Coal Bed Methane

TABLE OF CONTENTS 1. 0 Introduction 5 1. 1 About CBM 5 1. 2 Origin of methane 5 2. 0 CBM In India, An everyplaceview.. 5 2. 1 Indias Energy Scenario 5 2. 2 CBM Activities In India. 6 2. 3 victimization Of CBM In India 7 2. 4 CBM Statistics In India. 7 3. 0 CBM Reserves & Indian Status.. 9 3. 1 CBM Reserves. 9 3. 2 CBM toil Status In India 10 3. Development Of CBM, Indian Initiative.. 11 4. 0 CBM Projects In India. 12 5. 1 CBM Current Projects In India (By CIL). 12 5. 2 CBM motley Projects In India.. 12 5. 0 CBM Market In India 14 6. 3 court Benefit Analysis.. 15 6. 4 Market Competitors & Their piece of land.. 15 6. 5 organise Analysis For Different Companies.. 16 6. 0 ember Bed Methane (CBM) Rounds in India 17 7. CBM Round I & II 17 7. 7. 1 Allotment In Round-I ( chthonian First Order of Bidding).. 17 7. 7. 2 Blocks Awarded On Nomination Basis.. 18 7. 7. 3 Blocks Awarded chthonian CBM Policy. 18 7. 7 Round- II Awarding Of Blocks 18 7. 8 Allotment In Round-III 19 7. 0 Develo pment Of CBM (Indian Initiatives) .. . 20 8. 9 Indian Policies for CBM. 20 8. 10 Fiscal Terms . 20 8. 0 CBM future tense In India . 2 9. 11 Challenges In Implementation. 22 9. 12 Prospects Of CBM In India . 23 8. 3 Opportunities Of CBM In India . 23 8. 4 Awargonness About CBM . 23 9. 0 Concluding Remarks 25 10. 0 Bibliography .. 25 1. 0 INTRODUCTION 1. 1 ABOUT CBM Thehistoryof CBM goes backwards to 1908, when the organization was founded by the German PastorErnst Jacob Christoffel. Since then, CBM has become one of the leading(a) professional organizations for people with disabilities worldwide.Currently, CBM halts everywhere deoxycytidine monophosphate0 projects in all over 100 countries. CBMs vision is of an inclusive world in which all persons with disabilities enjoy their benevolent rights and achieve their full authorization. 1. 2 ORIGIN OF METHANE scorch lie with methane evolves during the vicissitude of the organic matter in the swamp, which later converts into p eat after burial beneath reducing condition. As temperature increases the peat converts into lignite followed by sub-bituminous, bituminous low-volatile medium volatile, soaring volatile anthracite and graphite.This action is known as searification. During this process at aboriginal phase angle biogenic methane evolves, later thermogenic methane is formed. Much of the methane generated by the scorchification process escapes to the surface or migrates into adjacent rootage or other rocks, simply a portion is trapped at heart the blacken itself. In early stages of charification, biogenic methane is generated as a by- ingathering of bacteriuml respiration. Aerobic bacterium (those that use oxygen in respiration) primary metabolize any b atomic number 18 oxygen left in the plant remains and surrounding sediments.In crude-fangled water environments, methane product pay backs immediately after the oxygen is depleted. Species of anaerobic bacteria (those that dont use o xygen) then reduce carbon dioxide and explicate methane through anaerobic respiration. When a coals temperature underground r from each onees intimately122F and after a sufficient amount of time, most of the biogenic methane has been generated, and near twain-thirds of the original moisture has been expelled, the coal attains an approximate rank of sub-bituminous.As the temperature increases above 122F through increased burial or increased geothermic gradient, thermogenic processes begin and spare water, carbon dioxide, and nitrogen are generated as coalification proceeds to roughly the rank of high-volatile bituminous. Maximum multiplication of carbon dioxide, with little methane generation occurs at about 210F. Generation of thermogenic methane begins in the higher(prenominal) 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 er temperatures and higher rank coals, methane is still generated, only when at roundwhat lower volumes. chiefly adsor have a go at it on or absorbed within micro pores of the coal. Coal bed methane is found associated with the coal/ lignite beds. This is the product that evolves during the process of coalification generally to a greater extent in quantity than the coal mountain hold. Some of the triggerman escapes in the surroundings only when some of it lie in the coal under hydraulic pressure. Coal is unique in its behaviour as it acts as a source as well as a reservoir rock. Generally the turgidity glut increases with rank. 2. CBM IN INDIA, AN OVERVIEW India is potentially rich in CBM. The major coal palm and CBM blocks in Indian are shown in material body. The Directorate General of Hydrocarbons of India estimates that deposits in major coal fields (in xii states of India covering an area of 35,400 km2) contain approximately 4. 