Oman To Build First 1,000-Megawatt Coal-Fired Power Plant - Cheaper Than On-Site Natural Gas

[hatrack]

Oman plans to build coal-fired power plants to beat a shortage of gas to fuel future projects for economic diversification, an Oil and Gas Ministry official said on Monday.

The Gulf is the world's biggest oil exporting region, but has been slow to develop massive gas reserves. Rapid economic growth has absorbed fuel supplies and left all the countries in the region except Qatar short of gas.

"It makes a lot of sense to build coal-fired power plants as an alternative to gas since we don't have enough gas to fuel all of our future projects," Zaid Al Siyabi, director general of exploration at the ministry, told Reuters. "This is the future. Coal is cheaper to import and at the same time we can use our gas for other purposes like the export of LNG," he added.

Faced with spiralling power demand, regional governments are considering alternatives to gas to generate electricity, such as nuclear and coal plants. Oman's neighbour the United Arab Emirates became the first Gulf country to move ahead with plans for a coal plant last month.

EDIT

http://www.tradearabia.com/news/CM_147995.html

[On the Road]

1. Where is the Coal Coming from?

It says they're importing it. I doubt it's coming all the way from 'the Saudi Arabia of coal.'

[hatrack]

3. I would guess Australia - they've got plenty and they love to sell it to Asia . . .

:shrug:

[izquierdista]

2. Other purposes

Yes, flaring all that gas so the Arabian peninsula can be seen at night from outer space is a good use of gas.



Flaring natural gas = #1 environmental crime on the planet.

[hunter]

4. The magic of GTL (gas to liquids).

Listen to Zaid Al Siyabi:

"... other purposes like the export of LNG..."

Gas to liquids is sort of like LNG, but more profitable. Also, it's a lot easier to do than messy coal-to-liquids. Nations "friendly" to the United States always dance delicately about such issues.

I believe this is why we are in such a snit about Iran and their nuclear power plants. Iran would rather not use natural gas to generate electricity and nuclear power is a very obvious solution. But I think the greater nightmare to the United States and European political machines is not nuclear weapons, but that Iran might gain the capability of exporting refined and synthetic liquid fuels.

We will do whatever we can to prevent Iran from gaining that capability. The West wants materials raw, not as a value added commodities that empower the nation exporting them. Our concern about Iranian nuclear power is for the most part misdirection, an excuse for economic embargoes and military posturing. What really scares the United States is that the Iranians might use their oil and gas resources to achieve even greater regional political authority.