Centre to let CIL explore and produce CBM in coal mines
20 Dec 2013 12:19 AM GMT
The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manmohan Singh, allowed Coal India, the world's largest coal miner, to explore and produce coal-bed methane (CBM) in its existing mines, Coal Minister Sriprakash Jaiswal said. ‘Yes, it is approved,’ he told reporters here.
Currently, rules and regulations prohibit mining firms from extracting CBM during mining as the policy does not allow for simultaneous extraction of methane (CBM) and coal. CBM exploration and production is allowed only in pure coal-seam gas bearing blocks which are auctioned. Since 2001, 33 CBM blocks have been awarded in four auction rounds.
Besides, two CBM blocks to Oil and Natural Gas Corp (ONGC) and one to Great Eastern Energy Co Ltd were awarded on a nomination basis. According to the Directorate General of Hydrocarbons (DGH), India has CBM reserves of about 4.6 trillion cubic metres. Currently, three CBM blocks are producing around 0.15 million standard cubic metres per day (mscmd). This is likely to touch 7.4 mscmd by 2013, according to the Directorate General of Hydrocarbons.
Sources said CIL holds at least 20 per cent of the estimated 60 billion tonnes of coal resources in India. It has several coal mines in eight states, which are estimated to have CBM reserves of 3.5-4 trillion cubic feet. Many of its acreage are gaseous and unsafe mines, where mining of coal is possible only after the extraction of CBM. Extracting methane (gas) ahead of coal mining from seams will allow CIL help unlock very significant quantities of coal reserves in areas of Jharkhand, West Bengal.
Sources said Coal India will be allowed to explore for CBM in the mines that were given to it on nomination basis. It can take a state-owned explorer like Oil and Natural Gas Corp (ONGC) as a partner for the venture.
Oil Minister M Veerappa Moily had originally proposed allowing Coal India to rope in even private firms for CBM exploration and production. However, the proposal was killed after strong objections from Coal Minister Sriprakash Jaiswal.
CBM extracted by CIL will be priced and marketed as per the Oil Ministry's gas pricing and utilisation policy.
Sources said CIL had short-listed five blocks in Jharkhand with estimated CBM reserves of about 1 Tcf for exploration in the first stage. They are: Munidih (282 Bcf), Kathara (282 Bcf), Asnapani (212 Bcf), Putki Buliwari (247 Bcf) and Mohuda (14 Bcf). These five assets are considered to be gaseous and unsafe mines at present. CBM extraction would help CIL unlock nearly 100 million tons of medium grade coking coal, and about 1 Tcf of gas.
Adani Power, Jayaswal showcaused for coal mine development delays
New Delhi: The Coal Ministry has issued show cause notices to Adani Power and Jayaswal Neco Industries Ltd for delays in developing the mines allocated to them for captive use.
'You are hereby called upon to show-cause, on each milestone separately to this period within a period of 20 days...as to why the delay in the development of coal block (s) should not be held as violation of the terms and conditions of allocation... and why the coal block (s) should not be deallocated,' the Ministry said in letters to both the companies.
While Adani Power has been slapped a notice for failing to develop Lohara West & Lohara Ext (E) coal block, Jayaswal Neco Industries has given the notice for Gare Palma IV/8 coal block, the ministry said.
'Keeping in view the unsatisfactory progress, IMG (Inter-Ministerial Group) recommended to issue show cause notice for delay in development of coal block (s). The recommendation of the IMG has since been considered and accepted by the government,' the letters said.
The Coal Ministry had earlier slapped showcause notices to six companies, including Rungta Mines, for delays in developing blocks.
The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation for delays in development of mines.
The panel under the chairmanship of additional secretary in the Coal Ministry comprises members from other ministries, including steel and power.
Meanwhile. Essar Steel, JSPL and state-run KIOCL have evinced interest in participating as the partner in the Rs 2,200-crore joint venture between NMDC and RINL for setting up a 450-km slurry pipeline and a pellet plant.
‘It is understood that Essar Steel, JSPL and KIOCL responded against the expression of interest issued by NMDC for joining as the third partner in the project for slurry pipeline and pelletisation Plant,’ a highly placed source in Steel Ministry said.
