NABC Business Forum 2006. INDIA ENERGY OPPORTUNITY COALBED METHANE A NEW SOURCE OF GAS Mohit K Banerjee.

NABC

Business Forum2006

INDIA ENERGY OPPORTUNITY

COALBED METHANEA NEW SOURCE OF GAS

Mohit K Banerjee

cbm ( An Alternative Fuel)

Coal Bed Methane (“CBM”) found in coal deposits

CBM is in the coal seam in adsorbed condition and held in place by the pressure of under-ground water

CBM is extracted by drilling down to the coal seam, fracturing, de-watering and allowing the gas to flow

Coal quality compares well with global CBM producing coal fields in terms of gas content and adsorptive capacity

Over view of Energy scenario

7.8%

30.1%

55.5%

1.4%

5.2%

Natural Gas

Oil

Coal

Nuclear

Hydro

Global

24.3%

37.5%

25.5%

6.5%6.3%

Natural Gas accounts for only 8% of current energy consumption against 24% global consumption

India Global

Proved World Gas Reserves as on 1st Jan 2003

31%

15%

31%

9%3%

4% 4%

3%

Russia

Iran

Qatar

S.Arbia

UAE

US

Algeria

Rest

Proved Gas reserves: India - 30.1 TCF, World- 5501.4 TCF

INDIAN GAS SECTOR : Demand/Supply Outlook

POWER FERTILIZER PETROCHEM/LPG

STEEL INDUSTRIES CITYGAS/ CNG

CONSUMPTION – 98 MMSCMD

231

185

313

263

0

50

100

150

200

250

300

350

2006-07 2011-12

MM

SC

MD

PROJECTIONSCURRENT (2005-06)

HYDROCARBON VISION 2025

ADB GAS MASTER PLAN

40%

28%

5%12% 4%

11%

CURRENT SUPPLIES

Avg. Daily

(MMSCMD)

• ONGC & OIL : 60.0• Joint Ventures : 19.0• Import of LNG : 19.0

Total sale : 98.0

CBM Potential in India

• 2-3 b ton coal can produce 1 MMSCMD of CBM• CBM reserves : 800-1200 bcm • Damodar valley : 350 bcm 

– Considered : 85 bcm  for 20-25 years – Average production :3-4 bcmpa. 

• Total CBM delivery - 105 MMSCMD for 20 years. 

• LNG equivalent : 26 M ton/Annum for 20 years• Can generate : 19000 MW electricity.   

HOW COAL BED METHANE IS PRODUCED

CBM Production in USA vs NG Production in India• Over 14,000 wells

drilled in USA• Current Production -

1700 bcf/year (approx 131 MMSCMD)

• India’s total natural gas production - Approx 1020 bcf/year ( approx 79 MMSCMD)

0

200

400

600

800

1000

1200

1400

1600

1800

USA CBM INDIA NG

A NUISANCE.. TURNED INTO VALUABLE ENERGY….Presence of Methane in coal has always been considered a mining hazard. In most coal mining operation, vast quantities of methane, a potent green house gas are vented to atmosphere through ventilation system. Production of coal bed methane reduces explosion hazard during subsequent coal mining operation, reduces green house gas emission and provides an alternative source of energy.

Thank you !