CIL, ONGC JV start drilling first production well for CBM in Jharia’s Parbatpur block

• The government had awarded the CIL and ONGC JV company two CBM blocks, comprising of Jharia CBM Block and Raniganj CBM Block, in 2002 for exploration

• ONGC recently approached GAIL for seeking tie-in connectivity with the latter's JHBDPL project in order to monetise CBM gas produced from blocks in Jharkhand

New Delhi: State-run Coal India Ltd (CIL) and Oil & Natural Gas Corporation (ONGC) have started drilling the first production well for extraction of Coal Bed Methane (CBM) in Parbatpur Block of Jharia, Jharkhand. The government had awarded the CIL and ONGC joint venture (JV) company two CBM blocks, comprising of Jharia CBM Block and Raniganj CBM Block, in 2002 for exploration of Coal Bed Methane. While ONGC is the operator of the block, CIL has a participative interest of 26 percent. 

ONGC recently approached Gas Authority of India Ltd (GAIL) for seeking tie-in connectivity with the latter's Jagdishpur-Haldia and Bokaro-Dhamra Pipeline (JHBDPL) project in order to monetise CBM gas produced from blocks in Jharkhand's Jharia, Bokaro and North Karanpura. 

ONGC expects 0.991 MMSCMD from Bokaro, 0.869 MMSCMD from Jharia

In a letter to the PNGRB in December, ONGC said that it expects a peak production of 0.991 MMSCMD from Bokaro and 0.869 MMSCMD from Jharia. "Timely connection of these two blocks to the JHBDPL is of paramount importance to ONGC for early monetisation of such volumes," it said.

Appreciable demand for CBM in the region: ONGC

ONGC told the regulator that there is appreciable demand for CBM gas in the region. However, since industries/markets are located far away from ONGC blocks, the natural resource is not able to reach the consumers. "The tie-in connectivity of these blocks would ensure that clean energy reaches the consumer door-step to fulfil the energy demand of the region and make a positive impact on the industrial growth and overall economy," said ONGC in the letter.

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Domestic gas from the ONGC CBM fields will be utilised in various industries like fertilizer, power, CGDs etc enroute the pipeline as well as enroute other pipelines in the country. According to ONGC, gas will be allocated through bidding and GAIL will execute the Gas Transmission Agreement (GTA) with the successful bidder of ONGC Jharia CBM gas.

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