6 TCM of CBM. Coal in these basins rang es from high volatile to low-volatile bituminous with high ash content (10 to 40 percent), and its gunman content is between 3-16 m3/ton dep closeing on the rank of the coal, profundity 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 area, the gas content is estimated to be between 7. 3 and 23. 8 m3 per ton of coal within the skill range of 150m to 1200 m. Analysis indicates every 100-m increase in depth is associated with a 1. 3 m3 increase of methane content. In India, moneymaking(prenominal) CBM production is nevertheless to be started in full pace. Few EP companies worry ONGC Ltd. , GEECL and Essar oil color take hold started production, but field development is however to be completed.India ranks 134th out of 182 countries, the same as in 2006, in the 2009 Human Development Report and is home to 60-80 million people with disabilities (PWDs). CBM regional office for the s outh-central Asia Region has prioritised implementation of programs in states which have high percentages of people on a lower floor the poverty line and high number of people with disabilities. CBM started to extend its support to India in 1967 and in 1975 the southeasterly Asia Regional Office was established 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 projects supported by CBM. 2. 1 INDIAS ENERGY SCENARIO * India is one of the fastest growing economies. * The GDP growth is over 8%, worryly to increase to over 10% in come near future. * This GDP growth is required to eradicate poverty and meet verdants human development goal. * To sustain such growth 3/4 fold increase in primary energy indispensableness envisaged. * Integrated Energy Policy Document indicates radical energy necessary of the country will increase from a current level of about 500 MTOe to 2000 MTOe by 2031-32. Efforts are on to utilize all attainable energy imaging- renewable, non-renewable, coal based additional resource etc to meet this long target. 2. 2 CBM ACTIVITIES IN INDIA 1967 CBM extends support to India and the first Regional Office of CBM was undetermined in Trichy in 1975 for India, Bangladesh, Nepal and Sri Lanka. 1975 The comprehensive ophthalmic health program for Thiruchirapalli was started in Joseph Eye Hospital. Community ophthalmology was born 1977 The first Community base rehabilitation (CBR) project at Musiri started with single disability. 1979Concept of integrated education was promoted by CBM. CBM has been include as a member of the Committee of the Rehabilitation Council of India dealing with ocular Impairment. 1999 Together with other NGOs and WHO, CBM initiates VISION 2020 The Right to Sight, a world(prenominal) initiative for the elimination of avoidable blindness by the course of study 2020. 2004 CBM awarded by the I ndian Govt. in appreciation of exemplary contribution towards elimination of avoidable Blindness in India. 2006 CBM with other NGOs initiated programmed of Sound Hearing 2030. WHO SEARO has been supporting this initiative. . 3 DEVELOPMENT OF CBM IN INDIA Commercial production of CBM started and during 2008-09 it was 0. 15 MMSCMD (million Std cubic beatnik per daytime). The CBM production is expected 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 Estimate 2008) * 26 Blocks allot for Commercial Development * Production potential 38 Million brick-shaped Meters per day, which can support power 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, exhibit 24 fold growth in 2 stratums. * Allotment of 8 more blocks under consideration of the Govt. 3. 0 CBM militia INDIAN STATUS 3. 1 CBM RESERVES IN INDIA SNo. State Coal Fields/Block Area (Sq. Km) CBM resources (BCM) 1 West 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 PRODUCTION STATUS IN INDIA SNo. State Prognosticated Resource (BCM) retrievable 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 enthronement Rs 256 Crores (USD 57 million) * Reserve established by distinct 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 Dem onstration project at Moonidih Sudamdih mines of BCCL. * CIL-ONGC commercial projects in Jharia and Raniganj CBM blocks * Successfully implemented at Moonidih mine of BCCL. * 3CBM swell drilled and 3 potential seams in each well hydro- fractured 2 CBM rise up are producing gas after dewatering. * Dewatering being taken up in 3rd well after which CBM production will start. Fig-Hydro-Fractured unit of 3rd Well 4. 2 CURRENT PROJECT ON CBM IN INDIA Great Eastern Energy Corporation Ltd (GEECL) hasbegunthe production and sales event of coal-bed methane (CBM), the first such commercial project in India. GEECL is targeting initial production of 1. 5 million standard cubic feet per day (MMSCFD) estimated in-place gas in the block is 1. 