BCCL enters CBM extraction with ~1,800-cr project

Coal India subsidiary Bharat Coking Coal (BCCL) has ventured into coal bed methane (CBM) extraction through a joint venture with Ahmedabad-based Prabha Energy. The two companies have signed a revenuesharing contract worth ~1,800 crore for the Jharia block-i in Jharkhand. BCCL will invest ~370 crore towards the land cost and the balance cost would be met by the CBM developer Prabha Energy. BCCL has the rights to the block.

The company said Jharia CBM Block-i has a resource of around 25 billion cubic metres (BCM) and the average production capacity is pegged at 1.3 million metric standard cubic metres a day. The project is scheduled in three phases. The first phase of exploration is of two years from the signing of the contract followed by the pilot phase of three years. The production phase, thereafter, is for 30 years.

“CIL is hopeful that the first two phases would be completed earlier than scheduled and production commences sooner than planned,” said the company in a statement.