CIL keen to tap Jharia for gas

Calcutta: Jharia coalfields in the Damodar valley basin offer the best prospect for Coal India to extract coal bed methane gas.CIL sources on Thursday said that the company's exploration arm - the Central Mine Planning and Design Institute - has already undertaken initial activities. An area of 24 square kilometres has been delineated in Jharia coalfields in the mining leasehold of CIL subsidiary - Bharat Coking Coal Limited.

Another 57 square kilometre area has been delineated in Raniganj coalfields but sources said compared with Jharia, it was difficult to extract gas from the mines in Raniganj as there are settlements in the region.

"Jharia offers a better prospect at this point. Already a demonstration project was taken up at the Moonidih block," a CIL official told The Telegraph.

The assessed reserves in the identified blocks is around 25 billion cubic metres in Jharia, while the same in around 4 billion cubic metres in Raniganj. In either cases, extractable reserves is around 50 per cent.

CIL would also have to consider engaging private developer and service providers. Wednesday's cabinet relaxation not only allows the miner to go ahead with CBM extraction without the permission of the oil ministry, but also gives it the leeway to engage experienced developers from the private sector to facilitate commercial exploitation.

"There is already a good amount of interest from both domestic and global companies on the drainage of gas from the blocks. This bodes well for the future commercial exploitation," the official said.

"There is no doubt that the commercial exploitation of CBM resources in CIL blocks will open up an additional revenue stream for the mining major," said an industry observer, adding that the move would also create employment opportunities.

Once extracted, the coal bed methane can be used to generate power. It can also be used as automobile fuel in the form of compressed natural gas, feedstock for fertilisers and for industrial use.

Coal India Ltd