FOSSIL ENERGY RESOURCES FOSSILS Fossil fuels are energy-rich substances that have been formed from plants, animal remains and microorganisms. Fossil fuels, which include petroleum, coal, and natural gas, provide most af the energy for the modern world. Chemically, fossil fuels consist largely of hydrocarbons, (compounds composed of hydrogen and carbon). Some fossil fuels also contain smaller amounts of other compounds. Fossil fuels have been formed from organisms that died and were buried under layers of accumulating sediment. As additional sediment layers. built up over these organic deposits, the material was subjected to increasing temperatures and pressures. Over millions of years, these physical conditions chemically trans- formed the organic material into hydrocarbons, COAL Coal is a solid fossil fuel formed from ancient plants—including trees, fems, and mosses—that grew in swamps and bogs or along coastal shorelines. There are ‘various stages of coal formation including peat (partially carbonized plant mat- ter) lignite (soft brownish-black coal with low carbon content), subbituminous coal (soft coal with intermediate carbon content), bituminous coal (soft coal with higher carbon and lower moisture content than subbituminous coal), and anthra- te (hard coal with the highest carbon content and lowest moisture content). Anthracite is the most carbon-rich, moisture-deficient form of coal. Consequently. it has the highest heating value. All stages are found in nature today Coal beds often contain appreciable quantities of methane, the principal com- ponent of natural gas. In coal deposits, methane is often dispersed throughout the pores and fractures of the coal bed. This type of natural gas is often referred to as ccoal-bed methane (CBM), As of 2006, the India's coal inventory was estimated at 253.3 Bt, out of which 96 Bt was in the *Proved’ category. Coal continues to remain the principal source of commercial energy accounting for nearly 50 per cent of the total supplies. About 70 per cent of the power generated is coal and lignite based and this trend is likely to continue in the foreseeable future,52_ and Technology India has an estimated 1000 billion cubic meters of Coal Bed Methane (CBM), Which is likely to emerge as a new source of commercial energy in the country Coal utilisation in India By far, the most important use of coal is in combustion, mainly to provide heat to the boilers of thermal power plants. The steel industry uses coal by first heating it and converting it into coke, a hard substance consisting of neatly pure carbon. The process of heating coal in this manner is referred to as carbonization or coke ‘making. The variety of coal suitable for this purpose is referred to as coking However, only 60 % of total coking coal produced in India is used for metal lurgical purpose. The balance has to-be used for non-metallurgical purposes due to inappropriate quality-and very high cost of washing if itis to be made suitable for use in steel making. Due to depleting reserves of good quality coking coal in the existing mines, the production of good quality coking coal is declining year afier year. The non-availability of sufficient quantity good quality coking coal hhas also led to a steep decline in washery efficiency Non-Coking Coal A’ large part of India’s non-coking coal is of high ash content (grades ranging between E to G). The mineral matter is highly dispersed in coal matrix. For this reason, Indian non-coking coal is difficult to wash. Effective combustion of this al call for improving the quality of coal which can be achieved mainly through bbeneficiation including finer crushing for higher liberation of clean coal. ‘The demand for washed non-coking coal is increasing rapidly because of the government's stipulation to use coal with ash content not exceeding 34% in ‘Thermal Power Stations and environmental laws becoming more and more sti gent. To mitigate the environmental pollution and improve the performance of the plants, consumers are opting for use of washed coal Internationally, all coal follow the route of “mine-washery-consumer” but in case of India, there are several problems in following this mode of supply of coal. These are: ‘ The very large number of mines and their scattered location ‘© The production capacity of the mines is very small as compared to intern tional standard The quality and quantity requirements in different sectors are variable. Most of the consumers are reluctant to pay the higher price for washed al. Disposal of huge quantum of washery rejects that would be generated, in an environment friendly manner. Environmental Issues Associated with Coal Use Coal is often written off as the fuel of the 19th century. Although it is an abun dant and cheap source of energy and the fuel of choice in many rapidly industrial sing countries such as China and India, it has been falling out of favour in North ‘America and most of Europe due to environmental considerations. Stricter envi- ronmental regulations in developed countries have consistently encouraged the shift from coal to natural gas for power generation and other industrial processes.Fossil Energy Resources While coal is relatively inexpensive, it