India's Essar Plans to Double CBM Output
India’s Essar Oil and Gas Exploration and Production (EOGPL) has plans to more than double production of coalbed methane (CBM) from its Raniganj East block in the state of West Bengal, according to a report by ET Energyworld published June 14.
The company is looking to achieve output of 2.3mn m3/d from the block by 2021, company CEO Vila Tawde told ET Energyworld. EOGPL at present produces about 1mn m3/d of CBM from the block. Tawde said that the company will drill additional 152 wells in the block in the next 18 months. The CBM produced from the Raniganj East block is sold to state-owned Gail.
EOGPL has five CBM blocks in its portfolio but Raniganj East is the only operational one. The other four are Rajmahal in the state of Jharkhand, Talcher and Ib Valley in the state of Odisha and Sohagpur in the state of Madhya Pradesh.
Inconsistent government policies have frustrated India’s CBM production, despite its large reserves. The present Modi government has taken a number of decision to revive the sector. Last March, it allowed CBM producers to market and price the gas freely in the domestic market. The government has also made it easier for state-owned Coal India to explore and exploit coalbed methane (CBM) from its coal mines.
In addition to EOGPL, Reliance and GEECL are the other companies producing CBM in India.