The Sindh government has actively initiated the process of creating its own structure for oil and gas in view of the 18th Constitutional Amendment that encourages direct involvement of provinces in issues pertaining to oil and gas in their respective areas, said Sindh Finance Minister Syed Murad Ali Shah in his budge speech.
The minister said that the Sindh Electric Power Department is engaged in creating the province’s own structure in this regard. He said that as a federating unit, the province is the greatest contributor of gas and it produces 70 percent of the gas that is consumed all across the country.
“The people of Sindh have every right to be compensated for the great contribution they make by sharing the resources available within the province, and their democratic government of today has taken every step to ensure that the rights of the province are safeguarded,” he added.
Regarding the energy sector, the minister said that the provincial government has signed a Letter of Intent with China’s leading electricity producer Three Gorges Project Corporation to help explore the hydel potential in the province.
He said that in light of this understanding, a team from CWE – a subsidiary of the Three Gorges – recently visited the Sukkur Barrage to gauge the potential for constructing a power plant.
He informed the house about initiatives taken by the government to develop the Thar coalfields, saying that the government believes that development of Thar coal is the most viable option for ensuring energy security for the country.
He said that Thar coal reserves of 175 billion tonnes are ample for provision of cost-effective energy for centuries, besides having potential for producing a range of petrochemical products.
Two Chinese companies have been selected to undertake coal exploration, power generation and establishing petrochemical complex at two blocks of Thar coal, which were recently put for International Competitive Bidding, he added.
The minister said that this development has brightened the prospect for bringing much needed international investment for development of the resources.
Similarly, the government is also making efforts to exploit the Gharo-Keti Bandar (District Thatta) Corridor for developing Wind Energy, he said.
During Sindh Chief Minister Syed Qaim Ali Shah’s recent visit to Korea, an MoU to generate 2,000MW of wind energy was signed with Korean Southern Power Company, he added.
