The Hindu Business Line : Foreign cos evince interest in CBM blocks

THE prospect of commercial exploitation of coal bed methane (CBM) gas in the country appears bright with many leading domestic and foreign companies showing active interest in this line of business in spite of the fact that the development of CBM in India is still in nascent stage.

Among the foreign companies, most of them are reportedly from the US. These companies have responded positively to a global tender notice recently floated by the Union Ministry of Petroleum and Natural Gas, seeking bids for the exploitation and production of CBM from nine more new virgin coal blocks. The tender was floated after clearance and in consultation with the Union Ministry of Coal.

Both the ministries have already organised road shows in New Delhi and in the US to provide detailed information to the American CBM companies and invited them to participate in the process exploration and exploitation of CBM blocks in India.

The blocks offered in the second phase for bidding with up to 100 per cent participating interest include Barmer-BS1 in Rajasthan covering an area of 1,045 sq. km., South Karnpura in Jharkhand covering an area of 70 sq. km., Satpura in Madhya Pradesh with an area of 714 sq. km., North Karanpur (West) in Jharkhand covering an area of 267 sq. km., Wardha in Maharashtra covering an area of 503 sq. km, Barmer-BS2 in Rajasthan covering an area of 1,020 sq. km., Sonhat (North) in Chattisgarh and Madhya Pradesh covering an area of 825 sq. km., Godavari (North) in Andhra Pradesh covering an area of 386 sq. km. And Barmer (Sanchor BS3) in Gujarat covering an area of 790 sq.km.

It may be noted a total five virgin coal blocks with CBM reserve were already allotted last year under the first phase of global bidding to three domestic companies. Two blocks were allotted to ONGC and IOC consortium, two blocks to Reliance Industries Ltd and one block to Essar Oil Ltd.

It is pointed out that India with a proved coal reserve of about 87 billion tonne has a great potential of CBM development. A pilot project for methane drainage was tried in a working coal mine in Raniganj coalfields in Eastern Coalfields Ltd which did not yield desired result.

However, due to technological break-through for development of CBM in the US, the exploitation of CBM in the country seems to have a very promising future. Based on the generation information of geology and gas content of the seams in various coalfields of India, the estimated reserve of CBM would be around three trillion cubic metres. This clean source of energy when commercially exploited can contribute significantly to much required gas production in the country, it is suggested.

CBM, a source of clean energy, is being commercially exploited and used around the world for the last one and a half decades. The leading country in its commercial exploitation is the US, having a total proved coal reserves of 246 billion tonnes and an estimated CBM reserve of 750 trillion cubic metres. Since India has no experience of the commercial exploitation of CBM, the impacts of the world technology will have to be taken into consideration while going ahead with its exploitation.

Therefore, the Union Government has decided to develop the CBM gas industry in collaboration with American companies.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Taxiless Tuesday

Foreign trade procedures to be streamlined

Call to make healthcare affordable and professional

Bangalore going global on cardiac care

Hotel tech expo in Chennai

I-Kin to catalyse pvt investment in panchayats

Nirmala Nagar scheme from Aug

Auto sales rev up fuel consumption

Foreign cos evince interest in CBM blocks

Centre lauds power reforms process in TN, AP