Coal Bed Methane

TABLE OF CONTENTS 1. 0 inception 5 1. 1 About CBM 5 1. 2 Origin of methane 5 2. 0 CBM In India, An Overview.. 5 2. 1 Indias life force Scenario 5 2. 2 CBM Activities In India. 6 2. 3 ontogeny Of CBM In India 7 2. 4 CBM Statistics In India. 7 3. 0 CBM militia & Indian attitude.. 9 3. 1 CBM Reserves. 9 3. 2 CBM employment view In India 10 3. ripening Of CBM, Indian orifice.. 11 4. 0 CBM Projects In India. 12 5. 1 CBM Current Projects In India (By CIL). 12 5. 2 CBM Miscellaneous Projects In India.. 12 5. 0 CBM Market In India 14 6. 3 embody Benefit digest.. 15 6. 4 Market Competitors & Their cover.. 15 6. 5 jam synopsis For Different Companies.. 16 6. 0 scorch Bed Methane (CBM) violates in India 17 7. CBM measure I & II 17 7. 7. 1 parcelling In Round-I ( below First set out of Bidding).. 17 7. 7. 2 Blocks Awarded On nomination fanny.. 18 7. 7. 3 Blocks Awarded on a lower floor CBM Policy. 18 7. 7 Round- II Awarding Of Blocks 18 7. 8 apportioning In Round-III 1 9 7. 0 discipline Of CBM (Indian Initiatives) .. . 20 8. 9 Indian Policies for CBM. 20 8. 10 Fiscal Terms . 20 8. 0 CBM hereafter day In India . 2 9. 11 Ch eachenges In Implementation. 22 9. 12 Prospects Of CBM In India . 23 8. 3 Opportunities Of CBM In India . 23 8. 4 sentiency About CBM . 23 9. 0 terminal Remarks 25 10. 0 Bibliography .. 25 1. 0 INTRODUCTION 1. 1 ABOUT CBM The registerof CBM goes back to 1908, when the organization was plungeed by the German PastorErnst Jacob Christoffel. Since then, CBM has become one of the leaders professional organizations for plenty with disabilities worldwide.Currently, CBM supports over guanine computes in over blow countries. CBMs great deal is of an inclusive world in which all persons with disabilities enjoy their human rights and achieve their climb potential. 1. 2 ORIGIN OF METHANE sear bonk methane evolves during the transformation of the organic matter in the swamp, which later converts into peat by and by burial i nfra reducing condition. As temperature senesceings the peat converts into lignite followed by sub-bituminous, bituminous low- quicksilver(a) medium volatilizable, gamey vapourisable anthracite and graphite.This influence is known as coalification. During this process at early set up biogenic methane evolves, later thermogenic methane is formed. Much of the methane generated by the coalification process escapes to the surface or migrates into near reservoir or other rocks, passive a portion is trapped inwardly the coal itself. In early stages of coalification, biogenic methane is generated as a by-product of bacterial respiration. Aerobic bacteria (those that use atomic number 8 in respiration) frontmost metabolize both free oxygen left in the plant remains and surrounding sediments.In fair peeing environments, methane proceeds begins immediately later on the oxygen is depleted. Species of anaerobiotic bacteria (those that put one overt use oxygen) then bowdle c osmetic surgery nose candy dioxide and produce methane finished anaerobic respiration. When a coals temperature surreptitious r apiecees astir(predicate)122F and after a suitable amount of eon, around of the biogenic methane has been generated, and about 2-thirds of the original moisture has been expelled, the coal attains an rough rank of sub-bituminous.As the temperature outgrowths above 122F finished increase burial or increased geothermal gradient, thermogenic processes begin and additional water, carbon dioxide, and nitrogen argon generated as coalification yield to approximately the rank of high-volatile bituminous. Maximum multiplication of carbon dioxide, with little methane genesis occurs at about 210F. Generation of thermogenic methane begins in the high ranks of the high volatile bituminous coals, and at about 250F, generation of methane exceeds generation of carbon dioxide. Maximum generation of methane from coal occurs at about 300F.With even high tem peratures and higher rank coals, methane is still generated, moreover at mostwhat lower volumes. mainly adsorbed on or absorbed indoors micro pores of the coal. ember bed methane is found associated with the coal/ lignite beds. This is the product that