Status of Coal Bed Methane Investigations in India
Status of Coal Bed Methane Investigations in India
M.P. SINGH1* and RAKESH SAXENA2
1Formerly of Lucknow University, Lucknow
2Birbal Sahni Institute of Palaeobotany, Lucknow
During the present days of energy crises and increasing gap
in the demand and supply of energy all over the world, it is
utmost important to make a judicious usage of all the energy
resources to its best exploitation in up and down-stream sectors,
and also to search for the alternate non-conventional energy
source for meeting the present and future energy requirements
for sustainable development and economic growth. Further, due
to the increasing demand and price escalation, compelling
environmental challenges due to global warming, indeed, the
coal has become dearer not only to the US also but for the rest
of the world as it still provides the cheap option for electricity
generation through its combustion characteristic though with a
lot of pollution component to atmosphere (WCI 2005). Modern
world needs a lot of energy for sustainable development; till
date, the energy requirements are being met by primary
conventional energy sources like coal, oil and gas, though the
countries that are deficient in coal resources or have exploited
their shallow coal deposits in last two/three decades have no
option but to go for other source of energy for meeting their
requirements or by imports. As in case of European countries
who have almost closed their coal mining activities owing to the
depletion of their shallow depth coal resources, and the deep-
seated coal exploitation is too costly under the present
technological know-how, but the advent of new technology for
Coal Bed Methane, underground coal gasification and CO2
sequestration has given a ray of hope to exploit the deep-seated
coals in UK and Germany to meet the future energy demands if
planned to exploit simultaneously (Chapple and Mostade,1998).
World Energy Report (WCI 2005) have indicated that US
energy demand in coming years is bound to increase. US
Energy scenario vis-a-vis growing need of cheap energy for the
developing and other under-developing economy of the world
together with the hazardous effect of greenhouse gases leading
to global warming due to the enormous usage of fossil fuels-
mainly -coal for generating electricity, manufacturing steel and
making cement for their sustainable development and economic
growth, is a matter of grave concern. This and quadruple
increase in gas prices has USA prompted the to prepare a new
plan for future energy securities not only for itself but for the
growing economies of the world resulting into a lot of efforts in
research and development. Bush energy plan has endeavoured
to develop the Future Gen project using coal as a base resource
material. The very idea of this project was for evolving a
concern for future hydrogen economy. Concerned about the
need and pattern of the consumption of energy by rapidly
growing economies USA has played an important role in
persuading the developed and developing countries through UN
efforts to make them ready for the preparation of future energy
scenario under Kyoto protocol and varied climate hazard
* E-mail: mpsingh45@hotmail.com
229
mitigating policies particularly Clean Development Mechanism
(CDM) to follow for reducing the effect of global warming. The
very idea was to utilize the resources through modern methods
which are though very costly but are advanced technology
oriented, and have shown very positive results in energy
spectrum of USA, Europe, Australia and now in the developing
economy of China. These technological advancement support
could be provided to the country in need by transferring the
technology for the exploitation of the energy resources for the
sustainable growth and development. This could be achieved by
doing the amendments in the rigid laws/ constitution so that the
resources could be best utilized through private-public
partnership, also open the resources foreign companies for
direct investment, transfer of the innovative technology on
mutually agreeable terms under government policy of that
country. This has heralded the periods of a lot of mutual
collaboration, innovation in research and development in energy
sectors, in-depth characterization of coal, development of the
new technology related to source and reservoir aspects, and
sharing the varied data for sustainable development and growth
of the country.
This has led to the development of US-India Energy
Dialogue a Coal Working Group Plan was initiated in August,
2005 was signed in 2006 highlighting the various aspects of
mutual benefits. It states “Recognizing a mutual interest in
collaborating in the field of development of fossil energy
technologies; recognizing a need to advance the objective of the
Government of India, which focuses on practical approaches to
dealing with energy requirements; and recognizing their mutual
interest in creating an attractive climate for domestic and
foreign investment in the energy sector of their respective
countries, and in an efficient and environmentally sound
infrastructure.” The backbone of the whole exercise was
“COAL” and its various facets for the sustainable growth,
economic development along with necessary environmental
constrains. Coal Bed Methane and Hydrogen – the fuel for the
present and future generation was of the important agenda,
having the establishment of “Coal Bed Methane/CMM Clearing
House” in India as U.S. Environmental Protection Agency
(USEPA) and U.S. Trade and Development Agency (USTDA)
has developed successful clearing houses in China, Russia, and
Ukraine. USTDA’s interest in supporting the clearing house is
to promote and provide expert assistance in CBM/CMM/
ACMM resource modeling. United States Department of
Energy (USDOE) would facilitate the discussions between
India (MOC, CIL, CMPDI, etc.,) and U.S. experts and
technology providers. Coal Working Group thus formed would
share information on a) Business opportunities in India,
including the Coal Vision 2025 document and other related
information, b) Regulatory information for India
230
and U.S. coal-mine operations, including websites, c) Relevant
information on the Gorbi Mine project and related U.S. coal-
mine reclamation activities and lessons learnt including acid
mine water drainage, d) Relevant pilot projects and active R&D
initiatives in U.S. coal industry, specifically for recovery of
fines by micro-cell technologies and coal liquefaction by both
direct and indirect methods. It would also Develop a high-level
Work Plan Document for coal preparation/waste utilization;
mine safety/productivity; mine closure/reclamation; in-situ coal
gasification; coal-bed/coal-mine/abandoned-mine methane; ash
utilization, coal liquefaction; emerging technologies including
CO2 capture and storage; and future technology paths.
Energy Scenarios-India report depicts a 20% increase in
primary energy consumption in Asia out to 2020 (Peter Scaife et
al., 2006, CRC Report, 2005-06, coal in sustainable
development, Australia). Over the last two decades, Asian
energy demand has increased on an average by 4.5 per cent per
annum compared with 1 per cent growth in North America and
Europe. The increase in the consumption of coal in Asia has
been even more rapid, averaging in excess of 5 per cent per
annum over the past 10 years. The continuing importance of
coal in powering economic growth is indicated by the eight-fold
increase in coal consumption for electricity generation in the
Asian region from 1971 to 1995. Electricity demand in Asia
grew seven-fold during the period 1971 to 1995; over the period
1995 to 2010 it is expected to grow more than double. Coal is
presumed to maintain its share of electricity generation in the
region of over 60 per cent in the period to 2020. The same
increase is expected in coal consumption, being mostly related
to power generation and secondly for the production of steel and
cement. This has resulted enormous pressure on Government of
India to adopt new strategies for the resource characterization of
varied energy inputs, and provide the best possible
infrastructure for adopting new technology to the industry
involved in exploration and exploitation of conventional and
non-conventional fossil fuels. Coal bed methane, an
unconventional source of natural gas from the coal beds is now
considered as an alternative source for supplementing the
country’s energy resources. Earlier, in the absence of proper
administrative, fiscal and legal regime, CBM Exploration and
Production activities were confined to research and
development only. The characteristic environmental, technical
and economic advantages have made Coal Bed Methane not
only an opportunity fuel in Combined Heat & Power (CHP)
technology but also a global fuel of choice. Not only the
escalating natural gas prices but its continuance to be at rise side
in coming future, make the CBM as opportunity fuel in view of
its excellent heating value, fuel cost, equipment cost, emission/
environment, DER/CHP potential. Opportunity fuel: any fuel
that has a potential to be used for economically-viable power
generation, but is not traditionally used for this purpose e.g. coal
bed methane, anaerobic digester gas, biomass (General) black
liquor, etc.
