Opportunities are poised to open for private oil and gas producers in coal-bed methane (CBM) extraction. Coal India Ltd. (CIL) is likely to float global tenders to appoint service providers on this project.
Sources in CIL suggested as the Centre had cleared the grey area which previously stalled CBM extraction by the coal behemoth, it will be on the lookout for service providers which can extract the gas from its mines for commercial sale. However, the tender for this selection will depend on the Centre’s policy decision. “As of now, we have planned to go ahead with a single block in the Jharia coalfields (Jharkhand), where an estimated Rs 30-billion investment will be required. After that, we might simultaneously opt for a second block in Jharia and to develop blocks in Raniganj (Bengal),”.