RIL nears starting gas production from CBM blocks in Madhya Pradesh

New Delhi: Reliance Industries is on the verge of starting commercial production of natural gas from its coal-bed methane (CBM) blocks in Madhya Pradesh.

In a presentation to analysts post April-June earnings announcement, RIL said test gas production from Phase-1 facilities of Sohagpur-West block has commenced while the pipeline that will take the fuel to the consumers is under testing and pre-commissioning.

Initial output is likely to be one million standard cubic meters per day of gas. A peak production of 3.5 mmscmd is envisaged from the two Sohagpur blocks in the state.

RIL holds 3 CBM blocks -- 495 square kilometer Sohagpur (East) and 500 sq km Sohagpur (West) in Madhya Pradesh and Sonhat in Chhattisgarh.

"Test gas production from Phase I facilities of Sohagpur West Block has commenced from GGS 11 (Gas Gathering Station) and 107 well-sites," RIL said. "GGS 12 is also nearing completion and is likely to be ready for start-up by 3Q FY17."

It however did not give a date for start of commercial production.

Phase-1 development envisages drilling and completion of 229 wells and installation of 2 gas gathering stations (GGS).

RIL, through its subsidiary Reliance Gas Pipelines Ltd, is laying a 312-km pipeline to transport coal gas (CBM) produced from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh.

"Testing, pre-commissioning and commissioning activities are in progress for Shahdol-Phulpur pipeline," RIL said.

The pipeline will have a capacity to transport 4.3 million standard cubic metres per day (mmscmd) of gas, including 0.875 mmscmd capacity that will be available for any third party for open access on non-discriminatory basis.

The pipeline will travel from Shahdol to Jaysing Nagar- Beohari-Gurh and culminate at Phulpur.

At Phulpur, the pipeline may be hooked into state-owned gas utility GAIL India Ltd's main Hazira-Vijaypur-Jagdishpur trunk gas pipeline. Connection with HVJ would enable gas to flow to any consumer.

RIL had won the twin Sohagpur blocks in the first round of CBM auctions in 2001.

It will be the third company in the country to begin gas production from below coal-seams, called CBM. Great Eastern Energy Ltd (GEECL) and Essar Oil Ltd are already selling CBM gas.

Coal-bed methane (CBM) is natural gas stored or absorbed in coal seams.

RIL said natural gas production from its eastern offshore KG-D6 block fell 23 per cent in April-June to 8.7 mmscmd.

"Continuing production decline due to natural decline in the fields," it said.