is also the dirtiest fossil fuel. ‘The burning of coal produces environmentally harmful emissions. Some gases produced from burning coal, such as carbon dioxide, are: greenhouse gases be- ‘cause they trap the Earth's heat. Other emissions from col combustion can lead to air and water pollution. The combustion of coal releases significant amounts of carbon dioxide (CO;), sulphur oxides (SOX), nitrogen oxides (NOX), particulate matter (PM), and other pollutants and greenhouse gases. Another environmental problem is acid rain, which forms from sulfur contained in coal While most environmentalists strongly decry the use of coal, the sheer vast- ness of the resource nevertheless makes it hard to dismiss out of hand. The relevant question is whether it is possible to successfully develop and deploy technology to effectively harness the energy content of coal while minimising harmful emissions. The International Energy Agency (IEA) anticipates that worldwide demand for coal will grow at a rate of 1.4% per annum in the coming decades. Coal's share of worldwide primary energy demand will thus continue to hover around 25%. It is expected that about two-thirds of the increase in demand for coal will come from China and India alone, The IEA estimates that China and India will account for nearly half of total world coal demand by 2030, up from 40% in 2003. The environmental consequences of this reliance on, coal could be severe unless new technologies are successfully deployed to minimise emissions, In recent years, the substantial increase in the price of natural gas and volatil- ity in global energy markets have renewed research interest in coal. In particular, there is a lot of interest in the development of so-called “clean coal” technolo. gies. The U.S. government is spearheading FutureGen, a USSI-billion research initiative to design, build and operate a nearly emissions-free, con ity and hydrogen production plant by 2012. R&D in Coal Sector in India RAD in coal is carried out in India in four broad areas: ‘© production, productivity and safety + coal beneficiation; coal utilisation; and environment and ecology ‘The major thrust areas identified for R&D have been coal gasification, coal washing, beneficiation of low volatile coking coals, coal liquefaction, fluidised bed combustion, sequestration of carbon dioxide etc. Despite the thrust laid on coal S&T, the progress has not been satisfactory either in taking up new projects or in utilising the outlays provided to existing projects. Some of the high value projects like pilot project for washing, low volatile medium coking coal, demon stration project for coal bed methane exploitation and utilisation assisted by UNDP/GEF have not been progressing satisfactorily. ‘Some of the areas where progress has been achieved through R&D efforts are as follows: © Ground Penetration Radar (GPR) for detection of old waterlogged mine workings.___Science and Technology ‘+ Beneficiation of non-coking coal for power generation. * Oil agglomeration for beneficiation of the fine coal and beneficiation of difficult to wash coal. * Coal agglomerates for low rank, low grade, slack coal for domestic use. ‘* Humic acid from lignite for use as fertiliser. # Use of fly ash for fertilisers * Bio-restoration of mined out opencast areas through microbial technology. * Leaching effects Leaching effects of fly ash as mine fill on underground water. Important Coal Related Technologies In-Situ Coal Gasification ‘The Underground Coal Gasification (UCG) is process by which coal is con- Yerted in situ to a combustible gas that can be used as « fuel or ehemical feed. stock. UCG offers a potential economic means of extracting energy from deep-seated deposits, which will not be amenable for conventional physical ex. traction economically at present. The medium Btu gas can be used for power generation and can as well be used as a feedstock in the manufacture of metha ‘nol gasoline et. Indias vision for 2025 perceives underground coal gasification 48 a technologically and economically viable eco- friendly method of extraction of energy from isolated and uneconomic coal deposits to augment the ener need from coal sector. Coal Liquefaction Coal liquefaction involves conversion of coal into oi. Coal can be converted into liquid fuels like gasoline or diesel by several different processes, Extensive work has been done globally on— * Indirect liquefaction by coal Gasification and subsequent conversion of Synthesis gas to liquid products through Fischer-Tropsch process: © Direction liquefaction of coal by catalytic hydrogenation of coal based on Bergius-Pier process. This method has not yet been commercialised. In 1999, Oil India Limited (OIL) commissioned its 25 kg/day processing. ca- Pacity coal conversion pilot plant at Duliajan, Assam in collaboration with Axens NA of USA, Recenlly, a Feasibility Study Report pertaining to conversion of coal to liquid fuels has been prepared in association with UNDP. This report has identified two coal sources from Raniganj and Singarauli to be suitable for this purpose, As per this report, about 6.6 tonnes of coal is required for production of 1.0 tonne of liquid fuel. Clean Coal Technology Clean coal technology