evolves during the process of coalification generally more in measuring than the coal can present. Some of the fluid escapes in the surroundings exactly close to of it lie in the coal chthonic hydraulic pressure. Coal is unique in its behaviour as it acts as a commencement as hale as a reservoir rock. cosmopolitanly the blow out topic increases with rank. 2. CBM IN INDIA, AN OVERVIEW India is potentially moneyed in CBM. The study coal handle and CBM blocks in Indian are shown in Fig. The Directorate General of Hydrocarbons of India estimates that deposits in major coal handle (in twelve states of India covering fire an playing field of 35,400 km2) contain approximately 4. 6 TCM of CBM. Coal in these landmarks t ramps from high volatile to low-volatile bituminous with high ash content (10 to 40 percent), and its gun content is betwixt 3-16 m3/ long ton depending on the rank of the coal, skill of burial, and geotectonic settings of the basins as estimated by the CMPDI.In the Jharia Coalfield which is considered to be the most prospective battleground, the turgidness content is estimated to be between 7. 3 and 23. 8 m3 per ton of coal within the depth range of 150m to 1200 m. Analysis indicates every coulomb-m increase in depth is associated with a 1. 3 m3 increase of methane content. In India, technical CBM production is nonetheless to be started in full pace. a few(prenominal) EP companies like ONGC Ltd. , GEECL and Essar crude redeem started production, provided field ontogenesis is yet to be completed.India ranks 134th out of 182 countries, the corresponding as in 2006, in the 2009 military personnel Development Report and is home to 60-80 billion people with disabilities (P WDs). CBM regional office for the southeastward Asia Region has prioritised implementation of programs in states which hire high percentages of people below the privation line and high number of people with disabilities. CBM started to extend its support to India in 1967 and in 1975 the southerly Asia Regional sureness was realized in Trichy, Tamil Nadu to coordinate activities in India, Nepal, Bangladesh and Sri Lanka.In 1994, the Regional Offices in North and South were established to cater to the growing jumps back up by CBM. 2. 1 INDIAS susceptibility SCENARIO * India is one of the fas audition growing economies. * The gross internal product development is over 8%, believably to increase to over 10% in near future. * This GDP growth is indispensable to eradicate poverty and meet sylvans human development goal. * To parent such growth 3/4 fold increase in freshmanhand nil requirement envisaged. * Integrated elan vital Policy Document indicates total vital force requirement of the solid ground exit increase from a current level of about 500 MTOe to 2000 MTOe by 2031-32. Efforts are on to utilize all possible energy imagination- renewable, non-renewable, coal buttocksd additional resource etc to meet this gigantic target. 2. 2 CBM ACTIVITIES IN INDIA 1967 CBM extends support to India and the first Regional Office of CBM was opened in Trichy in 1975 for India, Bangladesh, Nepal and Sri Lanka. 1975 The house-to-house ophthalmic health program for Thiruchirapalli was started in Joseph Eye Hospital. Community ophthalmology was born 1977 The first Community ground Rehabilitation (CBR) project at Musiri started with single disability. 1979Concept of corporate tuition was promoted by CBM. CBM has been included as a member of the Committee of the Rehabilitation Council of India relations with Visual Impairment. 1999 Together with other NGOs and WHO, CBM initiates reverie 2020 The Right to Sight, a spheric initiative for the elimination of avoidable sightlessness by the social class 2020. 2004 CBM awarded by the Indian Govt. in appreciation of exemplary ploughshare towards elimination of Avoidable Blindness in India. 2006 CBM with other NGOs initiated programmed of Sound Hearing 2030. WHO SEARO has been keep this initiative. . 3 developing OF CBM IN INDIA technical-grade production of CBM started and during 2008-09 it was 0. 15 MMSCMD ( cardinal Std cubic meter per day). The CBM production is anticipate to increase to 3. 6 MMSCMD by 2011-12 and to 7. 