Peeyush Kumar Director (Technical) Ministry of Coal Opportunities for Methane Drainage & CMM Extraction in India
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Peeyush KumarDirector (Technical)
Ministry of Coal
Opportunities for Methane Drainage & CMM Extraction in India
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Coal;
Contributes:• about 57% of
primary energy
• over 80% of power Generation
• India’s GDP: US$ 2.26 Trillion
• Mining Sector : 2.5%;
• Coal : 30% of all mineralproduction
539 Coal and 19 lignite mines; PSUs :90% of Coal production
Inventory of Geological Resources of Indian Coal (upto a
depth of 1,200 meters)
(as on 01-Apr-2017)
Source : Inventory of geological resources of Indian coal prepared by Geological Survey of
India on the basis of resources estimated by CMPDI, MECL, SCCL, GSI and DGM (Maharashtra) and DGM (Chattisgarh) as on 01-Apr-2017
CIL :COAL PRODUCING SUBSIDIARIES
EASTERN COALFIELDS LTD. (1)BHARAT COKING COAL LTD. (2)CENTRAL COALFIELDS LTD. (3)NORTHERN COALFIELDS LTD. (4)WESTERN COALFIELDS LTD. (5)SOUTH EASTERN COALFIELDS LTD. (6)MAHANADI COALFIELDS LTD. (7)NORTH EASTERN COALFIELDS. (8)
( A UNIT UNDER CIL(HQ) )
OTHER COAL COMPANIES
SINGARENI COLLIERIES CO. LTD. (9)
NLC INDIA LIMITED (10)
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COALLIGNITE
LOCATION OF COAL & LIGNITE RESOURCES OF INDIA
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Coal Bed Methane(CBM) Policy in India
▪ CBM Policy1997; MoP&NG to administer in consultation with MoC.
▪ GoI in July, 2015 permitted Coal India Limited (CIL) for exploration and
exploitation of Coal bed Methane (CBM) from areas under coal mining lease
allotted to CIL;
▪ MoP&NG issued Policy Framework for Early Monetization of CBM in April,
2017 to provide marketing and pricing freedom to sell CBM at Arm’s Length
Price in the domestic market.
▪ Cabinet approved exemption of applicability of the Oilfields (Regulations &
Development) Act and P&NG Rules within coal mining leasehold areas and
engagement of MDO in the command area of CIL.
▪ Coal India Ltd.(CIL) operates over 394 coal mines of which 60 are Degree-II
and 4 are Degree-III mines;
Development of CMM: Indian Scenario
• India CBM/CMM Clearinghouse, established under the aegis of USEPA and
Ministry of Coal, Govt of India in 2008;
• MoC has made CMPDI the Nodal Agency in July, 2010;
• CMM demonstration project successfully implemented in Moonidih Mine of
BCCL, Jharia coalfield;
• CBM Laboratory established in Sept, 2008 at CMPDI, Ranchi for carrying
out gas related studies on coal and shale i.e; Field desorption studies with
“Adsorption Isotherm” through high end instruments, “Automatic Porosi-
cum-Permeameter, “ToC (Total Organic Carbon) Analyzer” and “Source
Rock Analyzer (Rock Eval 6)”.
• Resource assessment done for Jharia and Raniganj CBM/CMM block;
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Opportunities for methane drainage and CMM extraction:
• Pre-drainage of Methane• Simultaneous Extraction: Coal & Methane• Jharia CBM/CMM Block (BCCL Area)
OPPORTUNITIES IN INDIA FOR CMM
▪ Pre-drainage of CMM
–Pre drainage is possible in Jharia, Raniganj and NE Coalfields.
–BCCL is likely to invite Bids through Global e-tendering for selection of
experienced developer for Pre-drainage of methane from Moonidih UG mine on
concept to commissioning basis including operation and maintenance.
▪ Simultaneous Extraction of Coal and Methane
Possibility for simultaneous harnessing of methane (CMM) and
extraction of coal from gassy coal seams (deep seated) in potential
coalfields through single operator.
