Pakistan has signalled that it is ready to proceed with its plan to turn some of its vast coal reserves into diesel after the government said that it will invest around $10m in the project. The initiative stalled over a year ago after being criticised by some of the country’s top scientists including nuclear specialist Abdul Qadeer Khan (pictured) and Shahid Sattar, a member of the Pakistan Planning Commission.
“It’s a pity that the funds were withheld for 14 months and released on the intervention of the prime minister of Pakistan,” said Samar Mubarakman, head of the Thar Underground Coal Gasification project, the body running the operation. “We will be in a position to produce diesel from coal within months, using the Fischer-Tropsch method.”
The coal reserves being accessed by the project are the second most abundant in the world, and contain coal worth around three trillion dollars at current market prices.
Though the cost of converting coal to diesel in Pakistan is relatively high at $40 per barrel – compared to $25 in South Africa – Pakistan imports most of its diesel, at a cost of $120 per barrel.
PetrolWorld 25102012