Latest reports suggest that about 500 employees of Shanghai Electric Power arrived in Pakistan earlier this month to work on the $1.9 billion Thar Block-I integrated coal mine and power project located in the country’s south-eastern desert region of Tharparkar.
The project is a key component in the $50 billion China-Pakistan Economic Corridor (CPEC) and involves a 7.8 million tonnes per annum (Mtpa) open-pit thermal coal mine and a 1.3GW ultra-supercritical coal-fired power plant in the Thar region in Sindh province.
Thar coalfield is the 7th biggest coalfield in the world as it stretches over 9,000 square km, with reserves of approximately 175 billion tonnes of coal.
In 2011, the Thar Block-I coalfield was leased for 30 years to a Chinese company, Sino-Sindh Resources, that is now a subsidiary of Shanghai Electric.
The adjacent power plant will be equipped with two ultra-supercritical coal-fired units of 660MW capacity each.
Pakistan’s increased focus on coal-fired plants
Pakistan urgently needs to develop indigenous energy sources to overcome a crippling 3,000 MW domestic power shortage at peak times and dependence on fuel imports.
Until 2016, Pakistan had just one coal-burning power plant. It now has at least nine and more are in the making. The first target of these plants have been to replace expensive fuel (oil-based generation facilities) that burdened the nation’s economy with heavy costs and pollution.
Industry participants also believe that with relations between China and its main coal supplier, Australia, turning sour, the former may turn towards Pakistan in future to meet its coal import requirements.
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