India being the 4th largest proven coal reserves and being
the third largest coal producer in the world holds significant
prospects for commercial recovery of CBM. This results in the
formulation of Coal Bed Methane Policy in
Glimpses of Geoscience Research in India
the year 1997 and also to provide a clear, transparent
mechanism to deal with the resources for the sustainable and
economic development following Kyoto Protocol guidelines.
Ministry of Petroleum & Natural Gas became the administrative
Ministry and Directorate of Hydrocarbon (DGH) became the
implementing agency for CBM policy. DGH functioning under
the ministry of MOP&NG plays a key role in the development
of CBM resources in India. Considering the global experiences
and competitiveness in CBM market, Govt. of India has offered
very attractive terms viz. no participating interest of the
government, no upfront payment, no signature bonus,
exemption from the payment of customs duty on imports
required for CBM operation, walk out option at the end Phase
I&II, freedom to sell gas in the domestic market, provision of
fiscal stability and seven years, tax holiday for the growth of
this new CBM industry so that varied national and international
companies involved in CBM exploration and exploitation
activities could participate and make a significant growth in
CBM sectors in India.
Recently, Union Minister of State for Petroleum and
Natural Gas Dinsha Patel said. India’s natural gas production is
likely to increase to 55.03 billion cubic metre (BCM) by 2010-
11 and to 63.23 BCM by 2011-12. The country’s production of
natural gas in 2006-07 is estimated to have been 31.742 BCM
as per projection made by ONGC, OIL and private companies
and joint venture companies in the country. In order to boost the
production of natural gas in India, the government is
accelerating the pace of exploration for oil and gas by offering
large acreages under successive rounds of New Exploration
Licensing Policy (NELP), Patel said recently. Many in the
industry feel that the seventh round of NELP is likely to be
announced soon as the government focuses on increasing
production through accelerated development of new discoveries
and increasing recovery factor from the existing fields.
Incidentally to supplement the availability of natural gas, the
government is already exploring and trying to facilitate
development of alternative resources, such as coal bed methane
(CBM) and is venturing in exploration of gas hydrate resources
for future options for availability of alternative hydrocarbon
resources, Patel said. He said that so far, the government has
awarded 26 CBM blocks in different coal fields of the country
and efforts are on to carve out some more blocks for offer under
future rounds of bidding. The exploration activities have
established encouraging CBM resources. There have been
significant finds in the eastern and central parts of India.
Development plans have already been approved by the
Government for one such block in West Bengal. Here
commercial CBM production for the first time in the country
has been already initiated at 23,000 cubic m per day, Patel said.
India is the third largest producer of coal in the world. If
effectively recovered, coal-bed methane gas associated with
coal reserves and emitted during coal mining could be a
significant potential source of energy in coal-rich but often
economically poor regions. Utilisation of CBM would introduce
a clean energy source and reduce local pollution and emissions
of greenhouse gases. The projects on CBM, a clean energy
option which reduces greenhouse gas emissions and can meet
local energy demand,
Status of Coal Bed Methane Investigations in India
are often capital intensive and need additional support from
internationally agreed mechanism like clean developmental
mechanism (CDM). Meanwhile, companies like ONGC in the
government sector and Essar in the private sector, have already
committed huge investments in developing CBM. Recently
Essar had reportedly found a CBM seam in one of its oil blocks
in Gujarat and the company is now awaiting permission to start
further work on the project. The Board of Directors of ONGC,
on the other hand, has already approved an investment proposal
of over Rs 950 crore, for exploration and development of CBM
in six blocks in Jharkhand and West Bengal.
The project, which was scheduled to begin production in
June 2007, had been slightly delayed. An estimated peak
production of 7.84 lakh cubic metres of gas per day is being
targeted from the proposed development wells. Out of the
projected expenditure, Rs 557 crore has been earmarked for the
development of early CBM production in Central Parbatpur area
of Jharia block and Rs 392 crore has been approved for drilling,
completion and testing of 22 pilot wells in Jharia, Bokaro and
North Karanpura CBM blocks, with completion schedule of 31
months, from the date of placement of letter of intent (LoI). The
Jharia CBM block is located within Jharia coalfield, around 25
kilometres east of Bokaro Steel city. The total area of Jharia
block is 84.5 square kilometres, out of which the Parbatpur area
comprises 18 square kilometres, and the area under the present
production scheme is 6 square kilometres. ONGC will deploy
advanced drilling technology, viz. Horizontal -Inseam-
Multilateral drilling technique for the first time in India, after its
proven success by CBM operators in Australia and the US.
While the Jharia nomination block is jointly held by ONGC (74
percent) and Coal India Ltd (26 percent), in other blocks like
Raniganj in West Bengal, ONGC will have 90 percent stake and
CIL 10 percent. In Bokaro and North Karanpura, ONGC will
have 80 percent stake with the rest being shared by Indian Oil
Corporation. In South Karanpura and North Karanpur-West
Block in Jharkhand, ONGC will be going alone. Coming to
Essar Group, which was one of the first private business houses
in India to participate in bidding rounds for exploration blocks
in 1993, has got participating interests in several blocks in India
and overseas for exploration, production and development of
oil, gas and CBM. It was the first Indian company to recognise
the CBM potential in India in the early 1990’s and undertake
drilling, hydro-fracturing and de-watering of three CBM wells,
in the Cambay Basin, near Mehsana in Gujarat. The economic
viability of the project was established through this pioneering
work and currently efforts are underway to obtain rights for
development of CBM in this area. Essar’s drilling services have
been revived with the acquisition of 13 oil field rigs including
one coring rig (CBM) and one semi-submersible for its in-house
requirements, as well as for contractual services. The company’s
Raniganj block, of which Gardes Energy, US, is the drilling
technology partner, is spread over an area of 500 sq. km located
in the coal belt of the Eastern Raniganj Coalfields. The
estimated reserves are about 42 BCM. Essar was the first Indian
company to recognise the potential of CBM in India in the late
1980s and wanted to undertake CBM drilling. Discussions were
231
held with various CBM producers in the US. Three wells were
drilled, hydro-fractured and de-watered in Cambay Basin to
successfully test the lignito-bituminous coals. The economic
viability of the project has been established. The efforts were
supported by GIIC; the project was sponsored by USAID under
PACER. Incidentally, there had been certain roadblocks in
extraction of CBM as there were certain issues like how
extraction of coal and CBM could be done simultaneously in a
block as per the prevailing govt. guidelines. The issue related to
simultaneous exploitation of coal and CBM in the same area
had been discussed by Ministry of Coal and Ministry of
Petroleum and Natural Gas along with other concerned agencies
and an expert committee was constituted in March under the
Chairmanship of the Adviser (Projects), Ministry of Coal. Other
members in the committee were representatives of Directorate
General of Hydrocarbons, Oil Industry Safety Directorate,
Central Mine Planning and Design Institute, Directorate
General of Mine Safety and Coal Controller as an invitee with a
Deputy Secretary of Ministry of Petroleum and Natural Gas as
Member Secretary.
