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 is doing
The Pakistani government is expected to approve a letter of intent (LOI) in the quarter to June. The LOI was submitted in March and its approval will confirm the government's intention to purchase power from the Thar power project.
It is set to be the next major step required to develop the project as it will allow progress towards financial close, which the company said could happen “anywhere between 12 to 18 months” due to the uncertainty around the pandemic.
Oracle is in a joint development agreement 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.
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.
The resource on Block VI at Thar is 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
"The strategic importance of an integrated mine, power and coal-to-gas and liquid project in our region of focus cannot be overstated.”
“There is a huge inherent demand in Pakistan for cheaper energy which can be generated domestically to mitigate the current reliance on imports, which significantly impacts the economy and can create inflationary pressure."
“In addition, the potential of coal gasification into fertiliser projects and coal to liquids is paramount to addressing food security issues and reduce fuel imports into Pakistan.”
- Approval from the Pakistan government
- Progress on the gas to fertiliser project