92 trillion cubic feet (TCF) per Netherland, Swell and Associates, Inc. (NSAI) on 1 June 2007. * As of June 2007, GEECL had drilled, perforated and fractured 23 wells and installed the pumps. Nine wells are currently 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 investing $150 million for drill 100 production wells in four geezerhood. * Reliance Industries (RIL) and Oil and Natural bollix Corporation (ONGC), the countrys two biggest geographic expedition and production companies of conventional oil and gas, have in any case begun recovering some gas from coal beds. RIL has estimated in-place gas reserves 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 MARKET IN INDIA * The present scenario of rapidly increasing take up of CBM is highly encouraging for the year 2006-2007 the demand was of 231 MMSCMD and supply was 95MMSCM D 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 epoch demand is expected to grow up to 391 MMSCMD. Directorate of Hydrocarbons recently took new areas for CBM exploration activities in CBM-III BIDDING. Based on the characteristic properties viz occurrence of quilted coal seams at favorable depth, high seam density, good thermal maturity, favorable permeability, good gas content, sizeable coal reserves. * Recently, Govt. of India further proclaimed 10 blocks in order to explore and produce (CBM). Out of these, two blocks each are located 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 explorative Block area will be still larger. Approx 8,000 sq km of the coal b earing area is still unexplored for CBM. 5. 1 COST public assistance ANALYSIS IS PLACED BASED ON FOLLOWING ASSUMPTIONS Assumptions Parameter Unit Details Well Productivity SCM/Day 3500 Well Capital toll 1. Construction approach 2. Collection/ Compression/ Waste Disposal Cost $/well 778000291000 Capital Cost Escalation % 2Well operating(a) Cost 1. Operating Cost 2. GA Cost $/well 1720049600 Operating Cost Escalation % 2 Exploration Development Phase Years 3-5 blooming Production After Start of Commercial Operations Years 3-5 boast Price $/mmBtu 5. 10 5. 2 MARKET COMPETITORS THEIR SHARE Company/ major(ip) 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 market of CBM, various companies have their SWOT analysis, based upon which they decide to enter into the venture. The following table shows SWOT analysis for different competitors in India. Companies Strength Weakness Opportunities ThreatONGC untouchable Opening MarketSubstantial Reserve Placement RatioIntegrated Operations PSU Constrained to Faster finis Making Expansion through inorganic growthNew energy sources Intense competitionOil bumble price fluctuations REL Dominant foothold in the marketExpanding market share in sectorVertical IntegrationEfficient Operations Opportunities Conventional sourcesKG-D6 block commencement Lack of mid-stream operations low-priced petrochemical productsHighly competitive domestic help market Essar Oil Ltd. Expanding market share in sectorConsiderable asset baseHorizon chink integrated EnterpriseVast retail net expire Low return on equity moderate liquidity positionNegative operating margin New asset acquisitionExpansion pla nsCBM operations pie-eyed regulationIntense 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 UNDER CBM-I CBM-II ROUNDS OF BIDDING AND NOMINATION primer coat AS ON DATE. * A TOTAL AREA 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 CUBIC 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 ( chthonian first order of statement) 6. 1. 2 Blocks Awarded On Nomination 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 facil itate the development of CBM, Govt. Of India formulated CBM constitution in 1997. The highlights are as under- * Blocks to be awarded through brusk foreign competitive bidding system. * No fragmentiseicipating interest of the government. * No upfront payment. * No signature bonus. * Exemption from payment of customs duty on imports required for CBM operation. * Freedom to sale gas in the domestic market. * A seven years tax 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 commendable work to operationalize the CBM policy. * DGH identified blocks for CBM exploration after interaction with the ministry of coal and other agencies in the known high rank coalfield areas. * Blocks offered through globose competitive bidding by Ministry of PNG. * Fiscal, admitual and operating regime and model contract put in place with one of the best terms. Very braggart(a) fiscal terms offered to attract investors. 7. 2 Fiscal terms * No participating interest of the government. * No signature bonus. * Allotment of blocks through global bidding. * Provision for bidding for more than one block. * 10% ad-valorem royalty due to state govt. * Additional production linked payment biddable. * Payment on sliding scale for every 0. 