Secretary Thar Coal and Energy

7/23/2019 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

http://www.heritage.com.pk/wp-content/uploads/2010/01/thar-1.jpg



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.

www.sindhcoal.gos.pk 2




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



)

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




4orld ower Generation (uel =i@200$-08

4orld Pa!istan

" Com#arison of Po$erGeneration fel i'

(ydro)*%

Gas +,%-il *%

Coal .)%

Others 2%




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"#



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'

3 www.sindhcoal.gos.pk :



www.sindhcoal.gos.pk $

&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




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



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





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



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




()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




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

www.sindhcoal.gos.pk 9)




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




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.



www.sindhcoal.gos.pk 9:

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



www.sindhcoal.gos.pk 9$

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




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.




"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 !




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




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



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




%$ 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

www.sindhcoal.gos.pk 2)



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




Thar today




www.sindhcoal.gos.pk 2:

?har ?omorro

?h k

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Secretary Thar Coal and Energy