Energy & Power

WORLD WATCH

US Plans Major Asian Power Grid

The United States has outlined an ambitious energy project to develop the energy sources of the ex-Soviet republics of Central Asia. The plan would develop a regional power grid from Kazakhstan to India.

The grid would feed the growing energy needs of India, Pakistan and Afghanistan, and help integrate the economies of Central and South Asia. The far-reaching plan would also reduce Central Asia's reliance on routes through Russia for its energy exports.

The US Assistant Secretary of State, Richard Boucher, presented the plan to committee in Congress. He explained how the development of a power grid through Afghanistan would enable the energy-rich nations of Central Asia to sell electricity to energy-poor India and Pakistan.

The impoverished mountainous republics of Kyrgyzstan and Tajikistan both want to develop their large hydro-electricity potential. Kazakhstan, with abundant oil and gas, is rapidly becoming a top energy producer while Turkmenistan has some of the world's largest gas reserves.

India and Pakistan have both been seeking ways to import Central Asian oil, gas and electricity to fuel their expanding economies. Even Afghanistan now needs more energy as its war shattered economy begins to recover.

National Coal Policy in Pakistan

The Pakistan Government is formulating National Coal Policy to make Pakistan competitively attractive for investment in coal mining. The Ministry of Petroleum and Natural Resources stated that under this policy government would offer an attractive package to foreign investors and yield close coordination between federal and provincial governments as well as concerned institutions.

The feasibility study is being undertaken by the ministry to ascertain techno-economic viability of Thar Coal gasification and extraction of chemicals is expected to be completed. It is expected that work to develop a mine of 6 million tons per annum will also be started.

Production of coal during 2006-07 is 5.1 million tons per annum as compared to target of 5.2 million tons per annum showing 98 percent achievement. In addition, the feasibility study is also being undertaken by Sui Northern Gas Pipeline Limited (SNGPL) for setting up a pilot coal gasification plant at Bhakkar.

The project "Feasibility Study on Gasification of Thar Coal District Tharparkar, Sindh" is under execution to ascertain viability of gasification of Thar Coal. The report of Phase I-A has been completed. The laboratory study has shown that Thar Coal is feasible for gasification. The next phase 1-B is expected to be completed in the first quarter of 2007-08.

The current coal mining techniques in the country are rudimentary; not even a single coalmine is mechanised. To enhance the share of coal in primary energy mix, Thar Coal Mining Company (TCMC) has been established.

Sri Lanka Not to Increase LP Gas Price

Sri Lanka’s Shell Gas company has requested the Consumer Affairs Authority to increase the price of LP gas.

A spokesman of the Shell Gas said that they needed an increase of Rs. 150 per 13.5 kg cylinder. The company attributes the hike to the escalating petroleum prices in the world markets and the depreciation of Sri Lanka currency.

The second player of the local gas market, LAUGFS Gas has also sought an increase, CAA sources said. Both Shell and LAUGFS say they are losing from LP gas sales.

However, R.M.K. Ratnayaka, the Chairman of CAA, said that price increases could not be allowed until the verdict of the court case now being heard in this regard is given.

NTPC Mulls More Partners for LNG Import

Indian National Thermal Power Corporation is looking at the possibility of entering into formal agreements with various countries to import liquefied natural gas (LNG) for running its power plants coming up during the XI and XII Plans.

NTPC had already signed a memorandum of understanding (MoU) with the Nigerian Government that provides for import of three million tonnes of LNG annually on a long-term basis, subject to availability, for 25 years at a reasonable price. NTPC plans to come up with 4,266 MW of gas-based power plants by 2012 for which it has decided to explore options abroad. The corporation is now holding negotiations with various countries for not only LNG but also coal blocks to build a buffer for the future.

Official sources said that NTPC had also initiated steps in exploring the possibility of acquiring oil and gas blocks through participation in New Exploration Licensing Policy (NELP). The Power Ministry was working on setting up a National Power Project Management Board for monitoring the progress and to ensure timely commissioning of the capacity addition and associated transmission projects.

On the other hand, sources said that the Working Group on Power for the XI Plan had estimated a total fund requirement Rs. 10,31,600 crore for the power sector as a whole. For creating the projected capacity addition, the fund requirement had been assessed at Rs. 4,10,900 crore, they added.

Out of the proposed capacity addition of 78,500 MW during the XI Plan, 1,870 MW had already been commissioned and another 50,975 MW was under construction, he said. “With the projected capacity in place and through energy conservation measures, the gap between demand and supply of electricity is likely to be bridged gradually during the course of the XI Plan,” sources said.