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An inter-ministerial panel has been set up to find a solution to the dispute between the Ministries of Coal and Petroleum on simultaneous extraction of gas and coal.
The panel, headed by Member Planning Commission, Mr B. K. Chaturvedi, is expected to meet on May 16. Official sources said that the Petroleum Ministry wanted coal mine methane (CMM) extraction to be done on the lines of coal bed methane (CBM).
Extraction process
While the Coal Ministry wanted to give away the rights to the companies mining coal in the blocks, this was not acceptable to the Petroleum Ministry, as the business of gas allocation and marketing is within its purview.
Besides, the process for extraction of CMM and CBM is very similar. “When we have a transparent bidding mechanism for CBM, why should gas production from CMM be treated differently,” an official said. On how exactly CMM is different from CBM as both are natural gas extracted from coal bed, the official said that CBM was extracted after drilling at least 300 metres and was generated from coal seams. CMM is available on the coal bed surface.
Certain technical answers are required before any go-ahead can be given, an official said, adding that decision on how to price this gas will need to be taken. To harness the potential of CBM, the Petroleum Ministry has awarded 33 blocks under the licensing rounds. In-place CBM reserves of 8.92 trillion cubic feet have been so far established in five blocks.
Production forecast
Commercial production of CBM started in 2007. The players in the business include — Great Eastern Energy Corporation Ltd, Essar, Reliance, and ONGC. The CBM production in the country is estimated to be about 4 mmscmd by 2016-17 from the current 0.26 mmscmd, the Minister of State for Petroleum and Natural Gas, Mr R. P. N. Singh, informed the Lok Sabha on May 3.
Coal India has been seeking permission to extract CMM from five blocks in the leasehold areas of BCCL and CCL. The reserve assessment of CMM is not available, as it has not been commercially marketed as yet. The miners today flare this gas.
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