Essar begins CBM gas supply to GAIL


Essar begins CBM gas supply to GAIL

Ruia family-owned Essar Group has started supply of gas produced from coal seams to state-owned GAIL India. In a tweet, the group said Essar Oil and Gas Exploration and Production Ltd (EOGEPL) “commenced supply of CBM gas from its Raniganj East block (in West Bengal) to GAIL.”

EOGEPL had in August signed a 15-year contract to supply the block’s entire gas production to GAIL, Essar tweeted. Peak coal bed methane (CBM) production from Raniganj East block is envisaged at 2.3 million standard cubic metres per day.

Essar had in February this year sold its entire CBM production from the West Bengal block to GAIL using the same formula that Reliance Industries used for pricing of its CBM. The price comes to around USD 8 per million British thermal unit at the current oil price. Read More

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