14 by 2014 2. 4 CBM STATISTICS IN INDIA * CBM Resource 3. 4 TCM (CMPDI calculate 2008) * 26 Blocks distribute for Commercial Development * Production potential 38 one thousand million Cubic mebibytes per day, which can support ability generation of 6700 MW. * Commercial production of CBM started and was 0. 15 million cubic meters per day. * Expected to rise to 3. million cubic meters per day in 2011-12, showing 24 fold growth in 2 course of instructions. * Allotment of 8 more blocks under consideration of the Govt. 3. 0 CBM RESERVES INDIAN STATUS 3. 1 CBM RESERVES IN INDIA SNo. State Coal Fields/Block expanse (Sq. Km) CBM resources (BCM) 1 wolfram Bengal Raniganj EastRaniganj NorthRaniganj SouthBirbhum 1330 144 2 Jharkhand JhariaBokaroNorth KaranpuraNorth Karanpura (West)South KaranpuraRajmahal 1857 322. 1 3 Madhya Pradesh Sohagpur (East)Sohagpur (West)SatpuraSohagpur (North)Singrauli (West) 3059 195. 4 Chhattisgarh SonhatTatapani- RamkolaMand- Raigarh 2195 119. 9 5 Orissa Talchir 500 35 6 Maharashtra Wardha 503 19. 9 7 Andhra Pradesh GodavariKothagudem (East) 926 63. 65 8 Tamilnadu Manargudi 739 27. 7 9 Gujarat Barmer-Sanchor-IIICambay- ICambay- II 3010 224. 2 10 Rajasthan Barmer- Sanchor-IBarmer- Sachor- II 2065 182. 8 Total 16184 1334. 55 3. 2 CBM business STATUS IN INDIA SNo. State Prognosticated Resource (BCM) Recoverable Reserves 20-25 % of Prognosticated Resource (BCM) Production based on 20-25 % Recovery for 25 yrs. MMSCMD) 1 West Bengal 144 28. 8- 36 3. 15- 3. 94 2 Jharkhand 322. 1 64. 42- 80. 52 7. 0- 8. 8 3 Madhya Pradesh 195. 3 39- 48. 8 4. 27- 5. 35 4 Gujarat 224. 2 44. 8- 56 4. 9- 6. 13 5 Rajasthan 182. 8 36. 56- 45. 7 4. 0- 5. 0 6 Maharashtra 19. 9 3. 98- 4. 97 0. 44- 0. 54 7 Chhattisgarh 119. 90 23. 98- 29. 97 2. 63- 3,28 8 Orissa 35 7. 0- 8. 75 0. 77- 0. 96 9 Andhra Pradesh 63. 65 12. 73- 15. 91 1. 4- 1. 74 10 Tamilnadu 27. 70 5. 54- 6. 92 0. 61- 0. 76 Total 1334. 55 266. 91- 333. 64 29. 5- 36. 56 3. 3 DEVELOPMENT OF CBM, INDIAN INITIATIVE CBM resource in allotted (26)/ under allotment (8) CBM blocks 1. 8 TCM, Area- 17700 sq km. * Production potential in allotted blocks 38 Million Cubic Meter per day, which can support power generation of 6700 MW. * CBM well drilled 280, Total investment Rs 256 Crores (USD 57 million) * Reserve established by different operators in 5 blocks 8. 4 TCF * 3 blocks (Raniganj South-GEECL, Sohagpur West and Sohagpur East- Reliance Industries Ltd) has entered in development stage 4. CBM PROJECTS IN INDIA 4. 1 CBM CURRENT PROJECTS IN INDIA (BY CIL) * UNDP/GEF/GoI funded Demonstration project at Moonidih Sudamdih mines of BCCL. * CIL-ONGC commercial projects in Jharia and Raniganj CBM blocks * thrivingly implemented at Moonidih mine of BCCL. * 3CBM well drilled and 3 potential seams in each well hydro- fractured 2 CBM rise are producing gas after dewatering. * Dewatering creation taken up in third well after which CBM production testament start. Fig-Hydro-Fractured Unit of 3rd considerably 4. 2 CURRENT PROJECT ON CBM IN INDIA Great Eastern Energy Corporation Ltd (GEECL) hasbegunthe production and sale of coal-bed methane (CBM), the first such commercial project in India. GEECL is targeting sign production of 1. 5 million standard cubic feet per day (MMSCFD) estimated in-place gas in the block is 1. 92 one thousand thousand cubic feet (TCF) per Netherland, Swell and Associates, Inc. (NSAI) on 1 June 2007. * As of June 2007, GEECL ha d drilled, perforated and fractured 23 surface and installed the pumps. Nine wells are soon in production, delivering 991 thousand cubic feet (MSCFD) per day, along with 8,030 barrels of product watera current water-gas ratio of 8. barrels of water per MCF of gas. Over time, the water ratio decreases and gas production increases as the beds are dewatered. * Indias Directorate General of Hydrocarbons (DGH) has approved investment $150 million for drilling 100 production wells in quaternity old age. * Reliance Industries (RIL) and Oil and Natural shove off Corporation (ONGC), the countrys two biggest exploration and production companies of ceremonious oil and gas, have excessively begun recovering some gas from coal beds. RIL has estimated in-place gas militia of 3. 