Essar Oil and Gas Exploration and Production Ltd (EOGEPL) would add another Rs 2,000 crore to its coal bed methane project in West Bengal's Raniganj over the next 18 to 24 months. The company previously spent Rs 5,000 crore developing 350 wells in the Raniganj block, producing about 0.9 million metric standard cubic metres (mmscd) of gas daily. Pankaj Kalra, the chief executive officer (CEO) of EOGEPL, told PTI that an additional investment of Rs 2,000 crore
will be made to drill 200 additional wells over the course of the following 18 to 24 months. We are using the most recent technology in the existing wells to quickly increase production from 0.9 mmscd to 1.3 mmscd. When the extra wells start producing CBM, total CBM production from Ranigunj would reach close to three mmscd, Kalra stated. According to him, the company currently contributes around 65% of the nation's total CBM production, and with the drilling of the further wells, that percentage is projected to reach 90%. Two shale gas wells, another type of unconventional hydrocarbon, will also be dug at Raniganj in 2023 as a pilot project, after which a thorough assessment would be carried out, according to Kalra.
When the production of CBM from Raniganj is ramped up, the company's yearly contribution to the state exchequer, which is currently 150 crore rupees, will likely increase to 300 crore rupees. The official added that because CBM is an unconventional source of energy, China and Australia are supporting its production in both nations by providing subsidies to the industry in order to attract more investors. CBM has the potential to replace 10 to 30% of the yearly need for LNG imports in the foreseeable future, lowering import costs.