Essar Oil & Gas wins five coal-bed methane blocks across three states

Essar Oil & Gas Ltd has gained control of five coal-bed methane (CBM) blocks spread across three Indian states - West Bengal, Madhya Pradesh, and Telangana. This expansion grants the company approximately 1,281 square kilometres of land, with an estimated 6.6 trillion cubic feet of recoverable gas, according to the company's statement. These CBM blocks were awarded through the government's special bidding rounds for 2025 and 2026, marking a significant step in Essar Oil & Gas' growth strategy.

CEO Pankaj Kalra expressed excitement about the new acquisition, stating that the company will focus on turning the newly acquired land into higher production rates. This move is expected to bolster India's energy security by enhancing domestic natural gas supplies and reducing reliance on imported fuels. Bhuwan Chandra Tripathi, Chairman of Essar Oil & Gas and a key energy partner for the Essar Group, emphasized the group's commitment to developing India's domestic energy resources as demand for natural gas continues to rise.

He reiterated the company's dedication to supporting India's energy security through responsible extraction of domestic hydrocarbon resources while contributing to a more sustainable energy mix.

Two of the newly acquired blocks are located in West Bengal's Raniganj region, where they will complement Essar Oil & Gas' existing Raniganj East acreage. This addition is expected to increase the company's land area from around 500 square kilometres to approximately 830 square kilometres. The proximity of this new land to the existing production area will allow for shared infrastructure and operational efficiencies.

Essar Oil & Gas anticipates that the expanded area could potentially become the country's largest CBM-producing field.

Currently, the company has invested over Rs 6,000 crore in exploration and production activities at Raniganj, where it currently generates about 950,000 standard cubic metres of gas daily. This production currently accounts for nearly half of India's CBM output. The company aims to contribute 5% of India's natural gas production by developing its CBM portfolio and exploring additional domestic resources, further solidifying its role in the nation's energy landscape.