Coal India Looking for CBM Partners
State-owned Coal India will begin a global hunt for a partner to explore for coalbed methane in India, sources have told DNA Money. The report comes a day after the Indian government changed the rules to make it easier for Coal India to produce CBM from its coal mines. In the domestic market, Essar Oil & Gas Exploration (EOGE), which produces about 1mn m3/d of CBM, would be among the interested bidders, DNA Money reported.
"We are keen to collaborate with other potential investors like Coal India in this unconventional space for development in a cost effective and fast track manner, particularly in the eastern part of the country. Essar has now achieved a leadership position in unconventional hydrocarbon space in India with a CBM learning curve in place," EOGE CEO Vilas Tawde said.
With EOGE turning its maiden CBM block into a regular producing block, it is now ready to work with players like Coal India, which lacks expertise in this area, DNA Money added.
Despite its huge CBM reserves, India's production has been negligible owing to inconsistent government policies. However, the present Narendra Modi government has made some significant changes to the rules as it focuses on increasing the share of natural gas in the overall energy mix.