is a catch-all term to describe the various technologies that can be deployed to reduce the environmental impacts associated with the use of coal. There are no technologies in existence today that can eliminate emissions from coal,Fossil Energy Resources 55 The introduction of environmental regulations in industrialized countries in the 1970s precipitated the widespread adoption of technologies to reduce emis sions of pollutants such as SO2 and NOX from coal-fired power plants. The use fof advanced burners, filters and scrubbers to control emissions is now common place, and such technologies continue to be improved upon. Today, renewed feoncems about air pollution and climate change are precipitating further ad- vances in technologies to improve efficiencies and reduce emissions from coal: fired power plants Such advanced technologies are now being introduced in several countries. In some countries, supercritical coal-fired power plants have been set up. The higher femperatures and steam pressures in supercritical boilers translate into a more efficient and less emissions-intensive process for generating electricity from coal combustion. Such boilers can also be retrofitted to existing coal-fired units Coal gasification is, in the view of many, even more promising, and is incr ingly seen as a “bridge technology” to a cleaner energy future. By making coal, steam and air or pure oxygen react at high temperature and pressure, a synthesis gas (syngas) can be created. This syngas can be stripped of most pollutants and then, through what is know as a combined cycle process, itis combusted in a gas turbine to produce electricity. The waste heat is used to produce additional ele tricity in a steam turbine, thus improving the efficiency of the process. A plant incorporating a coal gasifier and a combined cycle unit is referred to as an egraied gasification combined cycle (IGCC) plant. Synthesis gas, which is hydrogen-rich, can also be processed for use in fuel cell applications or to create chemical feedstocks. A plant capable of generating electricity, hydrogen and other gases is referred to as a “‘polygeneration” facility Carbon capture and storage (CCS) The term CCT will, however, remain a misnomer until the carbon dioxide emis sions associated with the use of coal can be successfully captured and perma- ‘ently sequestered by pumping them underground. Only then could coal realistically re-emerge as a fuel of choice consistent with pledges to reduce greenhouse gas ‘Considerable emphasis is now being put on carbon capture and storage (CCS) as a climate change mitigation tool. Pilot projects have shown that CCS is techni cally feasible and that it can also, under the right conditions, be cost-effective. ‘What remains to be seen is whether CCS is practicable on a scale that could support a climate-friendly coal renewal CO, captures from fossil fuels uses one of the following technologies. Precombustion CO; Capture The fossil fuel (coal or even gas) is converted to hydrogen and carbon dioxide in a high pressure reaction with oxygen or with steam and oxygen or with steam plus external heating. Catalysts are used to enhance reaction rates. ‘The CO; is then separated from the gas mixture using liquid phase scrubbing with a chemical absorbent such as an amine or a physical absorbent such as cold ‘methanol. Other methods of CO; separation used include using a solid adsorbent ima multi-bed cyclic process or, less commonly, by using membranes.56 ___Science and Technology ‘The process of large scale hydrogen manufacture from fossil fuels is the most highly developed method available for CO; capture. It has been practised on very large scale for decades, producing hydrogen for ammonia and methanol and for hydrotreating in the petroleum refining industry. Future research will involve new catalysts, new reactor designs, improved CO, separation systems and better process integration, ‘The system can be used for any primary fossil fuel or for waste fuels such as petroleum coke or bitumen, of for biomass The largest natural gas based systems are currently being commissioned for version of natural: gas to. synthesis. gas (hydrogen plus carbon monoxide) which is then converted to liquid transporation fuel using the Fischer. ropsch Process. Plants are being constructed in, Qatar and. Nigeria using remote gas deposits Coal gasification with CO, removal producing pure hydrogen has been dem ‘onstrated on a large scale and can be implemented now for new power stations H, from coal as a transport fuel would also break the monopoly position of o Post Combustion CO; Capture ‘The waste gases from fossil fuel combustion aré treated to remove CO, before being discharged to atmosphere. The best means for CO, separation is the use of 4an amine scrubbing fluid, which reacts with the CO,. The CO; is separated from the amine using a steam heated regeneration step and the amine is recirculated back to the scrubbing tower. Equipment sizes are very large and the steam con- sumption for regeneration is also large, affecting power efficiency. In addition, the amines are prone to attack by other impurities in the flue gas, such as SO, and NOx, producing solid salts which must be removed and