▪ Jharia and Raniganj CBM block
For CBM extraction a block of about 24.32Sq. Km has been
delineated for development of CBM in BCCL area having resource of
25.22 BCM.
Location of Moonidih Mine (BCCL) in Jharia Cf
Moonidih CMM Project Area
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1. PRE-DRAINAGE OF METHANE IN MOONIDIH UG MINE
▪ Moonidih UG mine is located in South-Central part of Jharia Coalfield in
Dhanbad district of Jharkhand state.
▪ It is Degree-III Mine (methane >10 Cum M/tonne)
▪ Gross Geological Coal Reserve (XVI Top Seam): 28.00 Million Tonne
▪ XVI Top Seam (within CMM Project Boundary)
▪ Net Geological Coal Reserve : 12.48 MT (million tonne)
▪ Extractable Coal Reserve : 5.7 MT
▪ Average In-situ Gas content of XVI Top : 8.30 m3/tonne
▪ It is proposed to undertake methane pre-drainage from Seam XVI Top and
adjoining areas contributing to methane in the coal face.
2. Simultaneous Extraction of Coal and methane
▪ Presently highly gassy seams in Kapuria, Moonidih
and Singra in BCCL areas is a challenge for Coal
extraction;
▪ Kapuria UG Mine:
▪ Area : 6.4 Sq.Km
▪ Coal resource: 196.46MT;
▪ Total Seams: 27nos (Depth upto 950m)
▪ Seams planned: 7 nos (upto Seam XV, Depth: 500m)
▪ Simultaneous Extraction of CBM/CMM and Coal is an
opportunity in BCCL;
▪ Plan to develop through experience Operator for
simultaneous extraction of CMM and Coal;
▪ Bidders Meet for opinion and option(s) to develop;
▪ Bid Document to prepare to select Developer globally;
3. Location of Jharia CMM/CBM block in Jharia CF
Jharia CMM/CBM Block
3. Jharia CMM/CBM Block (BCCL Area)
▪ Area of the block : 24.3 Sq. Km;
▪ Seams: 14 nos (Seam XV and below);
▪ Net Coal resource: 1961.85 million tonne
▪ Prognosticated CBM Resource: 25.22 BCM;
▪ Seams: 14 nos (Seam XV and below);
▪ Bid document prepared on revenue sharing model;
▪ Planned to develop block under MDO route;
▪ Bidders Meet/Pre NIT Meet has been planned.
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Jharia CMM/CBM Block – Economic Analysis
Gas Price considered $/MMBTU USD 5.70
Gas Price Inflation % 0%
Cost Inflation % 0%
IRR % 52%
NPV-12 $ million 470
BEP (Break Even Price) $/MMBTU 1.56
Total Wells (Vertical) Wells 145
Total CAPEX
Undiscounted $ million 289
Discounted @10% $ million 147
Total OPEX
Undiscounted $ million 169
Discounted@10% $ million 31
Recoverable Volume BCM 19.9
Average Prod. MMSCMD 1.3
Gas Price considered $/MMBTU USD 8.00
Gas Price Inflation % 0%
Cost Inflation % 0%
IRR % 72%
NPV-12 $ million 731
BEP (Break Even Price) $/MMBTU 1.56
Total Wells (Vertical) Wells 145
Total CAPEX
Undiscounted $ million 289
Discounted @10% $ million 147
Total OPEX
Undiscounted $ million 169
Discounted@10% $ million 31
Recoverable Volume BCM 19.9
Average Prod. MMSCMD 1.3
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Challenges in Methane drainage and CMM in India
Challanges
▪ Engagement of technical service provider for pre
drainage of methane
▪ Finalisation of tender document on revenue sharing
model for extraction of methane
▪ Engagement of MDO for simultaneous extraction of
Coal and methane
Way forward
▪ Engagement of suitable Operator for Pre-drainage of
methane (CMM);
▪ On successfully implementation, further replication in other
gassy mines (ECL Area (Bengal), NECfs (Assam));
▪ Delineation of prospective CBM/CMM blocks in CIL
command areas (BCCL, CCL, SECL Areas);
▪ Finalisation of Global Bid Document (TSD) for CBM/CMM
extraction on MDO model;
▪ Bidders Meet for Simultaneous Extraction of CBM and
Coal planned;
▪ Resource Assessment of Methane in the relinquished
CBM blocks and Coal Mining (de-stressed) Areas;
▪ Feasibility studies of delineated CMM/CBM Blocks of CIL.
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Thanks
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