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State-owned firms to join hands for CBM exploration in India

13th January 2014

Steel Authority of India Limited to partner with ONGC to explore CBM at the coal blocks allotted to the steel manufacturer for captive consumption

State-owned firms to join hands for CBM exploration in India
SAIL intends to increase usage of CBM in an attempt to reduce energy costs

Steel Authority of India Limited (SAIL) is planning to collaborate with Oil and Natural Gas Corporation (ONGC) to explore coal-bed methane (CBM) at the coal blocks allotted to the steel manufacturer for captive consumption, Mining Weekly reported on Monday, following plans by the steel producer to reduce energy costs.

 

"SAIL has approached us for CBM projects," The Economic Times quoted Sudhir Vasudeva, chairman at ONGC, as saying.

 

Currently, SAIL procures CBM from ONGC’s coal block in Jharkhand. The steel manufacturer started contemplating CBM exploration at its captive blocks after the government approved Coal India’s (CIL) proposal to extract CBM from its blocks.

 

Vasudeva added: "CIL has huge coal acreages. It has expertise in coal mining and we specialise in gas production. There is an excellent synergy and I'm hopeful."

 

Narendra K Verma, director of exploration at ONGC, said in November that the company is preparing to explore shale gas and CBM on a larger scale.