Essar Oil to Invest ₹3,000 Crore in Raniganj CBM Block to Boost Gas Production

14 Aug 2024 , 11:37 AM

To boost gas output, Essar Oil would invest Rs 3,000 crore in the Raniganj CBM block.

According to news reports, the Ruia brothers-owned Essar Oil and Gas Exploration and output plans to invest up to ₹3,000 crore in their premier coal bed methane (CBM) block in Raniganj, West Bengal, in order to increase gas output.

“We are committed to increasing our share of India’s total gas production from 1% to 5% over the next five years. To accomplish this goal, we intend to invest about ₹3,000 crore,” said Pankaj Kalra, CEO of Essar Oil and Gas Exploration and Production, to ET.

According to Kalra, the corporation has barely utilized 70 sq km of its 500 sq km of land. “So over 80% is still to be harnessed.”

95-99% of CBM, or natural gas, is methane. India has the fifth-largest confirmed coal reserves in the world, according to the Directorate General of Hydrocarbons, meaning there are a lot of opportunities for CBM exploration and development.

Only 92 billion cubic feet (BCF), or 0.92 TCF, of the 4 trillion cubic feet (TCF) of gas that the Raniganj field contains in its in-place resource have been extracted in the ten years since it began to produce.

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