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Gold Price Trend Forecast Summer 2019

Pakistan to Produce Natural Gas by Burning Underground Coal

Commodities / Natural Gas Jan 11, 2012 - 03:08 PM GMT

By: OilPrice_Com

Commodities

As we start a new year, consider the miserable plight of the average Pakistani electricity consumer.

With about 50 per cent less electricity generation capability than the actual demand, Pakistan's National Grid is facing more than a 5,000-megawatt shortfall in power generation, leading to blackouts in both urban and rural areas of the country. Due to unscheduled shortages by the National Power Control Center, urban areas are facing unscheduled minimum 8-hour power blackouts each day, while in rural areas the blackouts can last as long as 14 hours.


The situation is equally miserable in the country's compressed natural gas (CNG) sector, which is now facing three days per week suspension of gas deliveries, the country's textile sector -four days a week, while the gas supply to non-textile industry has been suspended for indefinite period.

Scrambling to exploit virtually any indigenous sources of energy, officials in the capital Islamabad are now pinning their hopes on the Thar Underground Coal Gasification (UCG) pilot project, situated in the Tharparkar desert in Sindh eastern Pakistan.

Underground coal gasification converts coal to gas while still in the coal seam, where injection wells are drilled and used to supply the oxidants to ignite and fuel the underground combustion process, with separate production wells used to bring the product gas to surface. The high pressure combustion is conducted at temperatures of 1,290-1,650 degrees Fahrenheit, but can reach up to 2,730 degrees Fahrenheit. The process produces carbon monoxide and dioxide, hydrogen and methane.

Boosters of the Thar UCG project note that Block Number 5 of Thar Coal Project contains 1.4 billion tons of low-grade lignite coal reserves. Overall the coal reserves at Thar are estimated at 175 billion tons of lignite coal.

Advantages claimed for the Thar UCG project include the fact that, as the coal is burnt 600 feet under the ground, threat of environmental pollution is minimized. In addition, as the coal is processed in situ rather than being dug out and brought to the earth's surface to be burnt to generate electricity, UCG will minimize electricity generating costs, projected to be $0.04538 to $0.05673 per kilowatt hour, as opposed to current costs at $0.11345 to $0.13614 per kilowatt hour.

And all that is required to make this energy miracle happen is for the federal government to provide an additional $100 million in funding to generate electricity from the project as soon as possible, which will then reportedly allow the Thar UCG project to supply 100 megawatts of electricity annually to the national power grid by December 2013. According to Dr. Muhammad Saleem, director of the Thar UCG project, only $9.1 million has been spent on the Thar's UCG development so far.

Science and Technology Planning Commission member Samar Mubarakmand said that Pakistan's coal reserves are sufficient to provide electricity to the nation for more than 30 years.

But the Thar UCG project has its critics. A number of professional chemical engineers and petrochemical experts, speaking on condition of anonymity, have collectively voiced their concerns, particularly about the non-technical specialist management of the project, noting, "The huge energy and petrochemical potential of Thar is wholly dependent on the success of its pilot project and if the non-technical management of this plan does not remove the project's flaws, the country would ultimately be deprived of these huge underground assets forever. You can imagine what can happen if any pilot project fails solely due to a lack of knowledge and expertise ...

usually, every oil and gas company first does rigorous tests on oil and gas wells to determine the composition of the gas and oil and then build the multi-million dollar facility. This is the very first step but in the UCG project the team does not know anything about the composition of the gas and yet they want to build a facility. They are only spending lot of money...".

Visionary project for Pakistan's energy future or enterprise doomed to failure by inept crony management? Pakistani electricity customers will remain figuratively and literally in the dark until these questions are definitely answered.

Source: http://oilprice.com/Energy/Natural-Gas/...

This article was written by Dr. John CK Daly for Oilprice.com who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

© 2012 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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