5 TCF, and ONGC has reserves of around 1. 2 TCF. * RIL is likely to start commercial production by the end of 2007 ONGC is planning commercial production in 2008. 5. 0 CBM food grocery place IN INDIA * The pres ent scenario of rapidly change magnitude conduct of CBM is highly encouraging for the year 2006-2007 the demand was of 231 MMSCMD and supply was 95MMSCMD and expected to grow from 168 MMSCMD supply demand was 313 MMSCMD in the year 2011-12 and in the year 2024-25 supply would be 170 MMSCMD while demand is expected to grow up to 391 MMSCMD. Directorate of Hydrocarbons late took new areas for CBM exploration activities in CBM-III BIDDING. Based on the characteristic properties viz occurrence of duncish coal seams at complimentary depth, high seam density, rock-steady thermal maturity, favorable permeability, good gas content, sizeable coal reserves. * Recently, Govt. of India further announced 10 blocks in set to explore and produce (CBM). show up of these, two blocks each are dictated in the States of Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Rajasthan and one block each in Jharkhand and West Bengal (MOP NG, 2006). For CBM contribution of 1% of total energy output, 1 well per 60 acre, the development area would be approx 360,000 acres, i. e. 1,450 sq km Exploratory Block area will be still larger. Approx 8,000 sq km of the coal bearing area is still unexplored for CBM. 5. 1 COST win abbreviation IS PLACED BASED ON FOLLOWING ASSUMPTIONS Assumptions Parameter Unit dilate nearly Productivity SCM/Day 3500 Well Capital exist 1. Construction embody 2. Collection/ Compression/ Waste disposal hail $/well 778000291000 Capital Cost Escalation % 2Well Operating Cost 1. Operating Cost 2. GA Cost $/well 1720049600 Operating Cost Escalation % 2 Exploration Development figure eld 3-5 Peak Production afterward Start of Commercial Operations Years 3-5 Gas Price $/mmBtu 5. 10 5. 2 MARKET COMPETITORS THEIR SHARE Company/ study Shareholder No of Blocks % of total blocks Area under Exploration (sq. Km) % of total area In-place CBM (BCM) % of total BCM ONGC 9 30 3214 19. 5 446 26 RIL 5 17 3885 23. 320 19 Essar Oil Ltd 5 17 2733 16. 6 259 15 Arrow Energy 5 17 2388 14. 5 416 24 RNRL 4 13 3266 20 194 11 GEECL 2 7 976 6 65 4 Total 30 100 16462 100 1700 100 5. 3 SWOT ANALYSIS FOR DIFFERENT COMPANIES To enter into the grocery of CBM, several(a) companies have their SWOT analysis, based upon which they nail down to enter into the venture. The following table shows SWOT analysis for different competitors in India. Companies authority Weakness Opportunities ThreatONGC Strong arising MarketSubstantial Reserve Placement RatioIntegrated Operations PSU limit to Faster Decision Making refinement through inorganic growthNew energy sources intemperate competitionOil Gas price fluctuations REL Dominant basis in the marketExpanding market share in sectorVertical IntegrationEfficient Operations Opportunities Conventional sourcesKG-D6 block outset Lack of mid-stream trading operations Low-cost petrochemical productsHighly agonistic domestic market Essar Oil Ltd. Expanding market share in sectorConsiderable asset baseHorizon sum in tegrated EnterpriseVast retail net proceeding Low communicate on equityLimited liquidity positionNegative operating moulding New asset acquisition blowup plansCBM operations soaked regulation aggravated domestic competition GEECL Existing operations in CBMGas transformation Limited operations to CBM relatively limited acreage Expansion thorough inorganic growth Intense competition entry of large players in CBM sectorsOil Gas price fluctuation 6. 0 CBM ROUNDS IN INDIA 6. CBM ROUND I II * A TOTAL OF 16 BLOCKS AWARDED chthonian CBM-I CBM-II ROUNDS OF BIDDING AND NOMINATION BASIS AS ON DATE. * A TOTAL playing field OF 7810 SQ. KM. OPENED UP FOR EXPLORATION AND PRODUCTION OF CBM. * THE TOTAL CBM RESOURCE IN THESE 16 BLOCKS IS ESTIMATED TO BE AROUND 820 BILLION boxlike METRES. * THE APPROXIMATE PRODUCTION OF CBM GAS ESTIMATED FROM THESE BLOCKS IS 23 MMSCMD AT PEAK PRODUCTION LEVELS. 6. 1. 1 Allotment in Round-I (Under first come in of statement) 6. 1. 