ONGC’s pilot underground coal gasification (UCG) project in Gujarat, which was initiated in 2005, is yet to get approval from the Coal Ministry, a top company official said here.

The UCG project in Surat is pending on account of the Mining Exploration Licence (MEL), ONGC Director (Exploration), Mr S. R. V. Rao, told PTI. He was in the city yesterday for an annual review of the western onshore basin at its headquarters here.

ONGC had sought a mining licence on a huge tract of land in the Vastan mine block located near Surat about three years ago but has not been successful in getting it.

The company has been eager to implement the project soon but has hit a road block. Before moving the concerned ministry for the MEL, ONGC had completed all the surveys needed for it, Mr Rao said.

Also, Coal India Ltd (CIL) and ONGC had inked an MoU in November 2005 and the project was scheduled be commissioned in 2009-2010.

Official sources said ONGC had joined hands with Russia’s Skochinsky Institute of Mining (SIM) for technology transfer.

In the UCG procedure, oxygen and steam is injected into coal seams that ignites coal. This converts solid coal into a mix of gases, liquids and ash. The gas, comprising of carbon monoxide, hydrogen and methane among others, can be taken out from coal seams.

The natural gas that comes out can be used for power generation as well as feed stock for the petrochemical industry, sources said.

ONGC intends to take such UCG projects to other parts of Gujarat and Rajasthan provided the pilot project takes off.

It is aiming to go commercial by producing about two billion cubic metres of synthetic gas per annum from the Vastan field, which has enough reserves to last for 30-40 years, sources said.

The calorific value of synthetic gas is 10 times lower than natural gas.

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