India’s coal bed methane output expected at 759 MSCM in FY23

India’s production of coal bed methane (CBM) for the 12 operational blocks at present is expected at 759 Million Standard Cubic Meters (MMSCM) in FY23 and will further inch up to 1,072 MSCM in FY24, the Parliament was informed on Monday.

“At present, 12 CBM blocks are active, 5 of which are in the production phase, 3 in the development phase, and 4 blocks (awarded during SCBM-21) are under the exploration phase,” Coal Minister Pralhad Joshi said in response to a starred question in Rajya Sabha.

According to the data provided by the Minister in the upper house, the country’s CBM production is expected at 759 MSCM in FY23, which is estimated to grow to 1,072 MSCM in FY24 and 1,508 MSCM in FY25.

“The total prognosticated CBM resource of the active CBM blocks (12) is about 480 billion cubic meters (BCM) of which 5.4 BCM CBM has been produced up to October 2022. Government of India has now launched Special CBM Bid Round-2022 (SCBM-22) with the offering of 16 CBM blocks covering an area of around 5800 sq km across 7 States,” Joshi informed Rajya Sabha.

Besides, one CBM block under BCCL leasehold area (Jharia CBM Block-I) has been awarded to PEPL Ltd as a CBM developer. This block is under exploration, he added.

BCCL is a Coal India (CIL) subsidiary.

CBM bidding

Centre formulated the Coal Bed Methane (CBM) Policy in 1997, wherein CBM being natural gas is explored and exploited under the provisions of the Oil Fields (Regulation and Development) Act 1948 and Petroleum and Natural Gas Rules 1959 administered by the Ministry of Petroleum and Natural Gas (MoPNG). The Directorate General of Hydrocarbons (DGH) was made the nodal agency.

Subsequently, MoPNG issued a partial modification of CBM Policy, 1997 on May 8, 2018, which outlined consolidated terms and conditions for the grant of exploration and exploitation rights for CBM to CIL and its subsidiaries from its coal-bearing areas for which they possess mining lease for coal mining as it will also be deemed lease for CBM extraction.

The Government launched CBM bidding rounds I to IV (2001, 2003, 2005, and 2008), out of which 8 blocks are under operation and in the production and development phase.

The total area of these 8 blocks is 2,430 sq km. In 2021, the Government launched the Special CBM Bid Round (SCBM-21) and awarded 4 CBM Blocks covering an area of around 3,860 sq Km.