EOGEPL's Rs 3,000 Crore Bet on CBM to Fuel Growth

 Essar Oil and Gas Exploration and Production (EOGEPL) is set to make significant investments totaling Rs 3,000 crore aimed at augmenting its gas production to five million standard cubic meters per day (mscmd) by the fiscal year 2029 from its Raniganj coal bed methane (CBM) block in West Bengal. This announcement was made during the India Energy Week (IEW) 2024 in Goa. With an initial investment of Rs 5,000 crore, EOGEPL is now poised to inject an additional Rs 2,500 crore to bolster its output, with the ambitious target of constituting five percent of India’s gas production within the next five years.

To achieve this goal, EOGEPL plans to undertake the drilling of 200 wells by the end of fiscal year 2025, allocating Rs 700 crore for this endeavor. Subsequently, the company will infuse Rs 1,800 crore to drill an additional 200 horizontal wells by the conclusion of fiscal year 2027, further enhancing gas output.

Currently dominating around 65 percent of India’s total CBM production, EOGEPL envisions a pivotal role in shaping India’s energy landscape in the future. CBM, known for emitting significantly lower levels of carbon compared to coal, diesel, and propane, presents a promising avenue for expediting the transition towards cleaner energy solutions.

The government's commitment to CBM exploration is evident with the allocation of 21,117 sq. km. of area for CBM projects, and the initiation of exploration in 39 blocks spanning 10,670 sq. km. As of April-December FY24, India’s cumulative CBM production reached 324.70 million standard cubic meters (mscm), signaling a promising trajectory in the country's pursuit of sustainable energy sources.

News by Rahul Yelligetti