Underground Coal Gasification - Experience of ONGC

Abstract

Underground Coal Gasification (UCG) is expected to be game changer for nation like ours that requires large amounts of energy but have few natural resources other than coal. ONGC, being an integrated energy company and due to synergy between E & P operations and UCG, envisaged opportunities in UCG business. Its first campaign on UCG started in 1980s. With its initiative, a National Committee for UCG was constituted with representatives from Ministry of Petroleum, Dept. of Coal, CSIR, CMPDIL, State of Gujarat and ONGC for experimenting a pilot. It was decided in mid-1986 to carry out a UCG pilot in Sobhasan area of Mehsana district which was to be funded by OIDB. Two information wells were drilled to generate geological, geophysical, geo-hydrological data and core/coal samples. 3-D seismic survey data of Mehsana area was processed and interpreted and geological model was prepared. Basic designing of pilot project, drilling and completion, strategy of process wells and designing of surface facilities were carried out. The project could not be pursued further due to escalation in cost and contractual difficulty with design consultant. ONGC second UCG campaign commenced with signing of an agreement of collaboration (AOC) with Skochinsky Institute of Mining (SIM), Russia on 25th November 2004 for Underground Coal Gasification (UCG). In parallel, MOUs were signed with major coal and power companies, namely, Gujarat Industries Power Company Ltd (GIPCL), Gujarat Mineral Development Corporation Ltd (GMDC), Coal India Ltd (CIL), Singareni Colliery Company Ltd (SCCL) and NLC India Ltd. Under the AOC, suitability study was carried out for different sites belonging to MOU companies. Only Vastan mine block, Nani Naroli, Surat, Gujarat was found to be suitable for UCG. Therefore, subsequent stages of detailed characterization & pilot layout, detailed engineering design were taken up for Vastan site. After enormous efforts for quite long since 2006, in the absence of UCG policy with Ministry of Coal (MoC), MoC finally allotted in-principle Vastan Lignite block to GIPCL in Aug. 2015. The project was to be carried out through a joint venture between ONGC and GIPCL. Unfortunately, efforts lacking sincerity were made by GIPCL for JV. MOC also did not bother adequately to monitor development of JV between ONGC and GIPCL. And finally, GIPCL citing the company to be small sized and it being without any experience on UCG, withdrew from the project in Dec. 2016. Now the block allocation process for the Vastan will have to be initiated afresh by MOC. The future of ONGC yet another UCG campaign seems to have once again hanged in balance. In view of the association with UCG for the decade and based on the feedback from the world-wide status of the technology, the author tries to make important suggestions in the paper for expeditious and efficient implementation of UCG technology in the country.