Oil and Natural Gas Corporation (ONGC) is likely to start commercial production of coal-bed methane in Jharkhand from next year. Meanwhile it has approached coal-based industries in the state as well as outside to create a customers' base.

ONGC will invest more than Rs 2,000 crore in exploration and commercial production of coal-bed methane (CBM) in Bokaro, Dhanbad and Hazaribag. At present, the company is in the exploratory stage. It is selling a marginal amount of CBM produced from six operational wells at Parbatpur in Bokaro to an intermediary agency.

"ONGC has decided to begin commercial production in 2016, for which we are in search of prospective customers. Talks have been initiated," said a senior ONGC officer.
 
An ONGC official said the company has one gas collection station in Parbatpur while four more will come up at Gomia, Kuju and Jharia under the expansion project. The CBM produced through wells is being processed in GCS from where it is marketed.

The officer added that use of CBM in industries needs technology conversion from coal based to gas based. They are asking companies to transform from coal to gas as CBM is very environment-friendly and will also prove to be cost-efficient, helping them reduce their production cost.

The ONGC had descended at Parbatpur for CBM exploration about 15 years ago. Finding that the area has a huge CBM reserve, ONGC started massive expansion plan of digging of 221 wells in Bokaro, including 71 wells in Parbatpur and 150 wells in Gomia to give boost to CBM commercial production.

At present six wells in Parbatpur records CBM production of 10-15,000 standard meter cube per day. ONGC has planned to enhance CBM production to 7 lakh standard meter cube per day installing wells in 209 acres of land in Parbatpur in coming days.

The CBM Block here is counted as one of the best in country. Huge reserve of CBM in Parbatpur, Gomia and Kuju (Hazaribag) has made the country rank fourth CBM producer countries after America, China and Australia, said sources.