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Best Practices in Methane Drainage and Use in Indian Coal Mines

Explore ONGC's pioneering work in Coal Bed Methane (CBM) production in India, including awarded blocks, production profiles, challenges, and opportunities. Learn about CBM intersections with coal mining, development plans, and conditions for sale of CBM gas.

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Best Practices in Methane Drainage and Use in Indian Coal Mines

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  1. International Workshop on “ Best Practices in Methane Drainage and Use in Coal mines” CBM Activities by ONGC Ranchi09.03.2017

  2. CBM BLOCKS AWARDED IN INDIA Operator Blocks ONGC 4 ONGC-IOC 2 ONGC-CIL 2 ONGC-GSPCL 1 RIL 5 ESSAR OIL 5 GEECL 2 Arrow 5 B P 1 REL – RNRL 4 Coal Gas Mart - Deep Inds 2 CBM – Indian scenario • 33 CBM Blocks thru’ 4 bidding rounds including 3 by nomination. • Total CBM Resource in awarded blocks~ 62.4 TCF • Established GIP ~ 9.9 TCF • Commercial Production ~ 1 MMSCM #2 E&P Company in the world

  3. Search for CBM in India by ONGC • ONGC is the pioneer: DU#1 and DU#2 in Raniganj Coalfield in 1995 • Attention shifted to Jharia Coalfield • 4 wells drilled: JH#1, JH#2, JH#3, JH#4 (1997-1999) • All 4 wells test flowed gas: JH#1 - the 1st producing CBM well in India. • Present incidental CBM production from Jharia ~10 mscmd • Produced more than 18.7 MMSCM CBM till date • Nine Blocks originally awarded to ONGC • ONGC presently operates in four CBM Blocks #2 E&P Company in the world

  4. CBM Blocks Awarded to ONGC • 45 wells and 78 coreholes drilled during exploration • 83 BCM, CBM In-place established A FORTUNE Global 500 Company

  5. CBM Blocks of ONGC N. Karanpura Bokaro Raniganj Jharia Most valuable Indian PSU

  6. Status of CBM Blocks 6 A FORTUNE Global 500 Company

  7. Development Plans at a Glance 7 #2 E&P Company in the world

  8. FDP production profiles 8 #2 E&P Company in the world

  9. Title of the slide CBM – Business Basic • Business premises • CBM is a front loaded, marginal economics play. • Almost entire CAPEX within a span of 3-4 yrs - Wells and Surface facilities to be installed early followed by dewatering and CBM production. • Potential • CBM production is in early stages. Several fold increase expected when all the blocks start producing in tandem. • Growth driver- CBM occurrence mostly in conventional HC starved area. • CBM is ‘Clean’ form of energy – Increase in Carbon credits. • Challenges • Technical:Indian coal basins more heterogeneous and deformed compared to US/Australian counterparts. Continuous R&D and Ingenuity required. • Socio- Economic: LAQ, CSR, Local Awareness etc. Crucial for success. • Policy issues:FavorableGas pricing will enhance project viability and participation. Overlapping issues with Coal Blocks – clarity on priority & guideline necessary.

  10. Title of the slide Opportunity for ONGC Location: ONGC’s four CBM blocks i.e. North Karanpura, Bokaro, Jharia and Raniganj falls in HC starved regions of Jharkhand & WestBengal –Existing demand for cleaner form of energy for domestic & commercial use. Proximity to Industrial Hubs: Industrial towns of Ranchi, Bokaro, Dhanbad, Asansol, Durgapur falls around these blocks. Establishing a sustainable CBM production is bound to spur its market growth. Proposed Pipeline Project of GAIL: Proposed Jagadishpur-Phulpur-Haldia pipeline will be passing along the CBM Blocks. There is also plan for establishing CGD network in Ranchi, Dhanbad, Singhbhum etc. from this proposed pipeline. # 21 Energy Company in the World

  11. Interference of CBM and Coal Mining • Overlap with Coal Blocks several ONGC CBM Blocks: • Parbatpur Coal Block – Jharia CBM Block • Ichchapur & Moira-Madhujore – Raniganj CBM Block • Issues in Simultaneous mining of Coal & CBM. • Safety of operations • Technological constraints • Optimum utilization of natural resources 11 #2 E&P Company in the world

  12. Case Study – Jharia CBM Block Map of Jharia CBM block showing overlapping Parbatpur Coal Block and FDP wells • Overlap area with Parbatpur Coal block of SAIL: ~ 8.0 Sq.Km. • Effect: 27 FDP wells; 10 BCM CIIP. • CBM & Coal Mining activity suspended by DGMS since July, 2014. 12 A FORTUNE Global 500 Company Parbatpur Coal Block Production Hubs

  13. DGMS suggestion for resolution • Separate working area for ONGC-CIL & SAIL • ONGC-CIL to extract CBM from shallower seams • ONGC-CIL & SAIL to share mine plan to minimize future interference. # 21 Energy Company in the World

  14. THANK YOU

  15. Conditions for Sale of CBM Gas • Delivery at Arms Length – at the fence of ONGC production premises. • ONGC shall deliver the gas at 0.5 Kg/cm2 to 1.5 kg/cm2. • CBM Gas to be sold at ONGC discovered price and as approved by GoI. 15 15

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