ONGC set for methane trail in Jharkhand

Oil and Natural Gas Corporation (ONGC) is likely to invest Rs 1,000 crore for commercial exploitation of coalbed methane (CBM) in Jharkhand.

The corporation, it is learnt, has awarded the order for drilling to a US-based company. A high-level meeting between a delegation of ONGC, led by its director A K Balyan, met Chief Minister Arjun Munda on May 26.

The ONGC director informed the chief minister that commercial production of gas could be possible by the end of 2007.

He also told the chief minister that gas extracted from the CBM would be useful as an alternative energy source for production of steel and power.

The ONGC official said the survey, which had been undertaken by ONGC, indicated the possibility of existence of large reserves of CBM in Jharkhand, particularly in the Dhanbad and Bokaro regions.

The ONGC team told the chief minister that the company had decided to go for exploratory drilling at around 25 places in the state.

The company deposited Rs 2 crore as advance with the state government for allotment of land required for drilling. ONGC sought the environment department's clearance and necessary exploration licence from the state. The oil major also sought adequate security for workers and imported machinery.

Assuring ONGC all help in the project, Munda said the state government expected the company to fulfill its social obligation to the people who would have to give up their land for the project.