A Memorandum of Understanding (MoU) will be signed between Sindh government and an Australian group for establishing 400 mw power generating units. Sources in CM House told Business Recorder that the agreement would be signed in the first week of July and Sindh Chief Minister Dr Arbab Rahim would be the witness to this agreement.
Sindh Mines and Mineral Department had asked the Australia-based company, Cougar Energy (Pvt) Limited, to go ahead with the project. The process is almost complete and Sindh government has endorsed the project.
After MoU signing, it would take about three to four years for the electricity to be generated. The company will use underground gasification technology in generating power. In this system, coal is burnt underground and the exertion of synthetic gases is utilised for power generation.
The company would produce electricity from Thar coal by applying latest method of underground gasification technology that has been working successfully in three countries of the world, source said.
The advantage of using this technology is that the cost of power generation is reduced and the main beneficiary is the end user. In this technology, coal mines are not required, thus saving huge amounts required for setting up power plants.
Cougar Energy is planning to start the work at Thar Block-III. It completed the feasibility study on this site some four years back, in collaboration with a Dubai-based company.
The company would initially produce 400 mw and later the capacity would be enhanced to about 1,000 mw. The investment layout could not be known. However, the spending on this project would be in phases.