Relaince Industries to Start CBM Production in India in Three Months

Reliance Industries is expected to commence coal bed methane (CBM) production in India in next three months, Business Standard newspaper reported Thursday citing company report.

In a financial presentation, RIL has said that Phase-I development is nearing completion and the first gas is expected shortly, the newspaper reported. The company plans to produce 3.5 million standard cubic metres a day (mscmd) of gas from the two Sohagpur blocks, but pricing could be an issue.

Private CBM exploders in India are seeking to sell CBM at market price. Pricing power currently is with the government.

The company’s subsidiary, Reliance Gas Pipelines Ltd, is laying a 312-km pipeline to transport the CBM gas produced from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh. The pipeline is “expected to get commissioned by the March quarter of 2015-16,” RIL has said.