Oracle Power PLC (LON:ORCP) said the Pakistan authorities have elected to move forward with a consultative session in early March to mobilise the policy proposal process for the coal-to-gas and coal-to-liquid industry.
It follows a recent policy proposal for coal-to-gas and coal-to-liquid development in Pakistan to the Ministry of Energy, the company told investors.
The consultative session will organise and coordinate a proposed commercial framework through which resources at the Thar Block VI could be developed and fast-tracked to help address Pakistan’s critical gas shortage and reliance on imported liquid fuels.
“Momentum is clearly building within Pakistan as key decision makers look to domestic coal reserves as a viable and attractive source of natural gas for the production of urea for agriculture and energy,” said Naheed Memon, Oracle chief executive.
“I am delighted that Oracle Power is at the forefront of this emerging industry in Pakistan, and together with our consortium partners, including clean coal pioneer CNCDC, I believe that we have a compelling opportunity to address the critical natural gas supply gap in Pakistan.”
Memon added: “It is estimated that through the application of coal gasification, our Thar Block VI Project could produce and supply approximately 1,000 million standard cubic feet per day (MMcfd).
“When reflecting on the current price for line gas, a composite of natural gas and imported Regasified LNG, which is available at approximately US$6 per thousand cubic feet (Mcf), the strategic importance of a domestic source of energy through coal to gas and liquid is underscored.
“I look forward to providing further updates in due course as our commercial framework discussions with the Ministry of Energy continue.”