ISLAMABAD, Jan 16: A consortium of US-based lignite mining giants has offered to invest $10 billion in a large energy complex in Thar to produce 6,000MW of coal-based power and introduce for the first time in Pakistan the concept of gasification and production of liquid fuel from coal.

Officials told Dawn on Monday that the consortium was holding talks with the authorities, including the Board of Investment, on the project which will solve the problem of severe power shortage and expedite industrial growth.

The Pakistan Geological Survey (PGS) assessed potential reserves of 175 billion tons of coal after exploratory drilling over an area of 900 square kilometres. The consortium seeks to tap a portion of the reserves with time-saving technologies in the complicated lignite mining operation.

A senior official of TharPak LLC, which was set up to organise and lead the consortium, told this correspondent that the mining operations would eventually have a production capacity of over 100 million tons per year to feed 80,000 barrels a day of direct coal to liquids plant.

He said the project to be completed in three phases would start generating 2,000MW of electricity in the first phase which would be increased to 6,000MW.

Urea production will be one of the components of the project.

`These industrial processes will be supported by a carbon capture and storage programme and a liquefied carbon dioxide production andtransportation system for sale to enhanced oil recovery (EOR) projects,` he added.

The first phase will comprise the start of mining operation and installation of the first coal-fired plant to generate 2,000MW of electricity and produce 2,0000 barrels of liquid fuel from coal.

In the second phase, the urea plant will become operational and production of synthetic gas will start. The third phase will see an increase in production capacity of the entire range of products.

`With energy deficit in mind, we believe that with a combination of our deep mining and engineering expertise and the use of commercially-proven clean coal combustion technologies, TharPak will deliver a solution to what is holding Pakistan back from competing on a level-playing field in the global economy by providing dependable, abundant and affordable energy,` the official said.

He pointed out that the cumulative capital investment for the lignite mining operation alone would likely exceed $10 billion. `We are acutely aware that mining operations of this magnitude and the industrial processes attendant to them can cause social and environmental impacts if not carefully preplanned and vigorously monitored in the course of the project life cycle.

TharPak has secured the assistance of two internationally-recognised research universities which will assist in training the local workforce.

The Virginia Centre for Coal and Energy Research and West Virginia University`sNational Research Centre for Coal and Energy will collaborate with TharPak on educational, technical and research-related aspects of the project.

The official said Pakistan had a great potential for industrialisation, adding that even if 30,000MW was generated it would be fully consumed.

He was of the view that the figure generally quoted as shortfall was not true as it did not reflect the original demand.

`Abundant availability of electricity will encourage investment in the industrial sector,` he said.

The consortium comprises Evan Energy, Marshall Miller and Associates and Advanced Resources International.

Headed by Morgan Massey, former chairman of Massey Energy which was among the largest coal mining companies in the world till its recent merger with Alpha Natural Resources, Evan Energy is a leading international energy investment and consulting firm focussing on coal and related industry.

Headquartered in Bluefield, Marshall Miller and Associates is a diverse consulting and engineering firm offering a wide spectrum of services in North America, South America, Asia and Europe.

Headquartered in Washington DC, Advanced Resources International is internationally recognised for its research and consulting services relating to unconventional gas, enhanced oil recovery, environmental, engineering and carbon sequestration.