treated. This technique is well established for CO, removal in hydrogen production systems ‘and has been used on power station flue gases.on a small scale. Onyfitel Combustion As its name implies, this technique involves the combustion of a fossil fuel with Pure oxygen. The combustion temperature is moderated by either recycling flue or by adding a diluent such as steam or water to the gases in the burner Current studies on oxyfvel systems’ mostly relate 10 coal fired pulverised fuel Power stations, The technology is ideal for conversion of existing coal fired Power stations to CO; capture. It competes with the amine based post combustion ‘capture option. Ic is expected to have significant cost and operatfag advantages compared to amine based flue gas scrubbing Carbon Sequestration Carbon Sequestration refers to the potential for storing (or “sequestering") sig- nificant amount of carbon in forests and other eco-systems as an alternative means of offsetting the effect of future emissions on GHG (Greenhouse gases) concentration in atmosphere. |i may be possible to increase the rate at which ecosystems remove CO, from the atmosphere and store the carbon in plant material, decomposing detritus, andFossil Energy Resources 57 ‘organic soil. In essence, forests and other highly productive ecosystems'can be- ‘come biological scrubbers by removing (sequestering) CO, from the atmosphere. ‘Much of the current interest in carbon sequestration is based on the claim that this approach provides a relatively inexpensive means of addressing climate change, ‘Current Situation in Carbon Sequestration A umber of projects on carbon sequestration have been taken up in Australia, USA, Canada and China. Initially, the thrust had been on the forest based carbon Sequestration. The development and commercialisation of next generation tech: ssologies has provided other alternatives like geological sequestration and mineral sequestration, ‘* Forest Based Sequestration: Forests are one of the major resources for carbon sequestration. Increasing forest resources to enhance carbon seques- tration may include afforestation on agriculture Jands, reforestation of har- yested or burnt forest land and also the modification of forest management practices ‘The modification of forest management practices refers to alteration of forest composition to enhance carbon sequestration. Other methods can include adoption of low impact harvesting methods to reduce carbon re- lease, lengthening of forest rotation cycles and preservation of forest land from conversion to alternate uses. Geological Sequestration: Injection of CO, into the earth’s subsurface offers potential for the permanent storage of very large quantities of CO, and is the most comprehensively studied storage option, The CO, is com: pressed to a dense state, before being piped deep underground into natural geological reservoirs. An obvious site for geological sequestration is de- pleted oil and gas reservo Saline Aquifers: Storing large amount of CO, in deep saline water satu raled reservoirs rocks also offers great potential. One major project is al- ready being conducted by the Norwegian company Statoil, This is at the Sliepner field in the Norwegian section of North Sea where about 1 million tonnes a year of CO, are being injected at a depth about 800-1000 m below sea flo Mineral Carbonation: It is # process whereby CO, is reacted with natu- rally occurring substances to create a product chemically equivalent to natu- rally occurring carbonate minerals. The weathering of alkaline rocks is a natural form of CO; storage which normally occurs over long periods of time. With this natural process, mineral storage speeds up the reactions and. tums CO, into a solid, environmentally benign mineral. This process is still at the stage of laboratory development. Enhanced Oil Recovery: CO, is widely used in the oil industry to inerease oil production—the CO, helps pumps oil out of the underground strata, $0 increasing the level of recovery from the field. Without such methods of enhanced production, many oil fields can only produce half or less of the ‘original resource‘* Enhanced Coal Bed Methane: This is» potential opportunity for storing CO, in unmineable coal seams and obtaining improved production of coal bed methane as a valuable by-product. Extraction of Coal Bed Methane (CBM) Coal Bed Method (CBM) is commercially being produced through wells, and collected over ground by various surface installations. As water is drawn out from the formation, slowly methane starts flowing out by the combined mecha- nism of desorption, diffusion and Darcy flow, and is brought to the surface normally through vertical wells. There are two techniques to simulate CBM production: © Hydro-fracturing, and * In-seam horizontal drilling technique In India, CBM is now becoming established as a significant potential fuel, because of considerable information about its presence and the availability of technology for its production. CBM resources are prognosticated to be 3381 BCM extended over an area of 35326 sq. km. For the exploitation of CBM from the deep lying coal deposits (VCBM), 16 blocks have already been allotted through global bidding and additional 