Essar Oil & Gas Exploration and Production Ltd (EOGEPL) today said it has signed a Gas Sale and Purchase Agreement (GSPA) with state-owned gas utility GAIL India for sale of entire coal-seam gas (CBM) it plans to produce from Raniganj block.
“The GSPA entails a 15-year gas supply contract whereby the company will be able to monetise its entire coal bed methane (CBM) production of 2.3 million standard cubic meters per day from the Raniganj East block at a globally competitive price,” the company said in a statement here.
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