Essar Starts CBM Supply to India's Gail
Essar Oil & Gas Exploration & Production (EOGEPL) commenced supply of coalbed methane (CBM) October 1 to Indian state-owned Gail from its east India block, it’s parent firm Essar Group said on Twitter the same day.
As per the 15-year agreement, signed in August, EOGEPL will sell its entire CBM production of 2.3mn m3/d from the Raniganj East block in the eastern Indian state of West Bengal. It has not said at what price it will supply the gas. Gail will supply the gas to its downstream consumers such as gas-based industries and households.
The company has already invested more than rupees 40bn ($583mn) in the Raniganj East block towards drilling wells, setting up supply infrastructure, and laying customer pipelines to Durgapur and nearby industrial areas. The Raniganj East block has achieved gas production of more than 1mn m3/d, which will be gradually scaled to 2.3mn m3/d.