[Gasification] In Situ Coal Gasification -- India

[Peter Singfield]

http://www.tribuneindia.com/2004/20041210/biz.htm#2

ONGC signs coal gasification pact with Russian firm 
Manoj Kumar
Tribune News Service 

New Delhi, December 9
Oil and Natural Gas Limited (ONGC) has signed a Memorandum of Understanding
(MoU) with Skochinsky Institute of Mining, Russia, on November 25 for
underground coal gasification (UCG) that will enable the country to tap the
vast coal reserves for power generation and fertiliser production. 

In a written reply to the Lok Sabha today, Union Petroleum and Natural Gas
Minister Mani Shanker Aiyar today informed that Russian UCG technology
would be utilised to convert underground coal, lignite into combustible gases.

This would bring down fuel costs for fertiliser and power plants
drastically and help the country improve energy security. 

Mr Aiyar disclosed that calorific value of UCG gas was 10 to 35 per cent of
the natural gas. Commenting upon its costing in comparison to natural gas,
he said the gas cost will depend on several factors like depth, thickness
and quality of coal seams. 

Union Chemical and Fertiliser Minister Ram Vilas Paswan is also pressing
upon the Petroleum Ministry to tap the vast resources of coal bed methane
to provide low cost fuel to fertiliser units in North Eastern region. 

With the rising demand for fertiliser and power, the project is likely to
benefit the country on a large scale. 

Petroleum Minister said the ONGC has also decided to participate in the
bidding of Russia’s crisis hit oil major Yugansknefteegaz, the Siberian
unit of Yukos. The reserve price for its auction has been reported $ 8.65
billion.

According to officials in the Petroleum Ministry, the government is
encouraging the ONGC to enter into a joint venture for a possible joint bid
for assets of Yukos. 

Last week Mr Aiyar had also held discussions with the Russian President
Vladimir Putin on the issue when the later was on an official visit to India. 

The ONGC is talking to some Russian and European companies for a possible
joint bid. 

Officials said with the rise in oil import bill, the government is actively
pursuing to ensure secured oil supply by encouraging public sector oil
majors to have stake in oil fields in Russia, Iraq, Sudan, Iran, Myanmar,
Libya, Syria, Australia and Ivory Coast. 

Gail India Ltd is also planning to set up Gas crackers plant in Russia. 

ONGC already has a stake in Exxon’s Sakhalin-I project in Russia. The
company is trying for a stake in Russia’s Sakhalin-3 project and is holding
talks with foreign oil firms to bid for the project. 

ONGC’s overseas arm, ONGC Videsh, has so far invested more than $ 5 billion
in foreign petroleum assets including stakes in a gas field in Vietnam,
Sudan and Russia. 

The Government has also constituted an Advisory Committee on Oil Diplomacy
for Energy Security, comprising experts with specialised knowledge of the
countries and regions with whom the oil companies are expected to interact.

 
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http://www.gasandoil.com/goc/company/cns35056.htm

ONGC pins hopes on underground gasification

24-11-03 In its bid to find cheaper fuel for power generation, ONGC is now
pinning hopes on underground gasification -- a method of using coal mines
which cannot be extracted conventionally -- in Ahmedabad region. 

The move has been inspired by intense efforts by the Institute of Reservoir
Studies of the ONGC in Gujarat. Instead of mining the huge coal deposits,
ONGC will use controlled combustion to generate gas. This in turn, can be
used in power plants. ONGC sources said the cost of such power will be
cheaper than nuclear and other conventional sources. 

*******snipped************

Source: The Times of India 

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http://www.blonnet.com/2005/12/18/stories/2005121802150200.htm

Kolkata , Dec. 17 

Oil and Natural Gas Corporation Ltd may rope in Royal Dutch Shell as a
50:50 joint venture partner for taking up surface coal gasification projects. 

The companies will enter into a memorandum of agreement on January 17. 

ONGC has proposed a 50:50 joint venture with Coal India Ltd to invest Rs
150 crore in underground (in-situ) coal gasification (UCG) projects with
technological support from Stochinsky Institute of Russia. 

It has also entered into an MoU with Neyveli Lignite Corporation for taking
up UCG projects. 

ONGC sources told Business Line on Saturday that the company was trying to
get Shell as a joint venture partner to prevent the possibilities of use of
the coveted Shell technology by any other company in India. 

Earlier, GAIL (India) Ltd had also expressed an intention to use Shell
technology in its proposed surface coal gasification projects. 

"Following firming up of our relationship with Shell, we plan to take up a
few pilot projects. The first pilot project is expected to be commissioned
in 2006. We have already entrusted an agency with the job of carrying out
the framework of a feasibility study following the guidelines prepared by
Shell," a senior ONGC official said. 

The location of the pilot project is yet to be decided. 

When asked, the ONGC Chairman, Mr Subir Raha, said, "We are negotiating
with a few MNCs including Shell for technology support in surface coal
gasification. We are expecting to enter into an agreement with a suitable
partner by next month." 

Gujarat likely to be preferred location 


THE much-expected UCG pilot project of ONGC is likely to come up in the
West coast, preferably in Gujarat, where the oil major has on-shore
production rigs. 

A final view on the issue, however, would be taken following a meeting with
Stochinsky Institute during this month. ONGC produces over six million
tonnes of oil in Gujarat. 

A senior company official told Business Line that two major outputs of UCG
were carbon-di-oxide (Co2) and methane. 

"Since we have our oil production rigs, Co2 would be pumped into the
reservoir, while methane would be used for power generation." 

Sources, however, added that the company has, so far, identified four to
five locations in the country for setting up such pilot projects. 

"We have already carried out surveys at the identified locations.
Stochinsky Institute is taking a final view on it." 

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