ORIGIN OF METHANE
Coal bed methane evolve during the transformation of the
organic matter in the swamp, which later converts into peat
after burial under reducing condition. As temperature increases
the peat converts into lignite followed by sub- bituminous,
bituminous low-volatile medium-volatile, high volatile
anthracite and graphite. This process is known as coalification.
During this process at early stage biogenic methane evolve,
later thermogenic methane is formed. Much of the methane
generated by the coalification process escapes to the surface or
migrates into adjacent reservoir or other rocks, but a portion is
trapped within the coal itself. In early stages of coalification,
biogenic methane is generated as a by-product of bacterial
respiration. Aerobic bacteria (those that use oxygen in
respiration) first metabolize any free oxygen left in the plant
remains and surrounding sediments. In fresh water
environments, methane production begins immediately after the
oxygen is depleted (Rice and Claypool, 1981). Species of
anaerobic bacteria (those that don’t use oxygen) then reduce
carbon dioxide and produce methane through anaerobic
respiration (Rice and Claypool, 1981).
When a coal’s temperature underground reaches about
122°F and after a sufficient amount of time, most of the
biogenic methane has been generated, and about two-thirds of
the original moisture has been expelled, the coal attains an
approximate rank of sub-bituminous (Rightmire, 1984a). As the
temperature increases above 122°F through increased burial or
increased geothermal gradient, thermogenic processes begin
and additional water, carbon dioxide, and nitrogen are generated
as coalification proceeds to approximately the rank of high-
volatile bituminous (Rightmire, 1984b). Maximum generation
of carbon dioxide, with little methane generation occurs at
about 210°F. Generation of thermogenic methane begins in the
higher ranks of the high volatile bituminous coals, and at about
250°F, generation of methane exceeds generation of carbon
dioxide. Maximum generation of methane from coal occurs
232
at about 300°F. With even higher temperatures and higher rank
coals, methane is still generated, but at somewhat lower
volumes (Rightmire, 1984 a and b). Primarily adsorbed on or
absorbed within micro pores of the coal.
Coal bed methane is found associated with the coal/ lignte
beds. This is the product that evolves during the process of
coalification generally more in quantity than the coal can hold.
Some of the gas escape in the surroundings but some of it lie in
the coal under hydraulic pressure. Coal is unique in its
behaviour as it acts as a source as well as a reservoir rock.
Generally the gas content increases with rank.
Permeablity in coal is the result of naturally occurring
fractures referred to as cleats. Generally the coal bed acts as an
aquifer in view of its richness in water holding capacity in
comparison to other conventional gas reservoir owing to the
higher internal surface area. Methane is normally adsorbed in
the internal surface of the coal and can not be easily detected by
conventional gas-well drilling technology. To produce the gas
from the coal reservoir, water must be pumped out, and suitable
methods should be chalked out for the disposal of the water,
depending upon the quality to avoid the environmental problems
in and around the area. As each basin has its own geological
characteristics vis-a-vis coal characterization, hence to make
analogy of one basin with others may not be fruitful and is
rather often misleading as comparison of San Jaun and Powder
River Basin does not hold to the expectation of the CBM
developers (Fails, 1996) in Europe. Therefore the techno-
economic aspects should be dealt with fuller understanding of
the basinal characteristics.
The preliminary assessment of CBM resources of the
country can be adjudged by their coal resources. It has been
estimated that there are over 909 billion tonnes of proven coal
reserves worldwide and distributed on every continent in over
70 countries, with the biggest reserves in the USA, Russia,
China and India. Therefore a very good prospect for CBM
availability exist in the country. All fossil fuels will eventually
run out and it is essential that we use them as efficiently as
possible. While it is estimated that there is enough coal to last us
155 years, this could extend still further through a number of
developments including: the discovery of new reserves through
ongoing and improved exploration activities; advances in
mining techniques, which will allow previously inaccessible
reserves to be reached. Additionally, significant improvements
continue to be made in how efficiently coal is used so that more
energy can be generated from each tonne of coal produced.
(Optima 2005, WCI, 2005). For the prospectivty of CBM in any
virgin area, the acquisition of varied exploration and laboratory
data are important viz., The total area of the project, the number
of seams, their thicknesses, roof and floor characteristics along
with the bands of each seam together with their time and space
relationship in the area; proximate and ultimate analyses, rank
of coal, geological structure, hydrological regime of the area
geothermal gradient, reflactance, maceral composition,
microlithotypes, mineral matter as per International
Commission For Coal and Organic Petrology(ICCP),
fluorescence microscopy for ascertaining
Glimpses of Geoscience Research in India
the micro-cleat under UV light, Gas composition and
percentages, desorption characteristics, adsorption isotherms
study, Permeability and porosity Cleat and fracture pattern,
analysis of cleat- filled minerals, quality of adsorbed water etc.
Besides, reservoir engineering and modeling, the rock
mechanical testing etc. are also to be carried out.
Facies play an important role in the development of the
huge Gondwana coal deposits in India that mainly lie along the
five major tectonic lineament viz; Damodar-Koel valley, Son-
Mahanadi valley, Wardha- Godavari valley, Pench-Kanhan-
Tawa valley and Rajmahal area. The economically important
coal deposits occur in Barakar and Raniganj formations of
Lower Gondwana Sequence in Damodar Valley basins i.e.
Jharia, Raniganj, East Bokaro, West Bokaro, Ramgarh,
Girdeeh, North Karanpura and South Karanpura - a store house
of huge potential area for the development of CBM and also in
other basins in their time-equivalent strata viz. Kamthi in
Godavari valley. The coals of Tertiary age are mainly
developed in Assam, Meghalaya, Arunachal Pradesh, Tamil
Nadu, Rajasthan and Gujarat and are of lignitic to sub-
bituminous in rank and are mostly thought unsuitable for coal
bed methane target however, new information on methane
occurrences were recorded in the lignitic horizon of
Mannargudi and Bahur areas of Tamil Nadu has opened a new
window for CBM development in south India. Neyveli Lignite
Corporation of India is planning to work for CBM development
in the area in near future. The targeted area has 5500 MT of
lignite deposit containing the likely gas reserves of 8250 MCM.