5 MMSCMD incremental gas Production beyond 1. 0 MMSCMD. * Freedom to sell gas in the domestic market determined prices. * Fiscal stability supplying in the contract. * No customs duty on imports required for CBM operations. Arbitration provisions to be governed by the arbitration and Conciliation act, 1996, which is based on uncitral provisions. * Nominal commercial bonus of us$ 0. 3 million after discovery. * New oil colour tax guide to facilitate investors. * Corporate income tax payable as per income tax act, 1961. * Model contract to serve as guideline. * 7 year tax holiday from the date of commencement of Commercial production. 8. 0 CBM time to come in India While GEECLs initial confirmed customers are industrial operations in West Bengal (the site of the project), the company forecasts high demand for CBM as an alternative fuel for transportation.Demand in Kolkata alone could reach 35 MMSCFD. Other West Bengali district vehicle demand could tally an additional 10 MMSCFD. Vehicle demand in neighboring Jamshedpur (200 km away) could reach 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 keen interest to put up their plants in the region.The possible industries that can use CBM may be * Fertilizers, chemicals petrochemicals * town Gas Industrial fuel supply * Power generation * ceme nt * Paper and paper products * Sponge iron steel * Ceramics * Glass * Textiles 8. 1 CHALLENGES IN IMPLEMENTATION * CBM Resource Assessment technique in de-stressed coal seams. * Techno-economic evaluation of identified CMM Project area. * Utilization technology of recovered methane. * set about and Utilization Technique of low concentration of methane in ventilation air. 8. 2 PROSPECT OF CBM IN INDIA To increase the pace of exploration and development of CBM the regime 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 prospectivity. 8. 3 OPPORTUNITIES OF CBM IN INDIA The CBM terms offered by Government 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 part icipating interest of the Government. No signature bonus. * No custom duty on imports required for CBM operations. * Freedom to sell gas in the domestic market at market determined rate. * During the end 3 years more than 75 exploratory / pilot wells have been drilled in the 16 CBM blocks awarded during the last two rounds of international bidding. * Significant finds reported in Jharia, Raniganj, Bokaro Sohagpur Coalfields in the Eastern and Central part of India * Test production of CBM in these blocks have yielded encouraging quantities of gas and commercial exploitation of Coalbed Methane (CBM) in India is no longer 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 crude oil Natural Gas, besides the senior officials of the Ministry of Petroleum Natural Gas, Ministry of Coal and Directorate General of Hydrocarbons, Government of India. * A booklet giving details on the blocks on offer, the Geographical Location on a map of India, the Terms Conditions, Bid Format, a copy of the average CBM Contract and Price List will be made in stock(predicate) free of cost. The Hard Copies Digital Copies (on work stations) of the Basin Information Dockets and selective information Packages will be made available for inspection at info 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 eastern and central part of India bear ample testimony to the stories of winner in the formative 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 dodging 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 quadruplet 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 furbish up carbon are strongly influence the adsorption capacity 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 actual now. From the studies, it is observed that Singareni coal field under Gandowana basin contains low gas Hence, presently it is not considered for CBM exctraction. However, in future this field may be considered for methane extraction using advanced technology and in emerge ncy condition.Sequestration of carbonic acid gas helps in mitigation of global warming, at the same time helps in recovery of methane gas from coal bed unveiled 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 enrich 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. demonstrate 5, 2010. 2. Ojha, K. K. CBM In India Difficulties Prospects. ltInternational Journal of Chemical Engineering Applications, Vol. 2. August, 2011. 3. Rana, Ashish Future for 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 conference. 6. Coal Bed Methane. Indo-US Coal Working Group Meeting. Nov ember, 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 Time. February 28, 2008.