The Centre on Thursday signed contracts with companies for the seven blocks awarded under the fourth round of Coal Bed Methane (a natural gas) Policy-IV having a resource potential of 330 million cubic metres of gas which are expected to attract over $150 million investment.
While four blocks have gone to Essar Oil, one each has been bagged by Great Eastern Energy Corporation, Arrow Energy (AS) Pte Ltd. and Oil India consortium, and Arrow Energy (ST) Pte Ltd and Tata Power Company consortium. These seven blocks are in Assam, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa and Tamil Nadu. With the conclusion of the fourth round of CBM, the government has signed a total of 33 CBM contracts till date.
Addressing media persons, Oil and Natural Gas Minister Murli Deora said about one-lakh cubic metres of CBM gas was now being produced in the country.
“Although the current volume of CBM production appears to be negligible, when compared with the total natural gas production of about 15-crore standard cubic meters per day in the country, this CBM gas production has the capability of generating 20 MW electricity,'' Mr. Deora added.
According to Minister of State for Oil and Natural Gas Jitin Prasada, “three CBM blocks have already entered the development stage and they are expected to produce 70-lakh standard cubic metres per day of gas by the year 2013-14. With the signing of seven CBM blocks, new area — totalling 3,727 sq. km. — will become available for exploration and exploitation of gas lying below coal seams. Total CBM resources in the country are of the order of 92 trillion cubic feet, of which only 8.9 tcf have been established.''
