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Oracle Power agrees development agreement for Thar power project

Snapshot

  • Developing a coal-fired electricity plant in Pakistan

  • Has govt support for indigenous coal-fired power generation

  • China-Pakistan Economic Corridor has Thar on the priority list of projects

  • Switched partners to China Coal and Dubai sheikh

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China Coal and His Highness Sheikh Ahmed Dalmook Juma Al Maktoum bring with them the requisite expertise, financial wherewithal and global presence to ensure a project of this scale can be brought to fruition.

Naheed Memon, chief executive

 

How it's doing

A joint development agreement was signed in February with China National Coal Development Company (China Coal) and the private office of Dubai's Sheikh Ahmed bin Saeed Al Maktoum for the thermal power station project at Thar in Pakistan.

As per the agreement, the trio will jointly develop a lignite coal mine in the Thar desert in the Sindh province of Pakistan that will feed a 1,320 megawatt mine-mouth power plant.

The project will be 73% owned by China Coal, 15% by Sheik Al Maktoum’s private office and with Oracle Power owning the remaining 12%.

Oracle will be responsible for obtaining all licences, approvals and permissions from the Pakistani government, while China Coal said it will take responsibility for sourcing all debt for the project from Chinese banks.

As well as providing for Pakistan's growing needs for power, the project also will enable the opportunity for coal-to-liquid production to counter the import of expensive fuel into Pakistan.

Last November, the resource on Block VI at Thar was officially recognised as a potential coal gasification/fertiliser project.

Pakistan is estimated to face a fertiliser shortage of 2.6Mtpa by 2026-27 and the use of Thar's lignite, via the gasification process, to produce urea can help to address the shortfall

 

What the boss says: Naheed Memon, chief executive

“Our partners in the project comprise one of the largest coal mining and development companies in the world and a prominent member of the UAE royal family, who bring with them the financial and technical wherewithal to bring a project of this stature and size to fruition."

 

Inflexion points

  • Obtaining a letter of intent from the Pakistan government
  • Progress on the gas to fertiliser project

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Oracle Power enjoying strong support for its development of the Thar coal...

Oracle Power PLC's (LON:ORCP) Naheed Memon caught up with Proactive London's Andrew Scott for a brief update following the announcement this morning that they're seeing strong support for its development of the Thar coal project. She says they've been copied into a letter from the Minister of...

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