10 blocks are to be allotted soon. Several core wells as well as test/pilot wells have been drilled so far and have yielded encouraging results. CBM gas is being flared in at least 2 allotted blocks and operators are planning for commercial production from 2008. ONGC is in advanced stage of implementation of a VCBM (Virgin CBM) Pilot Project in Jharia Block (Jharkhand), LIGNITE ‘The inventory of lignite resources stands at 38.27Bt, as on 1.04.2006, with 4.5 Bt in "Proved" category. These are spread over Tamil Nadu and Pondicherry (87.5 per cent), Rajasthan (6.9 per cent), Gujarat (4.9 per cent), Kerala (0.31 per cent) and Jammu and Kashmir (0,37 per cent). The lignite deposits in the southern and western regions have emerged as an important source of fuel supply for states like Tamil Nadu, Rajasthan and Gujarat where coal is almost completely Over the years, considerable emphasis has been placed on the development of lignite for power generation. Lignite production is likely to increase from 24,3 million tonnes. in 2001-02 to 55.96 million tonnes in 2006-07, In view of rapidly increasing demand for energy, non-avail Posits for exploitation in the states of Tamil Nadu, Gujarat and Rajasthan, prob- Jems faced in the transportation of coal from far off coal fields and high transportation cost involved in transporting coal over a long distance, it is consid- ered necessary that the lignite deposits available in these states are. exploited particularly for power generation which would be the most economical and viable option Keeping the above view, it is considered advantageous to develop many lig- nite mines in the states of Tamil Nadu, Gujarat and Rajasthan and utilise them forFossil Energy Resources 59 sgencration of power as well as for meeting the demand from other industries such ‘as cement, textiles, chemical etc., where coal was being used previously. Gradu- ally, lignite can become one of the major alternate sources of energy in the ‘country for thermal power generation, New Development in Lignite Sector: Coal Bed Methane Lignite is a low calorific fuel but some new technological developments have the Potential to enhance its utility including the potential for recovering Coal Bed Methane. The target areas for Coal Bed Methane (CBM) are mostly deep lying deposits containing higher ranking coals which provides conducive condition for encration and storage of methane. However, sticcessful recovery of methane in the Powder River Basin in USA from thick extensive lignite to sub-bituminous ‘coal deposits occurring at shallow depth, has given new dimension to exploration strategy. The lignite deposits of Tamilnadu and Pondicherry, therefore, can be ‘considered under such category for taking up further investigation for methane potentiality Under Ground Gasification Neyveli Lignite Corporation (NLC) is also actively considering exploiting the lignite deposits which are constrained by various techno economic feasibility factors, through alternative/clean coal technologies such as Underground Coal Gasification (UCG) and Coal Bed Methane. NIC has already taken up an experi- mental UCG project. A suitable lignite block in Rajasthan is being selected for tunder ground gasifi CRUDE OIL Proven and indicated reserves of oil in India were estimated at around 760 mil- fion tonnes in 2006. The latest estimates indicate that India has around 0.4 per Sent of the world’s proven reserves of crude oil. Production in 2005-06 was 32 ition tonnes and has been at around this level for the past five years. This gives reserves to production ratio of around 23 years. ‘The share of hydrocarbons in the primary commercial energy consumption of the country has been increasing over the years and is presently estimated at 44.9 Ber cent (36.0 per cent for oil and 8.9 per cent for natural gas). The demand for Oil is likely to increase further during the next two decades. The transportation sector is the main driver for the projected increase in oil demand. The domestic ssrude consumption is estimated at 2.8 per cent of the world’s consumption, At current levels, domestic production meets only 25 per cent of the country's oil feeds. Exceptionally high crude oil prices in the international market and an ‘almost stagnant domestic crude oil production have thus caused a drain on country’s foreign exchange reserves, At the same time it is projected that the demand for oil and gas in India, uring 2005 to 2025, will grow steadily at a rate of 4,3 per cent and 7.3 per cent tespectively. Consequently import dependence for oil, which is presently about 70 per cent, is likely to increase further.60 Science and Technology India has crafted multi-pronged strategy to counter this challenge. This st egy includes a shift to promote larger public-private partnership in oil and gas. With the passage of the Petroleum and Natural Gas Regulatory Board Bill in Parliament, agencies to regulate and monitor the mid-stream and downstream sectors of oil and gas are being put in place. For the upstream, the Director General of Hydrocarbons (DGH) fulfils the technical regulatory functions. With this objective the Government of India has delegated powers vested in it under Oilfields (Regulation and