By Ahmed Khan Malik
KARACHI — The Sindh government is moving quickly to implement its “Coal to Gas and Coal to Liquids Policy,” a long-delayed plan to convert Thar’s huge lignite coal reserves into synthetic natural gas (SNG) and liquid fuels.
The project aims to reduce Pakistan’s heavy reliance on imported petroleum products and liquefied natural gas (LNG), stabilizing fuel supply and lowering the country’s import costs.
Officials said the renewed push comes after a major breakthrough during President Asif Ali Zardari’s recent visit to China, where a memorandum of understanding was signed to advance cooperation on coal conversion technology and investments.
Sindh, home to Pakistan’s largest coal deposits, sees the Thar desert as a key energy hub.
The region holds an estimated 175 billion tons of lignite coal — one of the largest untapped reserves in the world — which, if used efficiently, could transform Pakistan’s energy mix, stabilize fuel prices, and ensure a reliable supply of gas and liquid fuels for decades.
Coal to Gas and Coal to Liquids Policy Promises Energy Independence
Shariq Kazi, Director at the Sindh Coal Authority, told Wealth Pakistan that the “Coal to Gas and Coal to Liquids Policy” was originally designed to reduce Pakistan’s reliance on foreign energy.
However, the plan faced years of delays due to funding issues, difficulties in acquiring technology, and bureaucratic hurdles.
With global energy markets unstable and Pakistan’s foreign reserves under pressure from rising import bills, Sindh’s decision to fast-track the project shows a strong commitment to energy independence and economic stability.
Converting Thar Coal into Synthetic Natural Gas and Fuels
Kazi explained that the policy aims to turn Thar’s lignite coal into multiple energy products, including synthetic natural gas, diesel, and other petroleum substitutes.
Producing fuel locally would not only protect Pakistan from global price swings but also strengthen the economy. If carried out successfully, the project could reshape industries by providing cheaper, locally made alternatives to imported fuels.
Sectors that use a lot of energy, such as power, fertilizer production, and transport, could benefit greatly, cutting costs and improving competitiveness.
Boosting Industrial Growth in Undeveloped Regions
He added that beyond energy security, coal-to-gas and coal-to-liquids projects could drive industrial growth.
Building processing plants in Thar and nearby areas could attract investment, boost regional development, and create thousands of jobs for both skilled and semi-skilled workers in one of Pakistan’s least developed regions.
This project could significantly reduce Pakistan’s dependence on imported petroleum products and LNG, easing pressure on foreign reserves and providing more stable fuel prices for local industries and consumers.
Economic Transformation Through Local Energy Production
“This is not just about fuel; it’s about transforming the economy,” Kazi said, highlighting the potential for regional development, job creation, and a more self-reliant energy sector.
Officials stressed that fully utilizing Thar’s coal resources will improve energy security, reduce vulnerability to global oil and gas market fluctuations, and support long-term sustainable growth.
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