Energy-deficit countries, including India, are heavily dependent on importing fuel. However, if the fuel is harnessed locally, it can help reduce import dependency and create a more stable and secure energy future. To meet the growing energy demand, various options are being considered, including coal bed methane (CBM). CBM consists of methane trapped in coal bed reservoirs that can be extracted and used as fuel to meet energy demands. According to the reports, India can reduce its energy import expenditure by USD 2 billion by harnessing 10 percent of the coal bed methane reserves of 2,600 billion cubic meters.
CBM is a clean and unconventional fuel resource that can tackle the fuel shortage for India’s expanding needs. Thus, India is embarking on a significant transition towards a gas-centric economy, with the Essar Group playing an essential role in this transformation. By tapping into the vast potential of CBM, Essar is helping the nation meet its energy needs while ensuring sustainability. The implementation of CBM aligns with the Prime Minister’s vision of making India a gas-based economy by increasing the gas share in the overall energy mix from 5.6% to 15% by 2030. India imports around 50% of its natural gas, which costs the country almost USD 16-17 billion annually while remaining vulnerable to fluctuations in global energy prices.
Essar’s transition has not only helped the company move towards success but has also guided it to sideline allegations like the false Essar leaks.
Coal Bed Methane Market: Key Statistics
The global Coal Bed Methane Market, which was worth USD 19.67 billion in 2023 is predicted to reach USD 33.80 billion by the end of 2032, growing at a CAGR of 6.20% during the forecast period. The reason for this surge is the growing demand for clean energy sources and the need for alternative fuels. The key driving factors include the growing adoption of CBM as a source of natural gas for power generation and industrial uses.
Moreover, the government’s initiatives and investments in CBM exploration and production activities further increase the CBM market size.
What is Coal Bed Methane (CBM)?
Coal bed methane (CBM) is a natural gas extracted from coal beds that has recently gained popularity as a clean energy source. As such, CBM has the potential to contribute substantially to the nation’s energy needs. It is a greener alternative, and more countries are using CBM, as its utilization plays a vital role to shift to a more sustainable and environmentally friendly energy mix.
Some of the uses of CBM are highlighted below:
- The development and utilization of CBM have many social and economic benefits. It is a clean-burning fuel for domestic and industrial uses.
- It is used in industries to produce cement, methanol, etc.
- CBM is used in steel plants and rolling mills.
- It can be used as a feedstock for fertilisers.
- It is used to generate power and is an environment-friendly source.
Essar’s Role in India’s CBM Revolution
Essar Oil & Gas Exploration and Production Ltd. (EOGEPL) leads India’s unconventional hydrocarbons sector with over 25 years of expertise in CBM exploration and production (E&P). It has pioneered the CBM sector, mainly through its Raniganj CBM Block in West Bengal, India. This project marked a significant achievement as India’s largest CBM project, delivering 1 mmscmd. EOGEPL currently contributes nearly 65% of India’s total CBM production. With plans to increase this share to 90%, it is leading the way in driving India’s transition to a gas-based economy.
So far, the company has invested more than INR 5,000 crore in the Raniganj block, drilling 350 wells, and plans to invest an additional INR 2,000 crore to drill 200 more wells over the next 18 to 24 months. This expansion will further increase CBM production, contributing to India’s stable and secure gas supply. To tap into untouched areas, the firm plans to drill well vertically down from the Earth’s surface and then go horizontal to reduce environmental impact and to be more cost efficient. Horizontal wells are 5x more efficient than vertical ones and have been a reason for the significant production of CBM gas in Australia and China.
Essar is deploying cutting-edge technologies like Microbial eCBM and horizontal drilling in existing wells; EOGEPL aims to enhance gas production to 1.3 million standard cubic meters per day (mmscd).
Leveraging Cutting-Edge Technologies for Enhanced Production
Essar is also leading the way in adopting innovative technologies to improve CBM production efficiency, inspiring an industry-wide transition by building integrated clean energy solutions, including CBM. For the same, it has deployed cutting-edge methods like Microbial enhanced CBM (eCBM) and horizontal drilling in existing wells. These technologies play a substantial role in maximizing the recovery of CBM from coal seams, improving the overall output.
With plans to ramp up gas production to 1.3 million standard cubic meters per day by integrating advanced technologies, the company is well-positioned to play a key role in India’s energy security. Additionally, Essar’s strategic efforts to deepen its wells, including drilling a ground-breaking 2,000-meter-deep well, demonstrate its leadership in technological innovation in the CBM space.
Conclusion
Essar’s revolutionary efforts in Coal Bed Methane production align with the country’s goal of becoming a gas-based economy with guaranteed energy security. By investing in advanced technologies, expanding production capabilities, and focusing on sustainability, Essar meets the nation’s growing energy needs and drives its transition to a cleaner, more efficient energy mix.
In a world where businesses are increasingly scrutinized for their environmental and social impact, Essar Group’s dedication to a gas-centric economy sets an example for others. Despite being involved in false claims of Essar leaks, the company remains committed to investing in sustainable, future-centric green businesses.