Development) Act, 1948 and Petroleum and Natural Gas Rules, 1959, to the DGH. The objective of the delegation is to empower DGH so that it can effectively oversee the ever increasing E&P activities in India with more areas coming under exploration with successive rounds of NELP and CBM. Delegation of powers to DGH mainly covers monitoring of upstream activities including CBM operations, review and monitoring of exploration and develop- ‘ment programmes, reservoir monitoring with a view to optimize hydrocarbon recovery, maintain data repository, lay down norms for declaration of hydrocar- bon discoveries and monitor Government revenue such as royalty and profit petroleum. ‘The Government is trying to accelerate domestic exploration through its New Exploration Licensing Policy (NELP) policy initiative. The new exploration ti- censing policy has been successful in opening up new and hitherto unexplored sedimentary basins for exploration and has enabled ts to add a sizeable quantum of oil and gas reserves. The global perception of India’s hydrocarbon endowment is rapidly changing with more investments and modern technology pouring into India. The policy dispensation today provides for unhindered flow of inyestment into the entire hydrocarbon value chain, including exploration and production, refining, pipeline infrastructure and marketing. ‘Some significant oil discoveries have recently been reported from blocks of: fered under the NELP regime. Five NELP rounds have resulted into. 110 PSCs being signed and the Sixth round offering 55 exploration blocks is still underway. Besides augmenting domestic reserves, India has successfully ventured. overseas to acquire oil and gas assets and.entered into long-term Liquefied Natural Gas (LNG) contracts as measures for enhancing energy security, IMPROVED OIL RECOVERY (IOR)/ENHANCED OIL RECOVERY (EOR) PROJECTS A variety of factors lead to decline in production from ageing oil wells. To deal with this issue and make more optimum use of our oil resources, 18 schemes of IOR/EOR have been approved to increase recovery factor from ageing oil and gas fields of ONGC. The IOR/EOR schemes under implementation include 5 offshore, 10 onshore Improved Oil Recovery and 3 Enhanced Oil Recovery schemes as given below: (a) 5 Offshore IOR Projects: Mumbai High North Redevelopment, Mumbai High South Redevelopment, Neclam (completed in 2005), Additional De- velopment Heera Pt-I (completed in December, 2005) and Additional De- velopment Hera Pt-Il.i _ Fossil Energy Resources 61 {b) 3EOR Projects in Gujarat: Insitu Combustion Balol (completed in 2001), Insita Combustion Santhal (completed in 2001) and Extended Polymer Sanand (completed in 2002). (©) 71OR Projects in Gujarat: Santhal Infill (completed in November 2003), Gandhar (completed in July, 2005), Kalol, North Kadi Phase-1. Sobbasan, Jotana (completed) and North Kadi Phase-I (@) TOR Projects in Assam: Lakwa Lakhani, Rudrasagar and Galeki The estimated cost of 18 schemes is about Rs. 11,649 crore and expected oil gain of about 120 MMT by 2030. Refining At the same time India, with 18 refineries, currently has a surplus refini ity which has placed India amongst net petroleum product exporter Increasingly, stringent fuel specifications have put pressure on the old and non- Compliant refineries to upgrade their refinery configurations to produce compli- ant fuels. The Government is considering promoting India a’ a competitive refining destination to service export market for petroleum products as also integrating it with the petrochemical and chemicals businesses to produce and export higher Fevenue generating value added products, (Creating sustainable transportation system through cross-country crude oil and Petroleum produet pipelines in the next few decades, with the objective of pre serving environment and protecting human health and safety is also a challenge for the country NATURAL GAS Natural Gas is a flammable gaseous mixture consisting mostly of hydrocarbons. Natural gas may contain as much as 85 pervent methane (CH,) and about 10 Percent ethane (C,H), and also contains smaller amounts of propane (C,H,), Butane (C,Hjo), pentane (C.H,.), and other alkanes. Natural gas, which is usually found together with petroleum deposits in Earth's crust, is extracted and refined {nto fucls that provide approximately 25 percent of the world energy supply. It is 8 type of petroleum that commonly occurs in association with crude oil. Natural Bas is often found dissolved in oil at the high pressures existing in a reservoir, fand it also can be present as a gas cap above the oil. Such natural gas is known as associated gas. There are also reservoirs that contain gas and no oil. This. gas is termed nonassociated gas. Natural gas contains small amounts of impurities, including carbon dioxide {CO,), hydrogen sulfide (H,S), and nitrogen (N;). Because these impurities can detract from the heating value and properties of natural gas, they are often re- ‘moved during the refining process and used as commercial by-prodicts. Natural gas is used both as a fuel and as a raw material in the manufacture of chemicals. As a residential fuel, itis burned in furnaces, water heaters, cooking stoves, and clothes