RIL may start coal gas production in MP shortly

Reliance Industries (RIL) will start production of natural gas from coal seams, called coal-bed methane (CBM), in Madhya Pradesh shortly.

PTI| Updated: Jan 20, 2016, 19:57 PM IST
RIL may start coal gas production in MP shortly

New Delhi: Reliance Industries (RIL) will start production of natural gas from coal seams, called coal-bed methane (CBM), in Madhya Pradesh shortly.

In a presentation to analysts post Q3 earnings announcement, RIL said, "Phase 1 development nearing completion - First Gas expected shortly ."

It plans to produce 3.5 million standard cubic meters per day of gas 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 Chattisgarh.

"Gas Gathering Station (GGS-11) - Mechanical completion completed and RFSU (Ready For Start-Up) is expected shortly," it said.

Also, GGS12 is nearing mechanical completion. "Drilling and completion of GGS 11 wells is completed and more than 80 per cent of production holes are drilled in GGS 12," RIL said.

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-kilometre pipeline to transport coal gas (CBM) produced from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh.

The pipeline is "expected to get commissioned by 4Q FY16," the company said. "Pre-ommissioning under progress."

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 JaysingNagar-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.