The Sindh government has signed a memorandum of understanding (MoU) with a Ukraine-Canadian Consortium, Cathay Oil and Gas, for extracting methane gas along with water from under the coal layers in Thar Coal reserves.
"The consortium has the technology to pump out water along with methane extraction", said Sindh Minister for Mines and Mineral Development, Irfanullah Khan Marwat while talking to APP on Monday.
He pointed out that methane was coal-based gas, which could be converted into diesel, petrol, chemicals and plastic, pipeline gas and jet fuel and America, Canada and Chile were already processing this gas.
According to an estimate, Marwat said, 21 trillion cubic feet gas was available underneath Thar coal and Consortium would start its extraction when exploration license was issued to them.
The minister said that so far the government had allocated three blocks for coal exploration in Thar area: one block of 45-sq km to Chinese Shinuha Group, second to American AES, which is already operating two power plants in Punjab and the third block to Associated Group, a Pakistani, Canadian and American consortium.
This consortium has been issued LPG import license and they have a LPG Unit at Jamshoro.
Besides Thar Coal reserves, Irfanullah Marwat said, an agreement had been signed for mining in Lakhra, with Fateh Group, which has collaboration with Ukraine.
He said the Group would set up a coal washing plant for which machinery was being shipped, which would arrive in the third week of May. He said the main boring machine had already reached the site and started functioning.
The Group, he said, would indulge in mining, washing plus the setting up of a 250 MW power plant.
He said the washing plant would be the first in Pakistan as Pakistani coal was lignite in nature having too high sulphur and ash content.
Marwat said that because of this reason Pakistani cement industry had to import coal to an extent of 2.50 million tonnes. He said in order to substitute this coal, washing plant would be needed.
He said the Fateh Group had been allocated an area of 8000 acres for coal exploration while their washing plant would have capacity of one million tonnes.
To a question, the minister said the Group would first develop the mine which would take 2 to 2-1/2 years after which installation of power plant would start.
He disclosed that CMC of China would start work on mining and power plant from September 1 for which they had been allocated an area of 10-12000 acres in Sondha, Jherak. They plan to set-up a 200 MW power plant.