In Commodity News 23/04/2015
Oman’s authorities envision a potential role for coal as a fuel resource in the generation of electricity for power generation with the resultant carbon dioxide emissions harnessed for use in country’s increasingly pivotal Enhanced Oil Recovery (EOR) programme.
According to officials, the Sultanate’s mainstay oil and gas industry, as well as the critically important power sector, have a potential stake in the utilisation of coal as a resource in place of commercially valuable natural gas as feedstock in electricity generation and in tertiary oil recovery methods too.
A top official of the Ministry of Oil and Gas made a reference to the beneficial applications of coal at a recent energy conference held in the city. Salim bin Nasser al Aufi, Oil and Gas Under-Secretary, called attention to the possible use of this relatively cheap and universally abundant fuel resource as an alternative to natural gas. Natural gas volumes saved as a result could be set aside for higher value applications like downstream petrochemicals processing, power generation, industrial development, and so on.
“We definitely need to diversify the sources of fuel for electricity generation in Oman,” said Al Aufi. “We cannot continue to rely on natural gas — not unless we start importing. We need to seriously look at renewables — which maybe expensive today — but are strategically positioned for the future. I know a lot of countries that are moving away from coal, but we may have an opportunity here in Oman to combine coal power generation with carbon dioxide extraction because we need CO2 for enhanced oil recovery. It would work quite well if we only manage to put it together,” the Under-Secretary told local and international delegates in attendance at the forum.
Significantly, electricity authorities are also weighing the potential inclusion of coal as part of a diversified portfolio of conventional, renewable and alternative energy sources that would need to be developed to secure Oman’s long-term energy requirements.
“Coal is one of many energy sources that the Omani government is looking at as part of a long-range Strategic National Energy Policy covering the period through to 2040,” a senior official told the Observer. “As natural gas is a finite resource, the government is keen to see a diverse fuel mix contributing to the nation’s energy needs, going forward,” he said.
The renewed debate over coal comes nearly four years after the government scrapped a proposal for the establishment of the Sultanate’s first coal-based Independent Water and Power Project (IWPP) at Duqm, citing environmental concerns.
But with the advent and advancement of clean coal technologies, coupled with carbon capture and sequestration, coal is being increasingly seen as an alternative to natural gas and other fossil-fuels for energy generation in many parts of the developed world.
Any eventual move by the Sultanate to embrace coal as part of a diversified energy base will have to be preceded by economic studies relating to possible sources of supply, identifying locations for the handling and storage of coal, management of waste products, and so on, the official stated.
