Essar Oil & Gas Exploration and Production (EOGEPL) has said the company is expecting reserves of at least 1.5 trillion cubic feet (tcf) of recoverable shale gas in its Raniganj block in West Bengal, which could require investment of at least $1 billion.
It currently produces around 1.5 million standard cubic metres of gas per day (mscmd) of coal-bed methane (CBM) and will go ahead with its shale plans after further policy clearance from the government. “Our expansion plans are on fast-track and we are looking to produce at least 2.5 mscmd by March 2021,” said Vilas Tawde, chief executive officer, EOGEPL. According to an estimate of the United States Trade and Development Agency (USTDA), the block has around 7 tcf of reserves. “Of that, around 1.5 tcf is recoverable,” Tawde added.
Last month, state-run GAIL had won the contract to buy CBM produced from Essar oil’s Raniganj block. The price will be around $8.16 based on net calorific value (GCV). CBM is the natural gas stored in coal seams and shale can be found at a much deeper level in the same block. Read More