Coal-to-Gas and Coal-to-Liquids
Oracle’s Thar Block VI was included in CPEC in 2019 for the development of coal-to-gas and coal-to-liquids. The coal gasification component of the Thar Project has the potential to substantially change the dynamics of Pakistan’s agriculture sector as it will provide access to more affordable urea / fertilizer for a country which has agro-based economy. This coal gasification initiative will use indigenous fuel for fertilizer production and will also assist with Pakistan’s food security planning.
The establishment of a coal-to-gas (CTG) plant and a coal-to-liquid (CTL) plant is part of a comprehensive effort by Pakistan to tackle the projected shortfall of 2.6 Mtpa of urea by 2026-2027, as assessed by the Government of Sindh. The utilisation of lignite through the gasification procedure in urea production holds significance in mitigating this predicted deficit and concurrently bolstering the pivotal agricultural sector of Pakistan.
China National Coal Development Company (CNCDC), Oracle’s Consortium Partner, has initiated preliminary feasibility work for coal gasification at Thar Block VI, aligned with the government’s support for coal-to-gas and coal-to-liquid initiatives. CNCDC is leading a comprehensive feasibility study covering market analysis, technology assessment, investment estimation, and more. An MoU between Oracle and SSGC paves the way to explore the viability of producing and selling syngas derived from Thar coal. This initiative holds the potential for integration into SSGC’s gas network, contributing to resolving Pakistan’s gas supply challenges. Pakistan faces an imminent gas shortage which can create an economic emergency if not mitigated.
