Coal Bed Methane Extraction to Start at CIL Jharia
India’s state owned Coal India Limited has given a go-ahead to a domestic firm for INR 1,880 crore coal bed methane extraction project. The coal behemoth has in the second week of June invited bids from both domestic and overseas companies for two more coal bed methane projects. CIL said "Stepping into a new era of coal bed methane extraction within its own leasehold area, CIL in a first has issued letter of acceptance to a CBM developer this month. This is for extraction of CBM, the unconventional form of natural gas found in coal seams.”
The bid for Jharia CBM Block-I of Bharat Coking Coal Ltd, the Jharkhand-based subsidiary of CIL, was won by the CBM developer through a global bidding process. To come up at a tentative capital of INR 1,880 crore as per the project feasibility report, BCCL will invest 20% of the capital, while the rest would be put up through the CBM developer.
In yet another development, accelerating its intent on CBM extraction, CIL in the second week of June floated global bids for two more projects having a combined resource potential of 2.7 billion cubic metre to look for developers. Raniganj CBM block under Eastern Coalfields Ltd, West Bengal, has 2.2 BCM resource; while Sohagpur CBM Block under South Eastern Coalfields Ltd has 500 million cubic metre resource of methane.