dryers. In compressed fori it is also used as a transport fuel (ENG vehicles in India). AS an industrial fuel, it is bumed in kilns (special Fumaces) used to bake bricks and ceramic tiles and to produce cement. Natural as is also used for generating steam in water boilers and as a source of he ‘glass-making and food-processing.62 Science and Technology Natural gas also serves as a raw material for creating petrochemicals, which are chemicals that are specifically derived from natural gas or petroleum. In turn, petrochemicals are used as a base product for making fertilisers, detergents, phar- ‘maceuticals, plastics, and numerous other goods. ‘As recently as 1960, associated gas was a naisance by-product of oil produc tion in many areas of the world. The gas was separated from the crude oil stream and eliminated as cheaply as possible, often by flaring because of extremely limited use and storage and transport problems. Only since the crude oil short- ages ofthe late 1960s and early 1970s has natural gas become an important world energy source. Now there is equal emphasis on natural gas and crude oil and ‘many analysts are of the opinion that in the 21% century natural gas may play ‘more imporiant role than oil. Natural gas enjoys several advantages also. When it burns completely, only carbon dioxide and water are normally formed. The combustion of gas is rela tively free of soot, carbon monoxide, and the nitrogen oxides associated with the ‘burning of other fossil fuels. In addition, sulfur dioxide emissions, another major air pollutant, are also absent. In terms of carbon dioxide emissions also natural {8 is superior to all other fossil fuels. ‘Considering the global trend of shift in energy mix from oil to gas, the share of 42s in consumption patter, in the Indian contet, is also likely o increase gradu. ally in the days to come. India has about 0.4 per cent of world’s natural gas reserves. Initially the gas reserves had been developed largely for use as petro- chemical feedstock and in the production of fertilisers, but gas is increasingly being used for power generation, industrial applications and more recently in the transport sector. itis projected that the demand for gas in India, during 2005 to 2025, will grow steadily at a rate of 7.3 per cent ‘The demand for natural gas during the same period is expected to increase from 150 million standard cubie meters per day to about 390 mscmd. Presently, the share of power generation capacity based on gas is about 10 per cent of the total installed capacity. The India Hydrocarbon Vision 2025 of the Government idemtfies natural gas as the preferred fuel forthe future and several options are being explored to increase its supply capacity including building facilities to handle imports of liquefied natural gas (LNG) and setting up of Pipelines from major gas producing countries National Gas Hydrates Programme Gas hydrates, generally found in the deep sea, are basically methane molecules trapped in ice. At present, there is no commercial production of gas hydrates in any part of the world and the technology is only at R&D stage. India is also reported to have significant deposits of gas hydrates. However, the true extent of this resource and its potential for commercial exploitation is still tobe evaluated ‘The National Gas Hydrate Programme (NGHP) was initially started in 1997 by MoPNG with participating agencies i.e, ONGC, GAIL, DGH, OIL, National Geophysical Research Institute (NGRI), National Institute of Oceanography (NIO) and Department of Ocean Development (DOD). This programme was conceived by the Government for exploring for gas hydrates in the Indian deep waters,Fossil Energy Resources 63 being a future source of unconventional hydrocarbons. The programme was re constituted in year 2000 by MoPNG to give a greater thrust in this direction, by ‘making Director General, DGH as Technical Coordinator of the programme. Till date, a large quantity of seismic data covering offshore areas of the coun- tty has been collected and is being studied including special processing of large data for identification of gas hydrates signatures. Based on these studies, three areas in KG Basin, Andaman Sea and west coast hhave been identified for further scientific investigations. A road map was also Prepared for NGHP. As per the road map, detailed. geo-scientific investigations were carried out in the KG Basin and Kerala-Konkan basin by NGHP through National Institute of Oceanography (NIO). Based on the results of seismic data ‘studies and geo-scientific investigations, ten sites in Mahanadi, KG and Kerala- Konkan basins and Andaman Sex have been short listed for drilling/coring of ga hydrates in the deepwaters. The drilling/coring for gas hydrates isa very specialised activity and India will be only third country in the world to do so, after USA and Japan. The services for such specialised activity are not available commercially inthe world. With sustained efforts by DGH, with IODP and USA, the drillship JOIDES Resolution along with all the scientific equipment and scientists onboard hhas collected samples in Indian offshore under an agreement between DGH and a US consortium of companies. The production of