+
BCCL inks Rs 1,800 cr CBM extraction pact with Prabha Energy
COAL & MINING

BCCL inks Rs 1,800 cr CBM extraction pact with Prabha Energy

Coal India subsidiary Bharat Coking Coal Limited (BCCL) has entered an agreement with Ahmedabad-based Prabha Energy Pvt Ltd to extract coal bed methane (CBM).

For Jharia Block-I in Jharkhand, the two companies have signed a revenue-sharing contract worth Rs 1,800 crore.

The BCCL will contribute Rs 370 crore to the land cost, with the remaining cost being covered by Prabha Energy, a CBM developer. BCCL is the owner of the block.

Jharia CBM Block-I, according to the company, has a resource of around 25 billion cubic metres (BCM) and a daily production capacity of 1.3 million metric standard cubic metres.

The project will be completed in three stages. The first phase of exploration will last two years after the contract is signed, followed by a three-year pilot phase. The production phase will last for 30 years.

CBM extraction, according to a statement from the company, is part of CIL's diversification portfolio under clean coal initiatives.

The project will be overseen by the consulting arm of CIL, Central Mine Planning and Design Institute(CMPDI).The captured gas can be used for a variety of commercial purposes, according to the company.

GAIL is preparing to commission a gas pipeline in eastern India as part of the URJA Ganga project. The CBM produced could be used for city gas distribution or distributed to potential users via a pipeline.

In a joint venture with state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd, Prabha Energy already has a CBM block in Jharkhand, North Karanpura (OIL).The gas from this block is supposed to be purchased by GAIL, a state-owned company.

ONGC announced in 2018 that it would sell gas from the North Karanpura block to GAIL for $5.56 per MMBTU.

Prabha Energy is a Deep Industries Limited subsidiary that specialises in CBM exploration and production. It has extensive experience in the exploration and production of natural gas from coal bed methane at the upstream, midstream, and downstream levels.

Since the Centre announced a CBM policy in 2005, 33 CBM acreages have been awarded.

ONGC has developed four CBM blocks from these.

After the Union Cabinet waived the requirement for obtaining a separate licence for extracting methane from coal mines in its leasehold areas, CIL decided to venture into CBM extraction in 2018.

The company then identified two CBM extraction projects in West Bengal: Jharia-I and Raniganj.

Image Source


Also read: Coking coal imports in India rose to 4.61 mt in July

Coal India subsidiary Bharat Coking Coal Limited (BCCL) has entered an agreement with Ahmedabad-based Prabha Energy Pvt Ltd to extract coal bed methane (CBM). For Jharia Block-I in Jharkhand, the two companies have signed a revenue-sharing contract worth Rs 1,800 crore. The BCCL will contribute Rs 370 crore to the land cost, with the remaining cost being covered by Prabha Energy, a CBM developer. BCCL is the owner of the block. Jharia CBM Block-I, according to the company, has a resource of around 25 billion cubic metres (BCM) and a daily production capacity of 1.3 million metric standard cubic metres. The project will be completed in three stages. The first phase of exploration will last two years after the contract is signed, followed by a three-year pilot phase. The production phase will last for 30 years. CBM extraction, according to a statement from the company, is part of CIL's diversification portfolio under clean coal initiatives. The project will be overseen by the consulting arm of CIL, Central Mine Planning and Design Institute(CMPDI).The captured gas can be used for a variety of commercial purposes, according to the company. GAIL is preparing to commission a gas pipeline in eastern India as part of the URJA Ganga project. The CBM produced could be used for city gas distribution or distributed to potential users via a pipeline. In a joint venture with state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd, Prabha Energy already has a CBM block in Jharkhand, North Karanpura (OIL).The gas from this block is supposed to be purchased by GAIL, a state-owned company. ONGC announced in 2018 that it would sell gas from the North Karanpura block to GAIL for $5.56 per MMBTU. Prabha Energy is a Deep Industries Limited subsidiary that specialises in CBM exploration and production. It has extensive experience in the exploration and production of natural gas from coal bed methane at the upstream, midstream, and downstream levels. Since the Centre announced a CBM policy in 2005, 33 CBM acreages have been awarded. ONGC has developed four CBM blocks from these. After the Union Cabinet waived the requirement for obtaining a separate licence for extracting methane from coal mines in its leasehold areas, CIL decided to venture into CBM extraction in 2018. The company then identified two CBM extraction projects in West Bengal: Jharia-I and Raniganj. Image SourceAlso read: Coking coal imports in India rose to 4.61 mt in July

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code