KARACHI: Sindh Chief Minister, Syed Qaim Ali Shah, has given go ahead to Cathay Oil and Gas Limited, a Canada-based company for MoU to explore and develop the Coal Bed Methane (CBM) resources under the `Thar Coal Methane project', that aims to produce five trillion cubic feet of methane gas over 30 years period.
This was stated in an official statement issued by the CM House here on Saturday.
It said the CM was talking to a seven-member delegation of Business Council of Canadian Government led by President Cathay Oil and Gas, Brodie Brown, which called on him at the CM House here.
The Chief Minister directed the Managing Director of Thar Coal Mine to coordinate and work out the details of the project and get the necessary documents prepared within shortest possible time.
He said that it is a very important project and that it will not only be useful for the province of Sindh and Pakistan but also for neighbouring countries as well.
Chief Minister said that this project estimated at $ 15 billion would extract 60 million gallon water from gas field and produce gas up to five trillion cubic feet (TCF).
He stated that Sindh would be benefitted with $ 100 million royalties and $ 175 to $ 400 million annual taxes from this project.
In addition to that this project would help generate 50,000 to 140,000 job opportunities for the people of Sindh.
The Chief Minister said that we have good quality of coal reserves here at Thar that are equivalent or better than the same resources in other countries.
He said that Sindh Government was keen to see the promotion of coal based energy which is comparatively cheaper than other sources of generation.
Qaim Ali Shah said that in order to reduce the cost of generation of electricity, we are converting our power projects on the coal and any investments towards this technology would be welcomed.
He further stated that Canada possesses expertise in various fields.
Chief Minister said we welcome the investment from Canadian company and assured the delegation that whatever facilities are required would be provided to them without any difficulty.
He said that Thar coal project has a good potential and that it would not only meet energy requirements of the Pakistan but also enables us to export the energy to neighbouring countries.
The President of Cathay Oil and Gas, Brodie Brown, and other members of the delegation briefed the Chief Minister about the Thar Coal methane project and its importance.
They informed that their CBM business plan monetises the gas by either selling it to the national grid, or by transforming it in to synthetic diesel or plastic plus ammonium or utilising the gas to produce electricity.
They said that CBM project is expected to produce some 60 million gallon per day of potable water as by product of CBM production. This water can be sold for human consumption, agriculture use or for cooling water for the proposed coal fired power plants.
They said this project would not only help overcome the energy problems of Pakistan but also open new avenues of economic developments.
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