Russian firm to find partner for ONGC's UGC project

Russia-based Skochinsky Institute of Mining has been given the mandate to find a production partner for state-run ONGC's underground coal gassification (UCG) pilot project at Vatsan, 30 km north of Surat.

"Russia was first country to begin commercial production of natural gas using the UCG. They have been using this technology for the last 40 years in Uzbekistan. So we have given mandate to Moscow-based SIM for finding a partner that can help begin pilot project at Vatsan," ONGC General Manager R K Sharma told PTI.

ONGC had entered into a contract with SIM on technical collaboration in UCG technology, a process of converting un-minable coal and lignite into combustible gases by gassifying the coal/lignite in situ.

The pilot project at Vatsan in Surat is the first of its kind initiative by ONGC to drill out natural gas from un-minable lignite mines.

"Preliminary study of Vatsan has been completed by SIM and the site was found suitable to begin UCG pilot project. We are in the process of preparing its surface engineering plan," Sharma said.

"The pilot project at Vatsan is slated to begin by 2010 end. It will be for the first time in India that lignite reserves will be partially oxidized using highly sophisticated technology and instruments to drill out gas," he said.

"A target of producing two million cubic metres of gas annually using the UCG technology has been fixed for Vatsan," ONGC officials said.