The geological setup compares well with the Powder River
Basin, northeastern Wyoming, USA, In this basin, wells
produced about 823 Mcf per day of coal bed methane US
Department of Energy, 2002). The geological characteristics of
Tamil Nadu/Mannargudi lignites depict deltaic lacustrine
settings showing the following average thickness of seam is
45m, ash varies from 2-12% reflectance varies from 0.35-
0.41%. Lignite beds are associated with aquifer zone, mostly
occurring at varying depth of 50-600m Besides the most
important gas content is of 1-2 m3/t. The total basket containing
such geological and coal characteristic seems to be the potential
areas of CBM development in southern India. The depositional
environment of Powder River Basin, northeastern Wyoming
and southern Montana, is of deltaic lacustrine setting of
Paleocene age The seam average thickness is of 30 m, ash is of
low to moderate, reflectance ranges from 0.34-0.39% in oil,
lignite acts as aquifer between less permeable sand stones The
gas content is in order of 1-74 Scft/t (0.03-2.3 m 3/d). The
analogy of comparing the basin properties may give rise-some
idea/ confidence for getting the exploration licence for the
production of CBM in the targetted areas. But the experiences
from European basins i.e, Kent, Oxford and Western Ruhr
Basin of Europe show abnormal anomalous relationship of
various parameters i.e., coal rank vs in-situ methane content:
rank of these basin indicates the higher content of CBM in seam
than what exists today, similar situation can also be observed in
Bristol-Somerest Basin where medium-volatile and high-
volatile A bituminous coals occur; As the rank increases the
CBM content also increases with depth. It is
Status of Coal Bed Methane Investigations in India
most acceptable view point in CBM prospectivty but it has
come in the notice that the rank and methane contents also vary
laterally. This suggests that rank and CBM contents have time
and space relationship, evidences for such observation has come
from the most important CBM basin of the world viz. Black
Warrior and San Jaun basins of USA (National Coal Board,
1960; White, 1991). In view of the above facts, it is important
that every basin/project should be viewed on the basis of its own
merits/demerits so that the reservoir modeling for the
exploitation of CBM resources could be initiated, and
accordingly the technology should be planned with cost
economics. The thickness of seams is 45 m in the Tertiary coals
in petroliferous basin of Cambay, Upper Assam and Assam–
Arakan may be prospective owing to reported higher gas
content, which is probably stored in the coal after generation
from deeper-lying hydrocarbon source beds or may be of
biogenic origin. The first CBM was reportedly discovered from
Cambay Basin of Gujarat by Essar Oil Group. India is among
the top ten countries in coal resources, having an estimated coal
reserve of 160 million metric tons, with an estimated methane
resource of 850 BCM. The coal characterization particularly its
Physico-chemical characteristics of Raniganj and Barakar coals
have shown their susceptibility to spontaneous combustion
leading to coal fires in the Raniganj Coalfield, West Bengal,
India (Saxena et al, 1990). Most of the mine fire accidents
during the period of eight years were found to occur in Raniganj
coal seams R-X,R-IX,R-VIII,R-VII,R-VI,R-V,R-IV,R-III,R-
II,R-I due to Spontaneous combustion in the area suggesting the
richness of Raniganj coals in CBM contents. The rank
parameters were also suggestive of the possibilities of high
CBM generation in these beds. Petrographic composition also
facilitate the movement of these gaseous content through the
microscopic fractures i.e. the cleats. As evident, methane play
an important role in causing the fire accidents considered earlier
as mining hazards if not attended carefully. But now, this has
became a resource for future energy needs. CBM industry is in
infancy stage in India and need to be very careful in
characterizing and interpreting the coal data viz., Tectonic
history, Depositional environment, thickness of the coal strata,
no of coal seams and their thickness in time and space
relationship, quality characteristic of the targeted seam i.e.
proximate and ultimate analysis, Relectance characteristic and
its behaviour in time and space, Cleat Characteristics, generally
based the data packages on the earlier work done in the
Gondawana basins for other coal utilization purposes.
Imported Equipment for CBM Development Exempted
from Customs Duties (DGH, 2004-05)
In May 2001, the Indian government for the first time
offered blocks for exploration and production of CBM through
an international bidding process. Reliance Industries, Essar, and
ONGC won the bids for the blocks. The government launched a
second round of bidding on nine CBM blocks in May 2003
(USEPA, 2005a; Chand, 2001). Eight blocks were awarded to
Reliance and ONGC. To date the Ministry has offered 16
prospective CBM blocks in the first two rounds of bidding
covering an area of around 7,800 square kilometres and
estimated to contain 820 billion cubic
233
metres of CBM resources. Expected total production from these
blocks is estimated at 23 Million Standard Cubic Meters per
Day (MSCMD) at their peak production level. Over the last
three years, more than 75 exploratory (test) wells have been
drilled in the awarded blocks. The Directorate General of
Hydrocarbons recently offered an additional 10 CBM blocks
during a third round of open international competitive bidding
that closed in June of 2006 (Prasad, 2006).
Estimates of India’s CBM potential vary. One source
estimates up to 2 trillion cubic meters of CBM in 56 coal basins
covering 64,000 sq km. Coal in these basins is high volatile to
low volatile bituminous with high ash content (10 to 40%), and
its gas content is between 3-16 cubic meters/tonne (Singh,
2002). The Directorate General of Hydrocarbons estimates that
deposits in 44 major coal and lignite fields in 12 States of India
covering an area of 35,400 sq km contain 4.6 TCM of coalbed
CBM depending on the rank of the coal, depth of burial, and
geo-tectonic settings of the basins (Prasad, 2006).India is a non-
Annex 1 country under the UNFCCC and it is not obligated to
reduce carbon and greenhouse gas emissions. Its first national
communication provided emissions estimates in 1994. These
emissions are projected to continue to grow as the economy
expands (EIA, 2004a). India accepted the Kyoto Protocol in
2002. As a Non-Annex 1 party, India is eligible to receive
financing for GHG mitigation projects such as CMM projects
under the Clean Development Mechanism.
Cost and investment capital remain significant barriers to
technology development, application and CMM and CBM
project development in India. Several research and development
resources are available, including the Central Mine Planning
and Design Institute (CMPDI) and the Central Mine Research
Station (CMRS). Gas demand is rising sharply in India, and
CMM and CBM will compete with imported natural gas and
LNG to meet it (Singh, 2002). Coal India estimates a supply
gap of approximately 40 billion cubic meters that must be met
by imports. CMM and CBM gas would compete favourably
with imported coal, gas, or LNG on a fuel cost basis for power
generation (INR 1.82 v. INR 2.14 - 2.48 per unit of generation)
(Singh, 2002). There is an assured market provided
deliverability infrastructure is developed (Singh, 2002).
