Coal news and updates

The government needs to do a quick policy review to cover simultaneous extraction of coal and methane. Existing coal block allottees should be cleared to proceed with plans for extracting methane gas without any further delay

 

Since 1950, methane gas, or coal bed methane (CBM) as it is otherwise known, has been extracted successfully, by the US. Many other western countries, such as Canada, East European nations, UK and others like Australia and China have benefited from this source of energy. India is lagging behind in developing this important source of fuel.

 

Coal bed methane is gas that is stored and buried deep in the coal seams and is like any other natural gas. This is lethal, 21 times more potent than carbon dioxide, if inhaled, but a clean fuel for generating power. During the excavation or mining of coal, this methane escapes, literally evaporating into thin air.

 

The Central Mine Planning and Design Institute has been studying this very important fuel source and has prepared data on eight prospective coal bed methane blocks in Johilla, Singrauli coalfields and Cambay basin. Recently, they have submitted their reports to the Director General of Hydrocarbons (DGH) and these blocks are likely to be put for global bidding soon.

 

According a press report available on the subject, the estimated recovery of potential coal bed methane gas in India is said to be between 710 and 948 billion cubic metres methane. Coal block owners like Coal India, NTPC and others could also explore for CBM themselves. In fact, since 2001, as many as 33 CBM blocks have been allotted in four rounds of global bidding. Government has prepared a policy on coal bed methane, but it has no separate policy covering the extraction of both coal and methane simultaneously.

 

In the interest of long term planning, it would be imperative that such a policy is prepared, as both are interlinked, and cannot be separated from each other, when it comes to extraction. At the moment, Minister Dharmendra Pradhan is responsible for Petroleum and Natural Gas, while Minister Piyush Goyal takes care of Power, Coal, New and Renewable Energy. It would be desirable that one of them is made responsible for dealing with the generation of methane gas. Otherwise, there would be an avoidable clash of personalities that would affect the nation's progress in tapping this important fuel resource.

 

This is based on the past experience of the Ministers in the UPA government. In the past, it appears, that Veerappa Moily, as Petroleum Minister, had proposed that private players be allowed to explore CBM along with Coal India in its existing mines but the Coal Minister, Sriprakash Jaiswal was not in favour.  In the end, nothing really happened, while the methane evaporated in thin air!

 

Therefore, the tug-of-war between these two ministries is said to cover: "as to who will implement the production sharing contract?"  This situation would continue even today, if a clear-cut cabinet decision at the Prime Minister level is not made. The focus of getting the methane would be lost in the wilderness of this argument.

 

Digressing for a moment, the 11th Five Year Plan has listed in-situ tapping of coal bed methane as a key intervention that will also help reduce greenhouse gas emission from mining activities and recovery of methane.

 

In the meanwhile, Reliance Power now has 4 CBM blocks, in MP (609 sq kms), Rajasthan (1,168 and 739 sq kms) and Andhra Pradesh (735 sq kms), and is supported by a consortium partner, Geopetrol International Inc.  They have drilled 12 core holes. Two test wells are producing incidental gas from day one! Commercial quantity of CBM from Sohagpur block from August 2014 has been higher than 4,000 m3/d and the Director General of Hydrocarbons (DGH) has accepted "gas-in-place" reserve of about 54.5 BCM!

 

On the other hand, the Kaveri delta CBM project undertaken by the Great Eastern Energy Corporation Ltd (GEECL), Gurgaon, Haryana, has been recently suspended due to some environmental issues and farmers’ agitation.

 

The issue before the government is to draw up a quick policy review to cover simultaneous extraction of coal and methane. Existing coal block allottees should be cleared to proceed with plans for extracting methane gas without any further delay.

 

 

Source: http://www.moneylife.in/