India May Allow Coal India to Extract CBM From its Mines

The Indian cabinet may this week allow state owned miner Coal India to produce coal bed methane at its mines, reports Press Trust of India.

Currently mining firms in India cannot extract CBM and coal at the same time.

CBM exploration and production is allowed only in pure coal-seam gas bearing blocks which are auctioned, adds Press Trust.

Cola India holds at least 20% of the estimated 60 billion tons of coal resources in India and has several coal mines in eight states, which are estimated to have CBM reserves of 3.5-4 trillion cubic feet, Press Trust reports citing sources.

CBM extracted by Coal India will be priced and marketed as per the oil ministry's gas pricing and utilisation policy.

Sources have told Press Trust that 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.

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