Investment in coal and gas transportation infrastructure,
including gas gathering, transportation and distribution, are
necessary to fill this gas and to move CMM and CBM from coal
fields to local and more distant end-use markets. End-use
markets include rural power generation, commercial power
generation, and transportation fuels. A memorandum of
understanding between the Ministry of Coal and Ministry of
Petroleum & Natural Gas governs the procedures for CBM
exploration and exploitation. CBM blocks are allocated after
mutual consultations between the two ministries (Prasad, 2006).
The Ministry of Coal oversees coal resources while the Ministry
of Petroleum and Natural Gas oversees CBM resources. India’s
heavy reliance on coal, much of it low-quality, is a major cause
of the country’s relatively high carbon intensity level.
Environmental standards for limiting gas emissions from
surface or underground coal mining
234 may join the rank of the few countries that commercially
produce CBM. During XI Five Year Plan, CBM gas production
operations, as well as emissions from coal and gas combustion,
are largely lacking. Prices of coking and higher quality steam
coal were deregulated in 1996. Complete deregulation of prices
for all coal qualities took place in 2000. Prices now vary
according to quality, but mining companies are still unable to
set prices that reflect full production costs. Coal import duties
were reduced from 85 percent to 10 percent between 1994 and
1997. Import taxes were reduced from 35 percent to 3 percent in
1997.
RESERVES
Coal reserve of the North-Eastern Region upto a depth of
600 metres, as assessed by GSI as on 01.01.2006 is 945.03
million tonnes only, which is just 0.37% of the national total
coal production but it has its own importance so a as the
sustainable and economic development of these areas are
concerned, The mines include a) Assam: i) Makum Coalfields,
ii) Dilli-Jeypore Coalfields; b) Meghalaya: i) West Darangiri
Coalfields, ii) Balphakram-Pendenguru Coalfields, iii) Siju
Coalfields, iv) Langrin Coalfields, v) Bapung Coalfields; c)
Arunachal: i) Namchik Coalfield, and d) Nagaland: i) Borjan &
Tuensang
North-Eastern Region coals are characterized by Ash
: 4% to 25%; Volatile Matter : 34% to 45% Calorific
Value
: 5500 to 7500 K.Cal/Kg ; Sulphur : 1.5% to 4%
(predominance of organic sulphur) ; Caking Index : 5
to 31.and at present used by various sectors, like
power, cement, paper, brick burning, cookeries, tea
gardens and other local industries. The coalfields lie
in remote areas and depicts that the main problem of
NEC’s u/g mining is high seam gradient & high
degree of gassiness. Considering the characteristic
coal properties particularly its gassiness it could be a
good resource of CBM potential in the area besides
the development of local market of tea garden,
ceramic, and cement.

COAL BED METHANE (CBM) POLICY

CBM is a natural gas (methane) adsorbed in coal and
lignite seams and is an eco-friendly source of energy. Coal is
both the source and reservoir rock for CBM. CBM production is
done by simple depressurization and dewatering process. To
harness this new source of energy in the country, the
Government approved a comprehensive CBM policy in July,
1997 for exploration and production of CBM gas. As of now, 23
CBM blocks have been awarded through competitive
international bidding under first three rounds of CBM policy,
under which blocks are being operated by technically competent
companies, 2 blocks were awarded on nomination basis and one
block through FIPB route sixteen CBM exploration blocks are
under operation and contracts for 10 blocks under CBM-III have
been signed recently in November, 2006 (against which 54 bids
had been received). Thus, Government has signed contracts for
26 blocks covering an area of 13,600 sq. km. The total
committed investment in these blocks is of the order of Rs. 675
crore. As on 1.4.2006, Rs. 170 crores was already invested by
the operating companies in CBM blocks. In just 4 blocks, over 6
TCF of gas reserves have been established. In 2007-08, India
 Glimpses of Geoscience Research in India

is envisaged as 3.78 billion cubic metres (MOP&NG, 2006-07).

PRICING
With the declared intention of moving towards market-
determined pricing for petroleum products, Government
announced the dismantling of the Administered Pricing
Mechanism (APM), effective 1.4.2002. However, there has been
an unprecedented, sharp and spiraling increase in international
oil prices, particularly since late 2003, combined with
considerable week-to-week and even day-to-day volatility.
Therefore, Government in June 2004, elucidated the principles
which would govern its policy of containing the burden of
increase in international prices on consumers of sensitive
petroleum products. It was decided that the burden should be
equitably shared by consumers, the Government and the oil
companies. CBM product would also covered by this policy.

CBM POTENTIAL

Significant CBM Exploration Activities

The CBM potential the country is of highly encouraging in
nature, but the main impediments on the way to exploit these
resources are lack of technical understanding and experience,
insufficient training and education skills, lack of advanced
technology suited to mining and geological conditions and little
understanding of the market conditions and commercial issues.
In India, 16% of the area is identified for exploration, 22% of
the area in which the exploration has been initiated 62% area of
Gondwana (35000 sq km is unexplored). Total coal bearing area
is of 35400 sq km consisting or 44 major coal and lignite fields
distributed in 12 states depicting the prognosticated CBM
Resources of 162 TCF (4.6 TCM). Indian energy sector has
shown that there is no change in the position of coal but the gas
demand will increase from 8% to 10%. And would continue to
increase there by widening the gap between demand and supply.
According to some estimates that CBM could be able to
contribute up to 15% of India‘s natural gas production. The
CBM distribution chart statewise share is more encouraging for
future development. The current activities in CBM exploration
and production depicts that 16 Blocks were awarded under
CBM- I & II, Area Opened-up for CBM Exploration: 7800 sq
km CBM resource in the awarded blocks are to the tune of 820
BCM. The production Potential of these Blocks are 23
MMSCMD with a exploration commitment of 121 Core Holes
and 211Test/Pilot Wells. The cost of the project was to the tune
of US$ 150 million. The success story of this project indicates
the significant discovery of CBM in central & eastern part of
India with a steady flow of 10,000 m3 of gas per day was
achieved. Drilling of pilot/development wells are in progress.
Commercial potentiality of the identified fairways was
established. The commercial production was expected in the last
end of 2007. During this operation air drilling technology
employed for the first time in India for drilling of CBM test
wells. Faster drilling and well completion rates of average 7
days/well and 15 days/corehole achieved against an average of
60 days required earlier for similar operations. To establish the
commercial potentiality of the
Status of Coal Bed Methane Investigations in India
identified fairways in different blocks, additional 80 wells are
proposed to be drilled. Continuous CBM gas flaring is in
progress in the test wells drilled in eastern and central parts of
India.