gas from gas hydrates itself is a major challenge before the lentific community. The basic challenge is to find out a suitable technology to first dissociate the gas hydrates present in the solid form below the seabed in deep-sea conditions, as well asthe permafrost regions of the world. Another challenge faced, is to produce the dissociated gas from gas hydrates at a commer. ial rate, At the moment the whole activity is uneconomic, as it is to be carried ‘out in deep waters Presently no commercially proven technology exists for production of gas from gas hydrates, any where in the world. Research work in this regard is going ina few countries involved in gas hydrates R&D. including India. Although time frame for production of gas from gas hydrates has been given we are hopeful of ‘making some progress on commercial exploitation of gas hydrates, beyond year 2010, if commercial quantities of gas hydrates are found in Indian offshore. This, ‘of course, will be known only after completing the proposed drilling activity Gas Infrastructure On the supply side, there are two LNG terminals at Dahej and Hazira'in Gujarat ‘which are already operational with a total existing capacity of 7.5 MMTPA. The third terminal in Dabhol with a capacity of 5 MMTPA is under commissioning. ‘There is another terminal at Kochi which is taking a final shape for implementa. fon. These are important because shipping of natural gas in a ligid form (LNG) is ety convenient and cost effective. Natural gas turns into a liquid at -160° C and ‘cecupies 600 times less volume as a liquid than as a gas. Liquefied natural gus is stansported primarily by ship. Special LNG terminals are needed for this purpose. In terms of transmission pipelines, there is an existing network of 6.300 km including the Hazira-Vijaipur-Jagdishpur (HVJ) network, Dahej-Vijaipur& Science and Technology Pipeline (DVPL) and other regional networks. During the X Plan, pipelines like the DVPL, Kelarus-Malanpur Pipeline, Thulendi-Phulpur Pipeline got commissioned. ‘A number of pipelines, including those by the private sector, are at various stages {€ implementation and are likely to be implemented during the XI Plan. The city gas distribution sector has simultaneously grown with the gas sect growth. From coverage of just 2 cities at the beginning of the X Plan, the city coverage has grown to. 10 in 2006 across the western, northem. and. southern regions of the country, Currently, there is a total city gas distribution network of about, 6,000 km. As far as Compressed Natural Gas (CNG) supplies are con- ccemed, there are several hundred stations dispensing CNG in the country and the ‘number is expected to continuously grow in the coming years. With the advent of LNG and progressive de-control of gas prices, the natural gas sector in India has progressed and achieved some degree of maturity. It has managed to receive progressively growing attention from global companies and thas made rapid strides during the last five years. OIL SHALE Oil shale exists worldwide in large quantities, in Australia, Brazil, Canada, China, France, Russia, Scotland, South Africa, Spain, Sweden and USA. The largest share of oil shale reserves of about 1,000-1,600 billion barrel exists in US, while in India the reserves are estimated to be about 100 billion barrels. “The term ‘oil shale’ is @ misnomer. It does not contain oil nor is it commonly a shale. The organic material is mainly kerogen, and the ‘shale’ is usually a rela- tively hard rock, called Marl. Properly processed, kerogen can be converted into ‘a substance somewhat similar to petroleum: However, it has not gone through the ‘oil window’ of heat (nature’s way of producing oil) and therefore, to be changed into an oil-like substance, it must be heated to a high temperature. By this process, the organic material is converted into a liquid, which must be further processed to produce oil which is considered to be better than the lowest grade of oil produced from conventional oil deposits, but of lower quality than the upper grades of conventional i There are two conventional approaches to oil shale processing. In one, the shale is fractured in-situ and heated to obtain gases and liquids by wells. The second is by mining, transporting, and heating the shale to about 4500C, adding hydrogen to the resulting product, and disposing of and stabilizing the waste. Both processes use considerable water. The total energy and water requirements together with environmental and monetary costs (to produce shale oil in signif ‘cant quantities) have so far made production uneconomic. In India, shale formation is exposed to the surface in the region of Belt of ‘Schuppen falling in Assam, Arunachal Pradesh and Nagaland areas towards south of the current oil fields of Oil India Limited (OIL). Main constraints in oil shale production in North East region are logistically difficult terrain, non-availability of roads, large power requirements for the plant and consequent environmental issues. Detailed mapping, extensive sampling to, ascertain the distribution, quantity and quality of oil shale in North Eastern part of India is expected to be carried out for assessment of oil shale resources in the region.