Essar Oil & Gas bags 5 coal bed methane blocks across West Bengal, MP and Telangana
The newly awarded acreage will strengthen the company’s presence in established gas-producing regions and open up opportunities in Telangana’s Godavari valley
Essar Oil & Gas has secured five new coal bed methane (CBM) blocks through India's Special CBM (SCBM) bid rounds for 2025 and 2026. The acquisition encompasses approximately 1,281 square kilometers of acreage in West Bengal, Madhya Pradesh, and Telangana, with an estimated 6.6 trillion cubic feet (TCF) of gas-in-place resources.
In West Bengal, the two newly awarded blocks in the Raniganj region will expand the company's existing Raniganj East footprint from around 500 square kilometers to about 830 square kilometers. This proximity to the company's existing asset will facilitate synergies in infrastructure, operations, and technical capabilities, potentially establishing an integrated CBM producing field that could become India's largest CBM producing field.
The Singrauli block in Madhya Pradesh further bolsters Essar Oil & Gas's presence in an established CBM region, offering the chance to leverage the associated CBM development ecosystem. The Telangana blocks in the Godavari valley mark an expansion into a new CBM geography, allowing the company to apply its expertise to developing new resource areas.
Essar Oil & Gas CEO Pankaj Kalra expressed optimism, stating that the company will leverage its technical expertise and established infrastructure to accelerate the development of these resources, aiming to contribute to India's energy security and reduce import dependence on natural gas. Chairman Bhuwan Chandra Tripathi emphasized that natural gas will play a crucial role in India's energy mix, and the company remains committed to supporting the country's energy security through responsible hydrocarbon resource development.
Essar Oil & Gas has invested over ₹6,000 crore in exploration and production at Raniganj, currently producing around 950,000 standard cubic meters of gas per day, which accounts for nearly 50% of India's CBM production. The company's long-term goal is to contribute 5% of India's natural gas production by expanding its CBM portfolio and unlocking additional domestic gas resources.
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