
%I+RR A Coal li*rary is sit)ated at o((ice o( $indh Coal A)thority-
Karachi.
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"RN*'I**ION %INE
1TDC is cond)cting (easi*ility st)dy (or lying o( Transission Gine (or
e%ac)ation o( 57-777 M> (ro Thar. ,n the (irst "hase they are
planning to e%ac)ate 5677 M>.
IRPOR"
The o$ has appro%ed a schee at the cost o( 's.6.77 illion (or
the constr)ction o( Airport at Thar (or Coal 3ields o( $indh *y the Ci%il
A%iation A)thority.
PRO,I*ION OF -E, !(" RO!
The >&$ Deptt. is )pgrading the road (ro Karachi to ,slakot
thro)gh !ydera*ad Mirp)rkhas 1a)kot (or (acilitating transportation
o( hea%y achinery *y Dec. 6756.
RI%# %IN$
"'AC$ has *een engaged *y o$ to prepare (easi*ility (or *road
ga)ge rail link (ro "ort Hasi to ,slakot.
%O!)E " "-R
Godge at Thar with 67*edded accoodation to (acilitate (oreign and
local in%estors is *eing constr)cted at ,slakot.
PRO,I*ION OF CN% #"ER.
The GoS has planned to construct a .ater carrier to pro*ide &// Cusecs .ater
to Thar0
0("R
f l !
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Thar Coal 6lo1" Status
6lo1"7II
Sin8h 9ngro Coal Mining Compan-(12 #/3 Sindh Go*ernment4 5/3 'ngro)
%65// Po.er Plant planned
$pen Pit 7ining 8 509 7tpa
6an"a0le easi0ilit- 1omplete8 2%st
*ugust 53%3Pro:ect financing acti*it! continued0
Pro:ect financing is being arranged through Pa;+China
oint 'nerg! <or;ing Group0
6lo1" III7*
Cougar 9nerg- (;&)
#// 7< Planned
=nder Ground Coal Gasification Pro:ect
'rgo 'xerg! Technolog! planned
Pilot >urn planned in &5 7onths
<or" on DS in progress$
6lo1"7V
;C, =ro>e1t
=nder Ground Coal Gasification Pro:ect
%69/ 7< ?GCC Po.er Plant Planned
=nit gasifier design prepared@
Technical team mobilied and des;top studies under
process0
Drilling in =ro1ess 0- ,S=Pilot >urn is expected soon
6lo1"7VI
Ora1le Coalfiel8s+ =?C (;&)
Strip mining4
7o= signed .ith 'SC for &//7<
Geotechnical drilling in process through D,D
'S?A completed
6S 1ompletion une 53%%
7ines De*elopment to begin une %/B%
Stats of loc!s
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US8;ESS <"C8L80"08-;$trategic alliance *etween Coal & "ower sector
+ !igh powered Thar Coal Energy Board TCEB/
esta*lished as one stop org. with 3ederal and "ro%incial
agencies to (acilitate in%estors.
+ TCEB is a decision aking *ody on Thar Coal Miningand "ower eneration "rojects.
+ TCEB (acilitates and coordinates with all the projects
related to Thar Coal.
+Ca)sing concerned agencies to ipro%e in(rastr)ct)re
+To act as coal "ricing agency
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Coposition o( the Board isI
i. Chie( Minister $indh Chairan
ii. 3ederal Minister (or >ater & "ower iceChairan
iii. 3ederal Minister (or 3inance Me*er
i%. 3ederal Minister (or Gaw and J)stice Me*er
%. Dep)ty Chairan- "lanning Coission Me*er %i. "ro%incial Minister ,rrigation & "ower/ Me*er
%ii. "ro%incial Minister 'e%en)e & 'elie(/ Me*er
%iii. 3eale M1A (ro Thar 'egion Me*er
i=. 3ederal $ecretary- Ministry o( >ater and "ower Me*er
=. Chie( $ecretary- o%t. o( $indh Me*er =i. $ecretary- Coal & Energy De%elopent Dept. Me*er
=ii. ?ne einent "erson Me*er
=iii. Managing Director- TCEB Me*er$ecretary
0har Coal & Energy oard
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%$ Coal ining
In+estors interested only in mining mayapply (or a mine lease (or mining the coal.
+D 8ntegrated Coal & Po$er GenerationPro7ect
In+estors may also opt (or in+esting anintegrated coal mining and power
generation proects.
4D ine oth Po$er Pro7ect ?har coalelds present best opportunity
(or mine mouth power proects in +iew o(
the great demand (or energy in the country.
8nvestment -#tions
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8nvestment -#tions
:. Coal )asification
,n%estors ay propose to con%ert coal into gasand arket the syngas and *ye prod)cts inopen arket- or ay de%elop a (orward
integrated project on any one or ore *yeprod)cts (ro gasi(ication project
8. Coal to %iquid Pro/ects
,n%estors ay propose to con%ert coal into Gi<)id
and arket the *yprod)cts in open arket- oray de%elop a (orward integrated project onany one or ore *ye prod)cts (ro CTG project
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Thar today
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