Coal News We love to talk!

AUG 10 2018

Essar to invest 7,000 crore to explore shale gas in Raniganj

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 10th AUG 2018

 

Buoyed by the Union Cabinet clearing a policy allowing operators to explore all unconventional hydrocarbons in the existing field, Essar Oil and Gas Exploration and Production Ltd (EOGEPL) plans to invest 7,000 crore to develop shale gas potential in its existing coal-bed methane (CBM) block at Raniganj, West Bengal, said a company executive.

“Shale development would benefit greatly due to the synergy with CBM operations, such as water requirement, and the gas evacuation and handling facilities...we would need to invest close to 7,000 crore for developing the shale gas potential in the block to recover about 1.6 trillion cubic feet (tcf) from the field,” said Vilas Tawde, managing director and chief executive, EOGEPL.

EOGEPL has appointed international consultants to study the company’s assets and is upbeat about the shale potential in the Raniganj East CBM block. The Union Cabinet had on 1 August had approved a policy allowing operators to explore all unconventional hydrocarbons, including shale, coal bed methane and hydrates, in existing fields.

This means the exploration of unconventional hydrocarbons can be carried out under the existing production sharing contracts (PSCs), CBM contracts and nomination fields. Also, ‘Uniform Licensing Policy’ which is at present applicable to the Hydrocarbon Exploration and Licensing Policy (HELP) and Discovered Small Field (DSF) Policy, will be applicable to all operating fields.

On Thursday, EOGEPL signed a 15-year gas sale and purchase agreement (GSPA) with state-owned natural gas-utility GAIL (India) Ltd.

“The GSPA entails a 15-year gas supply contract whereby the company will be able to monetize its entire CBM production of 2.3 million metric standard cubic metres per day (mmscmd) from the Raniganj East block at a globally competitive price,” EOGEPL said in a statement.

EOGEPL has already invested more than Rs 4,000 crore in the Raniganj East CBM block towards drilling wells, setting up supply infrastructure, and laying customer pipelines to Durgapur and nearby industrial areas.

The block has 348 completed CBM wells, alongside robust gas and water handling capacity. EOGEPL is focussing on production optimisation by drilling more than 500 wells in line with the block’s field development plan. The Raniganj East block is India’s most prolific CBM block that has achieved gas production of more than 1 mmscmd, which will be gradually scaled to 2.3 mmscmd.

EOGPL’s CBM portfolio includes five blocks. Only one of them, Raniganj East, is operational. The other blocks include Rajmahal in Jharkhand, Talcher and Ib Valley in Odisha and Sohagpur in Madhya Pradesh. The five blocks are said to hold an estimated 10 tcf of CBM reserves.

 

Tags

Madhya Pradesh Jharkhand Odisha West Bengal Coal Gas Natural Gas Oil Hydrocarbon Coal-Bed methane Oil and Gas Gas supply Hydrocarbons Essar Essar Steel Essar Oil Ltd. India ODISHA

Related News

  • Lanco considers selling stake in power business as debt mounts  Read more
  • All India Power Engineers Federation demands high-level enquiry into NTPC boiler blast  Read more
  • RIL likely to see big cash flow boost: CLSA report  Read more
  • Dharmendra Pradhan to meet Russian counterpart Alexander Novak and CEOs of Rosneft, Gazprom, during his St Petersburg visit  Read more
  • SC bars consumer courts from deciding power disputes  Read more
  • Flyover: installation of electricity towers begins  Read more
  • Role of Technology in Improving Power Generation Efficiency in India  Read more
  • Gas pricing, coal price pooling on CCEA agenda  Read more
  • IEEFA forecasts 30% decline in global coal demand by 2021  Read more
  • SC refuses to stall CERC proceedings on compensatory tariff  Read more