Thar’s coal is to be converted into oil by China’s, Shenhua Ningxia Coal Industry Group. The two countries are in talking terms.
The agreement in case gets signed will be a serious turning point for Pakistan. Nadeem Babar, Prime Minister Adviser who was with him on the recent visit of China, on Petroleum also thinks the same.
If Shenhua Ningxia Coal Industry Group signs this agreement with Pakistan, then, they will install a Coal-to-Liquid (CoT) plant in Thar which will turn coal into diesel. This Chinese company has the world’s largest plant with a recorded conversion capacity of 4 million tons.
The huge deposits of coal in Thar will be a ‘Game Changer’ according to the adviser to PM. It is the best bargain for two countries since both will benefit from it.
If the company is successful in converting coal into synthetic diesel, the country will have reliable diesel reserves which will be affordable. This will be helpful to take the economy to the next level.
The price of imported diesel is very high. The country needs 7.2 million each year. If this project is successfully signed between two countries, the bills for the imported bills can be brought down.