India's GEECL Plans to Raise CBM Output: Report
India-focused coalbed methane (CBM) explorer GEECL is planning to invest rupees 20bn ($290mn) over the next three to four years to boost output, Press Trust of India reported July 18.
GEECL will be drilling 144 new wells and laying internal pipelines at its flagship Raniganj South block in the eastern Indian state of West Bengal, CEO Prashant Modi told the news agency. The company at present produces 0.5mn m3/d of CBM at the Raniganj block. Modi did not say by how much the production will rise.
For the 12-months to March 31, 2018, GEECL’s average delivered sale price of gas rose to $10.90/mn Btu, up more than 8% on year.
Last month, another CBM producer Essar Oil and Gas Exploration and Production (EOGPL) said it plans to more than double production of CBM from its Raniganj East block, which is also located in the state of West Bengal.
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 CBM from its coal mines.
At present only EOGPL, Reliance and GEECL are producing CBM in India.