UK's Oracle plans coal-to-gas project in Pakistan
London-listed Oracle Power has signed a non-binding memorandum of understanding (MoU) with Pakistan’s Sui Southern Gas Co (SSGC) to develop a synthetic natural gas (syngas) project utilising coal from Thar, the company said on January 24.
The MoU establishes the basis for Oracle and SSGC to explore and carry out feasibility studies for the potential development, owning, operating and sale of syngas from Thar coal to the Pakistani state-owned company.
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Syngas produced would be integrated into SSGC's transmission and distribution network which delivers indigenous natural gas and regasified LNG to domestic, commercial and industrial consumers.
"Our Thar Block VI project is an asset with immense potential value for Pakistan, particularly in the context of natural gas shortages and the intense price pressures associated with the import of LNG,” Oracle CEO Naheed Memon said.
“We look forward to updating the market further with the development of these studies as we jointly look to unlock the value of this strategic resource for the benefit of all stakeholders and in accordance with national demand,” he added.
The companies expect the feasibility studies to be completed by Q4 2022. Upon successful completion of feasibility studies, they intend to negotiate and enter into definitive agreements for the sale and purchase of syngas and evaluate any possibility of investment and support by SSGC in the syngas project, Oracle said.