According to the vessel line-up data compiled by CoalMint Research, Pakistan’s coal imports have witnessed 8% mo-m rise during Mar’19, after recording almost identical volume in the starting two months of CY19.
Imports in Mar’19 were marked at 1,389,013 MT as against 1,290,737 MT in Feb’19, but it was 14% lower on the year compared with 1,621,404 MT in Mar’18.
Pakistan had boosted its coal intake from South Africa in Mar’19, amid declining prices. In fact, volume of coal taken from Africa was the highest as per the record maintained by CoalMint.
Coal shipments from Africa stood 1,225,307 MT in Mar’19, rising 39% M-o-M from 878,909 MT in Feb’19. The remaining shipments were procured from Indonesia.
Addition of Domestic Coal into the Energy Mix:
Pakistan is currently facing a serious energy crisis amid rapid increase in demand from growing demographic pressures and intense industrialisation.
With its annual demand for coal exceeding supply; the country relies upon imported coal to fulfill its requirements.
During the first quarter of CY19 (Jan’19-Mar’19), Pakistan has imported 3,976,457 MT coal, which was 20% more the volume taken in the corresponding period of last year.
In order to reduce the dependence on imported coal, Pakistan has commercially started a new power project that will run on domestic coal produced from its Thar coalfields.
As per media reports, the first unit of the Thar coal power project had already started its operation, running on local coal from Thar coalfields, while its second unit was scheduled to come online later this month.
The Pakistani government had assigned Sindh Engro Coal Mining Company (SECMC) for coal extraction in the Thar coalfield, as a means of tackling energy deficiency and to feed the 660 MW Thar power project.
It is to be noted that Thar coalfields contain the world’s 7th largest coal reserves – estimated at 175 BnT, and capable to produce 100,000 MW for the next 200 years.
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