UCG – experience of ONGC

India: Energy Scenario

For India, with 16% of global population; 0.5% of world’s Petroleum reserve and ~10 % of world’s Coal reserve; with a 8 -10% GDP growth target and 4.5% CAGR (’97-’07) in energy demand the situation is pretty Challenging…

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1%) 2361 Primary Energy Consumption (MMToe) 1863 3.6% of total 692 518 404 322 311 255 234 216 USA China Russia Japan India Canada Germany France Source: BP Statistical Review 2008 South Korea UK 3 ._ _ _ _ _ _ _ _ _ _ India: Energy scenario • 52% of primary energy consumed by 5 countries • India: the 5th largest energy consumer – CAGR (1996-2007): 4.5% (global CAGR: 2.

4% Coal 50. Govt. Planning commission.6% Total 306 kgoe Total 1125 kgoe 4 Source: Integrated Energy Policy. New Delhi .9% Nuclear 5.1% Natural Gas 8.3% Coal 51.5% Natural Gas 11.9% Oil 36. of India.India’s Energy Mix 2004 % Share of Commercial Primary Energy Resources 2032 % Share of Commercial Primary Energy Resources Hydro 2.3% Oil 29.1% Nuclear 1.8% Hydro 2.

2 Billion Tons) Ranks 3rd in coal production (557.INDIA…. Has the 4th largest coal reserves in the world (267.6 Million TPA) Total Recoverable reserves are only about 20% NEED TO EXPLOIT THE UNRECOVERABLE RESERVES 5 .

ONGC : In Pursuit of New Energy Sources Underground Coal Gasification pilot production envisaged from 2010-11 6 .

UCG – Schematic (UCG Engineering Ltd 2006) 7 .

CRIP 8 .

Synergies between Oil & Gas and UCG Exploration Drilling In-situ combustion Oil and Gas Oil and Gas Exploration Exploration and and Production Production Underground Underground coal coal Gasification Gasification Compression & transportation of Natural gas Intelligent well completions Oil & Natural gas Processing Coiled-tubing techniques Pneumatic fracturing techniques 9 .

Russia MoUs signed with coal companies – CIL. SCCL.1st stage : Site Selection • • • • • ONGC signed AOC . prioritized for UCG pilot study This site is adjacent to the pit head Power Plant 10 . GIPCL Fifteen sites studied – Five sites found suitable for UCG One site namely Vastan. GMDC. NLC. in South Gujarat.Skochinsky Institute of Mining (SIM).

Details of Vastan UCG Block 11 .

land use. porosity & permeability of coal seam and overlying & underlying strata – Hydrological characterization – Aquifer system within geologic strata – Water table map – Hydro-dynamic characteristics of aquifers 12 . drainage network – Stratigraphic and lithological characterization – Formation. sub-surface strata. fault and fracture network. mechanical properties . coal seam and overburden – Structural characterization – Depth & thickness of coal seam.2nd Stage – Site Characterization – GIS data base – Geomorphology.

Quantum of data required for Exploration is more than that is required for conventional coal mining Drilling of Boreholes Geophysical Logging Sample collection & Lab Studies Exploration Hydro-geological studies Geo-chemical Studies • Proximate Analysis • Ultimate Analysis • Maceral Analysis HRSS Geo-mechanical Studies • • • • • • Uni-axial tensile Strength Uni-axial Compressive Strength Tri-axial Compressive Strength Grain Density Young Modulus Poisson Ratio Petro-physical Studies • Helium Porosity • Air Permeability • Relative Permeability 13 .

vis Borehole drilling F Based on borewell data V-07 Based on HRSS data V-07 F F F 14 .Use of Seismic as an Exploration tool vis-a.

for Land Acquisition. • Drilling .3rd stage : Engineering Design • Engineering Design for pilot • Parallel action .expected to commence shortly 15 . Environmental Clearance and Mining Lease.

Erection of Surface Facilities 16 .UCG Pilot Flow Diagram Site selection Detailed Exploration Land Acquisition Environmental Clearance Pilot Layout Design Mining Lease Engineering Design Linkage of Wells. Flame Treatment Drilling of wells Trial Run of UCG Pilot Commissioning of Surface Facilities Fabrication.

Schematics of UCG engineering design FLUE GASES GAS PIPELINE HEAT EXCHANGER GAS PIPELINE COMBUSTION CHAMBER COMPRESSED AIR + STEAM SYN GAS CONDENSATE PLANT UNDERGROUND COAL GASIFIER COOLING TOWER CONDENSATE STORAGE SCHEMATIC OF UCG PILOT 17 .

CTL 5--10 BBL/day Demo CTL 5 10 BBL/day Demo facility. to upgrade to 20000 bbl/d 20000 bbl/d 18 .. to upgrade to facility. Production – June 2007.China Pilot Oct 2007 – Commercial Pilot Oct 2007 – Commercial --2010 Methanol & Methane 2010 Methanol & Methane Majuba Majuba Jan 2007. Planned 2100 MW by 2011 Planned 2100 MW by 2011 Bloodwood Bloodwood creek-Surat creek-Surat Basin . UCG Operations.China . Gas to Chemicals Transport fuel Transport fuel fuel Chinchilla Chinchilla Aug2007. Oxygen Injected – Power. Aug2007. Jan 2007.Nov 2008 Basin . Electricity generation Electricity generation for 47 Years for 47 Years Inner Mongolia Inner Mongolia . 6 MW Electricity 6 MW Electricity Production – June 2007. Gas to Chemicals .Nov 2008 Oxygen Injected – Power.UCG operations currently in progress Angren Angren 50 Years of Commercial 50 Years of Commercial UCG Operations.

Limited choice of operators • Technology limited to few operators • Grey areas – Drilling of high angle and horizontal wells with intersecting vertical wells – Linkage of injection and production wells – Flame treatment of gasification passages – Processing of hot Syngas – End usage of low calorific value Syngas 19 .

after 2 years of persuasion • Another 2 years for framing guidelines • Mining lease 20 .Legislation & mining lease • UCG Gazette Notification issued by Govt.

Economics • Figures not readily available in literature • Only indirect references are made by current players in the market • Management finding it difficult to make investment decisions 21 .

Summing up • Quantum of data required for Exploration is more – Require additional time for data generation • Seismic can be used as an Exploration tool to optimize Borehole drilling • Technology limited to few operators • Capex & Opex figures not readily available in literature • ONGC-GIPCL shortly testing first ever UCG pilot in India 22 .

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