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Introduction
CBM Policy
CBM Rounds
Present Status
Based on success of the demonstration project, India has taken steps for identification of
prospective areas for development of CMM projects and coal fields characterized by
occurrence of multi-seams of high rank coals which were considered potential areas for CMM
development.
Introduction
Coal Bed Methane
Coal Bed Methane is a natural gas (methane) absorbed in coal and lignite seams. It is one of
the eco-friendly sources of energy. To harness this potential source of energy, the Government
of India approved comprehensive CBM policy for exploration and production of CBM gas in
July 1997.
Till date, 33 CBM contracts have been signed for exploration of CBM gas. 30 CBM blocks have
been awarded through international competitive bidding in four rounds of CBM Policy. Two
blocks were awarded on nomination basis and one block through FIPB route.
CBM Policy
To facilitate development of CBM, the Government of India formulated CBM Policy in 1997.
The highlights of the policy are:
Out of eight blocks, multiple bids were received in respect of 7 Blocks and single bid was
received in respect of Block SR(W)-CBM-2008/IV in Madhya Pradesh. No bids were received
in respect of two CBM Blocks located in Wardha Coalfield of Maharashtra.
These bids were opened on 12 October, 2009. Deep Ch IV Pvt. Ltd. turned out to be
provisional winner for 7 out of 8 blocks in consortium with different partners. The remaining
1 block was awarded to Essar Oil Limited.
However, after evaluation, ECS rejected all the bids submitted by Deep as it did not furnish
essential documents along with the bids within the bid submission date.
Accordingly, the blocks were awarded to the second rank bidder. Out of the 7 blocks, 4 were
awarded to Essar Oil, 1 block to GEECL and the remaining 2 blocks to Arrow Energy in
consortium with OIL and TPCL. The contracts for all the seven blocks were signed on 29 July,
2010.
Present Status of CBM
Blocks Awarded
A total of 33 CBM blocks have been awarded so far, out of which 3 blocks have been
relinquished by the contractors, citing poor prospects.
Under CBM-II Round held during 2004, ONGC was awarded 5 CBM blocks. Out of these,
ONGC has relinquished 3 blocks, namely ST-CBM-2003/II, WD-CBM-2003/II and BS(3)-CBM-
2003/II, on the ground of poor prospectivity, after completing the Minimum Work
Programme (MWP) of drilling coreholes/test wells under Exploration Phase-I.
CBM Reserves
CBM reserve of 9.12 Trillion Cubic Feet (TCF) has been established in 6 CBM blocks in the
states of West Bengal (2), Jharkhand (2) and Madhya Pradesh (2).
Two CBM blocks in West Bengal, operated by ONGC (Oil & Natural Gas Corporation Ltd.)
and EOL (Essar Oil Ltd.), are under exploration phase.
CBM Production
Commercial production of coal bed methane (CBM) in India started from 14 July, 2007 from
Raniganj (South) block in West Bengal operated by Great Eastern Energy Corporation Ltd.
(GEECL).
Presently CBM gas is being produced by 3 Operators - Great Eastern Energy Corporation
Limited (GEECL), Essar Oil Ltd. and Oil & Natural Gas Corporation (ONGC) from Raniganj
South, Raniganj East and Jharia CBM blocks respectively. Reliance Industries Ltd. (RIL) plans
to start production of natural gas from Sohagpur CBM block in Madhya Pradesh from 2015-
16.
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