CBM production and shale gas extraction are complementary, said Manish Maheshwari, Essar Energy’s chief executive officer-exploration and production. Over the next 20-25 years, the state of West Bengal will earn Rs.2,500 crore in royalty from CBM production alone, according to Maheshwari. Whereas shale gas extraction requires water, CBM production releases a lot of water, Maheshwari said, adding that there is scope for cost optimisation if the two could be pursued simultaneously. Apart from CBM, a preliminary assessment at the Raniganj (East) block had indicated a shale gas reserve of eight trillion cubic feet, the company said in a statement. The company has already sunk in Rs.3,300 crore to drill and frack some 300 wells, leading to the start in CBM production.

Source: Mint July 13, 2016 16:30 UTC