 Tata Power, India’s largest integrated private power utility, along with its consortium partner Arrow Energy has been awarded the Satpura CBM block in Madhya Pradesh during the CBM IV bidding round as announced by the Press Information Bureau.
The consortium had submitted bids for three CBM blocks during the bidding conducted by the Director General of Hydrocarbons, India on October 12, 2009. On June 24, 2010 the Cabinet Committee on Economic Affairs (CCEA), has approved award of 7 CBM blocks out of 10 blocks offered in the bidding. The Tata Power-Arrow Energy consortium has been awarded the Satpura CBM block in Madhya Pradesh.
Mr. Prasad Menon, Managing Director, Tata Power, said “We are pleased to learn of the award of the Satpura CBM block to our consortium with Arrow Energy. Harnessing unconventional sources of energy like CBM for power generation will help secure fuel for the end-use power project. Although the CBM blocks are still to be developed, the available data suggests viable prospects for development of the block”.
CBM or Coal Bed Methane is a naturally occurring gas found in coal reserves. The gas is trapped within the coal formation. Advanced technology is required to produce this green fuel from deeper coal seams. CBM is extracted by drilling holes into the coal seams that contain gas and are commercially unviable for mining. The extracted gas can then be utilised for power generation, CNG, fertiliser manufacture, etc.
There are four to five coal seams in the Satpura Block with gross coal thickness of 6-15m at a depth of 300-900m. There are gassy coal mines all along the south of the major stretch of the CBM block which indirectly indicates presence of gassy coals within the CBM block. The block has an area of 714 sq km and DGH has estimated about 0.9 Tcf gas in place for the block.
Arrow Energy with 80% stake will be the operator of the block. It plans to drill 15 core holes and 2 pilot wells in first two years under the Phase-I exploration and 21 pilot wells in Phase-II. Initial production is expected to start from 2014. Arrow and Tata Power will jointly explore options for the best use of the CBM gas produced from the block.
About Tata Power:
The Tata Power Company Limited is India's largest integrated private sector power utility with an installed generation capacity of nearly 3000 MW. The Company has emerged as a pioneer in the Indian power sector, with a track record of performance, customer care and sustained growth. Tata Power has a presence in all the segments of the power sector viz generation (thermal, hydro, solar and wind), transmission, distribution and trading. The Company has established a global footprint by acquiring a 30% stake in Indonesian Coal mines. Its 4000 MW Ultra Mega Power Project at Mundra (Gujarat) is on fast track. It has successful public-private partnerships in generation, transmission and distribution- ‘North Delhi Power Limited’ with Delhi Vidyut Board for distribution in North Delhi, ‘Powerlinks Transmission Ltd.’ with Power Grid Corporation of India Ltd. for evacuation of Power from the Tala hydro project in Bhutan to Delhi, and ‘Maithon Power Ltd.’ with Damodar Valley Corporation for a 1050 MW Mega Power Project in Jharkhand.
About Arrow:
Arrow is an Australian publicly listed company and one of the world's leading CBM developers with a strong technology base and a growing portfolio of international operations. Arrow Energy is an emerging global leader in coal seam gas development with an expanding business presence in Australia, China, India, Vietnam and Indonesia. The relentless execution of its growth strategy is returning increasing value to its shareholders and host communities and building a company that's reaching new levels of performance in a dynamic international marketplace.
Disclaimer Statement: Some of the statements in this document, except for the historical information, are forward-looking statements. These forward-looking statements include references to growth projections, plans, strategies, intentions and beliefs concerning our business and operating environment. There are risks, uncertainties and other factors that may cause actual results to differ materially from those projected by these forward-looking statements.
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