ISLAMABAD  - The Engro Corporation is planning to conduct a study on the current energy crisis with a view to find ways and means to overcome it by judiciously utilizing the rich energy resources, including hydel and coal assets.

This was stated by Aliuddin Ansari, Chief Executive Officer (CEO) and President ENGRO Corporation, while talking to media persons at an Iftar here at a local hotel. Ruhail Mohammad ,CEO Engro Fertilizer, Tahir Jawaid Senior Vice President Human Resources and Public Affairs, senior management of the Engro corporation and journalists attended the Inftar.

Ansari highlighting the importance of rich energy resources in the country said that besides potentials of hydel power generation, he said that to overcome the current energy crisis, Pakistan has no other alternative except development of indigenous energy resources.

He said that Thar coal fields have estimated lignite reserves of about 200 billion tons which is equivalent to total oil reserves of Iran and Saudi Arabia.

“These can be utilized to produce 100,000 MW electricity,power for 200 years”, he remarked.

He claimed that for one block of Thar coal 1200 MW electricity can be generated and there can also be produced 100 blocks to generate sufficient number of electricity in the country.

“Primary objective of the Thar coal development was to provide affordable, reliable and sustainable electricity to consumers using indigenous resources”, he remarked.

Ansari further said that reliance on indigenous fuel would help save billions of dollars in foreign exchange which were currently being spent on import of expansive RFO (Refined Furnace oil).

He added that Thar coal based power tariff would be much lower than RFO based power tariff  which means general consumers can get electricity at muchcheaper rate than what they are paying right now.

“That coal is also competitive verses imported coal and LNG”, he remarked.

He said that to expedite development of this valuable energy resource through public private partnership , in 2008 , government of Sindh initiated theinternational competitive bidding (ICB) process to select a preferred private sector .

He added that in June 2009,Engro was selected as the preferred joint venture partner and Sindh Engro Coal Mining Company (SECMC) was established asjoint venture company between the Government of Sindh and Engro Powergen limited(EPL) which reflected government’s new strategic focus in developing the Tharcoal reserves.

“SECMC) has completed the bankable feasibility study for Thar block-II coal mining project by engaging internationally renowned consultants such as RWE-Germany, Sinocoal -China, SRK-UK and HBP Pakistan ,meeting all national and international standards”, he remarked.

In first phase , he said SECMC plans to develop an integrated coal mining and power project with a capacity of 6.5 Million Tons per annum (mt/a) and 1200 MW , respectively.

The target for financial close of the project is first quarter of 2013 and target of commencement of project is April 2013.

He said that in the second and third phases mining operations would be scaled up to 13 Mt/a  and 28 Mt/a ,which would ultimately be sufficient to fuel approximately 4,000 MW of electricity generation.