New Delhi, Sept 1 (UNI) Country's exploration and production major Oil and Natural Gas Corporation (ONGC) today said it will commence production of Coalbed Methane (CBM) gas, the natural gas trapped in seams of coal, from a block in Jharkhand from December this year.
The peak production of 4,00,000 cubic metres per day from Parbatput area of Jharia block will be achieved by 2011 and this would be sustained for 10 years, company said in a statement.
As the country faces limited oil and gas resources amidst galloping energy demand, the company's entry to non-conventional energy sources like CBM and Underground Coal Gasification (UCG) is in the broader national interest, company CMD R S Sharma said.
He said Rs 300 crore has already been invested in the CBM project in Jharkhand, with a total Rs 1,500 crore lined up till 2011.
The state has CBM reserves of about 240 billion cubic metres.
UNI MP SR HS2053