Coal Gasification (Urea/Fertilizer) and Coal-to-Liquids

The coal gasification component of the Thar Project has the potential to substantially change the dynamics of Pakistan’s agriculture sector as it will provide access to more affordable urea / fertilizer for a country which has agro-based economy. This coal gasification initiative will use indigenous fuel for fertilizer production and will also assist with Pakistan’s food security planning.

Accordingly, the initiative between Oracle Power and its partners for a coal-to-gas is highly appreciated and supported by both the provincial and federal governments.

Oracle’s Power’s partner, China National Coal Development Corporation (‘CNCDC’) is expert in this technology and is already operating coal-to-gas and fertilizer/urea production plants in China.

Oracle Power will be playing a vital role in the feasibility study of the gasification plant, government approvals, off-take confirmations and financial viability with Oracle Power’s partners, with CNCDC leading this project.  In addition, the Government of Pakistan has decided to draft a fertilizer policy which is based on coal from the Thar Project being converted to gas and into urea.  It is envisaged that Oracle Power will play a vital role in the direction this policy takes.

According to a report from Sindh Government, 50% of the gas reserves of Pakistan will be depleted by 2026-27 which will promote the development of alternate fuel resources.  In addition, Pakistan is struggling with circular debt because of the expensive export of oil and RNLG which can be mitigated by the development of the Thar Project in terms of the production of liquid fuel.