Policy Proposal Submitted - CTG & CTL Development

RNS Number : 6199N

Oracle Power PLC

02 February 2021

 

2 February 2021

Oracle Power PLC

("Oracle", the "Company" or the "Group")

Policy Proposal Submitted for Coal-to-Gas & Coal-to-Liquid Development

Oracle Power PLC (AIM:ORCP), the international natural resources and power project developer, is pleased to advise that, further to the announcement of 15 January 2021, the Company and its Consortium Partner, China National Coal Development Company ("CNCDC" or "China Coal"), have now jointly submitted a policy proposal for coal-to-gas and coal-to-liquid development in Pakistan to the Ministry of Energy ("Ministry").

The policy proposal outlines the draft commercial framework through which development of coal to gas and liquid at Thar Block VI ("Commercial Framework") could be fast-tracked in order to address Pakistan's critical gas shortage and continued reliance on imported liquid fuels.  The Company now looks forward to discussions with the Ministry in order to finalise the Commercial Framework.

Highlights

· Thar Block VI has an estimated coal extraction potential of more than 20 million tonnes per annum for 30 years

· Through coal gasification application, this could produce and supply approximately "one thousand million standard cubic feet per day" (1,000 MMcfd)

· Block VI is the only coal block in Thar supported for coal-to-gas under the China Pakistan Economic Corridor (CPEC)

· CNCDC, the largest Chinese state enterprise in integrated coal technologies, is a global leader in coal-to-gas and coal-to-liquids industries

· Preliminary feasibility work, led by CNCDC, is underway to establish the optimum route to expediting the gasification of coal at the Thar Block VI Project

Naheed Memon, CEO of Oracle, commented:

"I am delighted to report the submission of a policy proposal to the Ministry of Energy (Petroleum Division) for the development of coal-to-gas and coal-to-liquids; a goal which we understand has rapidly become high on the agenda for the Government of Pakistan.  With a population of over 220 million and increasing energy requirements, Pakistan has a high dependence on natural gas for production of urea for agriculture and energy. By the middle of the current decade, according to government sources, domestic gas reserves will have depleted by 50% and this critical supply gap has started to impact energy needs and daily life in Pakistan already.

"Line gas, a composite of natural gas and imported RLNG, is available at approximately US$6 per thousand cubic feet (Mcf) or 1 MMBtu in Pakistan, a significant premium to much of the globe, given the domestic energy deficit. The economics therefore for the development of coal to gas and liquid are exceedingly attractive, whilst also providing a significant incentive to the Government of Pakistan for a reliable and competitive energy supply.

"The need for alternative sources of economically viable gas in Pakistan is clearly evident and the government has sanctioned the conversion of coal to gas with this in mind. As shareholders will be aware, Oracle is the lease holder of a large block in the Thar Coalfield that is the only block which has been marked for coal-to-gas development under the CPEC initiative.  With the on-going support of our Consortium Partners, including our technical partner and clean coal pioneer CNCDC, we expect to be the front-runner in this burgeoning industry and I look forward to providing further news on this dimension of development at Thar Block VI."

*ENDS*

For further information:

Oracle Power PLC Naheed Memon	[phone]
Strand Hanson Limited (Nominated Adviser) Rory Murphy, James Harris, Jack Botros	[phone]
Brandon Hill Capital Limited (Joint Broker) Oliver Stansfield	[phone]
Shard Capital (Joint Broker) Damon Heath Isabella Pierre St Brides Partners Limited (Financial PR) Susie Geliher Catherine Leftley	[phone] [phone]

 

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