Indian Private Players to Boost CBM Output

India’s gas price reform is likely to help boost production of coal bed methane as companies like Reliance Industries (RIL) and Essar Oil are expected to add about 6.5 million standard cubic meters per day CBM output in the next two years, Economic Time reports.

Essar is expected to commence gas production from its Raniganj CBM block next year while RIL would start CBM output from its two blocks in Sohagpur in Madhya Pradesh a year later, the newspaper quoted oil ministry officials. RIL is expecting 3.5 mmscmd of peak output from its two blocks.

Essar has drilled over 150 wells and is producing about 100,000 standard cubic meters of gas per day which is expected to rise to 3 mmscmd by end of 2014, Economic Times said.

Great Eastern Energy Corp Ltd (GEECL) is also expected to hike output to 3 mmscmd by 2017 from current 0.5 mmscmd gas from its Raniganj block.

Reliance and Essar have been unable to develop their CBM fields due to lack of the pricing approvals.  

Oil ministry officials said they would start the process to formally inform Essar and RIL about the approved price after it would receive minutes of the CCEA meeting, the newspaper said.