The cost of a study to assess the feasibility of extracting coal-bed methane (CBM) from Jamalganj coalfield will increase by Tk3.5 crore or around 17% because it must be extended by a year.
The government decided to prospect for CBM on 6 acres of land at Bangladesh Oil, Gas & Mineral Corporation’s (Petrobangla) Jamalganj coalfield with a view to meeting the country’s ever-growing energy demand.
This is the first time ever that the government has pursued such an initiative.
A Petrobangla official said he was not sure the project would be completed within this extended year and might take a further year to complete.
The Energy and Mineral Resources Division (EMRD) recently approved a 15-month project to determine the feasibility of extracting CBM from Jamalganj coalfield.
According to the development project proposal, one of the main reasons extra funds are needed for the project is the rise in the price of the dollar.
While the US dollar cost Tk73 when the project was started, it now costs Tk82. Sources say the US dollar had grown dearer in the time Petrobangla and the Energy Division took to work out the plan.
Delays in deciding who to appoint as local advisers to monitor the project and in deciding who would attend seminars and training sessions accounted for the time-lag, according to sources.
The project will now cost Tk23.38 crore.
State-run Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) will implement the project with its own funds.
The study was supposed to be completed by March 2014. Now, it will take a further year if study starts this year. The project will then be completed in March next year.
“We are going to implement the feasibility study for the extraction of CBM at Jamalganj coalfield project by engaging an internationally reputed consulting firm using our own resources,” the general manager of Petrobangla and project director, Md Akhtaruzzaman, told the Dhaka Tribune yesterday.
“The feasibility study will provide necessary information on CBM exploration and power generation,” he said.
CBM is a naturally occurring methane gas found in coal seams.
“We have already sought requests for proposals from six internationally reputed consulting firms that have the requisite experience in feasibility studies of coal-bed methane,” he said.
In reply to a question about taking extra time, the Petrobangla official said the study had been delayed for various reasons and even more time may be needed to complete it.
“We intend to drill three core wells and test the coal samples in a laboratory for the feasibility CBM extraction,” he said.
Coal-bed methane is the methane usually found in coal, emitted from the face of coal mines.
CBM has been considered a safety hazard in underground mines, but due to the latest technological innovations it has now become a significant energy resource.
CBM can be extracted through drilling into underground coal without coal being mined, thus accessing alternative natural gas reserves.
The feasibility study will provide necessary information on CBM and the potential to generate power from it.
The Jamalganj coalfield was discovered by a UN-Pakistani mineral survey team between 1962-65 while conducting a geological and geophysical survey in the Jamalganj-Jaipurhat area.
The government has estimated that five coal mines – at Barapukuria, Dighipara, Phulbari, Jamalganj and Khalashpir – likely hold a reserve of approximately 30 billion tonnes.
The coal reserve area of Barapukuria at Dinajpur was discovered in 1985 with a proven reserve of 390 million tonnes lying between 118 and 509 metres below the surface, while the Phulbari coal reserve area in Dinajpur, discovered in 1997, contains 572 million tonnes sitting 141 to 270 metres from the surface.
The coal reserve area at Barapukuria spans 6.68 square kilometres, while Phulbari has a span of 24 square kilometres.
The coal reserve at Khalashpir in Rangpur was discovered in 1989 and has a proven reserve of 685 million tonnes lying between 222 and 516 metres in depth, while Jamalganj in Joypurhat was uncovered in 1962 with a proven reserve of 1.05 billion tonnes between 640 and 1158 metres from the surface.
The coal reserve area of Khalashpir spans over 12.25 square kilometres while Jamalganj covers 11.66 square kilometres.