Reliance Industries Ltd. (RIL) is set to invest over ₹1,000 crore in its coal bed methane (CBM) blocks located in Sohagpur, Madhya Pradesh, as the company aims to significantly boost CBM gas production.
RIL plans to drill multiple new wells, with a target of increasing production to one million standard cubic meters per day (mscmd) within the next three years. The company owns two CBM blocks in Madhya Pradesh, covering an area of 995 square kilometers. Currently, over 300 wells are operational, producing an average of 0.64 mscmd of gas, according to RIL’s annual report for FY24.
Reliance Gas Pipeline, a subsidiary of RIL, manages the 302-km Shahdol-Phulpur Pipeline, which runs from Shahdol in Madhya Pradesh to Phulpur in Uttar Pradesh, linking the CBM gas fields to the national gas grid.
In February, RIL conducted an online auction to sell the 0.90 mscmd of gas expected to be produced from the Sohagpur block. The majority of this gas was purchased by Gail (India) and city gas distributor Indraprastha Gas. As reported by projectstoday.com, in FY23 and FY22, RIL’s average gas production from the Sohagpur block was 0.73 mscmd, while in FY21 and FY20, it averaged one mscmd.
