Photo: BloombergMumbai: Oil and gas companies are boosting production of coal bed methane (CBM) gas that they are free to sell at market prices. Natural gas price is capped at $2.89 per mmBtu by the government, while CBM gas fetches $5.7-$10.64 per mmBtu. Among companies ramping up CBM output are Reliance Industries Ltd (RIL), Essar Oil Ltd, and Great Eastern Energy Corp. Ltd (GEECL). “The unconventional CBM gas comes as a replacement to expensive liquefied natural gas imports; so free marketing and pricing is a welcome move for CBM producers. Essar Oil will also double CBM production this fiscal from Raniganj block in West Bengal, up from 1 mmscmd (million standard cu.

Source: Mint March 29, 2018 22:41 UTC