Status of Coal Bed Methane Investigations in India

229

Status of Coal Bed Methane Investigations in India

M.P. SINGH1* and RAKESH SAXENA2
1Formerly 2Birbal

of Lucknow University, Lucknow Sahni Institute of Palaeobotany, Lucknow 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. USTDAs 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

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 downstream sectors, and also to search for the alternate nonconventional 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

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; coalbed/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 countrys 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. Indias 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 countrys 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-InseamMultilateral 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 1990s 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. Essars 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 companys 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 mediumvolatile, 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 dont use oxygen) then reduce carbon dioxide and produce methane through anaerobic respiration (Rice and Claypool, 1981). When a coals temperature underground reaches about 122F 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 122F 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 210F. Generation of thermogenic methane begins in the higher ranks of the high volatile bituminous coals, and at about 250F, generation of methane exceeds generation of carbon dioxide. Maximum generation of methane from coal occurs

232 at about 300F. 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 m3/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 AssamArakan 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 Physicochemical 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,RIII,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 Indias 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. Indias heavy reliance on coal, much of it lowquality, is a major cause of the countrys relatively high carbon intensity level. Environmental standards for limiting gas emissions from surface or underground coal mining

234 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 NECs 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 may join the rank of the few countries that commercially produce CBM. During XI Five Year Plan, CBM gas production

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 marketdetermined 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 Indias 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 202425 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-CBM2005/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 southwesterly 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 seamI (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 58.286.7 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 coalproducing 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 DorliBelampalli 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 highvolatile 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 lignitebearing 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 6070 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. ONGCS 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. ONGCs 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. HIGHLIGHTS

237

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 July07 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 Indias 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 countrys 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. REFERENCES
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