Reliance to Boost CBM Production with Rs 1,000 Crore Investment

Reliance Industries (RIL) is set to invest over Rs 1,000 crore into its coal bed methane (CBM) blocks in Sohagpur, Madhya Pradesh. This substantial investment aims to significantly increase CBM gas production in the region. Over the next three years, RIL plans to drill multiple new wells, targeting an ambitious production goal of one million standard cubic meters per day (mscmd).

Currently, RIL operates two CBM blocks in Madhya Pradesh, covering a vast area of 995 sq. km., with over 300 wells in production. The annual report for FY24 reveals an average output of 0.64 mscmd from these wells. The company’s pipeline subsidiary, Reliance Gas Pipeline, manages the 302-km Shahdol-Phulpur Pipeline, connecting these gas fields to the national grid.

In February, RIL auctioned 0.90 mscmd of gas from the Sohagpur block, with major buyers including Gail (India) and Indraprastha Gas. Historically, RIL's production from this block has varied, reaching up to 1 mscmd in FY21 and FY20.

News by Rahul Yelligetti