Financial Express: ONGC, Essar, Reliance Industries, GEECL to Invest $2 bn in CBM

PSU explorer ONGC as well as private firms Reliance Industries (RIL), Essar Oil and Great Eastern Energy Corporation Ltd (GEECL) on Wednesday apprised the petroleum ministry of their plans to invest a combined $2 billion in the next three to five years in coal bed methane (CBM) projects.

However, these investments, that may lead to increase in output to about 6 million metric standard cubic meter per day (mmscmd) from 1.1 mmscmd now, would require a remunerative pricing regime in addition to timely regulatory approvals including land acquisition, forest and environment clearances, the companies said.

On Wednesday, the petroleum ministry held a review of CBM production in the country. The meeting was chaired by Kapil Dev Tripathi, secretary and U P Singh, additional secretary (exploration) at the petroleum ministry. The four explorers – ONGC, Essar Oil, RIL and GEECL – were represented by top executives of the firms. Till now, nearly $1.18 billion investments have been made to CBM projects in India.

“The discussion is constructive where the explorers put forward their plans. Most of the issues flagged by them are common to all,” a government official privy to the discussions told FE. MORE