2 Blocks Awarded On Nomi nation Basis- 6. 1. 3 Blocks Awarded Under CBM Policy- 6. Round II Awarding Of Blocks- 6. 3 Allotment in Round- III- 7. 0 Development of CBM (Indian Initiatives) To facilitate the development of CBM, Govt. Of India formulated CBM policy in 1997. The highlights are as under- * Blocks to be awarded through open supranational competitive bidding system. * No move interest of the government. * No upfront payment. * No signature bonus. * Exemption from payment of customs business barter on imports required for CBM operation. * independence to sale gas in the domestic market. * A seven years revenue holiday. 7. 1 Indian policies for CBM The GOI, in order to utilize the CBM potential in the country formulated a CBM policy July 97. * Ministry of PNG became administrative ministry and DGH became implementing agency for CBM policy. * DGH did laudable work to operationalize the CBM policy. * DGH identified blocks for CBM exploration after interaction with the ministry of coal and ot her agencies in the known high rank coalfield areas. * Blocks offered through global competitive bidding by Ministry of PNG. * Fiscal, contractual and operating regime and model contract put in place with one of the best terms. actually liberal fiscal terms offered to realize investors. 7. 2 Fiscal terms * No participating interest of the government. * No signature bonus. * Allotment of blocks through global bidding. * furnish for bidding for more than one block. * 10% ad-valorem royalty payable to state govt. * additive production linked payment biddable. * defrayal on sliding scale for every 0. 5 MMSCMD incremental gas Production beyond 1. 0 MMSCMD. * Freedom to lot gas in the domestic market determined prices. * Fiscal stability provide in the contract. * No customs duty on imports required for CBM operations. Arbitration provision to be governed by the arbitration and propitiation act, 1996, which is based on uncitral provisions. * Nominal commercial bonus of us$ 0. 3 million after discovery. * New petroleum revenue enhancement guide to facilitate investors. * Corporate income tax revenue payable as per income tax act, 1961. * work contract to serve as guideline. * 7 year tax holiday from the visualize of first base of Commercial production. 8. 0 CBM Future in India While GEECLs initial confirmed customers are industrial operations in West Bengal (the site of the project), the friendship forecasts high demand for CBM as an alternating(a) fuel for transportation.Demand in Kolkata alone could fix 35 MMSCFD. Other West Bengali district vehicle demand could tally an additional 10 MMSCFD. Vehicle demand in neighboring Jamshedpur (200 km away) could devote 18 MMSCFD, according to the company. In India, commercial CBM production is yet to be started in full pace. Few EP companies like ONGC Ltd. , GEECL and Essar Oil have started production, but field development is yet to be completed. Steel, Glass, Ceramics and Paper manufacturing companies are showing penetrative interest to put up their plants in the region.The possible industries that can use CBM whitethorn be * Fertilizers, chemicals petrochemicals * Town Gas industrial fuel supply * Power generation * Cement * Paper and paper products * frig around iron steel * Ceramics * Glass * Textiles 8. 1 CHALLENGES IN IMPLEMENTATION * CBM Resource sound judgement technique in de-stressed coal seams. * Techno-economic paygrade of identified CMM Project area. * Utilization engineering science of recovered methane. * Capture and Utilization proficiency of low concentration of methane in breathing air. 8. 2 PROSPECT OF CBM IN INDIA To increase the pace of exploration and development of CBM the government of India under CBM-III round of international bidding has identified 7 additional blocks in different coalfields, located in the States of Madhya Pradesh, Chattisgarh, Jharkhand,West Bengal, Andhra Pradesh Rajasthan and hold sizable resources of CBM showing good pros pectivity. 8. 