The Hindu Business Line : ONGC, Singareni join hands

, Oil and Natural Gas Commission and Singareni Collieries Company Ltd have signed up to work together in areas of underground coal gasification, surface coal gasification and coal-bed methane in coal-bearing areas.

This arrangement seeks to explore options in areas where Singareni is operating now or even in areas it expects to take up new projects.

Singareni and ONGC will partner in research and development, including experiments and pilots at sites in coal areas that would be followed by production and marketing. This envisages separation of fuel gases generated from underground coal gasification, surface coal gasification and coal bed methane for syngas, synfuel and syncrude.

The arrangement

As per the arrangement, work will start on exploration of surface coal gasification and coal-bed methane project in the immediate future and the initial cost of the project will be shared by ONGC and Singareni.

It is estimated that more than half of the coal reserves of Singareni are at depths below 300 metres, which cannot be tapped with conventional technology. This move seeks to leverage the arrangement ONGC has with Skotchinsky Institute of Mining, Russia for underground and lignite mines, according to Singareni.

The Chairman of ONGC, Mr Subir Raha, the MD of Singareni, Mr R.H. Khwaja, have signed up for the project in the presence of the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, on Saturday.

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