CCEA Approves Policy for Early Monetization of Coal Bed Methane Gas (Download PDF)

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The CCEA chaired by Prime Minister Narendra Modi has approved Policy for Early Monetization of Coal Bed Methane Gas Marketing and Pricing Freedom for CBM Gas. The policy provides marketing and pricing freedom to the CBM Contractors to sell the CBM at Arm’s Length Price in the domestic market.

CBM Producers can use gas for internal consumption

CBM Producers Can Use Gas for Internal Consumption

CBM Producers can use gas for internal consumption

Highlights:

  • Government will be payable on the basis of Petroleum Planning & Analysis Cell (PPAC) notified prices or selling prices.
  • It allows contractors to sell the CBM to its any affiliate.
  • Policy is expected to incentivize the CBM operation.
  • Country to boost gas production and will generate economic activities.
  • Best possible price without any restrictive commercial practices.
  • Contractor has to ensure a fully transparent and competitive process for sale of CBM.
  • While discovering the market price for Arms Length Sales.

About Coal Bed Methane:

  • CBM is form of natural gas extracted from coal beds.
  • The presence of this gas is well known from its occurrence in underground coal mining.
  • The term refers to methane adsorbed into the solid matrix of the coal.

Extraction:

  • To extract the gas, a steel-encased hole is drilled into the coal seam 100 to 1, 500 metres below ground.
  • Coal Bed Methane well (USDOE)
Coal Bed Methane well

Coal Bed Methane Well

Coal Bed Methane well

  • Typical production curves for a coal – bed methane well showing relative volumes of methane and water through time.
  • Typical production profile of a coal bed methane well (USGS)
Typical production curves for a coal

Typical Production Curves for a Coal

Typical production curves for a coal

Coalbed Methane Producing Areas:

Coalbed methane producing areas

Coalbed Methane Producing Areas

Coalbed methane producing areas

- Published/Last Modified on: March 20, 2017

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