Cabinet approves Exploration and Exploitation of Coal Bed Methane (CBM)

The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Shri Narendra Modi today gave its approval for issuing a notification amending the Oil Fields (Regulation and Development) Act, 1948 (ORD Act, 1948).
Due to this amendment relaxation is granted under the Petroleum & Natural Gas Rules 1959 (PNG Rules, 1959), to Coal India Limited (CIL) and its subsidiaries for not applying for grant of license/lease under the PNG Rules, 1959 for extraction of Coal Bed Methane (CBM) under their Coal Bearing Areas.

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The decision is in line with the Government’s initiatives of ‘Ease of Doing Business’.
It will expedite the exploration and exploitation of CBM, enhance the availability of natural gas and reduce the gap in demand and supply of natural gas.
The increased development activities for exploration and exploitation of CBM gas reserves in-and-around the block will generate economic activities which in turn has potential to create employment opportunities in CBM operations and in the industries.

Coalbed methane (CBM or coal-bed methane), coalbed gas, coal seam gas (CSG), or coal-mine methane (CMM) is a form of natural gas extracted from coal beds.
In recent decades it has become an important source of energy in United States, Canada, Australia, and other countries.
The term refers to methane adsorbed into the solid matrix of the coal. It is called ‘sweet gas’ because of its lack of hydrogen sulfide.
The presence of this gas is well known from its occurrence in underground coal mining, where it presents a serious safety risk.
Coalbed methane is distinct from a typical sandstone or other conventional gas reservoir, as the methane is stored within the coal by a process called adsorption.
The methane is in a near-liquid state, lining the inside of pores within the coal (called the matrix). The open fractures in the coal (called the cleats) can also contain free gas or can be saturated with water.
Unlike much natural gas from conventional reservoirs, coalbed methane contains very little heavier hydrocarbons such as propane or butane, and no natural-gas condensate. It often contains up to a few percent carbon dioxide.