British firm to explore methane in West Bengal

Friday, 17 November 2006, 20:30 IST
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New Delhi: British energy major BP Exploration (Alpha) Ltd on Thursday signed a deal with the petroleum ministry for extraction of methane gas from a block in West Bengal. The awarded coalbed methane (CBM) block covers an area of 248 sq. km. in Birbhum district with the prognosticated natural gas resources of 50 billion cubic metres (BCM). With this the last of the 10 exploration blocks offered by India in the third round for extraction of methane gas from the seams of coalmine have been signed, the petroleum ministry said in a release. The contracts for the other nine blocks were signed on Nov 7. "The production sharing contract (PSC) for 10th block awarded (BB-CBM-2005/III) under the III Round of Coal Bed Methane Policy (CBM-III) was signed here by the government with the BP Exploration (Alpha) Ltd," the statement said. An alternative source of hydrocarbons, methane gas extracted from coalmines is expected to help India bridge the shortfall in the environment friendly fuel. India expects to see the first commercial gas production from CBM blocks in 2007. So far three operators have established in-place gas reserves of over 6 trillion cubic feet.
Source: IANS