Rashtriya Ispant Nigam Ltd and iron ore producer NMDC, two state-run firms under the administrative control of the Steel Ministry, in May had last year signed an MoU for the proposed equal venture to make it a win-win for both.
Currently, rules and regulations prohibit mining firms from extracting CBM during mining as the policy does not allow for simultaneous extraction of methane (CBM) and coal. CBM exploration and production is allowed only in pure coal-seam gas bearing blocks which are auctioned. Since 2001, 33 CBM blocks have been awarded in four auction rounds.
Besides, two CBM blocks to Oil and Natural Gas Corp (ONGC) and one to Great Eastern Energy Co Ltd were awarded on a nomination basis. According to the Directorate General of Hydrocarbons (DGH), India has CBM reserves of about 4.6 trillion cubic metres. Currently, three CBM blocks are producing around 0.15 million standard cubic metres per day (mscmd). This is likely to touch 7.4 mscmd by 2013, according to the Directorate General of Hydrocarbons.
Sources said CIL holds at least 20 per cent of the estimated 60 billion tonnes of coal resources in India. It has several coal mines in eight states, which are estimated to have CBM reserves of 3.5-4 trillion cubic feet. Many of its acreage are gaseous and unsafe mines, where mining of coal is possible only after the extraction of CBM. Extracting methane (gas) ahead of coal mining from seams will allow CIL help unlock very significant quantities of coal reserves in areas of Jharkhand, West Bengal.
Sources said Coal India will be allowed to explore for CBM in the mines that were given to it on nomination basis. It can take a state-owned explorer like Oil and Natural Gas Corp (ONGC) as a partner for the venture.
Oil Minister M Veerappa Moily had originally proposed allowing Coal India to rope in even private firms for CBM exploration and production. However, the proposal was killed after strong objections from Coal Minister Sriprakash Jaiswal.
CBM extracted by CIL will be priced and marketed as per the Oil Ministry's gas pricing and utilisation policy.
Sources said CIL had short-listed five blocks in Jharkhand with estimated CBM reserves of about 1 Tcf for exploration in the first stage. They are: Munidih (282 Bcf), Kathara (282 Bcf), Asnapani (212 Bcf), Putki Buliwari (247 Bcf) and Mohuda (14 Bcf). These five assets are considered to be gaseous and unsafe mines at present. CBM extraction would help CIL unlock nearly 100 million tons of medium grade coking coal, and about 1 Tcf of gas.
Adani Power, Jayaswal showcaused for coal mine development delays
New Delhi: The Coal Ministry has issued show cause notices to Adani Power and Jayaswal Neco Industries Ltd for delays in developing the mines allocated to them for captive use.
'You are hereby called upon to show-cause, on each milestone separately to this period within a period of 20 days...as to why the delay in the development of coal block (s) should not be held as violation of the terms and conditions of allocation... and why the coal block (s) should not be deallocated,' the Ministry said in letters to both the companies.
While Adani Power has been slapped a notice for failing to develop Lohara West & Lohara Ext (E) coal block, Jayaswal Neco Industries has given the notice for Gare Palma IV/8 coal block, the ministry said.
'Keeping in view the unsatisfactory progress, IMG (Inter-Ministerial Group) recommended to issue show cause notice for delay in development of coal block (s). The recommendation of the IMG has since been considered and accepted by the government,' the letters said.
The Coal Ministry had earlier slapped showcause notices to six companies, including Rungta Mines, for delays in developing blocks.
The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation for delays in development of mines.
The panel under the chairmanship of additional secretary in the Coal Ministry comprises members from other ministries, including steel and power.
Meanwhile. Essar Steel, JSPL and state-run KIOCL have evinced interest in participating as the partner in the Rs 2,200-crore joint venture between NMDC and RINL for setting up a 450-km slurry pipeline and a pellet plant.
‘It is understood that Essar Steel, JSPL and KIOCL responded against the expression of interest issued by NMDC for joining as the third partner in the project for slurry pipeline and pelletisation Plant,’ a highly placed source in Steel Ministry said.
Rashtriya Ispant Nigam Ltd and iron ore producer NMDC, two state-run firms under the administrative control of the Steel Ministry, in May had last year signed an MoU for the proposed equal venture to make it a win-win for both.
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