Coal news and updates

CIL arm readies 2 blocks for underground gasification

Two blocks from the Central Mine Planning and Design Institute (CMPDI), a Coal India subsidiary, are headed for underground coal gasification, the first of its kind project in the country.

“The two blocks are in Central Coalfields and Western Coalfields. Tender for the blocks would be floated this month and parties quoting the maximum revenue share would be allotted the blocks,” A K Debnath, chairman and managing director, CMPDI, said.

There were at least 13-14 parties that attended the pre-bid meeting, many of which are foreign companies. CMPDI is also ready with the data package for shale gas, which it would hand over to the Directorate General of Hydrocarbons (DGH) for explorations.

“We have got the bore hole data and have also identified the strata where the gas exists. We have found shale gas reserves in many places across the country, the maximum at Cauvery basin. ONGC is likely to take up a project on a pilot scale,” Debnath said without disclosing the exact reserves of shale gas.

Shale gas is considered to be the next big thing in country’s quest towards energy security, particularly following large findings in the United States which has already driven conventional energy prices to levels much below global averages.

CMPDI has also set the data dossier for coal bed methane (CBM) and handed it over to the DGH. The DGH will soon go for the fifth round of CBM bidding.

It has so far offered 33 blocks covering 17,000 km in four rounds of bidding. But only four have come to the production stage at 2.5 lakh cubic metres of gas per day.

The petroleum and natural gas ministry got the maximum response in the third round of bidding when it received 54 bids against 10 blocks on offer. But with explorations staying at a modest level, the demand for CBM blocks has waned.

The DGH has already awarded 1.8 trillion cubic metres (tcm) of CBM reserves for explorations. It has identified 4.4 tcm reserves for extraction.

Source: DNA