Essar Oil and Gas Exploration and Production Ltd. commenced its supply of CBM gas to Gas Authority of India Ltd. (GAIL)’s Urja Ganga Pipeline, on Friday May 14th. This pipeline connecting Durgapur to Dobhi (and part of the HBJ Pipeline gas grid) was inaugurated by Hon’ble Prime Minister, Sri Narendra Modi in February this year.
In spite of the difficulties due to the pandemic, the current production figure of EOGEPL is 740,000 scmd gas per day with a projection to increase the volume gradually.
In 2018, the Company entered into a 15 years’ Gas Sale and Purchase Agreement (GSPA) with GAIL to supply the CBM gas production through the gas pipeline. Ever since then, it has been a long construction period of two years when this 350 km pipeline was completed fighting against all odds.
With an investment of over 4000 crores, the CBM Project of Essar reached a peak production capacity of over 1.0 million standard cubic meters per day in 2018 but had to be curtailed due to delays if offtake from the field. With the gas evacuation bottleneck now mitigated the field is being ramped up with major investments planned to target to reach 3 mmscmd gas production within next three to four years. In the expansion strategy to reach the figure, EOGEPL plans to drill additional 200+ wells within this time frame.
The CBM gas supplied to the Dobhi-Durgapur stretch of the gas grid will not only benefit West Bengal but also 10 districts of Bihar and Jharkhand. It will also provide gas as feedstock to fertilizer plants, CNG vehicles and piped gas to the homes of the region. However, the gas can be delivered to customers all over India that are connected to the main HBJ pipeline gas grid.
EOGEPL is proud to be a part of the efforts to take the Nation towards a gas-based economy through its increasing gas production and contribution into the Urja Ganga pipeline.