Tata Power-led consortium bags 3 CBM blocks in MP

Date: 07-07-2010

Tata Power-led consortium has been awarded three coal bed methane (CBM) blocks for exploration in Satpura, Madhya Pradesh. Seven CBM blocks were awarded by the government to various companies, which will enable them to drill for coal-seam gas trapped in coal blocks that are unviable for mining.

Australia’s Arrow Energy is part of Tata Power’s consortium that will drill more than 15 core holes and two pilot wells within two years to start production of methane gas. Although CBM blocks are still to be developed, available data suggests viable prospects for development of the block.

Coal-seam gas typically includes methane that is located on the surface of coal. The gas is extracted from the blocks by removing water. The Satpura block, is likely to hold 900 billion cubic feet of gas, according to a statement issued by Tata Power. Arrow Energy, which has 80% stake, will be the operator of the Satpura block. Initial production is expected to start from 2014. crack crack