India's ONGC to Start Three CBM Blocks: Report
Indian state-owned ONGC has sold coalbed methane (CBM) from three blocks in the eastern Indian state of Jharkhand for a price ranging between $5.77-$6.12/mn Btu, Press Trust of India reported June 17. ONGC will start production from these three blocks next month.
ONGC sold gas from its Bokaro CBM block to H N Roy for $5.77/mn Btu on a gross calorific value basis, sources told Press Trust of India. State gas utility Gail will buy gas from the North Karanpura block at $5.56/mn Btu while private company Positron Energy would offtake gas from Jharia CBM block at $6.12/mn Btu.
Production from these three blocks is set to commence next month with the peak volumes touching 3mn m3/d. ONGC has already drilled six wells in the Bokaro block and the seventh one was in progress. A total of 30 wells are planned to be drilled during in the next one year, Press Trust of India reported. Drilling in North Karanpur started this month and 30 wells are planned on the block before March 31, 2019. Sources said gas from North Karanpura is due to flow from July, but Gail has sought an extension of gas offtake up to December to complete pipelines for evacuation. ONGC is, however, insisting that GAIL honour its commitment to lift gas from July by using truck-mounted cascades, Press Trust of India reported.
India’s CBM sector has been frustrated because of inconsistent government policies. However, the present Modi government has taken a number of decision to revive the sector. It has allowed CBM producers to market and price the gas freely in the domestic market. The government has also made it easier for state-owned Coal India to explore and exploit CBM from its coal mines. Last week, Essar said it plans to more than double production of CBM from its Raniganj East block in the state of West Bengal. At present there are three CBM producers in India: Essar, Reliance and GEECL.