Pak govt to finalise coal policy by 2008 end

Islamabad: The government will finalise the first-ever National Coal Policy by the end of 2008 to develop the indigenous coal for addressing the problem of the worst energy crisis that has adversely affected the national economy. According to budget document, the government is considering to set up National Drilling Company (NDC) to overcome the shortage of drilling rigs.

The step is regarded as major initiative for enhancing exploratory and development oil and gas wells in the country. The steps which have been proposed by the government for energy security will be pursued during the next fiscal year.

Extreme power shortage has been experienced during the year and shortfall of more than 4000 MW was recorded at peak hours in May 2008. Pakistan has huge coal reserves and yet share of coal in electricity generation is just 0.1 percent. Like coal, Pakistan has huge wind corridor which has the potential to provide more than 40,000 MW electricity and it pursued to exploit the available wind energy potential.

The Alternative Energy Development Board has already approved a policy of renewable energy for power generation. In the public sector, work on 6 medium hydro projects is also underway to generate 675 MW electricity. These include 72 MW Khan Khwar project to be completed in 2008-09 while 130 MW Daber Khwar to be completed in 2009-10.

Another project Jinnah of 96 MW would be completed in 2009-10. A number of proposals from international and local investors for establishment of multi-fuel power projects at various locations were received in the Private Power and Infrastructure Board (PPIB).

Besides this, a feasibility study on the development of underground gas storages were undertaken by SOFREGAZ, France, a well known consultant- in 2004 with ADB assistance. The consultant submitted final report and recommended two potential sites in Sindh province for conversion into gas storages.