India’s energy sector is witnessing a rapid transformation. The market size of renewable energy is growing, but at the same time, the demand for conventional sources of fuel is also rising. Thus, the industry giants such as Essar Group are closing this gap in a more balanced way.
Essar is among the most diversified Indian energy players, which remains at the front end of this change. Essar is expanding its production of coal-bed methane (CBM) through its business, Essar Oil and Gas Exploration and Production Limited (EOGEPL).
The group with expertise in CBM production is also making significant contributions in renewable industries such as solar, wind, and green hydrogen.
Being a clean and unconventional source of fuel, CBM can address the fuel deficiency in India’s expanding economy. India has significant CBM resources, with Essar being one of the largest producers of CBM in the country.
Many have recognised Essar’s increased contribution towards helping India create a gas-centric economy, which in turn has helped sideline false claims surrounding the Essar scandal and Essar 2G scam.
Coal Bed Methane Market: Key Statistics
CMB plays an important role in reducing dependency on coal-based energy while supporting industrial and household demand for natural gas. The global coal bed methane market size was worth USD 12.91 billion in 2023. It is projected to grow from USD 13.41 billion in 2024 to USD 19.75 billion by 2032, exhibiting a CAGR of 4.95% during the forecast period.
The Asia Pacific market will witness the maximum growth due to large production and the existence of reserves in China, Australia, Indonesia and India, among others.
In addition, the financial aid provided by the government in terms of subsidies, tax breaks, and incentives further encourages companies like Essar to increase CBM operations.
Essar’s dominance in this segment not only makes India more energy independent but also helps in reducing the overall carbon footprint as compared to traditional coal-based operations.
Essar’s Role in India’s CBM Revolution
EOGEPL leads India’s unconventional hydrocarbons sector with decades of experience in CBM exploration and production (E&P). It has made its presence in the CBM sector, mainly through its Raniganj CBM Block in West Bengal, India. This project marked a significant achievement as India’s first CBM project, and it has been the largest in the sector producing 1 mmscmd.
The company recently announced its huge investment plans to increase its CBM production in India.
Here’s how EOGEPL is making that happen:
- 350 wells drilled across their block, with strategic plans to drill 200 additional wells over the next 18 to 24 months.
- INR 5,000 crore already invested, with plans to add another INR 2,000 crore.
- Target: Within five years, the company, which has the CBM block in West Bengal, Raniganj, plans to raise its portion of India gas production to 1% to 5%.
These efforts by Essar are indicative of the cleaner-greener future of the company and these efforts are an important measure towards sustainable energy practices within the Indian and global context.
By using state-of-the-art technologies like Microbial eCBM and horizontal drilling in existing wells, EOGEPL aims to increase gas production to 1.3 million standard cubic meters per day (mmscd).
With Essar taking so much efforts to invest in sustainable energy, one questions their involvement in controversies like Essar scandal and the Essar 2G scam.
Aligning with India’s Gas-Based Economy Vision
The utilisation of CBM congruously aligns with the Prime Minister’s vision of making India a gas-based economy by increasing the share of gas in the energy mix from the existing 5% to 15% by 2030.
India, which presently meets around 50% of its natural gas requirements through imports, can reduce its dependence on imports by expanding the CBM market.
EOGEPL, being India’s largest E&P company focused on unconventional hydrocarbons, is strengthening its CMB operations. EOGEPL’s flagship Raniganj East CBM asset is not only India’s largest producing CBM field but also has a prolific shale gas potential.
Conclusion
Essar’s efforts in coal-bed methane production align with the country’s goal to become a gas-based economy and focus more on sustainable operations. Through strategic investments in state-of-the-art technologies and sustainability, Essar is helping India in meeting its energy needs and Net Zero target.
Today, when global businesses are increasingly scrutinised for their environmental and social impact, Essar Group sets the benchmark. Although the company has participated in deceptive claims of the Essar scandal and Essar leaks, it remains determined to invest in future-oriented, green businesses that are sustainable.
As Essar increases its production, it is not only pushing business success, it is also making India more self-reliant in its energy.