CBM MARKETING PATTERN IN INDIA
The present scenario of rapidly increasing demand of CBM
is highly encouraging for the year 2006-2007 the demand was of
231 MMSCMD and supply was 95MMSCMD and expected to
grow from 168 MMSCMD supply demand was 313 MMSCMD
in the year 2011-12 and in the year 2024-25 supply would be
170 MMSCMD while demand is expected to grow upto 391
MMSCMD (DGH,2006) Directorate of Hydrocarbons recently
took new areas for CBM exploration activities in CBM-III
BIDDING. Based on the characteristic properties viz;
occurrence of thick coal seams at favourable depth, high seam
density, good thermal maturity, favourable permeability, good
gas content, sizeable coal reserves. Recently, Govt. of India
further announced 10 blocks in order to explore and produce
(CBM). Out of these, two blocks each are located in the States
of Andhra Pradesh, Chhattisgarh, Madhya Pradesh and
Rajasthan and one block each in Jharkhand and West Bengal
(MOP & NG, 2006). The geological characteristic of these
blocks along with necessary reservoir characteristics have been
provided in detail as follow :
RAJMAHAL COALFIELD, JHARKHAND
Rajmahal coal belt is defined by several disconnected coal
basins viz., Hura, Chuperbhita, Pachwara, Mahuagari and
Bramhani Coalfields along the western fringe of the Rajmahal
hills. This area constitutes a prominent Cretaceous tholelitte
volcanic province in the East Indian crustal block. The coal
measures are exposed in the eastern marginal part of a large
master basin which extends from Purnea trough in north Bihar,
across the Rajmahal hills to the Bengal basin in the southeast
which have a unified history of basin development in Lower
Gondwana period (L Permian). The guiding factors for
delineation of a CBM block in this coalfield include occurrence
of thick coal seams (about 40-60m) below a variable cover of
300-600 m of younger strata with an average gas content of 5-6
m3/t. The adsorption isotherm shows sorption content of 7.1 –
8.7 m3/t of gas at a pressure of 46.66 to 57.19 atmospheric. One
of the main reasons for greater gas generation and storage is the
exposure of coal seams to varying thermal regime below an
extensive cover of Rajmahal volcanic suite and the low stress
regimes in relaxed structural setting. One CBM block viz. RM-
CBM-2005/III covering an area of 469 sq km is on offer for
exploration and production of CBM. The CBM resource of the
block is estimated at 158 BCM (5.58 TCF).
BIRBHUM COALFIELD, WEST BENGAL
The Birbhum Coalfield excepting a narrow strip on the
western margin may be regarded as a concealed coalfield, where
Barakar coal measures of Lower Gondwana sequence is covered
under a thick sequence (132-322 m) of younger horizons. This
Coalfield may be best described as the south-westerly extension
of Rajmahal coal-belt in West Bengal. Birbhum coalfield, thus,
shows some common history of
235
basin filling during the Gondwana period with that of adjacent
Rajmahal Coalfields and at the same time displays some
characteristic features of coal formation unique to this coal
basin. Here, Barakar Formation contains four thick to very thick
Coal seam zones. In the south central part of Pachami area, a
super-thick seam of 91-159m has developed over a strike length
of 2 km. This prolific development of Coal is hitherto
unreported in any Gondwana basin. The concealed nature of the
basin, development of very thick/ super-thick seams containing
sections of good quality Coal and the pervasive heat flow from
200 m thick volcanic suite to underlying coal measures all
contribute to the CBM potentiality of the field. Desorption and
adsorption isotherm data generated from the northern part of the
field shows that coal seams often store 5-6m 3/t of gas. One
CBM block viz. BB-CBM-2005/III covering an area of 248 sq
km is on offer for exploration and production of CBM. The
CBM resource of the block is estimated at 50 BCM (1.77 TCF).
SOHAGPUR COALFIELD, MADHYA PRADESH
Encouraged by the result of exploratory drilling activities
in the two CBM blocks awarded under CBM-I round of bidding
located in the central part of this coalfield, it was felt
appropriate to carve out a block NIO.p65 2/20/ 2006, in the
north-northwestern part of this coalfield. The northern part of
Sohagpur coalfield has a complex history of dolerite intrusion,
which may influence the generation of gas. The exploration in
Nigwani-Bakeli area within the proposed block revealed the
occurrence of Barakar coal measures below 300m cover of
Barren Measure and Raniganj Formation. Five regional seams
are developed in Barakar Formation. The cumulative coal
thickness in the block varies from 3-10m. The borehole in CBM
block shows that coals attain higher rank with low moisture and
high carbon content. Gas seepage in nearby area also indicates
storage of gas in deeper seams. The adsorption isotherm of
seam-I (558m) at 47.31 atmospheric pressure give moisture
equivalent gas content of 6 m 3/t. Proximity of the Sohagpur
North block to the prospective CBM blocks in the central part
of the Coalfield lends credence to the possibility that the
fairways of the blocks in the southern part may extend to this
northern sector. One CBM block viz. SP (North)-CBM-2005/III
covering an area of 609 sq. km is on offer for exploration and
production of CBM. The CBM resource of the block is
estimated at 16.72 BCM (0.59 TCF).
SINGRAULI MAIN BASIN CBM BLOCK, MADHYA
PRADESH
Singrauli Coalfield is a major repository of coal in the
heartland of the country. It is a composite basin composed of
Moher sub-basin in the east and main sub-basin on the west
which are separated by a concealed basement high. The Moher
sub-basin is well known for prolific coal development where
extensive mining operation is in progress. The main sub-basin
has very large spread where the Barakar coal seams of Lower
Gondwana sequence (Permian) are concealed below a variable
cover of younger sediments. The deeply buried coal seams of
the main basin offers good prospect for CBM exploration. The
Barakar coal measures in the main sub-basin where the CBM
block has been carved out, contains eight coal seams. The
adsorption
236
isotherm for coal occurring at 300-600m depth level show gas
content of 8.3-9.7 m3/t at pressure of 49.79-66.96 atmosphere.
The persistent development of moderately thick Barakar seams
of high volatile bituminous B/C rank, with an average gas
content of 4 m3/t with localized supply of heat from igneous
intrusions, all in combination are likely to contribute to CBM
gas generation and storage in seams. One CBM block viz. SR-
CBM-2005/III covering an area of 330 sq km. is on offer for
exploration and production of CBM. The CBM resource of the
block is estimated at 31.0 BCM (1.1 TCF).
TATAPANI – RAMKOLA COALFIELD, CHATTISGARH
Tatapani-Ramkola Coalfield occurs in the structural
junction between the Damodar valley and the Son valley
Gondwana basin belts. The basin depicts structural and
stratigraphic similarity with that of adjacent Gondwana basin of
the Damodar valley whereas the pattern of coal formation and
sandstone dominated cycles of Barakar coal measures are more
characteristic of the Son valley belt. Because of the close
similarity of its basinal history with that of the Damodar valley
belt which is a major store house of CBM, it is logical to look
for CBM potentiality in the virgin Tatapani-Ramkola Coalfield.
