A step in the right direction has been taken by the Pakistan government and that too in the energy sector - surprise surprise. In such woeful times of energy crisis in the country and overdependence on expensive energy sources, the government eyes exploring the highly untapped sector of indigenous coal reserves in Pakistan. For the very purpose, the government has released funding for underground gas exploration scheme, which is undoubtedly a much needed step.
Pakistan unfortunately, finds itself at the wrong end of the spectrum as the energy mix is heavily tilted towards expensive resources such as oil and gas. The fact that 30 percent of total energy produced in Pakistan comes from oil which is a true reflection of the countrys lagging with international average of 5 percent. On the flipside, energy generation through coal is abysmally low at just 9 percent, where the rest of the world generates energy by burning as much as 40 percent coal in the pie.
The Geological Survey of Pakistan reveals the countrys richness in coal reserves as Pakistan lies forth on the list of largest coal reserves holder in the world. The huge reserves indicate great potential to generate energy through the huge reserves of 185 billion tons - of which, a mere 3.3 billion tons fall in the proven reserves category. The opportunity that the reserves present also call for efforts in tapping the reserves - or else it will remain an unfulfilled dream as having potential alone can do much.
What makes the Underground Coal Gasification (UCG) more attractive is the fact that its production does not require coal mining. It is a big plus given the cost saving that could be achieved through reduced capital cost. Add to that the 25 percent lower cost of building a UCG facility and 5o percent reduced cost of operations when compared to the conventional systems - it makes a perfect recipe for cheaper energy. There shouldn be any concerns regarding the technical expertise of the project as Pakistans dear friend China already has about 30 such projects in operation.
Moreover, pre-feasibility studies carried by Pakistans Geological Survey reveal impressive results in the coal rich Thar block, which should be a green signal for those concerned to move ahead swiftly.
Another highlight of UCG is it economical cost as it ranges between $1.8 to $5.5/mmbtu, according to The UCG Partnership, a not for profit organisation, promoting UCG Technology around the world.