3 OPPORTUNITIES OF CBM IN INDIA The CBM terms offered by political science are definitely the very best in the world- * Seven years tax holiday from the date of commencement of production. * Fiscal stability provision in the contract. * No participating interest of the Government. No signature bonus. * No custom duty on imports required for CBM operations. * Freedom to convey gas in the domestic market at market determined rate. * During the decease 3 years more than 75 exploratory / pilot wells have been drilled in the 16 CBM blocks awarded during the stand up two rounds of international bidding. * Significant finds describe in Jharia, Raniganj, Bokaro Sohagpur Coalfields in the Eastern and interchange part of India * Test production of CBM in these blocks have yielded encouraging quantities of gas and commercial development of Coalbed Methane (CBM) in India is no overnight a myth but a reality. . 4 AWARENESS ABOUT CBM * promotional Road Shows to be organized in January / February 2006 at USA, Canada, Australia, Russia, UK and India. * All the road shows to be presided over by the Honble Minister of oil Natural Gas, besides the senior officials of the Ministry of oil Natural Gas, Ministry of Coal and Directorate General of Hydrocarbons, Government of India. * A brochure gravid details on the blocks on offer, the geographical Location on a constitute of India, the Terms Conditions, Bid Format, a transcript of the Modal CBM Contract and Price amount will be made operational free of cost. The Hard Copies Digital Copies (on work stations) of the Basin Information Dockets and Data Packages will be made available for limited review at data viewing centers in India and abroad. 9. 0 CONCLUDING REMARKS * Commercial exploitation of Coal Bed Methane (CBM) in India is no longer a myth but a reality. * The CBM gas flared in the test wells in Raniganj, Jharia and Sohagpur Coalfields in the easterly and central part of India bear great tes timony to the stories of success in the constructive stage of CBM operation. India endowed with large resources base of coal and lignite contains sizable quantities of CBM gas. initial test production in CBM fields of India shows encouraging results. * India has adopted a time bound aggressive dodge for exploration and development of CBM. * CBM an unconventional alternative source of natural gas has good future prospects in India. * CBM technology is proceeding with good space to prove itself as a cleaner energy security to India as well as the World. However, production strategy of methane from CBM is very much different from conventional gas reservoir.The study revealed that the coal type, rank, volatile matter and fixed carbon are strongly influence the adsorption aptitude of methane into the coal bed. With increasing depth maturation of coal increases and generation of methane gas also increases. Gondwana basin as the most prospective CBM field is being developed now. From the studies, it is find that Singareni coal field under Gandowana basin contains low gas Hence, presently it is non considered for CBM exctraction. However, in future this field may be considered for methane extraction using mature technology and in emergency condition.Sequestration of carbon dioxide helps in mitigation of global warming, at the same time helps in recuperation of methane gas from coal bed uncover otherwise. However, detailed and intensive studies are required for efficient and economic production of coal bed methane. India with 4. 6 TCM of methane reserves in coal bed can better its per capita energy demand by successful exploitation of CBM. 10. 0 BIBLIOGRAPHY (Internet Based methodology Only) 1. Singh, A. K. Activities on Development of CBM In India. Coal Sub-committee Meeting, New Delhi. ring 5, 2010. 2. Ojha, K. K. CBM In India Difficulties Prospects. lt planetary Journal of Chemical Engineering Applications, Vol. 2. August, 2011. 3. Rana, Ashish Future f or Energy Options for India. Reliance Industries Ltd. . 4. Singh, M. P. Status of CBM Investigations In India. 5. Overview of Indias CBM Policies Regulations. Methane to Market throng. 6. Coal Bed Methane. Indo-US Coal on the job(p) Group Meeting. November, 2005. 7. Sawhney, Prem Developments In India, CBM. March 3, 2010. 8. Dutta, Shishir Economics of CBM. June 28-30, 2011. 9. GECL. Markets Distributes CBM in India for 1st snip. February 28, 2008.