NIO.p65 2/20/2006, Exploration in Barkagaon revealed the
occurrence of twelve regional Barakar coal seams at a depth of
300-750 m. Adsorption isotherms of Coal from Barkagaon show
a sorption capacity of 7.4-8.1 m3/t of gas at a pressure of 58.2-
86.7 atmospheric in the block. The coalification gradient in
Tatapani -Ramkola coalfield is suggestive of significant
methane generation in the deep-seated seams of the CBM
blocks. One CBM block viz. TR-CBM-2005/III covering an
area of 458 sq km is on offer for exploration and production of
CBM. The CBM resource of the block is estimated at 53.78
BCM (1.9 TCF).
MAND-RAIGARH COALFIELD, CHHATTISGARH
The Mand-Raigarh Coalfield occupies the central part of
the upper Mahanadi valley Gondwana belt and extends over a
large stretch lying between Ib valley in the east and Korba and
Hasdo-Anand Coalfields in the west and north west. The
practically virgin Mand-Raigarh Coalfield provides ample
opportunity for exploring CBM in the deeper axial region of the
basin. This coalfield displays a shallow synclinal structure with
axis trending in NW-SE direction and the southern basin margin
is demarcated by the prominent boundary fault. In the central
part of the coalfield where Barakar coal measures lie at greater
depth below the younger sediments, a CBM block has been
demarcated. In general twelve coal seams are developed in
Barakar Formation. The cumulative coal thickness in the CBM
block varies from 30 to 35 m, the Coal thickness tends to
increase towards south near Chhal area. The coals broadly
correspond to high volatile bituminous ‘B’ to ‘C’ in rank. With
the increase of depth of burial the coal seams are likely to store
substantial amount of methane. Desorption studies of coals
indicate that deep-seated coal seams in the CBM block hold at
least 4.5-5.5 m3/t of gas if not higher. The hydrogeological
sudies also reveal that the coal seams are under normal
hydrostatic pressure, which will facilitate good sorption of
Glimpses of Geoscience Research in India
gas on coal. One CBM block viz. MR-CBM-2005/III covering
an area of 634 sq km is on offer for exploration and production
of CBM. The CBM resource of the block is estimated at 119
BCM (4.2 TCF).
SOUTHERN GODAVARI VALLEY COALFIELD
(KOTHAGUDEM), ANDHRA PRADESH
The Godavari valley coalfield is the largest Gondwana
basin covering an area of about 17500 sq km in Andhra
Pradesh, India. It extends in NW-SE direction from the border
of Maharashtra in the heart of central India to the east coastal
region. The basin is filled by 6000 m of sediments of early
Permian to Cretaceous age and is the major coal-producing area
in south India. The Gondwana basin displays a typical rift
structure with prominent boundary fault along its margin and is
analogous to the petroliferous Cooper basin of Australia where
large resource of gas has been estimated from Gondwana
equivalent horizons. The coals of the Godavari CBM block
belong to high-volatile bituminous B/C rank. Desorption studies
indicate that coal seams in the 600-1000m depth range within
the CBM block, may hold on an average 4-5 m3/t of gas. The
CBM block has been delineated in the eastern side of the
Kothagudem area and covers part of the main sub-basin across
the Paloncha neck in the dip side of Anisetthipalli and
Kothagudem blocks. The CBM block shows development of
lower Gondwana sequence comprising coal-bearing Barakar
Formation, Barren Measures and upper coal measures of
Raniganj Formation. The Barakar Formation of Kothagudem
sub-basin where a large part of the CBM block is located
contains two coal seams. The cumulative coal thickness shows
variation from 4.5 m to 26 m. One CBM block viz. KG (East)-
CBM-2005/III covering an area of 750 sq.km. is on offer for
exploration and production of CBM. The CBM resource of the
block is estimated at 57.2 BCM (2.02 TCF).
NORTHERN GODAVARI VALLEY COALFIELD,
ANDHRA PRADESH
The Barakar Formation (Lr. Permian) of the Lower
Gondwana sequence is the main coal-bearing unit. Presence of
one coal seam has been recorded from Raniganj Formation (Up.
Permian) also. The coal-bearing Barakar Formation is exposed
along the northwestern margin of the basin where extensive
mining operation is in progress from Dorli-Belampalli belt in
the north through Somagudem-Indaram in the centre to
Ramagundam belt further south. The dip side of these mining
belts is considered to be the most potential target area for CBM
exploitation. In these areas, as many as 10 coal seams of 0.6 to
18.2 m thickness have been established in Barakar Formation
though 4 to 5 seams are more persistent. The coal seams are by
and large high-volatile bituminous ‘B’ in rank with vitrinite
reflectance of 0.6 – 0.7% within 600m depth limit. There are,
evidences of enhancement of rank of coal with greater depth of
burial. Adsorption isotherm of Barakar coal seams and limited
desorption data show that the coals are likely to store 4- 5 m3/t
of gas upto 1000 m depth, which may increase at greater depth
of burial with better permeability due to intensive high fracture
density in rift setting. One potential CBM block viz. G
V(North)-CBM-2005/III covering an area
Status of Coal Bed Methane Investigations in India
of 386 sq km in the northwestern part of the Godavari
Gondwana basin, is on offer for CBM exploitation. The gas in
place resource of the CBM block is estimated at 29.65 BCM
(1.05 TCF) within a depth range of 450 to 1500m.
BARMER BASIN, RAJASTHAN
The Barmer basin which lies in the Thar desert of
Rajasthan, is a narrow elongated rift extending from Fatehgarh
Fault in the north to Sanchor depression in the south and shows
continuity with the Cambay graben of Gujarat. The sedimentary
sequence in Barmer basin ranges in age from cretaceous to
recent, having a maximum thickness upto 4 km. Thick lignite
horizon is reported to occur at variable depth over the length
and breadth of the basin. The lignites occur in middle Eocene
Tharad Formation and its equivalent Thumbli Formation in the
basin. This lignite-bearing sequence is homotaxial with the Kadi
and Kalol Formation of Cambay basin. The geological and
geophysical investigations carried out during the last decades,
by some international oil/gas operators gave a fillip to the search
for CBM in Barmer rift. Based on an integrated study of seismic
data and borehole records, it is observed that the lignite horizon
attains its maximum thickness of about 60-70 m in the deeper
part of the basin and it reduces to around 20-30 m near the
faulted basinal margin. The adsorption isotherm studies of
samples from one of the borehole, conducted by DGH revealed
encouraging results. The desorption tests indicate a gas content
of 3-4 m3/t of gas in 600-1200 m depth range. Further, the
seismic survey depicts that the lignite seam is often
faulted/fractured which may account for high permeability.
Two CBM blocks viz. BS(4)-CBM-2005/III in the western
flank and BS(5)-CBM-2005/III in the eastern flank of Barmer
rift, measuring an area of 1168 sq km and 739 sq km
respectively have been carved out and are on offer for CBM
exploration and production. The estimated CBM resources of
BS(4)-CBM-2005/III and BS(5)-CBM-2005/III are 82.0 BCM
(2.9 TCF) and 38 BCM (1.34 TCF) respectively.
