Interfax citing Mr Aman Tuleyev Kemerovo region as saying that Shell is thinking of extracting coal methane at the Kuznetsk basin in Kemerovo region.
Russian gas giant Gazprom holds rights to two coal methane deposits in the Kuzbass. Mr Tuleyev said the region hosted another three deposits which did not overlap with the Gazprom deposits.
He said that "Gazprom is already producing 20,000 cubic meters of methane per day. He added that we've already discussed this with eight [other] companies besides Gazprom, but they raise doubts as regards scale and magnitude. But I don't see any difficulties."
He also said the Kuzbass is receives almost 4 billion cubic meters of gas from outside while we have 13 trillion cubic meters right under our feet.
Shell's representatives said they discussed the possibility for exploration in the region and determining the potential for commercial methane production.
Shell press office told Interfax that "Russia is a country of strategic importance, both for upstream and downstream projects. We look at opportunities to develop our business on a constant basis. The Kemerovo region, as Russia biggest coal province, is of interest to Shell, especially given our expertise and technology in producing methane from coal seams, however it is too soon to talk about anything more specific."
Mr Vladimir Kovalev the Kemerovo region deputy governor for natural resources said a third company has emerged with serious intentions to enter the Kuzbass after Gazprom and CBM Partners Corporation. He said that "This will benefit us immensely, both where the development of a new coal-gas industry and safety are concerned."
Mr Kovalev said if exploration goes well and if they launch a project, Shell will build processing capacity and will be exporting products. He said when asked that where the methane deposits were located. He added that "The central part of the region has not yet been covered the Krapivinsky and Belovo districts, part of the Leninsk-Kuznetsky district and, according to our vision of the coal industry's development, possibly the Promyshlennovsky district. The gas has to be removed before the coal can be mined."
Russia has huge coal gas reserves approximately 84 trillion cubic meters, or a third of the country's probable natural gas reserves. The first pilot project to extract this was launched at the eastern section of the Taldinsky coal-methane deposit, 65 kilometers north of the city of Novokuznetsk. It contained C1+C2 gas reserves as approved by the Russian Natural Resources Ministry of 45.8 billion cubic meters as of May 2009.
(Sourced from Interfax)
