Essar Oil & Gas has secured five new coal bed methane (CBM) blocks through the Government of India's Special CBM bid rounds 2025 and 2026, as reported by ETEnergyworld. The blocks span approximately 1,281 square kilometers across West Bengal, Madhya Pradesh, and Telangana, with an estimated 6.6 trillion cubic feet (TCF) of gas-in-place resources. According to the company, this expansion significantly strengthens its position in India's unconventional gas sector and enhances India's energy security by reinforcing the commitment to developing indigenous energy resources. The awards form part of the government's efforts, through the Ministry of Petroleum and Natural Gas and the Directorate General of Hydrocarbons, to unlock unconventional hydrocarbon resources and encourage domestic exploration and production.
The two newly awarded blocks in West Bengal's Raniganj region, covering around 330 square kilometers, will expand Essar's existing Raniganj East footprint from approximately 500 square kilometers to 830 square kilometers. As reported by ETEnergyworld, the proximity of these new blocks to the company's existing producing asset is expected to create significant operational and infrastructure synergies, supporting the development of an integrated CBM field. The new block in Singrauli, Madhya Pradesh, strengthens presence in an established CBM region, while blocks in Telangana's Godavari valley mark expansion into new CBM geography, marking the company's entry into a new CBM basin. The company expects this integrated development to become India's largest CBM-producing field.
Essar Oil & Gas currently produces around 950,000 standard cubic metres of gas per day (SCMD), accounting for nearly 50 per cent of India's CBM production. According to reports from ETEnergyworld, the company has invested more than ₹6,000 crore in exploration and production at Raniganj, where it has commissioned more than 454 wells. CEO Pankaj Kalra stated that the new awards would help the company build on its Raniganj experience and technical capabilities to develop additional resources, with the focus on translating expanded acreage into sustainable production growth. The company aims to increase its contribution to India's natural gas production as it develops its expanded portfolio, with its broader ambition remaining to contribute 5 per cent of India's natural gas production by progressively developing its CBM portfolio.
The company formally signed contracts for the SCBM-2025 and SCBM-2026 bid rounds on October 15, 2026, at a ceremony chaired by Union Minister of Petroleum & Natural Gas Hardeep Singh Puri in Delhi, as reported by ETEnergyworld. Chairman Bhuwan Chandra Tripathi emphasized that the expansion reflects the Group's commitment to indigenous energy development, with natural gas continuing to play an important role in India's energy mix as energy demand continues to grow. The signing marks an important step in the Government's efforts to unlock India's unconventional hydrocarbon potential and strengthen domestic exploration and production capabilities, reinforcing the commitment to developing India's indigenous energy resources.
According to reports from ETEnergyworld, the expanded portfolio positions Essar Oil & Gas to develop an integrated CBM producing field expected to become India's largest CBM producing field. The development could contribute to domestic natural gas supplies, support investment in unconventional hydrocarbon resources and strengthen India's efforts to reduce reliance on imported gas. Around half of India's natural gas consumption is currently met through imports, making the development of indigenous resources an important part of its energy security strategy. The company's focus remains on supporting India's energy security through responsible development of domestic hydrocarbon resources while contributing to the country's transition towards a more balanced and sustainable energy mix, leveraging its proven technical expertise and operational capabilities in unconventional gas development.
