Opportunities for Methane Drainage & CMM Extraction in India. Peeyush Kumar Director (Technical) Ministry of Coal

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1 Opportunities for Methane Drainage & CMM Extraction in India Peeyush Kumar Director (Technical) Ministry of Coal

2 India s GDP: US$ 2.26 Trillion Mining Sector : 2.5%; Coal ; Contributes: about 57% of primary energy Coal : 30% of all mineral production over 80% of power Generation 539 Coal and 19 lignite mines; PSUs :90% of Coal production 2

3 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

4 LOCATION OF COAL & LIGNITE RESOURCES OF INDIA 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) ) 7 2 COAL LIGNITE OTHER COAL COMPANIES SINGARENI COLLIERIES CO. LTD. (9) NLC INDIA LIMITED (10)

5 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;

6 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 Porosicum-Permeameter, ToC (Total Organic Carbon) Analyzer and Source Rock Analyzer (Rock Eval 6). Resource assessment done for Jharia and Raniganj CBM/CMM block;

7 Opportunities for methane drainage and CMM extraction: Pre-drainage of Methane Simultaneous Extraction: Coal & Methane Jharia CBM/CMM Block (BCCL Area) 7

8 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 BCM.

9 Location of Moonidih Mine (BCCL) in Jharia Cf Moonidih CMM Project Area

10 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): Million Tonne XVI Top Seam (within CMM Project Boundary) Net Geological Coal Reserve : MT (million tonne) Extractable Coal Reserve : 5.7 MT Average In-situ Gas content of XVI Top : 8.30 m 3 /tonne It is proposed to undertake methane pre-drainage from Seam XVI Top and adjoining areas contributing to methane in the coal face. 10

11 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: MT; 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;

12 3. Location of Jharia CMM/CBM block in Jharia CF Jharia CMM/CBM Block

13 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: million tonne Prognosticated CBM Resource: 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.

14 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 $ 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 $ million 147 Total OPEX Undiscounted $ million 169 Discounted@10% $ million 31 Recoverable Volume BCM 19.9 Average Prod. MMSCMD

15 Challenges in Methane drainage and CMM in India 15

16 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

17 Way forward Engagement of methane (CMM); suitable Operator for Pre-drainage of 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.

18 Thanks 18