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Essar Oil becomes largest coal-bed methane producer in India

07th April 2015

Essar Oil has said that gas production at its Raniganj asset in West Bengal has crossed 0.5 million standard cubic metres per day (scmd), thereby making it India’s largest coal-bed methane (CBM) gas producer

Essar Oil has said that gas production at its Raniganj asset in West Bengal has crossed 0.5 million standard cubic metres per day (scmd), thereby making it India’s largest coal-bed methane (CBM) gas producer
The company anticipates completing the development programme ahead of the May 2016 deadline as per the contract with the government of India

While nearly 100 wells have been already placed on gas production, an additional 155 wells have been drilled and are at various stages of the hydrofracking-completion-dewatering cycle for further production ramp up.

The company has built high quality infrastructure gas conditioning and compression stations, in-field pipelines of 120 kilometres and last mile pipeline connectivity network to end users of approximately 60 kilometres.

The company anticipates completing the development programme ahead of the May 2016 deadline as per the contract with the government of India. With a total investment outlay of approximately USD 642.5m (Rs 4,000 crores), the Raniganj Project is the first of its kind in India aimed to responsibly produce methane gas from the coal seams located 1,000 metres or deeper below the ground.

Gas from this project shall be the feedstock to the priority fertilizer sector with the anchor customer being Matix Fertiliser & Chemicals Ltd., having the world’s largest single stream plant for ammonia and urea located in West Bengal.

“With unity of conception, technology and team effort, we have been able to register a multi-fold increase in CBM production to 0.55 million scmd and expect to ramp up delivery to 1.2 million scmd over the next few months by bringing wells on production stream which are drilled and presently under completion and dewatering phase," said Manish Maheshwari, CEO of E&P, Essar Oil.

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