ONGC’S EXPERIENCE IN CBM
Total coal resources allocated to ONGC for the
development of CBM is 248 BT. Out of this CBM resource is
expected to be 35 to 105 TCF. Virgin CBM, Coal Mine
Methane (CMM) and Abandoned Mine Methane (AMM) are
Yet to start. CMM &AMM also hold great potential.
ONGC’s Initiatives Started in
1995: Drilled first R&D well in Durgapur depression, West
Bengal.
1997: First CBM flow in the country from a well drilled in
Jharia Coal field, Jharkhand.
1999: Drilled 3 more Exploratory wells in Parabatpur area of
Jharia Coal field.
• 2000-2002: Unique multizone completion resulting
into test flow of 3.5 BCF of CBM from a single well.
• 2003: Established sustained production rate- 225000
scfd per well.
• 2004-2005: Formulation of pilot development plan,
beside enhanced exploratory efforts in CBM acreages.
237
HIGHLIGHTS
ONGC operates 9 CBM blocks in the states of W. Bengal,
Jharkhand, Maharashtra, M.P & Gujarat CBM blocks in
Jharkhand in terms of resource concentration are comparable
with the producing basins of USA and Australia, 41% CBM
acreage holding in the country with 54% of CBM resources,
Planned to put CBM to market by 2007
Market Scenario Ready market in the vicinity of
production, prospective consumers Steel, Power & Refractory
industries; Positive returns at gas selling price of US$5/
MMBTU.
CBM to Market from Parbatpur Area in Jharia
To begin with development of 6 sq km from Central Part
of Parbatpur area of Jharia field, CBM Block with 14 horizontal
multilateral wells.
GREAT EASTERN ENERGY CORPORATION (GEECL)
ENDEAVOUR
CBM Production
In 2007-08, India has joined the rank of the few countries
that commercially produce CBM. During XI Five Year Plan,
CBM gas production is envisaged as 3.78 billion cubic metres
(GOI, 2006). Great Eastern Energy Ltd begins CBM
production. The block is located adjacent to Asansol industrial
city in Burdwan district of West Bengal offering the company
ample opportunity to sell CBM locally. The company has also
commenced CNG supplies (with 96 per cent methane content)
through six stations in and around Asansol, (GEECL) plans to
raise Rs 300-350 crore ($83-88 million) loan finance from
domestic and foreign sources to complete the first phase of
development of Ranigunj CBM block. The company - listed in
the AIM segment of the London Stock Exchange - has earned
the reputation of pioneering the commercial production of coal
bed methane (CBM) in India from its Ranigunj block in West
Bengal. Company has already invested approximately Rs 175
crore through equity in drilling 23 production wells. Current
production is roughly 760 thousand cubic feet a dayand
expecting the production to touch 1.5 million cubic feet a day
(mcfd) shortly. The 210-sq km nomination block is located
adjacent to Asansol industrial city offering the company ample
opportunity to sell CBM locally. To begin with, GEECL will
enter into two firm supply agreements with a local ceramic
manufacturer and bakery for replacing liquid fuel with CBM
next week. The company has also commenced CNG supplies
(with 96 per cent methane content) through six stations in and
around Asansol. CNG is priced at Rs 30 a kg. A joint venture
proposal is currently being worked out with Indian Oil for
transfer of the piped city gas distribution business including the
distribution pipelines. “Investment in coal and gas
transportation infrastructure, including gas gathering,
transportation and distribution, are critical to move CBM from
coal fields to local and more distant end use markets.”
Impelling need for meeting out the gas requirement, the work
carried out by Great Eastern Energy Corporation (GEECL) a
part of YKM Holdings Group and the pioneers in bringing in
technology for exploration and development of Coal Bed
238
Methane makes CBM available for commercial sale purpose for
the first time in India at Asansol and distributes Coal Bed
Methane in India for the first time at Asansol. Gas demand in
India far exceeds supply and with the gap widening
increasingly, there is an urgent need for more supply. India has
the sixth largest coal reserves in the world and has massive
quantities of CBM. The commercial prospects of CBM in India
very high offers viable alternative to LPG, diesel, and petrol.
Hence CBM is clearly emerging as one of the viable and cleaner
routes to energy security. This achievement was made after the
completion of 23 vertical production wells by GEECL Coal Bed
Methane would be available in India for commercial sale
purpose from 14th of July’07 priced at rupees 30 per Kg for
CNG. Initially 90% of the CBM would be distributed among
vehicles as CNG gas. GEECL is also setting up the first CBM
station in SE Asia and the same will be located in India in the
city of Asansol in West Bengal. GEECL is the first company
whose first field development plan has been approved India’s
first private sector company that has ventured into Coal Bed
Methane exploration, production, marketing and distribution.
With the nation requiring higher energy sources to sustain its
development pace, CBM will play an important role as one of
the prime energy source for the future generations.” steel &
sponge iron plants, Ceramic industries, alloy steel plants,
bakeries, glass & chemical industries shall immensely benefit
from CBM supplies in and around Asansol area. GEECL has
already signed an MOU with IOCL for sales and distribution of
CBM as Piped Natural Gas and CNG. CNG retail outlets are
being set up from Durgapur to Barakar.
All the wells are drilled, logged, cased, cemented and
fractured. Apart from this 8 Core hole have been drilled for
desorption and other studies. comprising a total of 100
production wells with an estimated production of 35 mcfd
within next two years. The total investment is expected to be Rs.
575 crore. The first company to produce coal-bed methane in
India, Great Eastern Energy Corp Ltd, plans to invest Rs. 6,000
crore to become an upstream and downstream integrated player
by 2016 Great Eastern is exploring and developing production
wells for its methane block in Damodar Valley (Raniganj
coalfield), near Asansol in West Bengal.
A significant production of coal-bed methane could
potentially help address the country’s gas shortage. Great
Eastern plans to spend half of the Rs. 6,000 crore by 2013.
Company plan to spend around Rs. 800 crore for drilling 103
wells in the first phase of its exploration activity, which is
expected to be completed by 2009, and plan to nearly double
this spend to Rs. 1,600 crore for drilling 200 wells and
associated gathering activities. The balance money will be spent
on developing transportation pipelines and setting up city-gas
distribution networks and auto CNG stations.”
The government has thus so far awarded 26 coal-bed
methane blocks for exploration. These are spread over 13,600
sq. km and the total methane resources in these blocks are
estimated at 1,374 bcm, which translates into a production
potential of around 38 mscmd.
Thus, the era of CBM Energy in the country would bring
the green environment and a safe future with the
Glimpses of Geoscience Research in India
possible reducing green house gases effect on the earth together
with the needed energy securities for sustainable growth.
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Allen, T.B., 1998, Remember the Maine: National Geographic
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Ayers Jr, W.B., and Weber, C.R., 1987, Coal Bed Methane in the
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